Wall Street finishes down, U.S. market news May 17th

Today’s main U.S. market news –

1. Janet Yellen warns that a US debt may cause a recession and ‘break’ global markets.
2. Wall Street closes down, and Treasury rates rise as debt ceiling discussions take the stage.
3. Wall Street finishes down on the Home Depot forecast and US retail figures.
4. President Biden and House Speaker Kevin McCarthy left their latest crunch meeting on increasing the debt ceiling with a cautiously optimistic outlook.
5. Target (NYSE:TGT) will be the latest U.S. retailer to announce profits this week.
6. The announcement of April home starts and building permits numbers will be closely watched by the US real estate market.
7. The safe-haven dollars increases as the possibility of US debt default comes into focus.
8. Virgin Orbit makes a’stalking horse’ proposal of $17 million to sell aviation assets.
9. Shein raises $2 billion but reduces its valuation by 33%-WSJ
10. Credit Suisse will suffer business limitations until the purchase is completed.
11. Biden and McCarthy are optimistic about a debt-ceiling agreement, as the US president cancels his trip to Asia.
12. Elon Musk reverses course and declares that Tesla will advertise its vehicles.
13. Wall Street is likely to begin lower as Home Depot and retail sales figures weigh.
14. Capital One Financial increases its stake in Berkshire Hathaway.
15. Home Depot falls on a shortfall and weaker forecast; analysts say dismal results are ‘widely expected.’
16. According to the NY Fed’s May poll, an increasing proportion of businesses expect financing to become more difficult to get.
17. The United States has formed a team to develop a national plan for flying air taxis.
18. Berkshire Hathaway has increased its holdings of Occidental Petroleum.
19. Wells Fargo agrees $1 billion shareholder deal for scandal recovery
20. BofA reports the first customer withdrawals from US stocks in four weeks.

GLOBAL NEWS 

1. The Nikkei 225 index has reached a near 20-month high as Japanese GDP exceeds expectations.
2. The annual inflation rate in Canada has risen to 4.4%, increasing the pressure on policymakers to raise interest rates.
3. European stock futures rise as the US debt deadline and eurozone CPI come into focus.
4. Fisker, an electric vehicle manufacturer, is looking into partnership with other firms, according to its CEO.
5. Italy has a large trade surplus in March as imports fall.
6. Tencent of China returns to revenue growth in the first quarter.
7. Tencent reduces cloud service costs by up to 40% as the price battle heats up.
8. Inflation in the Eurozone rose in April.
9. In a larger sale, Blackstone and Thomson Reuters sell $3.4 billion in LSEG shares.
10. Tyre manufacturers are under pressure because there is too much rubber on the road.
11. Asian equities fall on fears over the debt ceiling; Japan rises on solid GDP growth
12. Asia’s currency falls as aggressive Fed remarks weigh, with the Chinese yuan under focus.
13. Commerzbank’s quarterly profit jumps, aided by rising interest rates
14. Japan’s Prime Minister will meet with key semiconductor companies.
15. House prices in China fell in April as the post-COVID recovery stalled.
16. In April, new home prices in China rose at a slower rate.
17. Singapore’s April exports fell 9.8% year on year, more than expected.
18. Baidu, China’s leading search engine, exceeds revenue forecasts for the third quarter.

Economic data

Advance Retail Sales – Less Autos M/M for April grew +0.4%, in line with expectations (vs. March -0.4%), but less than the projected est. +0.8%. Advance Retail Sales M/M for April gained +0.4%. US April gasoline sales were down 0.8% from March’s and up 0.4% from March’s for automobiles and components.

Industrial output increased by 0.5% in April compared to March and the consensus estimate; the capacity utilization rate for April was 79.7%, which was in line with expectations. Manufacturing production in April increased by 1.0% versus expectations of 0.1% and 0.8% in March.

U.S. March Business Inventories -0.1% ; Business sales in the U.S. fell by 1.1% in March, while business inventories fell by 0.1% in March compared to consensus unchanged and unchanged in February.

May NAHB Housing Market Index is 50 compared to 45 in April (prior 45), 56 in April (previous 51), and 57 in May (compared to 50 in April) for single-family home sales.

Economic Calendar

Wednesday May 17^th  

•     7:00 AM ET                  MBA Mortgage Applications Data
•     8:30 AM ET                  Housing Starts M/M for April
•     8:30 AM Et                   Building Permits M/M for April
•     10:30 AM ET                Weekly DOE Inventory Data
•     1:00 PM ET                   U.S. Treasury sells $12B in 20-year notes. 

Other Important Events

·     Davidson 25th Annual Financial Institutions Conference, 5/15-5/17, in CO

·     JPMorgan Homebuilding & Building Products Conference (virtual), 5/16-5/17

·     Needham 18th Annual Technology & Media Conference, 5/16-5/18

·     RBC Capital Global Healthcare Conference, 5/16-5/17, in New York

·     RBC Capital Canadian Automotive, Industrials & Transportation Conference, 5/16-5/18

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