Marketbites: Home Depot Provides Lackluster Forecast
Portfolio Manager Commentary:
Stocks dipped Tuesday following a lackluster forecast from Home Depot. Wall Street also turned its attention to a meeting between congressional leaders and President Joe Biden on the U.S. debt ceiling. Dow member Home Depot pulled back by 2.15% after the retailer reported disappointing quarterly revenue and cut its full-year guidance, as consumers postponed large home improvement projects.
Investors are anxiously awaiting progress on debt ceiling negotiations. On Monday, Treasury Secretary Janet Yellen reaffirmed that the U.S. faced the possibility of default as early as June 1, the so-called X date, if a deal isn’t reached between the White House and Congress. On Tuesday, she doubled down on her warning to raise the limit immediately.
Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy, R-Calif., said significant obstacles still remain. Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal in which raising the debt limit would be tied to spending cuts.
Yesterday, the White House said Biden will cut his upcoming international trip short as he deals with debt ceiling negotiations.
Chart of the Day:
Overall, the median pay package for S& P 500 CEOs declined to $14.5 million in 2022, down from a record $14.7 million the previous year, with median cash compensation of $3.7 million. The decline marks the first time in a decade that compensation for top executives at the biggest U.S. companies didn’t reach new highs.
What else is happening:
The health menace inside your sandwich - read here
Home Depot projects first annual sales decline since 2009 - read here
The return to office has stalled - read here