Just days or weeks before the government faces a possible funding shortfall, investors are shunning U.S. Treasury bills that will mature over the next several months, while paying a premium to buy debt issued by Microsoft and Johnson & Johnson, two of the highest-rated U.S. companies.
Pro Take: Yield-Curve Pioneer Says This Inversion Warning Is Real
The Duke University finance professor who developed a tool that has reliably predicted economic contractions for decades said in January that his indicator might be sending a false recession warning.
He's not saying that now.
Online Retailers Tighten Return Policies to Boost Profits
Returns are one of the biggest profit drains for online retailers. Fixing that has become a priority as inflation continues to crimp shoppers' spending on everything from clothes to home décor.
Amazon gives a heads-up to shoppers about items that have high return rates. Online retailer Dress the Population offers discounts to people who agree not to return their purchases. Retailers with large numbers of physical stores such as Zara and H&M are also making adjustments like charging shoppers for sending returns by mail.
Eurozone Economy's Pace of Growth Eased in May, PMIs Suggest
Business activity in the eurozone moderated in May, still showing output grew for a fifth straight month, though with new business inflows nearly stalling and a struggling manufacturing sector, the outlook has become bleaker, data from a purchasing managers survey showed Tuesday.
The HCOB Flash Eurozone Composite PMI Output Index-which gauges activity in the manufacturing and services sectors-fell to a three-month low of 53.3 in May, from a downwardly revised 54.1 in April.
Biden Can't Win in Debt-Ceiling Fight
President Joe Biden has no good options in Washington's fight over raising the debt limit.
The U.S. could be unable to pay all of its bills as soon as June 1 if Biden and congressional Republicans can't reach a deal-and every path forward carries political risks for the president.
Questions About Trump, DeSantis and Biden Fuel Growth of 2024 GOP Field
The 2024 Republican presidential-nomination race is expected to crack the half-dozen mark for higher-profile entrants this week and several more are considering bids, a sign that prospective candidates don't think Donald Trump has the contest locked up and view Florida Gov. Ron DeSantis as a flawed lead challenger to the former president.
Republicans also see President Biden's weak polling as an enticement.
New Chinese Ambassador Departs for the U.S. Under a Cloud of Uncertainty
SINGAPORE-China's new ambassador to the U.S. is set to arrive in Washington to take up his post on Tuesday, a potential signal of Beijing's willingness to improve communications despite a recent cascade of diplomatic dust-ups.
Xie Feng, a veteran diplomat with extensive experience in managing U.S.-China ties, left Shanghai for the U.S. around noon local time on Tuesday, according to people familiar with the matter. He arrives at an uncertain moment in relations between Beijing and Washington, as contradictory messages emanate from the two capitals.
China Offers Tough Reply to Biden's Suggestion of Thaw With U.S.
Austin Ramzy
HONG KONG-Beijing responded to the Group of Seven leaders' firm language toward China by pouring cold water Monday on President Biden's suggestion that a thaw in U.S.-China relations was imminent.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Calendar (ET):
0830 Apr Industrial product and raw materials price indexes
Stocks to Watch:
No items published
Expected Major Events for Tuesday
00:30/JPN: May Japan Flash Manufacturing PMI
05:00/JPN: Apr Steel Production
05:30/JPN: Apr Tokyo area department store sales
05:30/JPN: Apr Nationwide department store sales
06:00/UK: Apr Public sector finances
07:15/FRA: May France Flash PMI
07:30/GER: May Germany Flash PMI
08:30/UK: May Flash UK PMI
08:59/JPN: Mar Final Labour Survey - Earnings, Employment & Hours Worked
09:00/ITA: Mar Balance of Payments
10:00/FRA: 1Q OECD Quarterly National Accounts: GDP growth
12:30/CAN: Apr Industrial product and raw materials price indexes
12:55/US: 05/20 Johnson Redbook Retail Sales Index
13:45/US: May US Flash Manufacturing PMI
13:45/US: May US Flash Services PMI
14:00/US: Apr New Residential Sales
14:00/US: May Richmond Fed Business Activity Survey
17:00/US: Apr Money Stock Measures
20:30/US: 05/19 API Weekly Statistical Bulletin
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Agilent Technologies (A) is expected to report $1.11 for 2Q.
Arrow Financial (AROW) is expected to report $0.66 for 1Q.
Athenex Inc (ATNX) is expected to report for 1Q.
AutoZone Inc (AZO) is expected to report $31.53 for 3Q.
BJ's Wholesale Club Holding Inc (BJ) is expected to report $0.85 for 1Q.
BQE Water Inc (BQE.V) is expected to report for 1Q.
California First Leasing Corp (CFNB) is expected to report for 3Q.
Calithera Biosciences (CALA) is expected to report for 1Q.
Citi Trends Inc (CTRN) is expected to report $0.43 for 1Q.
Crossroads Impact Corp (CRSS) is expected to report for 1Q.
Dick's Sporting Goods Inc (DKS) is expected to report $3.16 for 1Q.
Drive Shack Inc (DSHK) is expected to report $-0.06 for 1Q.
FTI Consulting (FCN) is expected to report $1.65 for 4Q.
Intuit Inc (INTU) is expected to report $6.83 for 3Q.
Lifecore Biomedical Inc (LFCR) is expected to report $-0.18 for 3Q.
Lowe's Cos (LOW) is expected to report $3.44 for 1Q.
Nautilus (NLS) is expected to report $-0.57 for 4Q.
New Relic Inc (NEWR) is expected to report $-0.45 for 4Q.
Nicholas Financial (NICK) is expected to report for 4Q.
Ooma Inc (OOMA) is expected to report $-0.02 for 1Q.
Palo Alto Networks Inc (PANW) is expected to report $0.14 for 3Q.
Rubius Therapeutics Inc (RUBY) is expected to report $-0.50 for 1Q.
Signature Bank (SBNY) is expected to report $2.69 for 1Q.
Silvergate Capital Corp (SICP) is expected to report for 1Q.
TESSCO Technologies Inc (TESS) is expected to report for 4Q.
Toll Brothers Inc (TOL) is expected to report $1.91 for 2Q.
Transphorm Inc (TGAN) is expected to report for 4Q.
Urban Outfitters (URBN) is expected to report $0.34 for 1Q.
VF Corp (VFC) is expected to report $0.14 for 4Q.
Williams-Sonoma Inc (WSM) is expected to report $2.39 for 1Q.
iMedia Brands Inc (IMBI) is expected to report for 1Q.
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ANALYST RATINGS ACTIONS
AnaptysBio Raised to Neutral From Underweight by JP Morgan
Apple Cut to Hold From Buy by Loop Capital
Avidity Biosciences Raised to Outperform From In-Line by Evercore ISI Group
Catalent Cut to Neutral From Overweight by JP Morgan
Cirrus Logic Cut to Hold From Buy by Loop Capital
Correction to Foot Locker Ratings
Correction to Hibbett Ratings
Corteva Raised to Buy From Hold by Vertical Research
DraftKings Raised to Buy From Neutral by UBS
EBR Systems Upgraded to Buy from Hold by Bell Potter
Foot Locker Cut to Neutral From Buy by Citigroup
Foot Locker Cut to Sell From Hold by William Blair
Hibbett Cut to Hold From Buy by William Blair
KeyCorp Raised to Buy From Hold by Odeon Capital
Knight-Swift Transport Raised to Buy From Neutral by Citigroup
Nike Cut to Sell From Hold by Williams Trading
Norfolk Southern Raised to Buy From Neutral by Citigroup
Norfolk Southern Raised to Overweight From Equal-Weight by Wells Fargo
Revolve Group Cut to Market Perform From Outperform by TD Cowen
Rocket Cos. Raised to Hold From Sell by Argus Research
Sonder Holdings Cut to Perform From Outperform by Oppenheimer
Subscribers: Disregard Bright Health Group Headlines
TrueBlue Raised to Outperform From Market Perform by BMO Capital
Union Pacific Raised to Buy From Neutral by Citigroup
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-23-23 0620ET
