5 Things to Know Before the Stock Market Opens (2024)

U.S. stock futures are edging higher Friday after shares tumbled Thursday, as hot business activity data heightened investor fears that inflation would persist and the Federal Reserve would delay a rate cut—overshadowing Nvidia’s (NVDA)blowout earnings; prices of Ether (ETH) are falling as investors took profit on the second-largest digital asset following Thursday's long-anticipated Securities and Exchange Commission's tentative approval of spot ETFs; Workday (WDAY) shares are plunging after the cloud-based professional services company provided weak revenue guidance; Intuit (INTU) shares are dropping on the company's expectations of fewer customers using its TurboTax tax filing software for free; and Ross Stores (ROST) shares are jumping after the discount clothing chain posted an earnings beat and raised its outlook. Here’s what investors need to know today.

1.US Stock Futures Edge Up After Rate-Cut Delay Fears Overshadowed Nvidia’s Glow Thursday

U.S. stock futures edged higher Friday morning after shares plunged Thursday on the back ofa surprisingly hot purchasing managers index (PMI) print that offset earlier optimism about chip giant Nvidia’s (NVDA)blockbuster results. The May data showed the economy remains resilient and boosted concerns that inflation remains elevated—raising investor fears that the Federal Reserve may delay interest rate cuts.Adding to investors' concerns: Atlanta Fed President Raphael Bostic said Thursday that it will take time for interest rates to reach their full impact and bring inflation down, while Goldman Sachs analysts said in a note Friday that they are moving their forecast of the Fed’s first rate cut back one meeting, from July to September. Futures tied to the Dow Jones Industrial Average, which lost 600 points on Thursday in its worst performance so far this year, were about 0.1% higher in premarket trading.

2. Ether Falls as Investors Take Profit After SEC Paves Way for Spot ETF Approvals

Prices ofEther (ETH) were down around 2%, as investors took profit following the approval by the Securities and Exchange Commision of applications for the listing of eight spot Ether exchange-traded funds. The surprise approval by the regulator doesn’t, however, allow the ETFs to immediately begin trading, as the SEC will still need to review individual applications in a process that could take several weeks. The agency's approval of spot bitcoin ETFs earlier this year turbocharged the demand for the cryptocurrency. Ether, whose price has run up around 60% this year in anticipation of the SEC green light on ETFs, is the native cryptocurrency for the Ethereum blockchain and network.

3.Workday Tumbles on Lower Sales, Tepid Outlook

Workday (WDAY) shares plunged more than 11% in premarket trading after the cloud-based professional services company provided softer-than-expected current-quarter and full-year subscription revenue guidance. Workday CFO Zane Rowe said in the company’s earnings statement that the weak revenue outlook reflected “elevated sales scrutiny and lower customer-headcount growth." However, Workday said its increased efficiencies helped it boost its annual adjusted operating margin by half a percentage point to 25%.

4.Intuit Slumps as Software Giant Sees Fewer Non-Paying Clients for TurboTax

Intuit (INTU) shares fell 6% after the company said it expected a drop in customers who use its TurboTax tax filing software for free. Thebookkeeping-software giant said for the full fiscal year, which ends July 31, it expects “customers paying nothing to be over 10 million, down from over 11 million last year.” The shares slump came even as the company raised its full-year profit and sales guidance and posted a surge in third-quarter results. Besides TurboTax, the company also owns personal-finance portal Credit Karma and small-business-accounting software QuickBooks. CEO Sasan Goodarzi said its strategy as a “global AI-driven expert platform” has been boosting the company’s results.

5.Ross Stores Surges on Discount Retailer’s Earnings Beat, Upped Guidance

Ross Stores (ROST) shares jumped 7% in premarket trading after the discount clothing chain reported better-than-expected top- and bottom-line results for its fiscal first quarter as consumers traded down amid inflation. It also raised its guidance. The company posted an 8% rise in first-quarter revenue to $4.86 billion and diluted earnings per share that rose to $1.46 each from $1.09 the same period last year. The retailer said it expected earnings per share of $5.79 to $5.98 for its full fiscal year, up from expectations for $5.64 to $5.89 given in March. Chief Executive Barbara Rentler said in a statement that while “macroeconomic headwinds'' continued to pressure customers’ discretionary spending, the off-price retailer managed to beat forecasts due to lower expenses.

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