5 Things to Know Before Markets Open

News of the day for June 5, 2023

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Saudi Arabia will cut oil production by 1 million barrels this summer and Apple prepares to release its new VR headset. Here's what investors need to know today.

Saudi Arabia said it would cut its oil production this summer, sending oil prices higher, while other oil producing nations said they would extend their previously announced cuts. At a weekend OPEC meeting, Saudi Arabia said it would cut its daily production by 1 million barrels starting in July, part of an effort to keep oil prices high during an anticipated global economic slowdown that could undercut prices. Only the Saudis cut production, as the other OPEC+ nations agreed to maintain their previously announced production levels until year's end. Oil prices were trading about 2% higher.

Apple's (AAPL) Worldwide Developers Conference (WDC) will open at 1 p.m. ET, where Apple is expected to unveil its anticipated virtual reality (VR) headset, its first new product category since it introduced the Apple Watch in 2014. The product launch comes after Meta Platforms last week released the Oculus 3, a headset that is expected to cost significantly less than Apple's product. Shares of Apple are approaching an all-time high and traded 0.5% higher in pre-market trading.

U.S. banking regulators are considering new rules for large banks that would require them to raise their capital requirements by as much as 20%. The proposed rules would reportedly be released this month, part of an effort by regulators to place tougher rules on the banking sector after the collapse of several banks in past months, starting with Silicon Valley Bank in March.

Standard & Poor's will release its May Purchasing Managers' Index (PMI) for the service sector at 9:45 a.m. ET, where it is expected to remain steady at 55.1, indicating that executives still anticipate expansion in the sector. Also today, factory order data released at 10 a.m. ET is expected to show orders slowing, increasing 0.6% in April, down from 0.9% the previous month.

Sony's (SONY) Spider-Man: Across the Spider-Verse brought in $120.5 million in its domestic box office premier weekend, the second-highest opening weekend of 2023. The big opening weekend follows strong premieres for Disney'sGuardians of the Galaxy Vol. 3 and The Little Mermaid. Shares of Sony were trading 1.5% higher in pre-market trading.

CNBC. "Oil prices rise after Saudi Arabia pledges more voluntary production cuts."

CNN. "This could be Apple's biggest product launch since the Apple Watch."

Wall Street Journal. "Big Banks Could Face 20% Boost to Capital Requirements."

MarketWatch. "U.S. Economic Calendar."

CNBC. "'Spider-Man: Across the Spider-Verse' opens to $120.5 million, second-highest debut of 2023."