Consumer Sentiment, Debt Ceiling, Fed Speaker: 3 Things to Watch

Consumer Sentiment, Debt Ceiling, Fed Speaker: 3 Things to Watch — Stocks faltered on Thursday as banking stocks showed further weakness and after Disney disappointed its streaming subscriber count for the last quarter.

Bank stocks tumble on renewed worries about deposit outflows. PacWest shares fell 21% after disclosing another drop in filings last week after reports it was exploring options.

But shares were also weaker as Disney announced it lost four million streaming subscribers. Overall, last quarter revenue rose 13% for the entertainment giant.

Investors fear that the weakness of banks could escalate into a contagion that could affect the economy. Futures Traders

Expect the Federal Reserve

to suspend its rate hikes at the June meeting by another quarter of a percentage point last week.

Next week, retail sales data may provide another insight into consumer demand.

Here are three things that could affect the markets tomorrow:

1. Consumer Sentiment

The University of Michigan releases its reading at 10:00 a.m. ET. Analysts expect the May figure to drop to 63 from 63.5 in the previous release.

2. Debt ceiling

Lawmakers plan to meet again on Friday to settle their differences over the government’s debt ceiling as the deadline to secure a deal to raise it quickly approaches. Democrats want to raise the limit without conditions, while Republicans have insisted on spending cuts in any deal. Treasury Secretary Janet Yellen has warned that the government may run out of options to pay its obligations as early as June 1.

3. Powered speaker

Fed. Governor Philip is scheduled to speak at the Hoover Institution’s Monetary Policy Conference at 7:45 p.m. ET.


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