Day Traders Diary


The major averages took a hit as investors digested a lackluster forecast from Home Depot while also keeping an eye on the debt ceiling. The Dow Jones Industrial Average closed below its 50-day average for the first time since March 30. The 30-stock index dropped 336 points, or 1.01%, to 33,012. The S&P 500 fell 26 points or 0.64% to 4,109. The Nasdaq Composite declined 22 points or 0.18% to 12,343.

Dow member Home Depot pulled back by 2.15% after the retailer reported disappointing quarterly revenue and cut its full-year guidance, as consumers postponed large home improvement projects.

April retail sales came in weaker than expected, rising 0.4% last month. That was lower than the 0.8% increase anticipated by economists polled by Dow Jones.

On Monday, Treasury Secretary Janet Yellen reaffirmed that the U.S. faced the possibility of default as early as June 1, the so-called X date, if a deal isn't reached between the White House and Congress. On Tuesday, she doubled down on her warning to raise the limit immediately.

Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy, R-Calif., said significant obstacles still remain. Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal in which raising the debt limit would be tied to spending cuts.

On Tuesday, the White House said Biden will cut his upcoming international trip short as he deals with debt ceiling negotiations

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