The Dow Jones tries a timid rebound awaiting an agreement on the debt ceiling

DOW JONES futures rose 0.08% to 32,835 points, while S&P 500 futures rose 0.14% to 4,165 points. NASDAQ 100 futures rose 0.29% to 14,016 points.

The negotiations on the debt ceiling have weighed on the markets this week. The S&P 500 enters the Friday session down around 1% so far this week, while the Dow is down almost 2% in that time.. The Nasdaq rises 0.3%.

And that the S&P 500 and the Nasdaq come from a strong session yesterday Thursday, with rises of 0.9% and 1.7%, respectively, after better-than-expected revenue forecasts and higher-than-expected profits. NVIDIA’s forecasts fueled a rally in semiconductor and artificial intelligence stocks, as well as other tech names. Nvidia shares rose 24.4% in the session to end at an all-time high.

“With the market rejoicing in NVIDIA’s earnings report and guidance, plus a positive report from Main Street’s iconic Best Buy, headlines pointing to a resolution of the debt ceiling could finally help lift broader underpinnings. market,” said Quincy Krosby, chief global strategist at LPL Financial.

And it is that the eyes are still on one more day in the negotiations on the debt ceiling. House Speaker Kevin McCarthy left the Capitol Thursday night stating that no deal had yet been reached. However, Reuters reported, citing a US official, that the White House and McCarthy are close to reaching an agreement that would raise the US debt ceiling for two years. The information added that most of the spending would be capped as part of the deal.

Treasury Secretary Janet Yellen has warned several times that the US could default on its debt on June 1 if the debt ceiling is not raised.

In the macroeconomic section, investors should be attentive today to the personal income and expense data for April, variables that are always accompanied by the readings of the personal consumption price index, the PCE, which is the most followed price variable by the Federal Reserve (Fed). “Some readings of this index above expectations would reopen the debate on whether the US central bank has already finished with the rate hikes or if it will continue with the process, something that will not be well received by the bond markets, assets whose yields , if so, they will pick up again ”, warns Juan J. Fernández-Figares, from Link Management.

In the fixed income market, the yield on the US ten-year bond fell three points to 3.783%. On the two-year paper, the yield drops two points, to 4.491%.

On the corporate side, quarterly earnings season is all but over, but investors still have a handful of accounting reports to digest. Gap shares soar 15% after the retailer has been able to boast a significant improvement in margins. Of course, revenues were slightly below expectations, at 3,280 million dollars, while analysts had forecast 3,290 million.

Costco Whsl, also a retailer, registers slight decreases after presenting lower-than-expected revenues: 53.650 million dollars in its third fiscal quarter, while analysts had predicted 54.570 million dollars. Costco posted adjusted earnings per share of $3.43, above the $3.29 forecast by analysts.

Ulta Beauty falls 8% pre-open despite reaffirming its full-year comparable sales and profit forecasts. Ulta raised its revenue forecasts for the year slightly. The company earned earnings of $6.88 per share on revenue of $2.63 billion. Analysts had expected earnings of $6.87 per share and revenue of $2.62 billion.

Much better reception for Workday, which rises 7% on the stock market. Workday earned $1.31 of adjusted earnings per share, compared with analysts’ estimates of $1.12. The company also narrowly beat revenue expectations, which came in at $1.68 billion, versus a forecast of $1.67 billion. Workday also announced that Zane Rowe, who was CFO at VMware, will become CFO starting next month.

In the commodity markets, rises for the price of oil after yesterday’s falls. US West Texas futures advanced 0.93% to $72.33while benchmark Brent crude in Europe rose 0.88% to $76.59.

The euro rises 0.16% against the dollar until establishing an exchange rate of 1.0745 dollars for each community currency.


Leave a Reply

Your email address will not be published. Required fields are marked *