Markets: News  

The major indices had a mixed showing today as participants dealt with mixed news catalysts. Chief among the news catalysts was NVIDIA's (NVDA 379.81, +74.43, +24.4%) huge gain after reporting better-than-expected fiscal Q1 results that featured spectacular fiscal Q2 revenue guidance.NVIDIA's results fueled buying interest in other semiconductor and mega cap stocks, offering a lot of support to the broader market. The Nasdaq 100 jumped 2.5% while the Nasdaq Composite and S&P 500 rose 1.7% and 0.9%, respectively. The Invesco S&P 500 Equal Weight ETF (RSP), though, declined 0.1%. The Dow Jones Industrial Average also fell 0.1%. The PHLX Semiconductor Index rose 6.8% with several components registering outsized gains and/or hitting new 52-week highs. TSMC (TSM 100.95, +10.82, +12.0%) and Advanced Micro Devices (AMD 120.35, +12.08, +11.2%) were among the standouts in that regard.Still, market breadth reflected underlying weakness due to ongoing angst about the debt ceiling. Decliners led advancers by a 9-to-5 margin at the NYSE and a better than 2-to-1 margin at the Nasdaq.That angst, though, seemed to dissipate somewhat as the session progressed. Before the open, it was reported that Fitch Ratings put the nation's AAA rating on Credit Watch Negative. It was also reported that Congressional members will leave Washington today for Memorial Day, but were warned that they should be ready to return on 24 hours notice if a debt ceiling deal is reached. Later reports emerged that seemingly calmed some nervousness around the debt ceiling. Negotiators are close to a deal on a "slimmed-down" debt ceiling, according to Bloomberg. Also, Republicans and Democrats are narrowing differences on the debt limit, according to Reuters.The S&P 500 information technology sector (+4.5%) was the top performer by a wide margin thanks to NVIDIA and its other mega cap components. Meanwhile, the energy (-1.9%) and utilities (-1.4%) sectors saw the steepest declines.Market participants were also digesting some relatively pleasing U.S. economic data today. The initial jobless claims report showed continued strength in the labor market and Q1 GDP was revised up to 1.3% from 1.1%. This was in contrast to some weak data out of Germany, which reported its second straight quarter of contraction in GDP, stoking global growth concerns. Treasuries retreated with most tenors settling sharply lower. Selling picked up after the release of this morning's data. The 2-yr note yield rose 15 basis points to 4.49% and the 10-yr note yield rose 10 basis points to 3.81%. Notably, the CME FedWatch Tool shows a 48.2% probability of a 25 basis points rate hike at the June meeting versus 36.4% yesterday and 8.3% a month ago.Nasdaq Composite: +21.3% YTDS&P 500: +8.1% YTDRussell 2000: -0.4% YTDS&P Midcap 400: -0.4% YTDDow Jones Industrial Average: -1.2% YTDReviewing today's economic data:The second estimate for Q1 GDP was revised up to 1.3% (Briefing.com consensus 1.1%) from the advance estimate of 1.1% and the GDP Price Deflator was revised up to 4.2% (Briefing.com consensus 4.0%) from the advance estimate of 4.0%.The key takeaway from the report is that consumer spending remained strong (+3.8%) in the first quarter in spite of the ongoing inflation pressures.Initial claims for the week ending May 20 increased by 4,000 to 229,000 (Briefing.com consensus 247,000). The prior week saw a downward revision to 225,000 from 242,000. Continuing jobless claims for the week ending May 13 decreased by 5,000 to 1.794 million.'The key takeaway from the report is that initial jobless claims are nowhere near recession levels. They continue to register in a manner that connotes tight labor market conditions.Pinduoduo (PDD), Booz Allen Hamilton (BAH), and Big Lots (BIG) are among the more notable companies reporting earnings ahead of the open tomorrow.Looking ahead to Friday, market participants will receive the following economic data:Personal Income (Briefing.com consensus 0.4%; prior 0.3%) and Spending (Briefing.com consensus 0.4%; prior 0.0%), PCE Price Index (Briefing.com consensus 0.3%; prior 0.1%), and core-PCE Price Index (Briefing.com consensus 0.3%; prior 0.3%) for April at 8:30 a.m. ET Durable Goods Orders (Briefing.com consensus -1.0%; prior +3.2%) and Durable Goods Order, excluding transportation (Briefing.com consensus -0.1%; prior +0.3%) for April at 8:30 a.m. ETAdv. Intl. Trade in Goods (prior -$84.6 billion), Adv. Retail Inventories (prior 0.7%), and Adv. Wholesale Inventories (prior 0.1%) for April at 8:30 a.m. ETUniversity of Michigan Consumer Sentiment - final for May (Briefing.com consensus 57.8; prior 57.7) at 10:00 a.m. ET