5 Things to Know Before Markets Open

News of the day for May 18, 2023

Biden G7 Japan

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President Biden arrives in Japan for the G7 meeting and Cisco shares fall after reporting a second quarterly decline in orders. Here’s what investors need to know today.

1. Biden Arrives in Japan for G7 Meeting As Debt Negotiations Continue

President Joe Biden arrived in Japan for the G7 Summit, part of a shortened Asia trip that occurs while the U.S. is gripped in negotiations to extend its debt ceiling. Biden said Wednesday that he was “confident” a deal would be reached before the June 1 deadline. The president is expected to return from the truncated trip on Sunday.

2. Cisco Shares Fall After Reporting Decline in Orders

Shares of Cisco Systems (CSCO) fell more than 3% in pre-market trading after the networking technology provider reported a 23% drop in orders. The company’s earnings beat expectations, reporting a 14% increase in revenue and profits of $1 a share, but its decline in orders follows a 22% drop from the previous quarter.

3. Take-Two Shares Rise Following Report of Higher Sales

Video game maker Take-Two Interactive Software (TTWO) beat estimates for quarterly adjusted sales as the company said it expected to deliver 36 game titles through 2026. Shares of the maker of Grand Theft Auto and NBA 2K were 8% higher in pre-market trading after fourth-quarter adjusted sales grew by 65% to reach $1.39 billion, higher than analyst estimates of $1.34 billion.

4. Charles Schwab Bond Sale to Raise $2.5 Billion in Debt

Charles Schwab (SCHW) is selling $2.5 billion in bonds to help it support business growth and support its subsidiaries, the discount brokerage reportedly said in a regulatory filing. Schwab’s finances have been closely watched since the March collapse of Silicon Valley Bank, when investors raised concerns over whether Schwab could navigate the same threats.

5. Existing Home Sales Projected to Fall

The National Association of Realtors will release its latest report on existing home sales at 10 a.m. ET. The consensus projection is that sales will fall in April to 4.26 million, down from 4.44 million in March.

Article Sources
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  1. CNN Politics. “G7 summit: Biden arrives in Japan and meets with prime minister.”

  2. Barron’s. “Cisco Sounds an Alarm on Orders. Analysts Aren't Too Worried About Networking Sector.”

  3. Yahoo Finance. “Take-Two gains on gaming demand rebound, title delivery forecast.”

  4. Wall Street Journal. “Schwab Taps Credit Markets to Raise $2.5 Billion in Debt.”

  5. MarketWatch. “U.S. Economic Calendar.”

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