Good morning, CFOs. Why retailers are flocking to TikTok Shop; the lowest-rated companies are having a tough time accessing credit in the leveraged loan market; OpenAI CFO Sarah Friar and CEO Sam Altman’s joint statement.

TikTok isn’t just for so-called influencers and viral moments anymore. The e-commerce site of the social media platform, known as TikTok Shop, is increasingly where Americans go to shop. That’s capturing the imagination of U.S. companies.

The WSJ Leadership Institute’s Jennifer Williams talked with experts and retail CFOs of TikTok Shop adopters, including Olaplex Holdings, which moved onto TikTok Shop late last year. Ralph Lauren also has been on the platform since last year, while Ulta Beauty joined in March.

“You want to be where the consumer is, and increasingly, that’s obviously on social media and online,” Olivia Tong, a managing director at Raymond James, told Jennifer.

Here's a data point to back up the trend:

Since its U.S. debut in late 2023, TikTok Shop has surged in popularity. Consumers’ spending on the platform was up 46% in the first three months of this year compared with the previous year, according to data provider Consumer Edge. Retailers see TikTok Shop as a way to reach younger shoppers in particular, but older demographics were the fastest growing segments early this year, the data show.

For the full details, read on here.

📆 Earnings

Aflac, Alphabet, Amazon.com, AstraZeneca, Automatic Data Processing, Biogen, Carvana, Chipotle Mexican Grill, eBay, Ford Motor, Garmin, GE HealthCare Technologies, General Dynamics, Humana, Meta Platforms, MGM Resorts International, Microsoft, Qualcomm, SoFi Technologies, Stanley Black & Decker, UBS Group and Yum! Brands

📈 Economic Indicators

The Census Bureau reports new residential construction statistics for March.

The Census Bureau releases the durable goods report for March.

The Federal Open Market Committee announces its monetary-policy decision. 

The lowest-rated companies are having a tough time accessing credit in the leveraged loan market due to uncertainty among investors about the long-term effects of the war in Iran, according to KPMG.

During the first quarter, new-issue leveraged loan volume fell 11% compared with a year earlier, to $173.3 billion, according to KPMG. Since the war broke out in February, volumes have seesawed from week to week, and investors scooped up credits from higher-rated companies, according to Howard Lanser, head of capital markets at KPMG US. “High-quality deals will get done,” he said.

Loan repricings and extensions plunged 39% over the same period, to $171.3 billion, after starting the year out strong but drying up in March, according to KPMG. Such loans made up 37% of institutional loan volume—meaning, refinancing plus new-issue loans—down from 49% a year earlier.

Demand for loans used to finance M&A activity remained strong, however, reaching $74.6 billion, a four-year high, according to KPMG. Dealmaking has been on a tear, particularly for large acquisitions, as companies adjust to tariffs and take advantage of a more lax approach to antitrust policy under the Trump administration.

Lanser said he’s listening to what finance chiefs say during earnings calls about the potential impact of higher commodity costs on their businesses in future quarters. “I just don’t think we’ve seen—or people haven’t been able to get their arms around—the long-term impact of this,” Lanser said, referring to inflationary pressures stemming from the war.

—Kristin Broughton

Is it possible that the CEO and CFO of OpenAI aren’t on the same page?

In a striking response to that question, the company’s CFO Sarah Friar and CEO Sam Altman sent out a joint statement to address chatter over a rift between the two leaders over the company’s massive spending on data centers.

Friar has told other company leaders that she is worried the company might not be able to pay for future computing contracts if revenue doesn’t grow fast enough, according to people familiar with the matter, Berber Jin reported in an exclusive.

Key quotes:

• “We are totally aligned on buying as much compute as we can and working hard on it together every day,” Altman and Friar said in a joint statement Monday night.
• Any suggestion that the pair are divided or pulling back on securing new computing resources is “ridiculous,” they said.
• Moreover, the company said in a statement Tuesday that there is “no truth” to the idea of a rift between Friar and Altman on computing resources. “The business is firing on all cylinders and the mood internally is incredibly positive,” the statement said.

Dive deeper

• AI Worries Have Returned to Wall Street. Now Come Earnings.
• Elon Musk Testifies of AI Risk at Trial, Says OpenAI Tried to ‘Steal’ a Charity
• Nasdaq Falls on AI Jitters

📰 Other headlines

• Where Americans Are Drawing the Line on Price Increases
• Senate Democrats Press Kevin Warsh on Fed Independence
• FCC’s Brendan Carr Launches Early Review of Disney’s ABC TV Licenses
• Goldman Sachs and Bain Lead Investment in AI Marketing Startup
• U.A.E.’s OPEC Exit Deals Major Blow to Cartel Amid Middle East Oil Squeeze
• The Global Energy Order Is Breaking Down

📈 Earnings wrapup

• Spotify Adds Subscribers, but Outlook Disappoints
• Starbucks Touts Momentum in Sales Rebound
• Robinhood Profit Rises on Boost From Prediction Markets, Gold Subscriptions

For more earnings news, click here.

The WSJ CFO Council convenes the world’s top financial leaders so they can gain perspective on navigating market uncertainty, aligning priorities and making decisions that deliver measurable results. Join this trusted community where CFOs exchange approaches, access strategic insights and continuously sharpen their influence across the enterprise.

Request Information.

Incyte, the Wilmington, Del.-based biopharmaceutical company has hired Suketu Upadhyay as the company's new executive vice president and CFO, plucking the executive from medical-technology company Zimmer Biomet Holdings. Upadhyay, who joins the company on May 4, will oversee all aspects of its finance function, Incyte said. Zimmer said Upadhyay has resigned as chief financial officer and executive vice president of finance, operations and supply chain, and that Paul Stellato, the Warsaw, Ind.-based company's vice president, controller and chief accounting officer, is stepping in as interim finance chief until a permanent successor is in place. Upadhyay joined Zimmer as chief financial officer in July 2019.

—Colin Kellaher contributed to today’s Ledger.

The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.

Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.

You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.