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Consumer sentiment, debt ceiling, Fed speaker: 3 things to watch

Published 05/12/2023, 04:32 AM
© Reuters.

Investing.com -- Stocks wobbled on Thursday as bank stocks showed further weakness and after Disney disappointed on its streaming subscriber numbers for the recent quarter.

Bank stocks are falling on renewed concerns about deposit outflows. PacWest shares fell 21% after it disclosed another drop in deposits last week after news reports it was exploring options.

But stocks were also weaker because Disney reported it lost four million streaming subscribers. Overall, revenue in the recent quarter was up 13% for the entertainment giant.

Investors have been worried that bank weakness could blossom into a contagion that could affect the economy. Futures traders expect the Federal Reserve to pause its rate increases at the June meeting after it raised by another quarter of a percentage point last week.

Next week comes data on retail sales that could provide another glimpse of consumer demand.

Here are three things that could affect markets tomorrow:

1. Consumer sentiment

The University of Michigan releases its reading on consumer sentiment at 10:00 ET. Analysts expect the number for May to dip to 63 versus the 63.5 reading from the previous release.

2. Debt ceiling

Lawmakers plan to meet again Friday to hash out their differences on the government's debt ceiling as the deadline to get a deal to raise it quickly approaches. Democrats want to raise the limit without conditions, while Republicans have insisted on spending cuts in any deal. Treasury Secretary Janet Yellen has warned that the government could run out of options to pay its obligations as early as June 1.

3. Fed speaker

Fed. Gov. Philip Jefferson is scheduled to speak at the Hoover Institution's monetary policy conference at 19:45 ET.

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