Equities Fall With Focus on Inflation, Debt Ceiling

U.S. equities declined ahead of key reports on inflation and as President Biden and Congressional leaders met to try to work out a deal to raise the federal borrowing limit and keep the government from defaulting.

Intel (INTC) was the biggest drag on the Dow, with shares falling 2% as the chipmaker announced more layoffs and spending reductions after posting its biggest quarterly loss in history in April. Shares of other semiconductor firms also slipped. PayPal (PYPL) was the worst-performing stock in the S&P 500 after the payment services provider cut its guidance for full-year operating margin growth.

Shares of International Flavors & Fragrances (IFF) dropped after the maker of flavors, fragrances, and cosmetic actives posted a loss and lowered its full-year revenue outlook. Tyson Foods (TSN) shares declined for a second straight day after the big food processor also reported a quarterly loss and reduced its 2023 sales guidance.

Boeing (BA) shares picked up 2% on word that European discount carrier Ryanair (RYAAY) agreed to purchase at least 150 of Boeing's 737 Max 10 jets, with an option to buy 150 more. Palantir Technologies (PLTR) said that demand for its artificial intelligence (AI) products are soaring, and shares jumped. Novavax (NVAX) shares took off on the biotech's drug trial results and cost-cutting moves.

DaVita Profit

DaVita (DVA) was far and away the best-performing stock in the S&P 500 after the provider of kidney dialysis services exceeded earnings and revenue forecasts, indicating that it was benefiting from an improving macroeconomic environment. Medical supply company McKesson (MCK) beat estimates as well and raised its guidance, and its shares gained.

Oil and gold futures reversed earlier losses and were higher. The yield on the 10-year Treasury note was little changed. The U.S. dollar advanced on the euro and yen but fell versus the pound. Prices for major cryptocurrencies were mostly higher.