1. Short week, high stakes
Investors are back from their three-day holiday weekend, facing a world with no more new “Succession” episodes, as well as a shortened week that will nonetheless be loaded with consequential twists and turns. There’s a decent slate of earnings ahead, as well as major economic data points, including the job openings report Wednesday and the April jobs report due Friday. Markets will also have their mind on what’s going on in Washington with the debt ceiling (more below), while Tesla investors will keep a keen on eye on what CEO Elon Musk does during his visit to China. Follow live market updates.
2. Now for the hard part
President Joe Biden and House Speaker Kevin McCarthy reached a deal over the weekend to raise the debt ceiling, avoid the first-ever U.S. default and cap some government spending. But there's still a lot of work to be done. Treasury Secretary Janet Yellen said the U.S. government could run out of cash to pay its bills June 5, which is just six days away. In that time, the Biden-McCarthy agreement will have to pass through Congress. It’s already shaping up to be dicey, with progressive Democrats and conservative Republicans airing their gripes. McCarthy wants the House to vote on the bill Wednesday. We’ll see.
3. Still plenty of earnings
Earnings season is just about wrapped up, but there are still several notable companies set to report this week. Salesforce and Broadcom lead the tech stragglers, while Macy’s and Nordstrom are on tap as the retail earnings extravaganza tapers off. Here’s a look at which companies are reporting this week:
Tuesday: HP (after the bell)
Wednesday: Salesforce, Nordstrom, Okta, CrowdStrike, Chewy (after the bell)
Thursday: Macy’s, Dollar General (before the bell); Lululemon, Broadcom (after the bell)
4. Drones attack Moscow
Moscow itself is now feeling the impact of Russia’s war on Ukraine. Drones hit several buildings in the Russian capital early Tuesday. The strikes caused some damage but no casualties, officials said. It wasn’t immediately clear where the drones came from, although Russian officials blamed Ukraine. While the Ukrainian government didn’t claim credit, a top advisor to President Volodomyr Zelenskyy’s office said Ukraine “has nothing directly to do” with the Moscow attacks, although it’s “pleased to observe and predict an increase in the number of attacks.” Follow live war updates.
5. Final showdowns
The NBA Finals are set: The Miami Heat will take on the Denver Nuggets. The Heat, led by star Jimmy Butler, took game 7 of the Eastern Conference finals in convincing fashion, holding off the Boston Celtics’ bid for a historic comeback from an 0-3 series deficit. The finals matchup is intriguing for several reasons, including the fact that the Heat barely even made the playoffs, while the Nikola Jokic-led Nuggets are making their first-ever finals appearance. The series begins Thursday on Disney’s ABC. The Stanley Cup Finals are also ready to go in the NHL, with the Vegas Golden Knights set to take on another surprising Florida team, the Panthers. The puck drops in that series Saturday on Warner Bros. Discovery’s TNT.
— CNBC’s Mike Calia wrote this newsletter. Brian Evans, Christina Wilkie and Natasha Turak contributed.
