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5 things to know before the stock market opens Thursday, May 16

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News Update – Pre-Markets

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

1. Back to rally

We’re in record territory again. All three major indexes hit new highs Wednesday and added to their strong 2024 performances. The broad market S&P 500 index gained 1.17%, breaking above 5,300 for the first time, to end at 5,308.15. The tech-heavy Nasdaq Composite, meanwhile, rose 1.40% while the Dow Jones Industrial Average gained 349.89 points, or 0.88%. Stocks got a boost from a lighter-than-expected consumer price index report, which lifted hopes for lower Fed rates. Follow live market updates.

2. Walmart’s wins

A Walmart Supercenter cart sits outside of the store on February 20, 2024, in Hallandale Beach, Florida. 

Joe Raedle | Getty Images

Walmart on Thursday beat quarterly revenue and earnings expectations and said it expects to hit the high-end or slightly top its previous full-year guidance. The big-box retailer attributed its success to making significant e-commerce gains, driving profits with newer businesses like advertising and winning over more high-income shoppers. Walmart is the nation’s largest retailer and private employer, which mean it’s often viewed as a bellwether for the U.S. economy. But it’s generally done better than other retailers during an inflationary period because it sells staples like groceries and has a reputation for being value-oriented.

3. The secret’s out

Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, May 4, 2024.

CNBC

Berkshire Hathaway finally revealed a stock purchase it’s been keeping secret for multiple quarters. The conglomerate, which had requested confidential treatment, bought 26 million shares of Zurich-based insurer Chubb for a stake worth $6.7 billion. Shares of Chubb rose nearly 10% in premarket trading Thursday after the stake was revealed. It’s now Berkshire’s ninth biggest holding, as of the end of March. Berkshire already has a large footprint in the insurance industry.

4. Go long

The Netflix logo is displayed above its corporate offices on January 24, 2024 in Los Angeles, California. 

Mario Tama | Getty Images

Netflix is taking its first real step into live sports. The streaming platform will show two NFL games on Christmas Day this year, and will have at least one matchup in both 2025 and 2026. Netflix didn’t disclose how much it paid for the rights to stream the games, but they could be a major draw for advertisers as it looks to boost profits by raising subscription prices and pushing users toward an ad-tier membership. The company also said Wednesday that its cheaper, ad-supported tier now has 40 million global monthly active users, nearly double the 23 million reported in January.

5. Uber roll outs

The logo of Uber is seen at a temporary showroom at the Promenade road during the World Economic Forum 2023, in the Alpine resort of Davos, Switzerland, on Jan. 20, 2023.

Arnd Wiegmann | Reuters

Uber on Wednesday announced several new features that aim to help customers save money on rides and food. The product updates, unveiled at an annual showcase in New York City, include the rollout of Uber Shuttle, where riders can use Uber to book seats on a local shuttle for trips to the airport, work and live events, such as sports games and concerts. Uber Caregiver, meanwhile, will let customers book rides for people they care for and order medical supplies and groceries on their behalf. Other new initiatives include discounted memberships for students, Costco perks, the ability to schedule UberX Share rides and “lists” on Uber Eats.

— CNBC’s Lisa Kailai Han, Melissa Repko, Yun Li, Ece Yildirim, Jacob Pramuk, Sarah Whitten, Alex Sherman, Lillian Rizzo and Ashley Capoot contributed to this report.

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India’s central bank fines Visa for unauthorised payment method By Reuters

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BENGALURU (Reuters) – The Reserve Bank of India imposed a penalty of 24.1 million rupees (nearly $288,000) on Visa (NYSE:) in relation to its usage of an unauthorised payment transfer method, the central bank said on Friday.

“It was observed that the entity (Visa) had implemented a payment authentication solution without regulatory clearance from RBI,” the central bank said in a statement, without providing details on the transgression.

In February, the RBI had ordered the credit card company to stop using an unauthorised route to make some commercial payments, per a Reuters report.

© Reuters. FILE PHOTO: Credit card is seen in front of displayed Visa logo in this illustration taken, July 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The central bank has aimed to tighten scrutiny of the processes followed by financial technology, or fintech, companies.

($1 = 83.6990 Indian rupees)





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Paris Olympics lift off with extravagant opening ceremony

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The Paris Olympics kicked off with an extravagant opening ceremony on Friday night when an armada of boats carried 10,500 athletes along the Seine — the first outdoor version of the spectacle that was expected to be watched by a billion people.

Earlier, a shadow was cast over the event by an act of criminal sabotage that hit France’s high-speed rail network in the early hours of the morning causing nationwide transport chaos. Heavy rain then began to fall about 30 minutes into the three-hour show, a nightmare scenario for the planners of the theatrical performance that featured a massive cast of dancers, two orchestras and a clutch of pop stars, including Lady Gaga doing a cabaret-tinged song.

Before the ceremony, interior minister Gérald Darmanin said: “We are ready for this magnificent event,” adding that no specific threats had been detected. The railway sabotage would “not have direct consequence on the Olympics or the ceremony”. 

Lady Gaga performs the opening number on the riverbank © Sina Schuldt/dpa

By mid-afternoon long queues had formed for ticket holders to get into the highly secured perimeter along the Seine river where 320,000 spectators were expected along the medieval-era cobblestone quays. The format of the event required heavy security: 45,000 police were deployed on the ground and in the air, using helicopters, drones and snipers positioned on roofs. 

The weather also tested the dozens of experienced ship captains powering the parade, who navigated at precisely the right speed to keep the show on line. Some spectators fled the quays for cover as rain poured down.

President Emmanuel Macron hosted more than 100 heads of state at Trocadero plaza across the river from the Eiffel tower where the athletes disembarked for a final parade and a performance by francophone favourite Céline Dion. Jill Biden, wife of the US president, and other leaders attended a reception at the Elysée palace beforehand. 

Map showing the route of the boat parade along the Seine river for the opening ceremony of the Paris Olympics

The idea for such an ambitious opening was the brainchild of one man, Thierry Reboul, an event specialist known for punchy marketing stunts, but pulling it off it needed more than 15,000 performers, technicians and firework specialists.

The performance featured ballet dancers on the roof of the Louvre, while hundreds of modern dancers and breakdancers performed along the quays and on some of the boats. Performers were clad in handmade outfits stitched by French couturiers, and LVMH’s Louis Vuitton trunk suitcases were prominently displayed in a lengthy segment. Bernard Arnault’s LVMH was an Olympics sponsor.

Organisers had to scale back some elements, such as BMX riders set to do tricks on a ramp because rain made it too slippery.

Floriane Issert, wearing the Flag of the International Olympic Committee (IOC), is seen on a Metal Horse on the River Seine during the opening ceremony © Getty Images

When Reboul pitched the idea for the river ceremony to Tony Estanguet, head of the Paris organising committee, the two-time gold medal winner reacted with stupor that quickly became enthusiasm. “It will be ambitious, audacious and totally crazy,” said Estanguet, recalling the moment. 

Reboul said the idea came to him on a walk along the Seine, the snaking river whose banks were chosen by a Gallic tribe called the Parisii to found a settlement about two thousands years ago. He told himself: “It should be here, of course it should be here, and nowhere else.”

The organisers hired Thomas Jolly, a 42-year-old theatre director known for a musical called Starmania, who started imagining how to convey the spirit of France from literature and culture to history. “I’m used to designing performances on a stage, and this time the entire city was my canvas,” he told reporters earlier this week. 

Zinedine Zidane, former French football player and manager, hands the Olympic Torch to Spanish tennis player Rafael Nadal © Getty Images

Jolly hired a team he has long worked with — a musical director, choreographer and a costume designer, all renowned in their fields — and also included author Leila Slimani, scriptwriter Fanny Herrero, who created the show Call My Agent!, and others to help him write the 12 tableaux that make up the ceremony.

Before they started writing, they took long walks along the Seine for inspiration and researched the history of its bridges, such as the oldest, Pont Neuf, finished under King Henry IV in 1607, and the Pont d’Austerlitz, commissioned by Napoleon Bonaparte, from which the parade will begin.

“We drew on the past of each site and monuments: almost each stone tells something about our history of France, of the history of Paris, a history which is connected to the world,” he said. 

But Jolly and Estanguet did not want the theatrics to overshadow the athletes, instead putting them at the centre of it by giving them the best spots to view the show — the decks of the boats on the river. 

“The athletes are the heroes of the show,” said Estanguet.

Although officials remained vague about the price, French media reported that the ceremony cost about €120mn, roughly four times that of the opener of the London 2012 Games. The overall cost for the Paris Games, which was pitched as a greener edition because little new infrastructure was built, is expected to reach €9-10bn, according to the national auditor. About one-third of that will be paid for by sponsors.

Jolly’s show was filled with memorable, kitschy moments: a hooded figure leaping across the zinc roofs of Paris, drag queens dancing to electro, beheaded royals of the French revolution set against heavy metal music, and a silver horse with an armour-clad rider gliding down the Seine.

Céline Dion closes the show with Edith Piaf’s ‘Hymne à l’amour’ © POOL/Olympic Broadcasting Services/AFP via Getty Images

Cheers rose when France’s beloved footballer Zinedine Zidane passed the torch to tennis champion Rafel Nadal.

The spectacle climaxed with an elaborate light show beaming out from the Tour Eiffel before a final flame relay to the Louvre led to a hot air balloon ascending into the night sky bearing a fiery Olympic cauldron.

Framed by the Eiffel tower, Canadian singer Céline Dion, in her first performance in years because of illness and wearing a white, beaded dress featuring 500m of fringe custom made by Dior, belted out Edith Piaf’s Hymne à l’amour.

“I declare the Paris games open,” said Macron.

Additional reporting by Adrienne Klasa



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How to watch, stream the Opening Ceremonies of the Paris Olympics live online free without cable

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On the heels of low ratings for the coronavirus pandemic-marred Tokyo and Beijing OlympicsParis may not do much better among U.S. viewers, a poll from Gallup released Thursday found.

Simone Biles and women’s gymnastics are poised to be a bright spot, with those surveyed selecting it as their most anticipated sport.

But according to the poll, 30% of respondents said they will not watch any of the Games, 34% said they will not watch much and 35% said they would watch at least a fair amount. That last figure is down from the 48% measured before the 2016 Olympics in Rio de Janeiro. Gallup did not measure viewing intentions for the Tokyo Olympics, which were delayed a year.

NBC’s prime-time coverage of the Tokyo Olympics mostly drew about half the audience of its Summer Games predecessor. The Beijing Olympics had the lowest-ever U.S. audience for a Winter Games. Both Games were held under severe restrictions, limiting spectators and dampening the typical fanfare. NBC, which holds the U.S. broadcasting rights through 2032, is trying to turn around that trend by enlisting a slew of entertainers and non-Olympian athletes in its coverage.

The last three Olympics, including the 2018 Pyeongchang Games, were held in time zones that limited how much live action NBC could air in prime time.

The network did not immediately respond to The Associated Press’ request for comment on the poll. Biles and the rest of the U.S. gymnastics squad could bring in high ratings, though, with Gallup finding in general that women’s sports were as anticipated as men’s. Forty-two percent chose women’s gymnastics as their most anticipated sport, while around two-thirds of respondents ranked it in their top three. That competition begins with qualifying on Sunday.

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