5 things to know before markets open on Monday

Happy Monday. Congratulations to Golden Tempo on winning the Kentucky Derby. However, as a financial journalist, I felt that I wanted to support emerging markets.

Stock futures are falling this morning. The market is coming off a winning week.

Here are five important things investors need to know to start their trading day.

Berkshire Hathaway On Saturday, Warren Buffett held his first annual meeting since stepping down as CEO earlier this year. CEO Greg Abel spoke about the company’s performance and answered questions from attendees, occasionally pulling aside other leaders of the multitrillion-dollar conglomerate.

Here’s what you need to know:

Mr. Abel aimed to demonstrate that he would run Berkshire in a similar way to his predecessor, working on everything from artificial intelligence to Berkshire’s stock portfolio. In an exclusive interview with CNBC’s Becky Quick on the sidelines of the conference, Buffett said the investment environment is not “ideal” for Berkshire. Berkshire’s cash pile grew to a record $397.4 billion in the first quarter. The conglomerate said the increase in operating profit was due in part to a recovery in its insurance business. The Berkshire Bazaar of Bargains shopping event had smaller crowds and shorter lines than in previous years, a sign that interest in the event without Buffett at the helm is waning. But investors seem generally satisfied with Abel’s performance so far, even if it lacks some of the wisdom and life advice that Buffett has become known for.

Spirit Airlines suspended flights early Saturday after failing to get bond investors to back a $500 million government bailout deal. As CNBC’s Leslie Josephs writes, this marks the end of an era for cheap travel.

The Florida-based airline, known for its yellow planes and no-frills service, had been plagued by rising costs and a failed merger. Spirit said 17,000 direct and indirect employees lost their jobs.

The airline said tickets purchased directly with credit or debit cards will be automatically refunded. Other airlines said they would limit fair holdings to help stranded travelers. If you have a Spirit ticket, here’s what you need to know:

President Donald Trump said yesterday that the United States would seek to “liberate” ships stuck in the Strait of Hormuz since the Iran war began. President Trump did not elaborate on how the effort, which he said would begin this morning, would be implemented or how the military would be involved.

Oil prices are rising this morning after Iranian state media reported that a missile hit a US warship near the Strait of Hormuz. U.S. Central Command denied these reports and stated in a post on X that “no U.S. Navy ships were attacked.” However, soaring oil prices put pressure on stock prices. Futures linked to the Dow Jones Industrial Average It was down more than 200 points (0.40%) before the bell.

Follow live market updates here.

Meta is scheduled to return to a New Mexico court today in a child safety case that could determine whether Facebook parents are public nuisances. Mehta said in a filing last week that the state’s attorney general is seeking “approximately $3.7 billion in abatement costs, as well as injunctive relief.”

Big tech companies lost the first round of lawsuits in March that focused on allegations that they failed to adequately protect children from sexual predators on their apps. The jury found that Mehta knowingly violated New Mexico’s tort law and owed $375 million. The second stage of the trial will now determine whether the company’s actions constitute a public nuisance and may require changes to its products.

On the other hand, in a California court, tesla CEO Elon Musk and OpenAI CEO Sam Altman plan to restart this week. As CNBC’s Ashley Caputo writes, Musk’s testimony was a key event in the case’s first week in court.

Kevin Warsh, President Trump’s pick to head the Federal Reserve, appears to have his own views on central bank independence. As CNBC’s Steve Reisman and Matt Peterson report, many former Fed officials still disagree.

Six former central bank leaders told CNBC that Warsh’s comments during his Senate confirmation hearing last week were unclear and confusing at best and alarming at worst. But officials said they were not ready to draw conclusions about Mr. Warsh’s potential leadership. Warsh declined CNBC’s request for comment.

Here’s what we’re looking at this week:

—CNBC’s Yun Li, Sarah Ming, Alex Crippen, Becky Quick, Leslie Josephs, Azhar Shukri, Garrett Downs, Justina Lee, Jonathan Bunyan, Ashley Caputo, Steve Reisman and Matt Peterson contributed to this report.

Davis Giangiulio helped produce this newsletter. Josephine Rozzelle edited this version.