5 things to know before the stock market opens on Friday, May 31

Here are five key things investors need to know when starting their trading day:

Stocks fell on Thursday as sales force It fell 20%. The cloud software provider reported weaker-than-expected first-quarter results, its worst day since 2004. The Dow Jones Industrial Average fell 330.06 points, or 0.86%, dragged down by Salesforce. The S&P 500 fell 0.6%, and the Nasdaq was the worst performer, falling 1.08%, as technology stocks weakened. AI darling Nvidia also fell more than 3%, its first decline since reporting huge earnings last week. Microsoft A drop of more than 3%. Follow real-time market updates.

Former President Donald Trump was found guilty in a New York court on Thursday of all 34 felony counts of falsifying business records. The charges relate to hush-money payments made by his then-personal attorney, Michael Cohen, to porn star Stormy Daniels before the 2016 election. Trump is the first former U.S. president to be convicted of any crime. His sentencing is scheduled for July 11, four days before the Republican National Convention, when Trump will be officially confirmed as the Republican presidential nominee. Trump is free from bail and can continue to campaign, but he could face up to four years in prison on each count, although a judge will not necessarily sentence him to jail. Appeals are almost inevitable, and the process can last months or even years.

Investors hope Friday’s personal consumption expenditures report, expected at 8:30 a.m. ET, will show more progress on inflation. PCE is the Fed’s favorite inflation measure because it can explain changes in consumer behavior, such as shoppers deciding to choose cheaper items over more expensive ones. Inflation is expected to hit an annual rate of 2.7% in April, both overall and in the key “core” reading, according to Dow Jones estimates. Core readings exclude food and energy costs. If this prediction comes true, it would mean a slight decline in core indicators and little change in the overall index.

Retailers had a big day Thursday, with surprising earnings reports and big stock moves. Kohl’s The company’s shares fell more than 20% on the day after the company reported an unexpected loss per share that was well below Wall Street’s modest profit expectations. But other retailers are doing better. Foot cabinet Its shares soared 15%, suggesting its transformation is starting to pay off. and stocks Best Buy The company’s quarterly sales forecast missed expectations, but earnings per share were better than expected and it reiterated its full-year forecast, sending its stock price up 13%. gap Its afternoon earnings report also saw huge share price moves. Shares of the retailer rose more than 20% in premarket trading after the retailer beat profit expectations and posted revenue growth.

Consumers and businesses are becoming cautious about spending on everything from durable goods to software, Bank of America Chief Executive Brian Moynihan said Thursday at a financial conference in New York. Moynihan said there is still some growth as consumer spending via card payments, checks and ATM withdrawals rose about 3.5% this year to about $4 trillion. But he noted that this was a significant decrease from the nearly 10% growth rate in May 2023. [they’re] A lot of that,” said Moynihan, who runs the nation’s second-largest bank by assets. “They’re more vulnerable because of everything that’s going on around them.

—CNBC’s Alex Harring, Dan Mangan, Kevin Breuninger, Brian Schwartz, Jeff Cox, Gabrielle Fonrouge, Melissa Repko, Sean Conlon and Hugh Son contributed to this report.

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