- Retail earnings are still trickling in.
- Fast fashion giant wants to join a major trade group but has been rejected numerous times.
- SoftBank's Vision Fund posted its first annual gain in three years.
Here are the most important news items that investors need to start their trading day:
1. Best of the year
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The Dow Jones Industrial Average had its best week of 2024 so far with a 2.16% gain. It was also the index's fourth weekly gain in a row. The S&P 500 and the Nasdaq Composite also had winning weeks, adding 1.85% and 1.14%, respectively. Investors have been enthusiastic lately since Fed Chair Jerome Powell indicated rate hikes are likely off the table. But some of that exuberance was kept in check after consumer sentiment data released Friday morning showed a big uptick in inflation expectations. The next test will come with the release of April's consumer price index, which is due Wednesday. Follow live market updates.
2. Earnings wind down
Earnings season is just about wrapped up. In fact, there are just seven S&P 500 companies set to report this week. Of the 92% of S&P 500 companies that have already reported, nearly 80% have beaten expectations. But the companies that are left could provide insights into how consumers are doing. Here are the earnings to watch this week:
- Monday: SoftBank Group (before the bell)
- Tuesday: Home Depot, Alibaba (before the bell)
- Thursday: Walmart, Under Armour (before the bell)
3. Shein's not in
Chinese-founded fast fashion giant Shein is trying to win over lawmakers — and the broader retail industry. Shein wants to become part of the National Retail Federation, the industry's largest trade association, but it's been rejected multiple times, CNBC's Gabrielle Fonrouge reported. Shein, which filed to go public in the U.S. late last year, has been working to convince lawmakers that it can be trusted as a public company despite concerns over its ties to China, its supply chain and its use of a trade law loophole. Joining the NRF could be an important stamp of approval and help legitimize the company as it goes on a charm offensive in Washington.
4. SoftBank's vision
SoftBank's Vision Fund, its flagship tech investment arm, posted its first annual gain in three years of 724.3 billion Japanese yen (US$4.6 billion). For the fiscal year, SoftBank's Vision Fund swung to a profit of 128.2 billion yen after a 4.3 trillion yen loss the year before. That recovery — in large part thanks to last year's IPO of chip designer Arm, a subsidiary of Softbank — helped SoftBank Group swing to a profit in the fiscal fourth quarter that ended in March.
5. Secret sauce
The restaurant industry has seen sales slump and traffic decline as customers pull back their spending. Fast-food restaurants have been hit especially hard, as low-income consumers become more budget conscious. In fact, McDonald's is working to introduce a $5 value meal in U.S. stores to help offset the pullback. But fast-casual chains such as Chipotle Mexican Grill, Wingstop and Sweetgreen seem to be the exception to the trend. They say the higher-income consumers that frequent their stores aren't as worried about spending, and they're benefitting from being a better perceived value than some fast food restaurants.
Money Report
— CNBC's Pia Singh, Fred Imbert, Gabrielle Fonrouge, Arjun Kharpal, Kate Rogers and Amelia Lucas contributed to this report.
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