Global Courant 2023-05-16 10:51:15
Traders work on the floor of the New York Stock Exchange during morning trading on April 10, 2023 in New York City.
Michael M. Santiago | Getty Images
US stock futures were all lower Tuesday morning as all eyes on Wall Street are on a Tuesday meeting between congressional leaders and President Joe Biden.
Futures linked to the S&P 500 slipped 0.22% while Nasdaq 100 futures centimeters lower by 0.12%. Futures linked to the Dow Jones Industrial Average lost 79 points, or 0.24%.
Investors eagerly await the progress of a deal to raise the debt ceiling before June 1, the earliest date the Treasury Department has said the US could default on its debt obligations. Treasury Secretary Janet Yellen said last week that the failure to reach a deal could cause an “economic catastrophe”.
On Monday, Yellen reaffirmed that the US may default on June 1, the so-called “X date”, if a deal is not reached between the White House and Congress.
“Waiting until the last minute to suspend or raise the debt limit could seriously damage business and consumer confidence, increase short-term borrowing costs for taxpayers and negatively impact the credit rating of the United States,” Yellen said. .
“In fact, we have already seen Treasury borrowing costs rise significantly for securities maturing in early June,” she added.
Biden reiterated a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy, R-Calif., said significant obstacles remain.
“We are entering potentially treacherous waters and we will likely get very close to the brink before a deal is struck,” Christopher Gahan, vice president of government relations for Northwestern Mutual, said in a Monday note.
Biden has so far maintained that raising the debt ceiling is non-negotiable. However, McCarthy has pushed for talks to broker a deal to raise the debt ceiling, coupled with spending cuts.
Stocks closed higher during regular trading Monday, with the Dow breaking five consecutive loss sessions by 30 shares. The tech-heavy Nasdaq Composite led the charge with a gain of 0.66%, while the S&P 500 added 0.3%.
April retail sales are scheduled for Tuesday at 8:30 a.m. ET, according to economic data, giving investors a window into how consumers are doing. Economists polled by Dow Jones expect an increase of 0.8%.
A range of central bank officials will speak. Federal Reserve Vice Chairman of Oversight Michael Barr will appear before the House Financial Services Committee at 10 a.m. at a hearing titled “Oversight of Prudential Regulators.” Separately, Fed presidents Raphael Bostic of Atlanta, John Williams of New York and Austan Goolsbee of Chicago will appear at events.
Investors can also look forward to a tranche of consumer staples reporting earnings this week. Home Depot, Target and Walmart report quarterly results on Tuesday, Wednesday and Thursday, respectively.
— CNBC’s Christina Wilkie contributed reporting.
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