Wall Street just ends in the green ahead of debt talks

The New York Stock Exchange ended just in the green on Monday, pending further talks between the White House and parliamentary opposition leaders on the US debt ceiling.

The Dow Jones index climbed 0.14% to 33,348.60 points, the tech-heavy Nasdaq rose 0.66% to 12,365.21 points and the S&P 500 gained 0.30% to 4,135, 28 dots.

President Joe Biden has confirmed that he will meet on Tuesday with Republican officials, including House of Representatives boss Kevin McCarthy, to try to remove the risk of a default by the United States.

“I remain optimistic because I am a congenital optimist, but I really think there is a will on their part and on ours to reach an agreement. I think we will achieve it,” Joe Biden said on Sunday.

Without being able to borrow more, the United States risks default from June 1, warned Janet Yellen, the Treasury Secretary, which would be potentially catastrophic for the financial system.

“Growing hopes that the country can avoid a debt ceiling debacle seem to have put a floor under the market,” said Schwab analysts.

Spartan Capital’s Peter Cardillo, however, “doesn’t see debt as a primary concern for investors.”

– More concerned about the Fed –

“What worries investors is the next Fed decision and right now the market is not going anywhere,” said the analyst.

Two Fed officials spoke on Monday and more will follow during the week.

The Atlanta Fed’s Raphael Bostic warned that “appropriate monetary policy is now on a wait-and-see basis” to see the impact of previous tightenings. As for the Minneapolis Fed’s Neel Kashkari, he warned that rates may need to remain tight “for an extended period.”

The market barely reacted to this strict rhetoric, noted Peter Cardillo.

On the other hand, in the morning, the New York indices took a nose dive when manufacturing activity in the New York region appeared very disappointing in May.

“The Fed’s interest rate tightening cycle is starting to hit the economy hard,” said Edward Moya of Oanda.

On the stock market, the materials, information technology and banking sectors led the small rise.

Meta, the parent company of Facebook, supported the Nasdaq by rising 2.16% to 238.86 dollars after a good analyst rating.

Regional banks, heavily heckled in recent weeks, have rebounded strongly, like PacWest (+ 17.58% to 5.35 dollars), Western Alliance (+ 11.98%) and Zions Corporation (+ 8 .47%).

Magellan Midstream Partners, operator of oil pipelines, soared 13.41% to 62.84 dollars after announcing that it was acquired by the natural gas carrier Oneok for 18.8 billion dollars.

Under the terms of the agreement, Magellan shareholders will receive $25 in cash and 0.6670 Oneok shares for each of their shares. This represents a 22% premium to Friday’s closing price ($55.41).

The action of Oneok, on the other hand, was the red lantern of the market, dropping 9.06% to 57.95 dollars.