Stocks slipped on Tuesday as investors reacted to a disappointing forecast from Home Depot
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Market moves were driven by ongoing negotiations in Washington over the U.S. debt ceiling. President Joe Biden met with congressional leaders including House Speaker Kevin McCarthy and Senate Majority Leader Chuck Schumer Tuesday afternoon to continue talks from last week where the parties failed to reach an agreement.
Wall Street grew concerned over the debt ceiling after U.S. Treasury Secretary Janet Yellen warned of economic repercussions if the U.S. defaulted on its debts, which could happen as soon as June 1.
Also in the spotlight, Home Depot delivered disappointing guidance for its fiscal full year sales growth after reporting lackluster first quarter earnings that mostly missed estimates -- including the biggest revenue miss in 20 years.
"The state of the homeowner is that they're very healthy," CFO Richard McPhail told CNBC. "They have healthy balance sheets. They have healthy incomes. But I do think -- and our professional customers tell us they hear this from their customers -- that is that shift, even if it's temporary from largest projects into smaller ones," adding that many consumers conducted larger home improvement projects during the COVID pandemic.
In economic news, U.S. retail sales rose by just 0.4% in April, according to the Commerce Department, representing only half the month-to-month growth economists expected. Separately, homebuilder confidence for U.S. single-family homes rose to the highest level in 10 months in May, as limited stock boosted optimism in the housing market.
Looking ahead, investors are gearing up for earnings from Target
