Debt Ceiling Deal May Lead To Continued Strength On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Tuesday, 30 May 2023 09:06:33 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [How to Become a Successful Crypto Trader?]( [Check Out This Video]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to extend the strong upward move seen to close out the previous week. Stocks are likely to benefit from news President Joe Biden and House Speaker Kevin McCarthy, R-Calif., reached an agreement in principle to raise the debt ceiling and avoid a potentially disastrous default by the U.S. government. Biden called the deal an "an important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone." "The agreement represents a compromise, which means not everyone gets what they want. That's the responsibility of governing," Biden said. He added, "And, this agreement is good news for the American people, because it prevents what could have been a catastrophic default and would have led to an economic recession, retirement accounts devastated, and millions of jobs lost." Meanwhile, McCarthy accused Biden of wasting time by refusing to negotiate for months but said they have reached an agreement that is "worth of the American people." McCarthy claimed the debt limit agreement "stops Democrats' reckless spending, claws back unspent COVID funds, and blocks Biden's new tax schemes." A source familiar with the negotiations told CNN the agreement in principle will raise the debt ceiling for two years and keep non-defense spending roughly flat for fiscal 2024 and increase it by 1 percent in fiscal year. The deal also reportedly includes White House concessions on work requirements for people receiving food stamps. The source told CNN the agreement reached phases in food stamp time limits on people up to age 54 that will then sunset in 2030, while also exempting veterans and the homeless from these limits. Biden said negotiating teams will finalize the legislative text over the next day and urged both the House and Senate to pass the agreement "right away." The agreement is likely to face opposition from some Republicans who were seeking bigger spending cuts, potentially prolonging the process of passing the bill. McCarthy told reporters Saturday evening that he expects the GOP-controlled House to vote on the agreement on Wednesday. The last-minute agreement comes as lawmakers purportedly face a June 5 deadline, when Treasury Secretary Janet Yellen has warned the U.S. will no longer be able to pay its bills. Stocks moved sharply higher over the course of the trading day on Friday, extending the rebound seen during Thursday's session. With the continued upward move, the Nasdaq and the S&P 500 reached their best closing levels in nine months. The major averages moved roughly sideways going into the close, holding on to strong gains. The Nasdaq spiked 277.59 points or 2.2 percent to 12,975.69, the S&P 500 surged 54.17 points or 1.3 percent to 4,205.45 and the Dow jumped 328.69 points or 1.0 percent to 33,093.34. The jump by the Dow came after the blue chip index bucked Thursday's uptrend and edged down to its lowest closing level in almost two months. The major averages turned in a mixed performance for the week. While the Dow slumped by 1.0 percent, the S&P 500 rose by 0.3 percent and the tech-heavy Nasdaq soared by 2.5 percent. Stocks benefitted from renewed optimism about raising the U.S. debt ceiling amid reports lawmakers were closing in on an agreement. Optimism about a debt ceiling deal overshadowed a Commerce Department report showing a reacceleration in the annual rate of consumer growth in the month of April. The report said the annual rate of consumer price growth accelerated to 4.4 percent in April after slowing to 4.2 percent in March. Economists had expected the pace of growth to slow to 3.9 percent. The annual rate of growth by core consumer prices, which exclude food and energy prices, also accelerated to 4.7 percent in April after slowing to 4.6 percent in March. Economist had expected the pace of growth to be unchanged. On a monthly basis, consumer prices rose by 0.4 percent in April after inching up by 0.1 percent in March, while core consumer prices also increased by 0.4 percent in April after rising by 0.3 percent in March. "Once a debt deal is done, markets will have to deal with the harsh reality that the Fed is going to kill this economy," said Edward Moya, senior market analyst at OANDA. "The end of tightening might not occur until the end of summer and that means we will probably get bigger rate cuts next year." Technology stocks once again led the rally on Wall Street, with semiconductor stocks showing another substantial move to the upside. Reflecting the strength in the sector, the Philadelphia Semiconductor Index spiked 6.3 percent to its best closing level in well over a year. Marvell Technology (MRVL) led the sector higher after the chipmaker reported better than expected fiscal first quarter results and said it expects revenue growth to accelerate in the second half. Networking, computer hardware and software stocks also saw significant strength on the day, contributing to the surge by the Nasdaq. Outside the tech sector, retail and airline stocks showed strong moves to the upside, driving the Dow Jones U.S. Retail Index and the NYSE Arca Airline Index up by 2.5 percent and 2.1 percent, respectively. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Standard & Poor's is scheduled to release its report on home prices in major metropolitan areas in the month of March at 9 am ET. At 10 am ET, the Conference Board is due to release its report on consumer confidence in the month of May. The consumer confidence index is expected to dip to 100.0 in May after slumping to 101.3 in April. Richmond Federal Reserve President Thomas Barkin is scheduled to participate in a fireside chat before a virtual NABE Monetary Policy and Outlook Webinar at 1 pm ET. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Europe European stocks are turning in a mixed performance on Tuesday as investors wait for the passage of the U.S. debt ceiling deal before June 5. Hawkish Fed expectations and concerns around China's economic recovery have also kept investors nervous. In economic news, Eurozone economic sentiment fell more than expected in May after four months of general stagnation in sentiment, data from the European Commission showed. The corresponding indicator fell to 96.5 from a downwardly revised 99.0 in April. While the German DAX Index is up by 0.5 percent, the French CAC 40 Index is down by 0.4 percent and the U.K.?s FTSE 100 Index is down by 0.5 percent. Nestle has declined. The Swiss food group said has hired Anna Manz, the finance chief at the London Stock Exchange Group, as its new chief financial officer. Unilever has also fallen. The consumer goods giant announced that its Chief Financial Officer Graeme Pitkethly would leave by the end of May 2024. Bunzl, the specialist international distribution and services Group, has also moved lower after it agreed to acquire a safety business in Brazil and Spain. Meanwhile, energy services group Hunting Plc has spiked after increasing its earnings guidance and securing a $91 million contract. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended mixed on Tuesday, as concerns China's economic recovery is losing steam and signs of rising tensions between Washington and Beijing offset investor optimism over the agreement of a deal to raise the U.S. debt ceiling and avert default in the world's largest economy. Investors were also wary that proposed spending cuts in the debt ceiling deal could weigh on U.S. economic growth. Voting on the bill is set to start later this week in the House and the Senate. The dollar held near a two-month high, and gold struggled for direction near two-month lows, while oil gave up earlier gains amid uncertainty over the outcome of upcoming OPEC+ policy meeting. Chinese shares hit five-month low before recovering losses to finish marginally higher for the day. The benchmark Shanghai Composite closed up 2.76 points or 0.1 percent at 3,224.21 after China reportedly declined a U.S. invitation for a meeting between U.S. defense secretary Lloyd Austin and Chinese defense minister Li Shangfu at a forum in Singapore later this week. Hong Kong's Hang Seng index reversed early losses to end 0.2 percent higher at 18,595.78. Japanese shares eked out modest gains, with the Nikkei 225 Index edging up 0.3 percent to close at 31,328.16. The broader Topix Index finished marginally lower at 2,159.22 as caution prevailed ahead of U.S. jobs and manufacturing data due later in the week. Honda Motor, Nissan and Advantest rose 1-2 percent. Seoul stocks rallied as traders returned to their desks after a long holiday weekend. The Kospi climbed 1.0 percent to 2,585.52 as U.S. default worries eased. An artificial intelligence boom continued to drive gains for chip stocks, with Samsung Electronics and SK Hynix rising 2.8 percent and 1 percent, respectively. Automaker Hyundai Motor fell 2.4 percent and its affiliate Kia lost 2.1 percent. Australian markets ended a choppy session slightly lower, dragged down by financials. The benchmark S&P/ASX 200 Index slipped 0.1 percent to 7,209.30 after a handful of Republican lawmakers said they would oppose a deal to raise the United States' $31.4 trillion debt ceiling. The broader All Ordinaries Index closed 0.1 percent lower at 7,387.30 ahead of April inflation data due on Wednesday. Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index dropped 0.5 percent to 11,878.71. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are falling $0.73 to $71.94 a barrel after climbing $0.84 to $72.67 a barrel last Friday. Meanwhile, after inching up $0.80 to $1,963.10 an ounce in the previous session, gold futures are rising $16.80 to $1,979.90 an ounce. On the currency front, the U.S. dollar is trading at 139.77 yen versus the 140.45 yen it fetched on Monday. Against the euro, the dollar is trading at $1.0736 compared to yesterday?s $1.0708. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49