June 1, 2023

Markets:

Stock futures rose slightly Thursday after the U.S. House passed a debt ceiling bill in a crucial step to avoid a U.S. default, with the measure now moving it to the Senate.

The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support. Senate Majority Leader Chuck Schumer, D-N.Y., said he hopes “we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible.”

Concern over a possible U.S. debt default lingered on Wall Street throughout May — which concluded Wednesday. Last month was also marked by a dramatic rally in artificial intelligence-related stocks.

Beyond the debt ceiling battle, investors are looking ahead to the Federal Reserve’s June 13-14 policy meeting as another possible market catalyst. Philadelphia Fed President Patrick Harker said Wednesday that he’s leaning toward skipping a rate hike at the upcoming gathering. However, he added that Friday’s payrolls report could change his mind.

A slew of economic data is set for release Thursday, including weekly jobless claims and the purchasing managers’ index.

Portfolio:

We enter the new session holding one position in ARLO. Until debt ceiling bill is passed, we cannot be overweighted to either side and want to be right here just patiently waiting.  Watching the queue and it's extremely active. Be ready but be patient until the bill has passed and then we watch the reaction and are able to trade either side with force. Let's have a great session.