US stocks were subdued On Monday morning, investors are expecting more corporate earnings, the latest inflation report and a much-anticipated meeting between President Biden and House Speaker Kevin McCarthy on this week’s debt ceiling.
The S&P 500 (^GSPC) was up 0.10% on market open, while futures on the Dow Jones Industrial Average (^DJI) were up 59 points, or 0.18%. The tech-heavy Nasdaq Composite (^IXIC) lost 0.10%.
Regional bank stocks extended Friday’s rally. PacWest Bancorp (PACW) shares rose nearly 30% after the bank cut its quarterly dividend and CEO Paul Taylor reiterated that the bank was “healthy.”
The KBW Regional Bank Index (KRX) rose nearly 2% after rising nearly 5% on Friday. Despite the early morning bounce, PacWest shares will still open about 30% lower than a week ago.
Shares continued to react to Berkshire Hathaway’s annual shareholder meeting, held over the weekend in Omaha, Nebraska. Berkshire (BRK-A, BRK-B) shares rose more than 1%, while Occidental Petroleum (OXY) shares traded near zero after Warren Buffett said Berkshire will not take a majority stake in the Houston-based oil company buy.
Tyson Foods (TSN) shares fell more than 12% as the company cut its annual sales guidance by $2 billion and missed Wall Street estimates for first-quarter earnings per share and revenue.
Elsewhere in corporate earnings, Dish Networks (DISH) rose 4% despite reporting weaker-than-expected earnings for the quarter. Six Flags (SIX) shares rose more than 21% as the theme park operator reported fewer guests than a year earlier but higher-than-expected revenue and higher spend per customer.
In commodities, oil futures surfaced Monday morning. West Texas Intermediate (CL=F) and Brent (BZ=F) are up more than 2%. Brent crude prices were near $77 a barrel.
Wholesaler inventories and trade sales were weaker than expected on Monday. Wholesale inventories were flat in March, with estimates calling for a 0.1% rise, per Bloomberg. Wholesale sales fell 2.1% in March, well below the upbeat forecast of 0.4% according to Bloomberg consensus data.
Markets are awaiting more economic news this week as Wednesday brings the latest much-anticipated inflation report.
The United States’ debt will also be in focus this week after Treasury Secretary Janet Yellen said the country could default as soon as June 1. President Biden is expected to meet with McCarthy and other senior congressional leaders Tuesday to discuss solutions. Historically, uncertainty around the debt ceiling has weighed on equities.
Josh is a reporter for Yahoo Finance.
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