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Good morning friends!
Futures are higher amid hopes for a debt ceiling deal.
Let’s get right to it!
House Speaker Kevin McCarthy says debt ceiling talks are making progress and he does not think there will be a default.
McCarthy told CNBC today that he was encouraged by President Biden’s willingness to negotiate.
He said, “Now [Biden has] finally admitted that we’re going to negotiate and we have a structure to negotiate. The problem is the timeline is very short.”
This comes after Biden decided Tuesday to cut his trip to Asia short to return for debt ceiling talks.
Talks have been ongoing between Congressional leaders and their staff.
House Minority Leader Hakeem Jeffries also told CNBC “I’m optimistic common ground will be found in the next week or two.”
Target (TGT) shares are up 0.7% ahead of the open after topping Q1 expectations on the top and bottom line.
Here’s how the retailer’s results compared to analysts’ estimates:
Revenue rose just 1% year over year while comparable sales were flat.
The CEO said shoppers are spending less on discretionary items but Target is still drawing customers into stores with groceries, everyday essentials, and on-trend items.
The company said it expects sales to remain sluggish in Q2 and maintained its full-year outlook.
Target expects full-year earnings between $7.75 and $8.75 per share.
U.S. new home construction picked up in April as builders continue to see strong buyer demand.
The Commerce Department reported housing starts rose 2.2% last month to a seasonally adjusted annual pace of 1.4 million units.
That was in line with economists’ expectations but starts were still down 22.3% year over year.
Single-family starts rose 1.6% monthly and fell 28.1% annually.
Multi-family starts jumped 5.2% monthly and fell 11.7% annually.
But building permits fell more than expected in April, down 1.5% to a seasonally adjusted annual rate of 1.42 million units.
Single-family permits rose 3.1% monthly and were down 21.2% annually.
Multi-family permits dropped 9.7% monthly and 23% annually.
Mortgage demand dropped last week as rates hit a 2-month high.
The Mortgage Bankers Association reported purchase applications dropped 4.8% weekly and 26% year over year.
Refinance applications tumbled 8% weekly and 43% annually.
The average 30-year fixed contract rate rose to 6.57% from 6.48%.
The MBA’s chief economist said, “buyers remain wary of this rate volatility” and “for-sale inventory in many parts of the country remains scarce.”