5 Things to Know Before the Stock Market Opens

FTX founder Sam Bankman-Fried is set to be sentenced to prison Thursday; Home Depot (HD) is buying roofing distributor SRS Distribution in a $18.25 billion deal; electric vehicle (EV) maker Fisker is cutting some of its prices to draw buyers and stave off a bankruptcy; RH (RH) shares are rising in premarket trading as the home furnishing retailer’s product transformation draws investor focus; and China lifts tariffs on Australian wine as tensions between the two countries ease. U.S. stock futures are little changed, while bitcoin (BTCUSD) is holding levels above $70,000. Here’s what investors need to know today.  

1. FTX Founder Sam Bankman-Fried Faces Sentencing Today 

FTX founder Sam Bankman-Fried is set to be sentenced to prison Thursday in a New York federal court for crimes connected to the collapse of the crypto exchange. Last year, a jury found the 32-year-old guilty of stealing billions of dollars from FTX customers and defrauding investors and lenders to his crypto investment firm Alameda Research. Federal prosecutors say Bankman-Fried committed one of the greatest financial frauds in U.S. history, and used other people’s money to fund his luxurious lifestyle and make risky investments. Before its demise, FTX was the third-largest crypto exchange.

2. Home Depot to Buy Roofing Distributor SRS in $18.25B Deal

Home Depot Inc. (HD) said Thursday it is buying roofing distributor SRS Distribution in a $18.25 billion deal, as the home-improvement retailer expands beyond catering to traditional do-it-yourself (DIY) customers to supplying big construction jobs. Home Depot said it expects the deal to close by the end of fiscal 2024. It said it will finance the deal through cash on hand and debt. "SRS's 2,500-plus professional sales force and 760-plus branch network across 47 states, together with its 4,000-plus truck fleet and jobsite delivery capabilities, will enable The Home Depot to extend its offering to residential specialty trade pros while better serving renovator/remodelers,” the retailer said. Home Depot has more than 2,000 U.S. stores and distribution centers.

3. Fisker Cuts Some EV Prices in Push To Draw Demand as Cash Runs Out 

Fisker, which is in the midst of being delisted by the New York Stock Exchange (NYSE), is cutting the suggested prices for some of its 2023 model-year vehicles, as the struggling electric-vehicle (EV) maker rushes to raise cash. Fisker is cutting the price of its 2023 Ocean Extreme trims by 39% to $37,499 from $61,499, and also reducing the Manufacturer’s Suggested Retail Price of its Ultra and Sport trims by more than 30%. Trading was halted earlier Monday after it said negotiations with an unidentified “large automaker” had ended, adding to concerns that the company could be forced into bankruptcy.

4. RH Gains as Investors Look To Home Furnishing Retailer’s Transformation Rather than Earnings Miss

RH (RH) shares rose 8% in premarket trading, as investors focused on the home-furnishing retailer’s RH Sourcebook product range transformation rather than its quarterly top- and bottom-line results that came in well below Wall Street’s expectations. The premium home décor company said in its quarterly shareholder letter that it plans to unveil its RH Modern Sourcebook collections between late April and early May, which it expects to accelerate demand trends in the second quarter and throughout the back half of 2024. In addition, RH anticipates a sales boost from its updated RH Contemporary Sourcebook collections expected to reach homes in late July through early August.

5. China Lifts Tariffs on Australian Wine as Tensions Ease 

China reportedly said Thursday it will lift the tariffs it placed on Australian wine more than three years ago, in a sign of how tensions between the two countries are easing.Beijing imposed taxes of more than 200% in 2020 as it targeted Australian coal, barley, timber, and lobsters as part of a wider political falling out. But China-Australia relations have improved since a new Canberra government was elected in 2022.