5 Things to Know Before the Stock Market Opens

Walmart (WMT) shares are rising after a first-quarter earnings beat; Meta Platforms (META) is the subject of an EU child safety probe; Chubb (CB) shares are surging after the insurer was revealed to be the mystery stock Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) had begun building a position in last year; Microsoft (MSFT) is reportedly asking hundreds of employees in its China-based cloud computing and artificial intelligence (AI) operations to consider transferring outside the country as tensions rachet up between Washington and Beijing over sensitive technologies; and Deere & Co. (DE) shares are tumbling after once again lowering its profit outlook for the year. Dow futures are near the 40000 threshold after markets closed at record highs Wednesday as signs of moderating inflation boosted investor bets that the Federal Reserve may cut interest rates. Here’s what investors need to know today.

1. Walmart Jumps After Q1 Beat on E-Commerce, Upper-Income Customers

Walmart (WMT) shares are up 5% about 90 minutes before the opening bell after the company reported higher-than-forecast top- and bottom-line results for its fiscal 2025 first quarter on the back of rising e-commerce sales and “upper-income” customers. The retail giant posted revenue of $161.5 billion, above the $159.5 billion average estimate compiled by Visible Alpha, while earnings per share (EPS) of 63 cents beat expectations of 51 cents. Walmart said it expects net sales for the current quarter to increase by 3.5% to 4.5% and sees full-year net sales growth at the “high-end or slightly above” its previous guidance of 3.0% to 4.0%.

2. Meta Faces EU Probe Over Child Safety Content

Meta Platforms (META) was hit by another regulatory probe Thursday, with the European Union (EU) saying it has opened formal proceedings to assess whether the social media giant had breached its online content law over child safety risks. The European Commission, the EU’s executive body, said in a statement that it is investigating whether the company’s Facebook and Instagram platforms and algorithms “may stimulate behavioural addictions in children, as well as create so-called ‘rabbit-hole effects,’” and was “also concerned about age-assurance and verification methods.” Meta stock was down less than 1% in premarket trading.

3. Chubb Jumps as Buffett’s Berkshire Reveals $6.7B Stake in Insurer

Chubb (CB) shares are surging nearly 8% in premarket trading after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has taken a sizable stake in the Zurich-based company, adding to the investment firm’s portfolio of insurers. Berkshire’s stake of nearly 26 million shares in Chubb, one of the world’s largest publicly traded property-casualty insurers, had a market value of around $6.7 billion as of March 31, making it the conglomerate’s ninth-largest holding. Berkshire owns GEICO and National Indemnity among insurance companies, which fit the legendary investor’s “buy and hold” philosophy because they provide a steady source of capital that can be deployed into long-term investments.

4. Microsoft Reportedly Asks China-Based AI Staff to Consider Overseas Transfers

Microsoft (MSFT) reportedly is asking hundreds of employees in its China-based cloud computing and artificial intelligence (AI) operations to consider transferring outside the country as the Biden administration toughens controls on Beijing’s access to cutting-edge American technology. The company is offering around 700 to 800 people—mostly engineers with Chinese nationality—the opportunity to transfer to countries including the U.S., Ireland, Australia and New Zealand, The Wall Street Journal said. Microsoft shares were up less than 1% in premarket trading.

5. Deere Plunges as It Lowers Guidance, Cites ‘Challenging Market Conditions’

Shares of Deere & Co. (DE) are down more than 5% in premarket trading after the manufacturer of farm and construction machinery reported declining quarterly results and lowered its full-year profit guidance amid “challenging market conditions.” The company reported a 12% year-over-year slump in its fiscal second-quarter revenue to $15.24 billion and a 17% fall in net income to $2.37 billion. The maker of tractors and excavators now anticipates fiscal 2024 net income of around $7.0 billion, down from the previous range of $7.5-7.75 billion, itself a forecast that had been cut as recently as February.

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