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A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, May 22, 2023.
Brendan McDermid | Reuters
Here are the most important news items investors need to start their trading day:
1. Looking for a way forward
Stocks started the week with a confused session on Monday as investors tried to get to grips with the state of the economy and what might come next, especially with the debt ceiling negotiations (more on that below). The Nasdaq ended higher, posting its best close since August, while the Dow fell slightly and the S&P 500 was basically flat. Tuesday brings a new wave of earnings for markets to coax, including from retailers Lowe’s and Dick’s Sporting Goods to ring the bell. To follow live market updates.
2. Debt Limit Transactions
US President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, US, May 22, 2023.
Leah Millis | Reuters
We are just over a week away from when the United States could run out of money to pay its bills, and there is still no deal in Washington. However, President Joe Biden and House Speaker Kevin McCarthy both said after meeting on Monday evening they are cautiously optimistic they may agree on a way to tackle the debt limit as their parties also negotiate a budget compromise. Tuesday and Wednesday in particular will be important to reach a deal. Lawmakers are also dealing with Memorial Day weekend in a few days, and Congress hates to miss a holiday.
3. TikTok is suing Montana
TikTok logo displayed on a mobile phone.
Hyoung Chang | Denver Post | Getty Images
4. Lowe’s budget cuts guidance
An exterior view of a Lowe’s home improvement store. Lowe’s Companies, Inc. announces quarterly figures on Tuesday 23 May 2023.
Paul Weaver | Rocket | Getty Images
Home improvement chain from Lowe lowered its revenue outlook for the year as lumber prices have fallen and customers spend less on DIY projects. As we’ve seen from retail revenue so far, customers are spending less on things they don’t need while focusing more on essentials. Last week, Lowe’s rival Home Depot said its customers are spending less on renovation projects. Spring is typically the big season for hardware and home improvement stores, but it doesn’t seem that way this year. Lowe’s same-store sales for the period ended May 5 fell more than Wall Street had expected, and the company lowered its expectations for same-store sales for the year.
5. Dimon on commercial real estate
Jamie Dimon, CEO of JP Morgan, delivers a speech at the inauguration of the new French headquarters of the bank JP Morgan in Paris, France on June 29, 2021.
Swimming Pool | Reuters
The CEO of America’s largest bank sees more problems ahead for the financial system thanks to commercial real estate. “There is always an offside”, JPMorgan Chase That said CEO Jamie Dimon on Monday during the company’s investor conference. “The off-sides in this case will probably be real estate. It will be certain locations, certain office properties, certain construction loans. It can be very isolated; it won’t be every bank.” Dimon joins a growing chorus of business leaders and pundits who say commercial real estate could be the next big problem for the financial industry after the recent regional banking crisis. Earlier this month, Warren Buffett and Charlie Munger said commercial real estate is starting to see the effects of 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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