NEW YORK (AP) — Stock markets in New York showed a mixed picture on Monday. Investors’ attention is focused mainly on the debate between Democrats and Republicans over the debt ceiling. US President Joe Biden said late last week that he would speak with congressional leaders on Tuesday and was confident of reaching an agreement on raising the debt ceiling. Biden will travel to Japan on Wednesday for the G7 summit in Tokyo.
If the debt ceiling is not raised, the US will soon be unable to make some payments, leading to major financial unrest worldwide. According to World Bank CEO David Malpass, the US government’s default risk has already added further economic uncertainty to the world.
Additionally, investors are looking ahead to results this week from U.S. retailers Walmart, Target, Kohl’s and Home Depot. They may provide additional insight into whether the U.S. economy is entering a recession. Attention will also be focused on weekly claims for unemployment benefits in the US, which increased last week. These WW applications are scheduled for Thursday.
In early trading, the Dow Jones industrial average was down 0.2 percent at 33,233 points. The broader S&P 500 opened almost immediately at 4123 points. Tech gauge Nasdaq rose 0.2 percent to 12,307 points.
Charles Schwab rose 3.9 percent. The financial services firm received a buy recommendation from investment bank Raymond James. According to analysts, the bank managed to attract new customers in the first quarter despite recent turmoil among smaller banks after the collapse of three peers in recent months.
Newmont rose 0.5 percent. The US gold producer has reached an agreement to acquire the Newcrest mine. The company is paying $19 billion for its Australian subsidiary. The contract is settled in shares. The acquisition creates the world’s largest gold mine with mines in North and South America, Africa, Australia and Papua New Guinea.
The euro was at $1.0877 against $1.0859 on Friday. U.S. oil was up 1 percent at $70.77 a barrel. Brent crude was up 1.1 percent at $74.98 a barrel.
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