Another lackluster session so far today as debt ceiling uncertainty continues to hang over the market. The major indices were trading in narrow ranges, near the flat lines, until a recent selling interest drove the Nasdaq and S&P 500 to new sessions lows. 

Congressional leaders have indicated that both sides are still far apart. House Speaker McCarthy told House GOP members a deal is nowhere to be seen, while House Minority Leader Jeffries stated that there is not a lot of progress being made on the debt ceiling.

Big parade of economic data today.

May Richmond Manufacturing index fell to -15 vs. -8 consensus. Notably, new orders, capex, and shipments deteriorated into contractionary territory. Surprisingly, employment ticked up and sits at its highest level since August 2022.

Sales of new single-family houses jumped in April by 4.15% m/m to a seasonally adjusted annualized rate of 683k. However, March data was revised sharply lower to 656k (from 683k). The trend has been up since Q3FY22, the same can be said for homebuilder stocks. 

The Global Flash US PMI came in higher month to month but missed consensus. Manufacturers recorded a fall in input prices for the first time in three years. 

• Headline 54.5 vs. consensus 55.3 

• Services 55.1 vs. consensus 52.5 

• Manufacturing 48.5 vs. consensus 50 

Energy is outpacing its peers by a wide margin. Chevron (CVX) is one of the best performers in the sector after being upgraded to Buy from Hold at HSBC. 

We await for more debt-ceiling news.