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Coffee With Greta: Debt Ceiling Agreement Reached


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DJIA Futures: -10 (-0.03%)

SPX Futures: +22 (+0.5%)

NASDAQ Futures: +187 (+1.3%)

Good morning friends!

Futures are mostly higher after the President and House Speaker reached a tentative debt ceiling agreement. 

Let’s get right to it!

Debt Ceiling Deal

President Biden and House Speaker Kevin McCarthy reached a deal on Sunday to raise the debt ceiling.

Congress is expected to vote on the bill as early as tomorrow after the Treasury Department said they have until June 5 before a default. 

Biden said, “The agreement prevents the worst possible crisis, a default, for the first time in our nation’s history. Takes the threat of a catastrophic default off the table.”

The deal would suspend the debt ceiling until January 1, 2025 and spending caps for the next two years. 

In fiscal year 2024, military spending would be capped at $886 billion and nonmilitary discretionary spending at $704 billion. 

In fiscal year 2025, military spending would increase to $895 billion and nonmilitary discretionary spending to $711 billion.

Nvidia Eyes $1 Trillion

Nvidia (NVDA) shares are up 4.5% ahead of the open and on track to hit a $1 trillion market cap at the bell. 

To hit the $1 trillion mark NVDA shares must hold above $404.86. 

The stock has rocketed toward the trillion dollar club since last Wednesday when the company beat Q1 expectations and forecast huge Q2 revenue numbers.

The other $1 trillion stocks include Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT).

Other semiconductor stocks are moving alongside NVDA this morning with the VanEck Semiconductor ETF (SMH) up 2.3%.

Musk Meets China’s Foreign Minister

Tesla (TSLA) shares are up 4.0% in premarket trade after CEO Elon Musk met with China’s Foreign Minister in Beijing.

The meeting was reportedly meant to show China is open to foreign business while Tesla reportedly signaled plans to further expand in the country. 

The FM said China’s electric vehicle market “has broad prospects for development” and said the country will continue to create a better “market-oriented” and “law-based” business environment for foreign companies like Tesla. 

Jobs Week

This will be an important week of data for the Fed as traders look ahead to the May jobs report. 

The Conference Board releases the May consumer confidence index at 10:00 a.m. ET today. 

Then the Labor Department releases its April job openings and labor turnover survey Wednesday at 10:00 a.m. while the Fed releases its Beige Book at 2:00 p.m.

ADP’s private employment report for May will be out Thursday morning along with weekly jobless claims and the Q1 productivity revision. 

On Friday morning, the Labor Department releases the official May jobs report.

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