- U.S. markets tumbled on Wednesday, May 24, 2023 as talks to raise the federal debt ceiling hit a snag.
- More than half of Dow stocks lost 1% or more.
- Intuit shares sank as tax-season revenue for the maker of TurboTax missed estimates.
U.S. equities slumped as talks to raise the federal debt ceiling hit a snag, increasing concerns about a potential government default next month and the impact that would have on the U.S. and world economies. The Dow fell for a fourth straight session.
More than half of the stocks in the Dow fell by 1% or greater, led lower by 3M (MMM), which sank 3.7%. Walgreens Boots Alliance (WBA) shares dipped 2.5%. Analog Devices (ADI) was the worst-performing stock in the S&P 500 after the chipmaker warned about current quarter sales. Citigroup (C) said it was giving up on its effort to sell its Banamex unit in Mexico, sending shares lower.
Intuit (INTU) dropped as the maker of TurboTax posted revenue during the key tax season that was short of forecasts as fewer people filed returns. Shares of Agilent Technologies (A) declined after the maker of laboratory equipment cut its full-year outlook, and analysts downgraded the stock and lowered the price target.
Netflix (NFLX) shares took off following comments from Oppenheimer that the streaming service’s move to crack down on password sharing could raise the stock price by 25%. Shares of Illumina (ILMN) jumped ahead of Thursday’s shareholder meeting and proxy showdown between activist investor Carl Icahn and the gene-sequencing firm’s board.
Corning Incorporated (GLW) shares rose after the company boosted the price of glass used for TVs and other displays by 20%. Shares of energy producers gained along with the price of oil on suggestions OPEC+ may make more cuts in production.
Barclays upgraded Lennar (LEN) and raised the price target, sending its shares and those of rival home builders higher. Abercrombie & Fitch (ANF) and Kohl’s (KSS) shares jumped after both reported an unexpected quarterly profit.
Gold prices dropped. The yield on the 10-year Treasury note advanced. The U.S. dollar was higher versus the euro, pound, and yen. Major cryptocurrencies traded lower.