5 Things to Know Before the Stock Market Opens

Market watchers will be focused on today’s release of the Personal Consumption Expenditures (PCE) index for signs of improving inflation; Nike (NKE) shares are plummeting after it lowered its fiscal 2025 sales guidance; optical equipment supplier Infinera (INFN) is surging after reaching an agreement to be acquired by Nokia (NOK); Tractor Supply (TSCO) shares are moving higher after the company announced an end to diversity, equity, and inclusion (DEI) efforts; and Boeing (BA) shares are little changed after the National Transportation Safety Board (NTSB) sanctioned it for sharing non-public investigative information with the media. U.S. stock futures are higher. Here's what investors need to know today.

1. Fed Officials Looking for More Inflation Progress in PCE Report

Market watchers will be keenly awaiting the release of the Personal Consumption Expenditures (PCE) index, which is expected to show inflation cooled again in May. Economists project that year-over-year inflation will decline to 2.6%, down from April’s reading of 2.7%, while the “core” inflation rate that excludes energy and food costs is also expected to drop to 2.6%, which would be its lowest level since March 2021. Recent inflation reports have shown that price pressures have begun easing again after pushing higher earlier this year, which led Federal Reserve officials to pull back on projections for interest-rate cuts.  Investors will be looking at the report for signals that inflation is moving meaningfully lower, which could give Fed officials the confidence to begin cutting interest rates, potentially sending markets higher.

2. Nike Shares Plummet After Missing on Quarterly Sales, Lowering Guidance

Shares of Nike (NKE) are dropping about 15% in premarket trading after the apparel maker’s quarterly revenue came in lower than expected, leading executives to lower guidance for sales in fiscal 2025. Nike’s revenue of $12.6 billion for its fiscal fourth quarter was about 2% lower than it produced in the same quarter last year and below analysts' expectations. The shoemaker reported improvements in its net income, with earnings per share (EPS) coming in at 99 cents, above the 66 cents from the year-ago period and better than the 84 cents that analysts forecasted. However, the company lowered its sales forecast for fiscal 2025, projecting sales to be lower by a mid-single-digit percentage after previously expecting full-year sales to grow. Further, Chief Financial Officer (CFO) Matt Friend said, "We expect first-quarter revenue to be down approximately 10%."

3. Infinera Soars on Takeover Offer By Nokia

Optical equipment supplier Infinera (INFN) shares are surging 19% in premarket trading Friday, a day after Finnish telecom firm Nokia (NOK) agreed to buy the company in a $2.3 billion deal. The deal would value Infinera at $6.65 a share, 28% higher than the stock’s closing price of $5.18 on Wednesday. Nokia will pay at least 70% of the offer in cash and Infinera shareholders will be able to receive the rest of the deal in shares of Nokia American depositary shares (ADSs).

4. Tractor Supply Stock Moving Higher After Spiking DEI, Environmental Goals

Shares of retailer Tractor Supply (TSCO) are up about 1% in premarket trading after the seller of animal feed said Thursday it would end its corporate diversity and environmental goals after hearing "from customers that we have disappointed them." The Tennessee-based company said it would eliminate all of its diversity, equity, and inclusion (DEI) goals, withdraw its carbon emissions targets, and "stop sponsoring nonbusiness activities like pride festivals and voting campaigns."

5. NTSB Sanctions Boeing for Sharing Non-Public Information With Media

Boeing (BA) shares are little change in premarket trading after the National Transportation Safety Board (NTSB) sanctioned the aircraft maker for violating agency rules amid its investigation into a January incident where a panel blew off of a 737 Max 9 plane mid-flight. The NTSB said that the company improperly revealed information related to the investigation during a media briefing on Tuesday. As a result, the NTSB will restrict information sharing with Boeing, the agency said. The rebuke comes after Boeing said it could not locate documentation related to the work on the faulty door plug on the Alaska Airlines (ALK) flight.