U.S. stock futures fell slightly ahead of the market’s opening on Tuesday as investors focused on talks over a deadlocked debt ceiling, which will resume later in the day and digest new economic data.
Contracts on the S&P 500 Index (^GSPC) fell 0.23% while the Dow Jones Industrial Average (^DJI) fell 0.28%. The tech-heavy Nasdaq Composite Index (^IXIC) fell 0.17% at 8:51 a.m. ET.
Wall Street is watching for signs of a move to the dead end of the debt ceiling, with a meeting between President Joe Biden and House Speaker Kevin McCarthy scheduled for Tuesday afternoon in Washington.
The meeting comes after Treasury Secretary Janet Yellen once again sounded the alarm on Monday if Congress did not raise or suspend the debt ceiling by early next month. In a letter to lawmakers, he said the U.S. could default on its debt as early as June 1, “which will cause serious hardships for American families.”
Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell and House Democratic Leader Hakeem Jeffries will attend Tuesday’s meeting. This follows last week’s White House meeting that failed to produce a breakthrough.
Meanwhile, investors turned to economic data, which showed retail sales rose 0.4% in April, only half the growth Wall Street expected. Economists surveyed by Bloomberg had called for a 0.8% month-on-month rise after an unexpected fall in March.
The Wall Street documents also include earnings from Chinese tech giants Alibaba (BABA) and Tencent (TCEHY), as well as retailers such as Walmart (WMT) and Target (TGT).
Home Depot (HD) started the quarter with substantially lower same-store sales than expected, while its first-quarter profit was largely below expectations. A major housing renovation company has revised down its full-year sales growth forecast. Shares fell more than 4% in pre-market trading on Tuesday morning.
Elsewhere, gold fell slightly but remained above $2,000. Precious metals are garnering support as a safe haven amid the growing likelihood of a US debt ceiling crisis.
Senior market analyst Craig Earlham said: “Everybody is very confident that a default will not happen, but the closer the deadline gets, the more these risks are priced into the market, which could support gold. there is,” he said. Note to client.
Government bond yields fell. US 10-year yields fell to 3.47% and 2-year yields fell to 3.98%.
In Washington, former Silicon Valley Bank and Signature Bank executives are scheduled to testify before the Senate on Tuesday.
Former Silicon Valley Bank CEO Greg Becker announced a prepared remark. He said he would apologize for the bank’s failure, saying the acquisition was “personally and professionally devastating” and “I’m really sorry.”
Local bank stocks were mixed in pre-market trading on Tuesday morning. PacWest Bancorp (PACW) shares fell, while Western Alliance Bancorp (WAL) shares rose more than 3%.
In individual stocks, Horizon Serra shares are on the rise after reports that the Federal Trade Commission is preparing to file a lawsuit as early as Tuesday to block Amgen’s (AMGN) $27.8 billion deal to buy a pharmaceutical company. PewTix (HZNP) shares fell 17%.
Warren Buffett’s Berkshire Hathaway has withdrawn its commitment to Bank of America (BAC) and bought new shares in Capital One (COF), according to filings. COF is up more than 5% on Tuesday morning.
Shares of Chinese search engine giant Baidu jumped 1.9% after it posted first-quarter earnings that beat analyst expectations and a 10% increase in sales.
Dani Romero is a reporter for Yahoo Finance. follow her on her twitter @daniromerotv
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