Key Takeaways

  • U.S. equites moved higher on Thursday, June 1, 2023 as the U.S. Senate works on the bill to raise the federal debt ceiling.
  • American Express and Visa lead the Dow higher.
  • Dollar General shares sink as inflation impacts customers' buying habits.

U.S. equities advanced as the Senate attempted to pass the bill to raise the federal debt ceiling and avoid a possible government default after the House approved it last night. The market also got a boost from Philadelphia Federal Reserve Bank President Patrick Harker, who said he was inclined to vote in favor of skipping an interest rate hike at the Fed’s meeting in two weeks. 

American Express (AXP) and Visa (V) were the best-performing stocks in the Dow. Rival credit card providers gained as well. Match Group (MTCH) led the S&P 500 higher as the operator of online dating sites said it was offering its own dating app for gay men.

NetApp (NTAP) shares rose after the storage and data management solutions firm exceeded earnings and revenue estimates. Hormel Foods (HML) also beat profit forecasts, and shares advanced.

After a drop yesterday, shares of Nvidia (NVDA) resumed their rally on excitement over artificial intelligence (AI). Shares of other companies in the AI sector were also up. Shares of oilfield services providers SLB (SLB), Baker Hughes (BKR), and Halliburton (HAL) rose. 

Dollar General (DG) shares plummeted as the discount retailer slashed its full-year guidance because of “macroeconomic headwinds” impacting customers’ shopping habits. Shares of low-priced chains Dollar Tree (DLTR) and Five Below (FIVE) lost ground, too.

Amgen (AMGN) and AbbVie (ABBV) shares tumbled on concerns about potential competition from a new partnership between Coherus Bioscience (CHRS) and billionaire Mark Cuban. Salesforce (CRM) shares fell after the cloud-based enterprise software company said that its customers are being more cautious about spending. Shares of Advance Auto Parts (AAP) dropped for a second straight day on an analyst downgrade following the auto parts retailer missing profit forecasts and reducing its guidance and quarterly dividend. 

The yield on the 10-year Treasury note declined. Oil and gold prices climbed. The U.S. dollar dipped versus the euro, pound, and yen. Trading of major cryptocurrencies was mixed and in a tight range.

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