5 Things to Know Before Markets Open

News of the day for May 26, 2023

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The Commerce Department will release its latest inflation reading and Ford electric vehicle owners will soon be able to use Tesla charging stations. Here’s what investors need to know today.

1. Fed's Preferred Gauge of Inflation Expected to Show Price Growth Accelerating

The Commerce Department's latest Personal Consumption Expenditures (PCE) Price Index is expected to show that inflation edged higher in April when it is released at 8:30 a.m. ET. Analysts project the Federal Reserve’s preferred gauge of inflation will show that the PCE ticked up 0.3% last month, accelerating from a 0.1% increase in March, with the annual rate of inflation moving up to 4.3% in April, up from 4.2% in March.

2. Ford EVs Will Get Access to Tesla Charging Stations

Rival electric vehicle makers Ford Motor (F) and Tesla (TSLA) will share access to charging ports, as the two leading U.S. EV makers move towards a common charging platform. Under the agreement, current owners of Ford EVs will be able to use the more than 12,000 Tesla Superchargers across the U.S. and Canada starting early next year through the use of an adapter. Future Ford EV vehicles will be manufactured to include a Tesla charging port. Shares of Ford and Tesla moved up around 0.5% in pre-market trading.

3. JPMorgan Chase Developing ‘IndexGPT’ AI Investing Chatbot

JPMorgan Chase (JPM) is developing a ChatGPT-like artificial intelligence tool for investing that will use “cloud computing software using artificial intelligence” for “analyzing and selecting securities tailored to customer needs.” A trademark filing from the New York-based bank showed the AI chatbot software would be called “IndexGPT.” Shares of JPMorgan traded 0.3% higher in the pre-market.

4. Gap Shares Rise After Retailer Improves Gross Margins, Narrows Losses

Shares of Gap (GPS) jumped 11% in pre-market trading after the retailer reported that it narrowed its losses and that its gross margins improved due to fewer promotions and lower air freight expenses. The retailer, whose brands also include Banana Republic, Old Navy and Athleta, reported a net loss of $18 million, or 5 cents a share in the 2023 first quarter, compared with $162 million, or 44 cents a share, from the same period last year.

5. Icahn’s Firm Continues Fall After Ackerman Questions Valuation

Shares of Carl Icahn’s investment firm Icahn Enterprises LP (IEP) tumbled after rival investor Bill Ackman raised questions about the company’s high valuation. Icahn Enterprises LP has lost more than 60% of its value since short-seller Hindenburg Research released a scathing report on the firm three weeks ago, likening it to a “Ponzi scheme.” Shares fell more than 20% on Thursday and were trading 2% lower in pre-market trading.

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  1. Barron's. “April's PCE Inflation Data Comes Today. What to Expect From the Report.

  2. CNBC. “Ford EVs will use Tesla charging tech in surprise partnership between rival automakers.”

  3. CNBC. “JPMorgan is developing a ChatGPT-like A.I. service that gives investment advice.”

  4. CNBC. “Gap shares soar after retailer reports big improvement in margins.”

  5. Reuters. “Carl Icahn's IEP slumps after old rival Ackman reignites feud.”

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