S&P 500 (SPY) Report – 05/17/23
Good morning traders!
The S&P 500 ($SPY) is trading above yesterday’s close. Let’s get into it…
US stock futures bounce back on Wednesday morning after a previous selloff, as investors maintain hope for a breakthrough in the debt-ceiling talks. Wall Street is closely following negotiations between the White House and congressional leaders to avoid a US debt default. President Biden is cutting short his trip to Asia, and a smaller group of negotiators will take over. The Treasury Secretary and others have warned of dire consequences for the US economy if a default occurs, potentially as early as June. House Speaker Kevin McCarthy expressed the possibility of a deal by the end of this week, although JPMorgan’s US market intelligence team suggests it may extend until the end of next week before Memorial Day. President Biden will stay in contact with McCarthy during this period, and any progress in the talks could impact the markets.
Earnings releases from retailers like Target and The TJX Companies are also anticipated, providing insights into consumer health and recession probabilities. Target exceeded Wall Street’s earnings expectations but expressed caution regarding consumer spending. The retailer’s guidance for second-quarter earnings fell below analyst estimates, affecting the outlook for the back-to-school shopping season. Tesla’s stock saw a slight increase following its annual shareholder meeting, during which CEO Elon Musk avoided a succession showdown as shareholders rejected a proposal related to succession plans. Wix.com experienced a rally of over 7% after reporting a net profit in the first quarter, driven by subscription revenue growth.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Housing Starts and Permits 8:30am ET
EIA Petroleum Report 10:30am ET
Fed Speaker Scheduled:
No Fed Speakers Scheduled
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