Here are the most important news items that investors need to start their trading day:
1. Market malaise
The Dow Jones Industrial Average and S&P 500 have fallen for two straight weeks. A flurry of data that will hint at the health of the economy — along with debt ceiling talks in Washington — will help to determine if stocks can break the losing streak. A survey that tracks manufacturing sentiment in New York will hit Monday, followed by retail sales Tuesday and weekly initial jobless claims Thursday. Earnings from Home Depot, Target and Walmart will paint a picture of how consumers are spending. A string of remarks from regional Federal Reserve Bank presidents will also offer a window into whether the central bank plans to suspend interest rate hikes. Follow live market updates.
2. Debt ceiling clock is ticking
The window for the U.S. to avoid a debt default is shrinking. Congress and the White House now have as few as 2½ weeks to break an impasse and avoid a calamity that would upend the economy and jeopardize government benefits. Staff for President Joe Biden and congressional leaders met over the weekend, and the highest-ranking ranking officials in Washington are expected to huddle Tuesday for the second straight week. Biden said Saturday that the talks are “moving along” but have not yet reached a “crunch point.”
3. Retail earnings rush
Retail will dominate the slate of corporate earnings this week. Reports from Home Depot, Target and Walmart on consecutive days will give more clues about how high prices have affected discretionary spending — and how companies are adapting to more cost-conscious consumers. Investors will also watch for hints the companies offer about the health of the economy moving forward. Here’s the earnings schedule this week:
- Tuesday: Home Depot (before the bell)
- Wednesday: Target (before the bell)
- Thursday: Walmart (before the bell)
4. Vice bankruptcy
Vice Media was once valued at $5.7 billion, as a digital upstart that drew attention and money from legacy companies. Vice filed Monday for Chapter 11 bankruptcy protection. The brand is one of a handful of digital outlets that have taken a hit this year as economic concerns mount. A consortium that includes Fortress Investment, Soros Fund Management and Monroe Capital has made a $225 million credit bid for Vice, including $20 million to fund its operations during the sale process.
5. Turkey election could go to runoff
Turkey’s high-stakes presidential election appears headed to a runoff. With nearly all votes counted, neither incumbent President Recep Tayyip Erdogan nor challenger Kemal Kilicdaroglu had secured the 50% of votes needed to win the race outright. Kilicdaroglu has run as a reform candidate after Erdogan increasingly consolidated power during his two decades as the country’s leader. Turkey’s economy has struggled, and Erdogan has come under scrutiny for his skepticism about expanding NATO during Russia’s war in Ukraine.
– CNBC’s Sarah Min, Elliot Smith and Natasha Turak contributed to this report.
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