Monday's Market Minute: Crucial Debt Talks Ongoing

With President Biden and House Speaker Kevin McCarthy set to resume debt ceiling talks today, both sides seem willing to negotiate and have signaled progress, but still have yet to come to a deal ahead of the crucial June deadline.

In addition to ongoing debt ceiling negotiations this week, traders and investors will also be watching economic data with the focus on inflation, and earnings, with a few closely watched companies set to report quarterly results. Let’s begin there. We have a handful of tech names and a couple retailers to watch for, with Lowe’s (LOW) Dick’s Sporting Goods (DKS), AutoZone (AZO), Kohl’s (KSS), Best Buy (BBY) and Costco (COST). Zoom (ZM), Intuit (INTU), Analog Devices (ADI), and Autodesk (ADSK) are also opening their books to investors.

While the Personal Income and Spending figures due out Friday are at the top of the list in terms of data to keep an eye on this week, don't lose sight of the fact that we also have Fed Minutes Wednesday and a handful of Fed officials speaking this week, possibly providing further insight as to what to expect at the upcoming June meeting. New Home Sales Tuesday, GDP and Weekly Jobless Claims Thursday, and Durable Goods Orders Friday will also be watched closely. 

Lastly, with Powell before the weekend suggesting a pause from rate hikes at the June meeting was in order citing credit conditions tightening and the ECB President Christine Lagarde all but promising a rate hike to come, keep an eye on the U.S. Dollar this week vs the Euro currency. The greenback trading near 103 has found comfort in the middle of the range established last year from 94 – 114. A Fed pause and ECB hike could weaken the dollar.

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