Markets End Mixed Ahead of Debt Ceiling Meeting

U.S. equities opened the new week mixed ahead of a key meeting between President Biden and House Speaker McCarthy to try to hammer out a deal to raise the U.S. debt ceiling and keep the government out of default. 

Regional bank stocks moved higher, boosted by shares of PacWest Bancorp (PACW) after the bank sold off a portfolio of loans. Pfizer (PFE) shares gained on release of a peer-reviewed study that indicated the drug maker’s oral diabetes treatment was successful in bringing down patients’ weight. 

Tech stocks advanced. Tesla (TSLA) shares rose for the fifth straight session. Shares of Alphabet (GOOGL) and Meta Platforms (META) added 1%. DraftKings (DKNG) got an analyst upgrade from UBS and shares took off. Fair Isaac (FICO) shares advanced after a Baird analyst raised the price target. 

Nike (NKE) was the worst-performing stock in the Dow following an analyst downgrade, and on continued concerns about the sector following Foot Locker’s (FL) worse-than-expected earnings report. Foot Locker shares sank as well. Shares of Micron Technology (MU) dropped as China accused the chipmaker of presenting a security risk, and Beijing banned it from being part of key infrastructure projects. 

It was a tough day for investors in consumer staples, with shares of Kimberly-Clark (KMB), Coca-Cola (KO), Procter & Gamble (PG), and others in the category losing ground. Chevron (CVX) shares fell after the oil giant agreed to pay $6.3 billion for PDC Energy (PDCE). PDC shares jumped.

Oil futures climbed, gold futures declined. The yield on the 10-year Treasury note increased. The U.S. dollar was up against the pound and yen, but fell against the euro. Prices for most major cryptocurrencies climbed.