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DJIA Futures: -112 (-0.3%)

SPX Futures: -20 (-0.5%)

NASDAQ Futures: -67 (-0.5%)

Good morning friends!

Futures are slipping as traders await a vote on the debt ceiling deal in the House.

Let’s get right to it!

Debt Ceiling Deal Clears Key Committee

The House Rules Committee advanced the debt ceiling deal reached by President Biden and House Speaker Kevin McCarthy Tuesday night. 

The committee approved the bill in a 7-6 vote, sending it to the full House for a vote. 

A floor vote on the deal is expected around 8:30 p.m. ET today. 

A group of 20 House Republicans came out against the bill on Tuesday but it is still expected to pass the lower chamber. 

The legislation would then be sent to the Senate for a vote.

American Airlines Raises Profit Outlook

American Airlines (AAL) shares are up 2.4% ahead of the open after hiking its Q2 profit outlook. 

The airline now expects adjusted EPS between $1.45 and $1.65 this quarter vs $1.20 to $1.40 previously. 

The higher forecast is thanks to strong travel demand and lower fuel prices. 

Hewlett Packard Reports Mixed Results

HP Inc (HPQ) shares are down 5.7% in premarket trade after reporting mixed fiscal Q2 results. 

Here’s how the PC maker’s results compared to analysts’ estimates: 

  • Non-GAAP EPS: $0.80 vs $0.76 expected
  • Revenue: $12.9 billion vs $13.1 billion expected

It was HP’s lowest quarterly revenue since the April 2020 quarter.

Sales in the company’s Personal Systems group, which is its PC business, dropped 29% year over year to $8.2 billion vs $8.4 billion expected. 

HP forecast fiscal Q3 non-GAAP EPS of $0.81 to $0.91 vs $0.85 expected. 

The company narrowed its full-year forecast range for non-GAAP EPS to $3.30 to $3.50 vs $3.20 to $3.60 previously. 

Mortgage Demand Drops to 3-Month Low

Mortgage demand fell to a three-month low last week as rates shot higher. 

The Mortgage Bankers Association reported purchase applications dropped 3% weekly and were down 31% year over year. 

Refinance applications fell 7% weekly and 45% annually. 

The drop came as the average 30-year contract rate popped higher to 6.91% from 6.69% the previously week. 

In Case You Missed It

  • Home prices rose in March as buyers continue to struggle with low inventory. The S&P CoreLogic Case-Shiller national home price index rose 0.7% in March compared to March 2022. The index also rose 0.4% monthly. The release said, “March’s results suggest that the decline in home prices that began in June 2022 may have come to an end.” The 20-city index fell 1.1% annually and rose 0.5% monthly while the 10-city index dropped 0.8% annually and rose 0.6% monthly. 
  • Consumer confidence slipped to a 6-month low in May. The Conference Board’s consumer confidence index fell to 102.3 from 103.7 in April. That was better than expectations for the index to fall to 99. Consumers are feeling less confident about the labor market. The share of respondents who viewed jobs as “plentiful” fell to the lowest level since April 2021 while those who said jobs are “hard to get” hit a six-month high. 

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