Wall Street awaits news on debt ceiling

Wall Street tries to extend rally awaiting news on debt ceiling

Dow Jones futures rose 0.08% to 33,505 points before opening. The S&P 500 did so by 0.10% to 4,169 points, while NASDAQ 100 futures rose 0.12% to 13,606 points.

Major market indices closed with gains of over one per cent yesterday on some optimism shown around the debt ceiling talks. The rise in prices of some regional US banks also had an effect, after it was learned that Western Alliance Bancorp, one of the investors asked by investors since the crisis of banking confidence in the United States, reported a sharp increase in its deposits. had experienced. close to the first quarter.

Today’s macroeconomic agenda will be marked by the publication of various indicators, such as initial applications for unemployment benefits, which serve as a rough estimate of the weekly growth of unemployment in a North American country. Data on existing home sales for the month of April will also be released, as well as the Philadelphia Manufacturing Index for May, one of the most closely followed regional activity indices by investors.

Another indicator to consider is the reading of the Leading Indicators Index for April prepared by consulting firm The Conference Board, which for months has been pointing to a possible entry into recession in the US economy.

Although the eyes of investors will remain on the continuation Negotiations taking place in the United States with the aim of reaching an agreement that allows the debt ceiling to be raised before the start of June, thus allowing the US Treasury to meet its payment commitments.

“we hope that Any positive news on the progress of the above talks is welcomed by the investorsWhile there is any indication that the parties are still not reaching positions, the behavior of western risk assets, especially equities, will be punished,” he says. Juan J. Fernandez-Figueres, Link to Gasteone,

“Given the high level of uncertainty that this issue is generating, we anticipate that many investors will prefer to remain on the sidelines of the stock markets while waiting for a final resolution, which will once again be felt in activity in the markets.” Which will keep coming down”, continues the analyst.

There is moderate optimism about the possibility of the two sides reaching an agreement soon, an optimism confirmed by President Biden, who said the latest talks with Republicans were “productive and direct”, at the same time as he is of the opinion that “Unprecedented default” of the United States.

For his part, the Republican leader in the lower house of Congress, Kevin McCarthy, confirmed that although the terms are still coming, he does not believe the country will default, and that “it is possible to reach an agreement before then.” ” at the end of the week.”

On the corporate front, Take-Two Interactive Software shares soared 10.7% in the pre-opening on Thursday after the video game company posted fiscal fourth-quarter adjusted revenue of $1.39 billion, beating analysts’ estimates of $1.34 billion, according to Refinitiv. Beats guesses. On the other hand, the company’s estimates for the first quarter and full year missed Wall Street’s expectations.

Shares of Cisco Systems, in contrast, are down nearly 4%, despite the company posting higher profit and revenue than it did for the fiscal third quarter. Cisco posted adjusted earnings of $1 per share and revenue of $14.57 billion. Analysts had expected earnings of 97 cents per share and revenue of $14.39 billion.

Walmart will report its results this Thursday, with analysts and experts forecasting that it will do so with increased revenue and profit.

The consensus compiled by Yahoo Finance expects earnings per share (EPS) of $1.32, up 1.5% from Q1 2022, and sales of $148.65 billion, up 5% from Q1 2022. in the same period last year.

In the commodity market, a barrel of West Texas crude fell 0.64% to close at $72.50. A barrel of Brent oil also saw a similar decline, yielding 0.60% and closing at $76.61.

Talking about fixed income, the yield on the 10-year bond has remained stable at 3.591%. On the 2-year bond, the yield declined by one basis point to 4.165%.

The euro loses 0.21% against the dollar, setting an exchange rate of $1.08423 for each Community currency.