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5 things to know before the stock market opens Thursday, June 1

Traders work on the floor of the New York Stock Exchange during morning trading on May 30, 2023 in New York City.

Michael M. Santiago | Getty Images

Here are the most important information investors need to start their trading day:

1. New month

Stocks are expected to start June with modest gains as investors remain wary of progress on the debt ceiling agreement in Washington and potential rate hikes from the Federal Reserve later this month. Dow Jones Industrial Average futures were roughly flat on Thursday, while S&P 500 futures gained 0.2% and Nasdaq futures rose about 0.1% . “We’ve been impressed with the resilience of this market since the March low, absorbing a relentless onslaught of negative sentiment and headlines,” said Craig Johnson, chief market technician at Piper Sandler. Follow live market updates.

2. The debt drama defused…for now

Senate Majority Leader Chuck Schumer, D-N.Y., left, and House Speaker Kevin McCarthy, R-Calif., attend the unveiling of former Speaker Paul Ryan, R-Wisc.’s portrait in the National Statuary Hall of the Capitol on Wednesday, May 17, 2023.

Bill Clark | CQ-Roll Call, Inc. | Getty Images

It took a late vote and a twist of an arm, but a bill to raise the US debt ceiling passed the House on Wednesday, just days before the country faced its first-ever default. June 5. The chamber approved the measure in a 314-117 vote – a more overwhelming result than expected for a plan that included spending provisions that many Democrats and Republicans opposed. The Senate will move forward with the bill Thursday morning and aims to send it to President Joe Biden’s office as early as Friday. It remains to be seen how quickly Majority Leader Chuck Schumer can push the bill through the notoriously slow upper house, where opposition from a senator can slow the rapid passage of legislation. . If the Treasury dries up, it would upend global financial markets, cost jobs and jeopardize vital government benefits for millions.

3. Mixed bag for retail

Macy’s company signage is seen at the Herald Square store on March 02, 2023 in New York City.

Michael M. Santiago | Getty Images

A slew of retail earnings reports sent stocks swaying ahead of Thursday’s market open, as some companies noted consumer weakness at the start of the spring season. Macy’s Shares fell 10% after the department store operator cut profits and full-year sales guidance. The company said it saw a decline in discretionary spending starting in March and had to cut seasonal merchandise. from Nordström Shares, however, rose more than 3% after the company beat expectations on higher and lower results on Wednesday. While the retailer expects sales to decline this year, it reported improved sales in April after a slow March. Chewy Actionsmeanwhile, soared more than 15% after the digital pet care retailer topped earnings and revenue estimates.

4. Alexa, pay

The regulator was concerned about Amazon’s dual role as a marketplace and competitor to merchants selling on its platform.

Nathan Stirk | Getty Images

Amazon agreed to hand over more than $30 million to the Federal Trade Commission to settle alleged privacy breaches involving its Alexa and Ring products, according to documents filed Wednesday. The FTC has claimed in separate lawsuits that Amazon improperly secures or retains video recordings and profile data of users, including children. In addition to the settlement fees, Amazon will have to delete dozens of data. And because, according to the FTC, “Ring did not implement basic measures to monitor and detect inappropriate access until February 2019, Ring has no idea of ​​the number of inappropriate accesses to sensitive customer video data. that actually happened”.

5. Go home

A general view of the Qianwan Container Terminal of Qingdao Port, a port in Shandong province, China, March 17, 2023.

CFOTO | Edition of the future | Getty Images

More and more companies are looking to bring their manufacturing operations home, pulling out of longstanding production powerhouses like China, in a trend called “reshoring” that could have massive implications for the supply chain. world. According to Bank of America analysis, mentions of ‘relocation’ in first-quarter S&P 500 earnings transcripts rose 128% from the same quarter last year, even outpacing the growth in mentions of “IA”. There are a host of factors at play here: the Russian-Ukrainian war, the aftermath of the Covid-19 pandemic, US and European incentives for home production, and shifting demand due in part to the rise in power of TikTok. Yet reconfiguring the global supply chain would not happen overnight.

– CNBC’s Yun Li, Christina Wilkie, Melissa Repko, Gabrielle Fonrouge, Lauren Feiner, Annie Palmer and Lucy Handley contributed to this report.

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