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Shares of U.S. regional banks rose, led by a 10.2% premarket
rise in Western Alliance Bancorp as the lender's deposit growth
exceeded $2 billion and brokerage Bank of America Global
Research resumed coverage of the bank with a "buy" rating.
Peers PacWest Bancorp and Zions Bancorporation NA added 10% and
4.0% respectively.
Democratic President Joe Biden and top congressional Republican
Kevin McCarthy on Tuesday made progress in talks to determine
whether to increase the U.S. debt limit. After an hour of talks,
however, McCarthy told reporters the two sides remained far
apart on an agreement.
A White House spokesperson said Biden will continue to hold
talks with congressional leaders on the nation's debt limit
later this week.
"Regional banking fears, tough Fed talk, and rhetoric over the
debt ceiling from politicians have all leaned on stocks over the
past week or so," said Peter Cardillo, chief market economist at
Spartan Capital Securities in New York.
"The market is likely to trade side ways as the earnings season
comes to an end and the focus shifts towards the June FOMC
meeting."
Target Corp edged 0.1% lower in choppy trading after the
retailer beat first-quarter profit expectations but forecast
current-quarter profit below expectations.
The results came a day after weak results from Home Depot and a
reading on U.S. April retail sales that missed expectations
highlighted the impact of higher prices and interest rates on
consumers, weighing on Wall Street on Tuesday.
Investors will now await retail behemoth Walmart's earnings on
Thursday. Its shares edged 0.4% higher.
At 7:42 a.m. ET, Dow e-minis were up 126 points, or 0.38%, S&P
500 e-minis were up 13.75 points, or 0.33%, and Nasdaq 100
e-minis were up 28.25 points, or 0.21%.
Shares of Tesla Inc rose 1.5% after its annual shareholder
meeting.
Top boss Elon Musk played down market rumors that he may step
down as CEO of Tesla, touched upon two new mass-market models it
is developing, and reaffirmed that deliveries of its
long-delayed Cybertruck pickup would start this year.
(Reporting by Shreyashi Sanyal and Shristi Achar A in Bengaluru;
Editing by Maju Samuel)
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