Tuesday's Market Minute: The President & The House Speaker Have An Agreement

A busy week ahead for traders and investors with focus on progress in debt ceiling negotiations, earnings, and economic data. Over the weekend, President Biden and House Speaker Kevin McCarthy announced they’ve come to a deal just six days ahead of the June deadline set forth by Treasury Secretary Janet Yellen. The deal caps spending for two years; it’ll go in front of the House Rule Committee today and possibly to a vote from the House of Representatives as soon as tomorrow. Markets are gaining on the news, but many argue this is when the hard work begins. We could see some headline-driven intraday volatility as the votes take place in the coming week.

We’re also keeping an eye on some closely-watched data due out this week. We begin the holiday-shortened week with Consumer Confidence, the FHFA Housing Price Index, the Dallas Fed figures, and the Case-Shiller Home Price Index today. Tomorrow, we have the JOLTS, Chicago PMI, Beige Book, and a couple Fed speakers (Harker and Collins). Thursday, it’s ADP Employment numbers, the weekly Jobless Claims, Productivity and Costs, and the manufacturing data due out. This all leads up to the big number of the week on Friday: the monthly employment figures are due out at the end of the week and they will be closely watched as a possible indicator of what’s to come from the Fed at the June meeting. 

As far as earnings, we have a few tech names that could move markets like HP (HPQ), CrowdStrike (CRWD), Salesforce (CRM), Broadcom (AVGO), Zscaler (ZS), and Dell (DELL). We also have Advance Auto Parts (AAP), Chewy (CHWY), Nordstrom (JWN), Macy’s (M), Lululemon (LULU), and Five Below (FIVE) to keep an eye on.

Lastly, with the focus and the buzz around AI, the Nasdaq is trading to new highs. The tech-heavy index has largely shrugged off the move up in yields, but with the two-year starting off the week above 4.5%, if the move up we’ve seen over the last few weeks continues at this pace, at some point it will become a headwind.  

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