Stock futures rise as investors wait for debt deal: Stock market news today

Equity futures were slightly higher on Friday morning as investors awaited developments on the debt ceiling deliberations in Washington and digested the latest corporate earnings.

Futures linked to the S&P 500 (^GSPC) rose 0.23%, while those of the Dow Jones Industrial Average (^DJI) rose 60 points, or 0.18%. Those of the technology-heavy Nasdaq Composite (^IXIC) rose 0.39%.

The Dow Jones and S&P 500 entered Friday on track to end the week lower after talk of the debt ceiling weighed on markets slightly throughout the week. On Friday morning, Reuters reported that President Joe Biden and House Speaker Kevin McCarthy are “closer to an agreement” to extend the government’s debt ceiling by two years.

“Negotiators appear to be closing in on a deal,” Goldman Sachs’ economic research team led by Jan Hatzius wrote in a note to clients late Thursday.

“While it is difficult to predict when an announcement might take place, we believe the odds are highest that a deal will be announced late Friday (May 26) or Saturday (May 27). If so, that would likely allow for a vote in the House late Tuesday (May 30) or Wednesday (May 31). The Senate must also pass the deal, although procedural hurdles are unlikely to prevent timely enactment,” they added.

FILE - President Joe Biden listens as he meets with House Speaker Kevin McCarthy of California to discuss the debt limit in the Oval Office of the White House, May 22, 2023, in Washington.  A federal prosecutor hired by President Joe Biden to become a U.S. district judge in Kansas has withdrawn from consideration, citing the nearly two-year wait for his nomination.  Jabari Wamble is Biden's second judicial nominee to step down this month.  (AP Photo/Alex Brandon)

FILE – President Joe Biden listens as he meets with House Speaker Kevin McCarthy of California to discuss the debt limit in the Oval Office of the White House, May 22, 2023, in Washington. (AP Photo/Alex Brandon)

The Nasdaq rallied to close 1.7% higher on Thursday, as Nvidia’s (NVDA) booming quarter sent the chip giant’s stock up more than 24%. Earnings also continued to move stocks on Friday morning.

Shares of Marvell Technology (MRVL) rose more than 16% in premarket trading as the chipmaker joined Nvidia in sharing positive artificial intelligence news. Marvell thinks its AI-attributable revenue could double next year.

Elsewhere in earnings, Gap (GPS) stock rose more than 13% after the clothing retailer posted a surprise profit on Thursday night. Meanwhile, shares of Ulta Beauty (ULTA) fell in premarket trading after the company warned of slowing growth trends, even as the beauty retail chain beat Wall expectations. Street on revenue and earnings per share for the first quarter.

“Category growth is healthy but moderating as we navigate two years of unprecedented growth. And as category growth normalizes, promotional activity increases,” said Ulta CEO Dave Kimbell. , during the company’s earnings call.

On the economic front, the PCE price index – the Federal Reserve’s preferred measure of inflation – came out hotter than expected. Core PCE rose 4.7% in April, up 0.1% from last month and from economists’ expectations. Personal income and spending data also rose more in April than the previous month. The 0.8% increase in personal spending in April was 0.3% higher than economists had expected, according to Bloomberg.

Data on durable goods orders also surprised economists. April’s preliminary reading showed a 1.1% increase in durable goods orders as expectations were for a 1% decline.

New personal income and spending data and a final reading of the University of Michigan Consumer Sentiment Index are also due on Friday.

Josh is a reporter for Yahoo Finance.

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