Connect with us


Stock market today: Wall Street slips as debt worries escalate

Stock market today: Wall Street slips as debt worries escalate


NEW YORK (AP) Stocks fell on Tuesday as the U.S. government edged closer to the brink of a potentially disastrous default on its debt.

The S&P 500 fell 1.1% after House Speaker Kevin McCarthy said, “We hadn’t come to an agreement yet to prevent the US government from running out of cash. It followed a Monday night meeting that he and President Joe Biden called productive but ultimately ended without a deal.

The Dow Jones Industrial Average lost 231 points, or 0.7%, while the Nasdaq composite lost 1.3%.

So far, the stock market has remained largely resilient even as Washington nears the June 1 deadline. That’s when the US government may not be able to pay its bills unless Congress allows it to borrow more. Economists and investors generally believe that a default would send shock waves through the global economy and financial markets.

The speculation on Wall Street has been that Congress will strike a deal at the 11th hour, as it has done many times before, because the alternative simply seems too dire for anyone to allow.

But one worry on Wall Street is that Washington doesn’t feel the urgency to act until financial markets shake hard enough to ignite a fire under politicians from both parties.

There’s a theory that neither of them looks like a hero until there’s this fear of cascading prices, said Keith Buchanan, senior portfolio manager at Globalt Investments. Part or both may look like white knights.

Parts of Wall Street were more concerned, particularly in the bond market where some Treasuries are expected to be redeemed around the date of a possible default. The prices of these bonds fell, in part due to concerns about the debt ceiling, which in turn pushed their yields higher.

But the stock market did not show as much concern. Buchanan said that may be because it’s unclear how prices in different markets would react to something that has never happened before and was once unthinkable.

He said he hasn’t made any moves to the investments he oversees due to default fears, at least not yet.

I think everyone takes it moment by moment, he said. Every minute that passes increases the urgency.

Concerns about the debt ceiling come on top of fears that the slowing economy could head into a recession, even without default. A preliminary report released Tuesday morning suggests the economy remains divided, with growth in travel and other service businesses strengthening while manufacturing remains under pressure.

US economic expansion accelerated in May, but a growing dichotomy is evident,” said Chris Williamson, chief economist at S&P Global Market Intelligence.

On Wall Street, AutoZone fell 6% after reporting weaker revenue growth for the last quarter than analysts expected. This indicated a slower-than-expected March.

Electric vehicle maker Lordstown Motors fell 5.3% to 28 cents after announcing a reverse stock split to boost its share price. Investors will receive one new share for every 15 they currently hold. Its stock has remained below $1 since mid-March.

On the winning side of Wall Street was Lowes, which rose 1.7% after reporting higher earnings and revenue for the last quarter than analysts expected. But it also cut its financial forecast for the year in part because of weaker-than-expected sales to DIY customers.

Retailers are among the latest companies to report results for the first three months of the year, and most companies beat expectations. Retailers in particular have been getting a lot of attention, as resilient spending by US households has been one of the main positives that helped the economy out of the recession.

Manufacturing and other sectors of the economy are struggling under the weight of much higher interest rates designed to keep inflation in check.

High interest rates have also meant strain for the US banking system. Three high-profile bank failures since March have rattled the system, and Wall Street is on the hunt for the next bank that could suffer a debilitating drop in customer confidence.

Some of the most scrutiny focused on PacWest Bancorp, but it rallied for a second day after news broke that it was selling a $2.6 billion portfolio of home construction loans. It rose another 7.9% after jumping 19.5% on Monday.

Other banks also strengthened, including a 4.6% jump for Zions Bancorp.

In total, the S&P 500 lost 47.05 points to 4,145.58. The Dow fell from 231.07 to 33,055.51 and the Nasdaq lost 160.53 to 12,560.25.

In the bond market, the 10-year Treasury yield fell to 3.70% from 3.72% on Monday evening. It helps set the rates for mortgages and other large loans.

The two-year yield, which moves more in line with Fed expectations, rose slightly to 4.34% from 4.32%.

Most foreign stock exchanges fell, including a 1.3% drop for Paris and a 1.5% drop for Shanghai.

AP Business Writers Matt Ott and Joe McDonald contributed.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]