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Hello. I'm Joe Wallace, here to bring you up-to-speed on Tuesday morning.
Earnings from Lowe's, Macy's, AutoZone and Urban Outfitters may give hints about how hot the economy is running. Stock futures are little changed after the Nasdaq Composite hit a record high on Monday. Crypto prices are up on signs the Securities and Exchange Commission could approve exchange-traded funds to hold ether.
Follow our live markets coverage throughout the day.
In today's feature article, David Uberti explains why utilities, normally a staid corner of the stock market, are flying higher. You guessed right: AI.
Live Markets Snapshot Data refreshes every time you open this email. CONTENT FROM: NYSE Ibotta raises $577M in its IPO
Ibotta $(IBTA)$ began trading on April 18th, raising $577 million as the largest Denver-based IPO ever. Don't know them? Ibotta is a performance marketing platform that seeks to allow brands to deliver digital promotions to hundreds of millions of consumers, with a mission to make every purchase rewarding. Who doesn't love that?
Watch now
Stocks to Watch
Palo Alto Networks : The cybersecurity company's shares slid in premarket trading. Its earnings, out late Monday, failed to impress investors with quarterly forecasts in line with analysts' estimates.
Peloton Interactive : The exercise-bike maker said Monday it had refinanced its debt, gaining access to nearly $1.4 billion in credit.
Trump Media & Technology Group : The Truth Social owner posted a steep quarterly loss and less than $1 million in revenue in the company's first earnings report since going public.
Coinbase : The cryptocurrency exchange's shares rose over 2% premarket, boosted by the rally in crypto prices.
JD.com : The Chinese e-commerce company said it plans to issue $1.5 billion or more of convertible bonds. JD's American depositary receipts fell about 5% ahead of the opening bell.
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The Unlikely Stocks That Became a Bet on AI
By David Uberti
An unlikely stock-market winner this spring stands out even in a year full of Wall Street surprises. Utilities-yes, utilities-are outpacing the competition.
The climb in shares of power companies is in part a rebound from a bleak 2023. But their move upward also reflects the growing belief that the U.S. economy can power through higher interest rates and turn the hype around artificial intelligence into reality.
Data in recent weeks has shown job growth cooling and inflation resuming its gradual slowdown, without any alarming deterioration in economic conditions. That has turned power generators, which are set to supply a wave of increasingly energy-hungry data centers needed for AI, into a bank-shot bet on the projected tech boom.
Of the S&P 500's top five performers this year, three are power producers. Texas-based Vistra's 138% surge in 2024 has made Nvidia's much-celebrated 91% increase look pedestrian.
Keep reading .
The Wall Street Journal's Evan Gershkovich is being wrongfully detained in Russia after he was arrested while on a reporting trip and accused of spying-a charge the Journal and the U.S. government vehemently deny. Follow the latest coverage , sign up for an email alert , and learn how you can use social media to support Evan.
Charting the Markets
Jamie Dimon said he will likely leave his role as CEO of JPMorgan Chase in under five years. He has presided over big returns for investors since taking charge at America's biggest bank in 2005.
Last week's revival of investor enthusiasm for GameStop and other meme stocks triggered a record flurry of trading outside of public stock exchanges. Retail brokerages route many of their customers' orders to electronic trading firms such as Citadel Securities and Virtu Financial.
Copper, arguably the world's most important industrial metal, is having a moment. In a recent letter, hedge fund Caxton Associates pointed to a trio of trends likely to lift demand for the electricity conductor: AI, nationalist industrial policies and green-energy investment .
Must Reads
For at least the past decade, Jamie Dimon has answered questions about potentially retiring with the same boilerplate response: five more years. On Monday, the 68-year-old JPMorgan CEO admitted the clock is finally starting to tick .
A group of Tesla shareholders is calling for investors to vote against Elon Musk's $46 billion pay package, which has become a flashpoint for the electric-vehicle maker as it faces slowing vehicle sales and tumbling shares.
Federal Deposit Insurance Corp. Chairman Martin Gruenberg bowed to pressure to resign from the bank regulator after an external investigation found widespread sexual harassment at the agency and lawmakers of both parties berated his leadership.
More:
Ivan Boesky, Convicted in 1980s Insider-Trading Scandals, Dies at 87 China Is Winning the Minerals War The Highest Paid CEOs of 2023 This Day in Markets On this day in 1720, the London Daily Post published a prospectus selling stock in "a design of more general advantage...and of more certain profit...than any undertaking yet set on foot." We can safely assume the profit went to the promoters of this proposal, the earliest known example of a blind pool. Beyond the Newsroom
Buy Side from WSJ: Are My Credit Card Rewards Taxable?
About Us
We want to be the first place you go to get ready for the opening bell every day. This newsletter was written by Joe Wallace ( [joe.wallace@wsj.com]) in London.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
May 21, 2024 06:19 ET (10:19 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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