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5 things to know before the stock market opens Monday


Here are the most important news items that investors need to start their trading day:

1. Markets look to rebound

U.S. stock indexes are coming off their worst week since March. A regional bank stock rebound and strong Apple earnings boosted the market Friday, and April jobs data came in better than expected despite recession concerns. This week, the focus will turn to monthly inflation data after the Federal Reserve hiked interest rates again to try to cool off stubbornly high prices. The consumer price index will come Wednesday, while the producer price index is due Thursday. Inflation has started to ease, and the central bank has signaled it may pause rate increases amid concerns about an economic slowdown and the health of the banking system. Follow live market updates.

2. Buffett dishes

Warren Buffett and his right-hand man Charlie Munger weighed in on everything from regional banks to artificial intelligence during Berkshire Hathaway‘s annual shareholders meeting Saturday. While Buffett said banks may not be out of the woods yet, he said he believes deposits are safe. The Oracle of Omaha said he has also seen slowing activity at some of Berkshire’s businesses. The conglomerate does not plan to take full control of oil giant Occidental Petroleum, Buffett said.

3. Debt ceiling drama

The coming days could prove pivotal for efforts in Washington to raise the debt ceiling and prevent a first-ever default on U.S. sovereign debt. President Joe Biden will meet Tuesday with the top four congressional leaders as lawmakers try to break a stalemate over how to increase the borrowing limit. Treasury Secretary Janet Yellen warned Sunday that a “steep economic downturn” would follow if Congress fails to act in the next few weeks. The Treasury Department has estimated the U.S. could run out of money to pay its bills as soon as early June.

4. Regionals rise

Regional bank stocks appeared poised to climb for a second straight day Monday, after the failure of First Republic sent their shares plunging early last week. The third failure of a regional bank since March put more scrutiny on the sector — and names like PacWest Bancorp in particular. Shares of the lender spiked in premarket trading Monday, after PacWest announced Friday evening that it would slash its dividend. The bank’s rise helped to fuel a broader rally in the sector, as the SPDR S&P Regional Banking ETF advanced in premarket trading.

5. Disney on deck

Walt Disney will headline the quarterly earnings slate expected this week. Other results will shine a light on the health of the consumer. Here are some of the reports expected this week:

– CNBC’s Samantha Subin, Jeff Cox, Yun Li, Sarah Min, Tanaya Macheel, Alex Harring, Hakyung Kim, Christina Cheddar-Berk and Ashley Capoot contributed to this report.

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This story originally appeared on CNBC

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