5 Things to Know Before the Stock Market Opens

West Texas Intermediate, a proxy for U.S. oil prices, is extending losses amid investors’ concern that OPEC+’s recent decisions have left the door open for phasing out voluntary output curbs; Intel (INTC) shares are gaining after the U.S. chipmaker announced new artificial intelligence (AI) processors, as it takes on Nvidia (NVDA) and Advanced Micro Devices (AMD); Microsoft (MSFT) and Japan’s Hitachi announced a multibillion-dollar, three-year partnership they said will speed up the adoption of generative AI; E*Trade is reportedly considering telling meme-stock leader Keith Gill he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop (GME) options; Bath & Body Works (BBWI) shares are falling despite reporting first-quarter earnings that beat expectations and the retailer’s own guidance. U.S. stock futures are falling. Here’s what investors need to know today.

1. WTI Oil Extends Losses Amid Concerns Over Voluntary OPEC+ Cuts

West Texas Intermediate, a proxy for U.S. oil prices, is down almost 2% after falling more than 3% to an almost four-month low on Monday as investors fretted over a complex decision by the Organization of the Petroleum Exporting Countries and allies (OPEC+) on Sunday that left the door open for voluntary cuts to be gradually unwound. While the Saudi-led cartel opted to extend most of its production cuts until next year, it also agreed to voluntary cuts from eight members to be gradually unwound starting in October. According to analysts, the agreement to phase out cuts puts downward pressure on oil prices as it gives OPEC+ members considerable leeway to ramp up output depending on market conditions. 

2. Intel Gains as US Chip Giant Takes on Nvidia, AMD  

Intel (INTC) shares are up 1.7% in premarket trading after the U.S. chipmaker announced new AI chips for data centers at a trade show in Taiwan, in a challenge to Nvidia (NVDA) and Advanced Micro Devices (AMD), which had both recently unveiled their latest chips. Intel’s shares are down 40% this year through Monday as it struggles to catch up with Nvidia and AMD on the AI front. “AI is driving one of the most consequential eras of innovation the industry has ever seen,” Intel Chief Executive Officer (CEO) Pat Gelsinger said. “The magic of silicon is once again enabling exponential advancements in computing that will push the boundaries of human potential and power the global economy for years to come.” Nvidia and AMD are both down slightly.

3. Microsoft, Hitachi Form Multibillion-Dollar AI Partnership

Microsoft (MSFT) and Japan’s Hitachi Tuesday announced a multibillion-dollar, three-year partnership they said will speed up the adoption of generative AI. Hitachi will integrate Microsoft products—including Microsoft Cloud and GitHub Copilot—into its Lumada Solutions business. Hitachi will also train more than 50,000 “GenAI Professionals” on advanced AI skills, incorporating training provided by Microsoft. Shares of the U.S. tech giant, a backer of ChatGPT maker OpenAI, are down less than 1% in premarket trading. 

4. Morgan Stanley’s E*Trade Reportedly Looks Into Barring Keith Gill

E*Trade is considering telling meme-stock leader Keith Gill he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop (GME) options, according to The Wall Street Journal. Shares of GameStop soared 21% Monday, a day after Keith Gill posted on Reddit a screenshot showing a portfolio with 5 million shares worth over $100 million at the time. E*Trade and its owner Morgan Stanley (MS) are concerned about the power Gill, also known online as “Roaring Kitty” and “DeepF—Value,” has in driving stock gains for his own benefit, the report said, and are debating whether the influencer’s social media posts amount to manipulation. GameStop shares are down 2% premarket.

5. Bath & Body Works Sinks Even as Retailer Posts Better-Than-Expected Q1 Results 

Bath & Body Works (BBWI) shares are dropping 8% in premarket trading despite a first-quarter earnings report that surpassed analyst expectations and the retailer’s own guidance. Net sales slipped less than 1% year-over-year to $1.38 billion, just above analyst estimates of $1.37 billion, according to estimates compiled by Visible Alpha. Profit rose 7% to $87 million, or 38 cents per share, better than the $72.4 million and 32 cents per share analysts had expected. In guidance released in its previous quarterly report, Bath & Body Works had projected a first-quarter sales decline of 2% to 4.5%, with EPS expected between 28 cents to 33 cents.