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The
main indexes started the week with modest gains as trading was
range-bound amid a wrangling in Washington between the White
House and Republicans.
They will sit down later in the day to try to make progress on a
deal to raise the U.S. government's $31.4 trillion debt ceiling
and avert an economically catastrophic default.
"There is little chance we will see a resolution to the U.S.
debt ceiling issue today," said Ipek Ozkardeskaya, senior
analyst at Swissquote Bank.
"The negotiations will likely remain tight as Republicans ask
decent spending cuts to accept a debt ceiling relief, while
Biden is not willing to compromise on spending into the election
year."
Dow Jones Industrial Average component Home Depot shed 4.4% in
premarket trading after the home improvement chain cut its
annual sales forecast, with Americans cutting back on spending
on tools and building materials as inflation stays sticky.
Shares of rival Lowe's Companies Inc fell 3.2%, while retail
giant Walmart Inc slipped 0.4%.
Focus will also be on economic data, with retail sales expected
to increase by 0.8% in April after falling 0.6% in the month
before.
Data recently has pointed to a slowing U.S. economy, which is
starting to feel the heat of the Federal Reserve's restrictive
monetary policy, and also heightened expectations for when the
central bank will pause its hiking cycle.
At 6:56 a.m. ET, Dow e-minis were down 80 points, or 0.24%, S&P
500 e-minis were down 3 points, or 0.07%, and Nasdaq 100 e-minis
were up 5.25 points, or 0.04%.
Shares of Capital One Financial Corp jumped 6.3% after Berkshire
Hathaway Inc on Monday disclosed it has begun investing in the
consumer lender.
Berkshire also upped its stake in HP Inc, sending its shares up
1.6%, while shedding stake in regional bank US Bancorp, which
slipped 1.2%.
Horizon Therapeutics slid 17.8% as the Federal Trade Commission
is expected to file a lawsuit to block Amgen Inc's $27.8 billion
deal to buy the company. Shares of Amgen rose 1.2% in thin
volumes.
(Reporting by Shreyashi Sanyal, Shristi Achar A and Medha Singh
in Bengaluru; Editing by Maju Samuel and Dhanya Ann Thoppil)
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