5 things you should know before the stock market opens

As earnings season draws to a close, investors this week will be watching results from companies like retailer Target (TGT) and comments from Federal Reserve Chairman Jerome Powell at Friday’s Jackson Hole symposium for clues on the rate-cutting trajectory. U.S. stock futures were little changed today after posting their best week of 2024 following reassuring data on inflation and the economy; Palo Alto Networks (PANW) is expected to report a rise in quarterly revenue and profit when it reports results after the market closes; Japan’s Seven & i, which operates the 7-Eleven chain, is considering a takeover offer from Canada’s Alimentation Couche-Tard; gold prices are hitting record highs; and investors will be watching shares of enterprise software maker Atlassian (TEAM), whose prices surged last week. Here’s what investors need to know today.

1. US stock futures barely changed after last week’s rally

U.S. stock futures were little changed after major stock indexes closed higher on Friday, capping their best week of 2024. Weak inflation convinced many investors that the Fed could start cutting interest rates next month, while strong retail sales reassured investors that the economy is not headed for a sharp slowdown and so any easing would not be very aggressive. The S&P 500 and Nasdaq closed higher for the seventh straight session on Friday, ending a streak of four straight weekly losses, while the Dow also ended the week in positive territory. Last week’s performance marks a turnaround for markets after a dramatic plunge the previous week, triggered by fears of a U.S. slowdown and the unwinding of the yen carry trade.

2. Palo Alto Networks is expected to report rising fourth-quarter results after the market closes

Palo Alto Networks (PANW) is expected to report higher revenue and earnings when the cybersecurity company reports fourth-quarter results after the market close, along with a strong outlook for fiscal 2025 and updates on its “platformization” strategy. Analysts are forecasting revenue to rise to $2.16 billion from $1.95 billion a year ago and earnings per share (EPS) to rise slightly to 66 cents from 64 cents. While Palo Alto Networks has indicated that its efforts to become a one-stop shop and offset spending fatigue have been well received by customers, the recent global outage caused by a faulty CrowdStrike (CRWD) update may raise questions about the market outlook. Palo Alto Networks shares were little changed in premarket trading.

3. 7-Eleven operator considers takeover by Circle K owner

The Japanese supermarket Seven & i, operator of the 7-Eleven chain, is considering a takeover by the Canadian group Alimentation Couche-Tard, owner of the convenience store brand Circle K. Seven & i said on Monday that a special committee of independent outside directors had been set up to review the offer. The company said it would “conduct a prompt, careful and comprehensive review of the proposal.” The news sent Seven & i shares soaring in Tokyo trading, closing about 23 percent higher.

4. Gold prices fall from record highs

Gold (GOLD) prices are falling slightly from new record highs as investors seek a hedge amid geopolitical instability and uncertain economic conditions ahead of an expected rate cut by the US Federal Reserve in September. The prospect of lower rates may make the precious metal more attractive relative to other assets, while investors are also looking for a safe haven amid escalating tensions in the Middle East. Chinese investors, who are avoiding stocks and real estate amid their homeland’s economic woes, have also contributed to price gains this year. The spot price of gold rose to a high of $2,508.14 per ounce in the last session, and analysts cited CNBC say the price could rise to $3,000 as the Fed’s September meeting approaches.

5. Atlassian shares in focus: Price increase curbs annual losses

Shares of collaboration software maker Atlassian (TEAM) are in focus after rising 9% last week. Still, the company’s shares are down more than 35% year-over-year. Earlier this month, the price fell to a 52-week low after the company issued a weak revenue outlook and announced the resignation of Chief Sales Officer Kevin Egan. Atlassian shares were little changed in premarket trading.