S&P 500 (SPY) Report – 05/16/23

Good morning traders!

The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…

Stock futures decline Tuesday morning following lower-than-expected U.S. retail sales numbers. April sales rose 0.4%, falling short of Wall Street’s estimate of a 0.7% increase compared to March’s 1% decline. Furthermore the U.S. faces significant challenges today with the debt ceiling and banking turmoil taking the spotlight in Washington. Market participants are eager for clarity amid the prevailing uncertainty. President Joe Biden’s meeting with House Speaker Kevin McCarthy aims to make progress before Biden’s departure for a G-7 meeting in Japan. Investors are concerned about the possibility of a debt default, reflected in the rising yield on short-term U.S. Treasury bills. If Republicans and Democrats remain far apart, market concerns could intensify. Additionally, scrutiny will be on events in Washington to understand the recent banking stress and its resolution, including testimonies from former bank executives and regulators. The uncertainties surrounding interest rate hikes and the Federal Reserve’s monetary policy path also add to the overall uncertainty in the market.

Notable earnings reports include Baidu and On Holding. Home Depot shares dropped nearly 3% this morning after missing sales estimates and reducing its full-year guidance. Baidu saw a rally of over 2% after surpassing earnings and sales targets, while ONON stock declined by more than 4% in premarket trading. Tesla, Apple, and Microsoft were relatively stable, and stocks like Advanced Micro Devices, Lam Research, Netflix, Uber Technologies, Salesforce, and Visa are worth monitoring in the current market trend.

Tuesday Economic Events:
Retail Sales 8:30am ET – High Volatility Expected
Redbook Sales 8:55am ET
Industrial Production 9:15am ET
Business Inventories 10:00am ET
Housing Market Index 10:00am ET
API Crude Oil Data 4:30pm ET

Fed Speaker Scheduled:
Loretta Mester 8:15am ET
Raphael Bostic 8:55am ET
Michael Barr 10:00am ET
John Williams 12:15pm ET
Lorie Logan 3:15pm ET
Raphael Bostic 7:00pm ET

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