5 Things to Know Before Markets Open

News of the day for May 10, 2023

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The Labor Department will release its latest update on consumer inflation and Google will introduce new artificial intelligence technology at its developer conference. Here’s what investors need to know today.

1. Inflation Expected to Stay at 5% YoY, Extending Fed’s Inflation Fight

The Labor Department will release its latest Consumer Price Index (CPI) at 8:30 a.m. ET. The report is expected to show the annual rate of inflation at 5% in April, level from March. If inflation fails to slow, it could push the Federal Reserve to raise rates again, or hold them at current levels for an extended period, as it tries to curb the rise in prices of goods and services.

2. Google Plans to Unveil New AI Tech at Developer Conference

Google will display its latest advancements in artificial intelligence at its developer event on Wednesday, as Alphabet seeks to regain momentum in the emerging new technology after competitor Microsoft integrated ChatGPT into its Bing search engine. CNBC reported that internal documents showed the Google I/O conference would unveil PaLM2, the company’s latest advance in large language models.

3. Shares of AI-Powered Lender Upstart Up Sharply on Positive Outlook, Despite Revenue Dive

Shares of lender Upstart Holdings (UPST) shot up 40% in pre-market trading after it beat estimates and offered a positive outlook, despite reporting revenue that was a third of what it was last year. Despite the high interest rate headwinds, the lending company that utilizes AI technology broke even, better than the losses that analysts had forecast.

4. Rivian Shares Move Up on Narrowing Losses, Soaring Revenue

Shares of electric truck maker Rivian (RIVN) rose 6% in pre-market trading after its first quarter loss was lower than analysts expected and revenue soared, as it remained on track to produce 50,000 vehicles in 2023. The company reported a loss of $1.45 per share, down from last year’s first quarter loss of $1.77, and quarterly revenue of $661 million, compared with $95 million in the first quarter of 2022.

5. Airbnb Posts First Ever Profitable Quarter, But Weaker Outlook Sends Shares Lower

Airbnb’s (ABNB) earnings beat estimates and the company had its first ever profitable quarter, but it offered a cautious outlook for the current quarter and weakened some of its forward guidance. Shares fell almost 10% in pre-market trading. The home-sharing service reported a 20% year-over-year rise in revenue and a profit of 18 cents a share, an improvement over the 2022 first quarter loss of 3 cents a share.

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  1. Yahoo Finance. “CPI preview: Inflation expected to remain elevated in April as rate hike risks loom.”

  2. CNBC. “Alphabet to unveil A.I. updates at Google I/O, showing off creative writing and coding capabilities.”

  3. MarketWatch. “Upstart stock soars 40% after upbeat earnings outlook, funding progress.”

  4. CNBC. “Rivian reports a narrower-than-expected quarterly loss, reaffirms EV production target.”

  5. CNBC. “Airbnb drops 10% after earnings report offers cautious outlook for second quarter.”

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