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U.S. stocks are rising on optimism about debt ceiling talks

Published 18/05/2023, 12:32 am
© Reuters.
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Investing.com -- U.S. stocks were rising amid optimism on the debt ceiling negotiations as retailers continue to report first quarter earnings.

At 10:13 ET (14:13 GMT), the Dow Jones Industrial Average was up 55 points or 0.2%, while the S&P 500 was up 0.2% and the NASDAQ Composite was up 0.1%.

The debt ceiling talks in Washington continue after top-ranking lawmakers met with President Joe Biden at the White House on Tuesday. The sides are trying to hammer out differences as the deadline for when the U.S. risks a default quickly approaches. After yesterday’s meeting, lawmakers expressed optimism a default would be averted.

Biden travels to Japan today for the weekend meeting of G-7 world leaders, but he is cutting the rest of a trip to Asia short while the debt ceiling issue persists.

Retailers continue to report earnings this week. It was Target Corporation (NYSE:TGT)’s day this morning, reporting numbers that beat first quarter forecasts but offering a second-quarter profit outlook that disappointed. Consumers are putting off some discretionary purchases while inflation forces them to spend more money on household necessities. Target shares rose 1.7%.

TJX Companies Inc (NYSE:TJX), the parent of T.J. Maxx, fell short of revenue estimates for first quarter earnings. Shares rose 3.4%.

Western Alliance Bancorporation (NYSE:WAL) shares rose 9.7% and led other regional banks higher after it gave another update on deposits, which continued to rise in May after the banking industry turmoil rocked the sector in March and April. Shares were up, while shares of other regional banks such as PacWest Bancorp (NASDAQ:PACW) and Zions Bancorporation (NASDAQ:ZION) rose 6% and 6.6%, respectively.

Tesla Inc (NASDAQ:TSLA) shares edged 3% higher after yesterday’s annual shareholder meeting, where CEO Elon Musk said he intends to remain in that role at the electric vehicle maker. The company will start deliveries of its highly anticipated Cybertruck later this year.

In economic data, April housing starts of 1.4 million annualized were about even with expectations but numbers for March were revised lower.

Oil was rising. Crude Oil WTI Futures were up 1.3% to $71.77 a barrel, while Brent Oil Futures were up 1.2% to $75.77. Gold Futures were down 0.4% to $1,984.

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