5 Things to Know Before the Stock Market Opens

Shares of Lowe (LOW) are rising in premarket trading as the home-improvement retailer reported higher-than-forecast sales and earnings; Microsoft (MSFT) is set to give more details of its new category of Windows PCs at today’s Microsoft Build developer conference; shares of Palo Alto Networks (PANW) are slumping after the cybersecurity firm issued a downbeat outlook; Macy’s (M) shares are gaining after a profit beat; and cryptocurrencies are up further after big gains Monday and increasing confidence about an ether ETF approval. U.S. stock futures are little changed ahead of the hotly anticipated earnings report from Nvidia (NVDA) and the Federal Reserve’s meeting minutes, both set for release Wednesday. Here’s what investors need to know today.

1. Lowe’s Rises as Home-Improvement Retailer’s Results Beat Estimates

Shares of Lowe’s (LOW) are up more than 2% in premarket trading, even though year-over-year quarterly sales fell, as the home-improvement retailer posted first-quarter results that beat top- and bottom-line estimates. The company said quarterly revenue was $21.36 billion, beating analysts’ estimates of $21.12 billion, while net income of $1.76 billion, or $3.06 per share, surpassed forecasts of $1.68 billion, or $2.93 per share. While both revenue and profit fell from the prior-year quarter, the results were in contrast to those of rival Home Depot (HD), which last week reported results that missed analysts’ forecasts, as inflation continued to take a toll on consumer spending on DIY projects.

2. Microsoft Set to Give More Details of New Windows PCs for AI 

Microsoft (MSFT) is set to give more details of its new category of Windows PCs at today’s developer conference, Microsoft Build. The company announced the launch of Copilot+ PCs designed for artificial intelligence (AI) at an event Monday and said these Windows AI PCs “outperform Apple’s MacBook Air by up to 58% in sustained multithreaded performance, all while delivering all-day battery life.” Apple (AAPL) announced a new iPad model powered by the recently released M4 chip earlier in the month, in the iPhone maker’s push into AI devices. Microsoft stock is up 0.4% in premarket trading.

3. Palo Alto Networks Tumbles on Tepid Outlook Amid Cautious Enterprise Spending

Shares of Palo Alto Networks (PANW) are slumping nearly 7% in premarket trading after the cybersecurity firm issued a lackluster current-quarter and full-year outlook. For the full fiscal year, the company kept its billings guidance relatively unchanged, expecting it to range from $10.13 billion to $10.18 billion, compared with its earlier forecast of $10.10 billion to $10.20 billion. In an effort to pursue growth amid cautious enterprise spending on cybersecurity solutions, the company recently pivoted to a consolidated security platform, offering a range of initiatives, such as free product offers, to entice corporate signups.

4. Macy’s Surges on Profit Beat, Improved Outlook as Restructuring Bears Fruit

Macy’s (M) shares are up nearly 4% after it posted quarterly profits that beat analysts’ forecasts and upped its guidance for the year, in signs the retailer’s restructuring and closure of stores is starting to work. The retailer reported first-quarter adjusted earnings per share of 27 cents, beating forecasts of 15 cents, though revenue, which was down 2.7% year-over-year to $4.85 billion, was a tick below forecasts. Macy’s said it now expects full-year net sales of between $22.3 billion and $22.9 billion, versus the $22.2 billion to $22.9 billion range it projected in February.

5. Cryptocurrencies Gain Ahead of Possible SEC Approval of Spot Ether ETFs

Cryptocurrencies are rising ahead of the Securities and Exchange Commission’s (SEC) decision on approving spot exchange-traded funds (ETFs) for ether (ETHUSD). The SEC contacted at least one exchange and at least one potential spot ether ETF issuer to update related 19b-4 filings, Bloomberg reported. Ether, which surged 20% Monday, is rising again this morning, while bitcoin (BTCUSD) is little changed though trading above $71,000. The agency’s approval of spot bitcoin ETFs earlier this year turbocharged the demand for the cryptocurrency. Crypto-tied stocks also are rising, with trading app Robinhood (HOOD) up 2.4% in premarket trading and cryptocurrency exchange Coinbase (COIN) up 3.7%.