The Dow Jones fell 0.38% to 33,220, while the S&P 500 fell 0.27% to 4,125. The NASDAQ 100 yields 0.23% to 12,338 points.
New York’s major indexes closed the regular session higher on Monday, with the Dow Jones breaking a negative streak of five consecutive days of losses. The tech-heavy Nasdaq Composite led the way, gaining 0.66%, while the S&P 500 added 0.3%.
Investors Are Eagerly Waiting An agreement to extend the debt ceiling to June 1, which is the earliest the Treasury Department has said the US could default on its debt obligations, Treasury Secretary Janet Yellen said last week that the lack of a deal could lead to an “economic catastrophe”.
On Monday, Yellen confirmed that the US faced the possibility of a default by June 1, the so-called Date X, if there was no agreement between the White House and Congress. Yellen said, “Waiting until the last minute to suspend or raise the debt ceiling could seriously damage business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact America’s credit rating.” “Indeed, we have already seen Treasury borrowing costs rise significantly for securities maturing in early June,” he said.
Biden echoed a more optimistic view of the ongoing talks over the weekend, while House Speaker Kevin McCarthy, a Republican, said significant hurdles remained. “We are entering potentially treacherous waters, and we are likely to get very close to the brink before we can reach an agreement,” Christopher Gahan, Northwestern Mutual’s vice president of government relations, said in a note.
The US President has so far maintained that raising the debt ceiling is non-negotiable. However, McCarthy has pushed for debt-ceiling deal talks to be bound by spending cuts.
Regarding the macroeconomic agenda, investors have little to know before the bell retail sales data for april Showing worrying signs about the condition of consumers. If economists polled by Dow Jones had forecast a rise of 0.8%, readings have finally halved with a rise of 0.4%., Its annual reading growth is 1.6% compared to the forecast of 4.20%.
Several central bank officials are also scheduled to speak today, including Michael Barr, the Federal Reserve’s vice chairman for supervision, who will appear before the House Financial Services Committee. On the other hand, the president of the Atlanta Fed, Rafael Bostic of New York, John Williams and Auston Golsby of Chicago will also appear.
As for the business results season, although there are only a few companies left to publish, some of the most trailing companies are relevant. Investors should watch several consumer staples companies report results this week: Home Depot, Target and Walmart.
The first of these has been Home Depot, which fell more than 2.5% after disappointing with its sales figures and cutting its forecasts for the year. The company now expects comp sales and comparable sales to decline between 2% and 5% for the fiscal year. It had earlier forecast more or less flat sales for the period. Its operating margin rate is also expected to be lower for the year, in the range of 14% to 14.3%, compared to the previous forecast of 14.5%, including the impact of investing $1 billion in employee wages.
Home Depot posted earnings per share of $3.82, versus the $3.80 expected, while Revenue was $37.260 million compared to $38.280 million expected by the market,
NU Holdings soared more than 5% after the fintech company beat first-quarter earnings expectations. Nu posted an adjusted net profit of $182.4 million, exceeding the consensus estimate of $113.4 million. Its revenue rose to $1.6 billion, compared with analysts’ forecasts of $1.4 billion.
Among other market leaders, Capital One climbed more than 6%. Warren Buffett’s investment arm Berkshire Hathaway has taken a new position in the company worth more than $950 million, CNBC reported Monday.
Berkshire also disclosed a new $41.3 million stake in Diageo, the maker of spirits such as Johnnie Walker and Guinness. Meanwhile, it has sold its stakes in Taiwanese chipmaker TSMC and furniture chain RH, along with Bank of New York Mellon Corp and US Bancorp.
Buffett’s holding company was a net seller of shares in the quarter, buying $2.87 billion and selling $13.28 billion as it channeled resources elsewhere, including raising its stake in truck stop operator Pilot Travel Centers to 80% from 38.6%. This included $8.2 billion for
is among the negative heroes of the season OhMyHome Ltd., which fell more than 15%, The company said on Monday that it plans to expand further into the Philippine market.
In commodity markets, oil prices are trying to maintain the gains seen at the beginning of the week. Despite fears for the health of the US and Chinese economies, US plans to buy oil for its strategic reserves have done enough to keep the momentum going. US West Texas barrel rose 0.22% to $71.33, while European benchmark Brent oil futures rose 0.17% to $75.43.
In fixed income, bond yields fell this Tuesday, with the ten-year reference bond offering a yield of 3.461%, four points lower. The two-year bond, for its part, offers a secondary market return of 3.973%, a decrease of three basis points.
The euro remains unchanged in its cross against the dollar until an exchange rate of $1.0876 is established for each community currency.