5 Things to Know Before the Stock Market Opens

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Apple (AAPL) shares are rising in premarket trading as April iPhone shipments in China reportedly staged a rebound after a flurry of discounts; investors can look forward to shorter settlement periods as U.S. stock markets switch today to a T+1 settlement cycle from a T+2 cycle; GameStop (GME) shares are soaring after it said late Friday that it had raised more than $900 million in a stock sale; Hess (HES) shares are higher in premarket trading ahead of a vote today by the oil company’s shareholders on whether to accept the $53 billion takeover from energy giant Chevron (CVX); and Scotiabank (BNS) shares are rising as its fiscal second-quarter earnings beat forecasts. U.S. stock futures are up ahead of a holiday-shortened week. Here’s what investors need to know today.

1. Apple Shares Rise as iPhone China Shipments Jump 52% in April on Price Discounts

Apple (AAPL) shares are rising about 2% in premarket trading as iPhone shipments in China reportedly surged 52% in April following a flurry of discounts from retail partners. The latest figures from the China Academy of Information and Communications Technology showed smartphone shipments soaring in the country, of which about 3.5 million units came from foreign brands, according to Bloomberg. The iPhone’s slide in China and loss of market share to domestic rivals like Huawei may be coming to an end, according to Bloomberg Intelligence analysts, as consumers expressed a higher interest in upgrading to new devices in a recent poll. Overall smartphone sales in China increased by 25.5% to 22.7 million units in April, the official data showed, according to Reuters.

2. U.S. Switches to Shorter Stock-Trade Settlement Cycle, AKA T+1

U.S. stock markets are switching to a T+1 settlement cycle from a T+2 cycle today, which means trades are finalized and funds and securities delivered by the business day after the trade is executed. Shortening the length of time between trade and settlement by a day should increase market efficiency and reduce risk in many areas, but it also reduces time to correct any mistakes before a trade goes through. Investors working with broker-dealers won’t see much of a difference, but those using an automated clearing house to facilitate payments or still trading using physical paper securities certificates will need to adjust their timelines.

3. GameStop Soars After Making Over $933M on Share Sale

Shares of GameStop (GME) are surging 25% in premarket trading, extending gains the meme stock made in extended hours on Friday after the video game retailer said it made more than $933 million from the sale of 45 million shares. The bricks-and-mortar retailer made headlines a couple of weeks ago after seeing a resurgence in buying by investors after Keith Gill, a key figure in the meme stock craze of 2020 and 2021, made a sudden return. Its shares lost most of those gains, however.

4. Hess Gains Ahead of Vote on $53B Takeover By Oil Giant Chevron 

Hess (HES) shares edged up less than 1% in premarket trading ahead of a vote today by the oil company’s shareholders on whether to accept the $53 billion takeover from energy giant Chevron (CVX). Chevron had warned in February that the deal could be jeopardized by a challenge from ExxonMobil (XOM) and China National Offshore Oil Corporation (CNOOC). The two have stakes in a lucrative oil site in Guyana to which Hess is a party, and a pre-existing deal allows them the right of first refusal on any changes in ownership.

5. Scotiabank Posts Q2 Earnings Beat Amid ‘Ongoing Macroeconomic Uncertainty’

Shares of Bank of Nova Scotia (BNS) are edging higher in premarket trading after the lender reported better-than-expected fiscal second-quarter earnings amid what Chief Executive Officer (CEO) Scott Thomson called a “backdrop of ongoing macroeconomic uncertainty.” The bank, more commonly known as Scotiabank, said Tuesday that its adjusted net income for the quarter fell to 2.11 billion Canadian dollars ($1.55 billion), or C$1.58 ($1.16) per share, from C$2.16 billion, or C$1.69 per share, a year ago. However, revenue for the three months through April rose to C$8.35 billion from C$7.91 billion.