A trader works on the floor of the New York Stock Exchange (NYSE) in New York City on May 22, 2023.
Brendan McDermid | Reuters
Here are the most important information investors need to start their trading day:
Stocks started the week with a confused session on Monday as investors struggle to understand the state of the economy and what may come next, especially with the debt ceiling negotiations (more details here). below). The Nasdaq ended higher, giving the index its best close since August, while the Dow Jones was down slightly and the S&P 500 was effectively flat. Tuesday brings a fresh slate of earnings for markets including retailers Lowe’s and Dick’s Sporting Goods before the bell. Follow live market updates.
U.S. President Joe Biden holds debt limit talks with Speaker of the House Kevin McCarthy (R-CA) in the Oval Office of the White House in Washington, U.S. May 22, 2023.
Leah Millis | Reuters
We’re just over a week away from when the United States could run out of money to pay its bills, and there’s still no deal in Washington. However, President Joe Biden and House Speaker Kevin McCarthy have both said after their meeting On Monday night, they are cautiously optimistic they can agree on a way to address the debt limit as their sides also find a budget compromise. Tuesday and Wednesday will be particularly important for a deal to be struck. Lawmakers also face Memorial Day weekend just days away, and Congress hates missing a vacation.
TikTok logo displayed on a mobile phone.
Hyoung Chang | Denver Post | Getty Images
In what will certainly be a preview of future cases, TikTok sued Montana to override the state ban on the app. Last week, Montana became the first state to ban TikTok, saying it posed a security risk because its parent company, ByteDance, was Chinese-owned. “Yet the state cites nothing to support these allegations,” ByteDance’s attorneys wrote. The attorneys argue that Montana’s law is unconstitutional, saying it violates First Amendment freedom of speech while preempting federal law. TikTok is facing heat from politicians on both sides of the aisle, in Washington and at the state level, as owners of the popular app try to steer it away from perceptions that it is controlled by the government Chinese. Montana’s ban goes into effect Jan. 1.
An exterior view of a Lowe’s home improvement store. Lowe’s Companies, Inc. releases its quarterly results on Tuesday, May 23, 2023.
Paul Tisserand | Light flare | Getty Images
home improvement chain Lowe’s lowered his income prospects for the year as lumber prices fell and customers cut spending on DIY projects. As we’ve seen in retail revenue so far, shoppers are spending less on things they don’t need while focusing more on necessities. Last week, Lowe’s rival Home Depot said its buyers were spending less on home improvement projects. Spring is usually peak season for hardware and home improvement stores, but that’s not the case this year. Lowe’s same-store sales for the period ended May 5 fell more than Wall Street expected, and the company lowered its same-store sales forecast for the year.
JP Morgan CEO Jamie Dimon delivers a speech during the inauguration of the new French headquarters of JP Morgan bank in Paris, France, June 29, 2021.
Swimming pool | Reuters
The CEO of America’s largest bank sees more trouble ahead for the financial system, thanks to commercial real estate. “There is always an offside” JPMorgan Chase CEO Jamie Dimon said at the company meeting investor conference Monday. “The offside in this case will probably be real estate. It will be certain locations, certain office buildings, certain construction loans. It could be very isolated, it won’t be all the banks.” Dimon joins a growing chorus of business leaders and pundits who say commercial real estate could be the next big deal for the financial sector after the recent regional banking crisis. Earlier this month, Warren Buffett and Charlie Munger said commercial real estate is begin to see the consequences too many people borrowing at low rates.
– CNBC’s Alex Harring, Christina Wilkie, Melissa Repko, Jonathan Vanian and Hugh Son contributed to this report.
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