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Coffee With Greta: Debt Ceiling Talks Make Progress


DJIA Futures: +58 (+0.2%)

SPX Futures: +9 (+0.2%)

NASDAQ Futures: +30 (0.2%)

Good morning friends!

Futures are higher amid optimism over debt ceiling talks.

Let’s get right to it!

Debt Ceiling Negotiations Continue

President Biden is expected to meet on Tuesday with the big four Congressional leaders about the debt ceiling. 

Sources say there were “productive” staff-level negotiations over the weekend. 

This comes after Friday’s meeting was postponed in order to provide more time for lower-level talks. 

The Treasury Secretary says the U.S. is facing a June 1 default deadline to raise the debt limit.

Big Retail Earnings Week

This will be an important week to help traders gauge the health of the U.S. consumer. 

Several big retailers are scheduled to report Q1 results this week:

  • Tuesday: Home Depot (HD) 
  • Wednesday: Target (TGT)
  • Thursday: Walmart (WMT)

These reports will give traders more insight into how consumers have been shifting their spending habits amid high inflation and ahead of an expected recession. 

Atlanta Fed President Says No Rate Cuts

Atlanta Fed President Raphael Bostic says he doesn’t see any rate cuts happening in 2023. 

Bostic told CNBC this morning, “For me, inflation is job No. 1. We’ve got to get back to our target. If there’s going to be some cost to that, we’ve got to be willing to do that.”

He added, “If there’s going to be a bias to action, for me would be a bias to increase a little further as opposed to cut.”

But CME Group’s FedWatch Tool still shows the market pricing in as many as 3 cuts by year-end.

Empire State Manufacturing Index Plummets

A key manufacturing gauge plummeted in May. 

The Empire State’s manufacturing index plunged 42.6 points to negative 31.8. 

That was sharply lower than expectations for a reading of negative 5 and reversed the gain seen in April. 

The shipments index plunged 40.3 points to negative 16.4 and unfilled orders fell 13.2 points to negative 13.2.

But the six-month expectations index improved by 3.2 points to 9.8.

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