Marketbites: Walmart Shows Strength
Portfolio Manager Commentary:
The S&P 500 and Nasdaq Composite advanced on Thursday as Wall Street traders kept focus on debt ceiling negotiations. House Speaker Kevin McCarthy said Thursday that he’s optimistic congressional negotiators could reach a deal in time for a House vote next week. “I see the path that we can come to an agreement,” McCarthy said. “And I think we have a structure now and everybody’s working hard, and I mean, we’re working two or three times a day, then going back getting more numbers.” His comments come with just two weeks until June 1, which is the earliest day the U.S. could default, according to Treasury Secretary Janet Yellen. Jeff Kilburg, CEO of KKM Financial, said traders have been able to “look through” some of the drama surrounding the debt ceiling negotiations.
Elsewhere, retail giant Walmart helped the market, adding about 1% on the back of its strong financial report. The company beat Wall Street forecasts on both earnings per share and revenue in its first quarter and raised its expectations for full-year performance.
But sentiment was kept in check after Dallas Fed President Lorie Logan said the latest economic data doesn’t argue for a pause in rate hikes yet. She noted the June policy decision will be based on inflation and employment data that hasn’t been released yet.
Chart of the Day:
Target sales suffered in the most recent quarter as shoppers stopped splurging as frequently on trendy clothes, home goods, and other items that make up the bulk of the retailer's annual revenue. Sales of food and beverages, beauty and home essentials such as detergent saw increases. Meanwhile, demand for apparel, home goods, and items such as toys and electronics fell sharply as shoppers further pulled back on discretionary spending, said Target executives on a call with analysts Wednesday. The latter discretionary categories make up around 54% of Target’s annual sales, according to financial filings.
What else is happening:
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