Global Courant 2023-05-22 04:06:10
Traders on the floor of the NYSE, May 17, 2023.
Source: NYSE
Equity futures fell slightly on Sunday evening as traders kept an eye on US debt ceiling negotiations.
Futures for the Dow Jones Industrial Average were down 48 points, or about 0.1%. S&P 500 futures fell about 0.2%, and Nasdaq 100 futures also lost 0.1%.
Stocks rose last week despite uncertainty in Washington. The Nasdaq Composite rose 3.04%, while the S&P 500 gained 1.65%. The Dow added 0.38%.
President Joe Biden and House Speaker Kevin McCarthy, R-Calif., will meet Monday to continue negotiations. Treasury Secretary Janet Yellen has said the US could default as early as June 1.
The market continued to rise, led by technology stocks, even in the face of a potential default and persistent inflation. Bank of America strategist Savita Subramanian on Sunday raised her year-end target for the S&P 500 from 4,000 to 4,300, saying companies’ focus on efficiency would make earnings more stable and that stocks were not overvalued.
“Current valuations are not low, but rarely low during earnings recessions. For cyclically adjusted earnings, valuations favor a 5% annual return for the S&P 500 over the next decade,” Subramanian said in a note to clients.
The first-quarter earnings season is drawing to a close, but some noteworthy reports are coming in in the coming days Zoom video on Monday and from Lowe And Dick’s Sporting Goods on Tuesday.
The week ahead features a relatively light set of economic data, culminating in a second reading of first-quarter GDP on Thursday and the personal consumer spending inflation gauge on Friday. The release of the minutes of the Federal Reserve meeting on Wednesday could also shed light on how central bankers feel about the possibility of further rate hikes.
Traders will also want to keep an eye out for JPMorgan Chase Investor Day on Monday.
