NASDAQ 100, Dow Jones, S&P 500: Mixed Opening as Debt Ceiling and Jobs Report Loom

James Hyerczyk
Updated: Jun 1, 2023, 13:56 GMT+00:00

Passage of the bipartisan Fiscal Responsibility Act fails to significantly sway U.S. stock market sentiment.

Nasdaq, S&P 500, Dow

In this article:


  • US House passes the bipartisan Fiscal Responsibility Act to avoid default.
  • Traders await resolution of the debt ceiling issue and the upcoming jobs report.
  • Pre-market stock movements: Nordstrom rises, and Salesforce decline, and more.


US stock indexes opened mixed on Thursday, with investors showing little reaction to the US House passing a crucial step to avoid a US default. Traders are awaiting the resolution of the debt ceiling issue and Friday’s US Non-Farm Payrolls report, which could impact the Federal Reserve’s June interest rate decision. The Dow is trading at 32,886.00, down 0.28%, while the S&P 500 is up 0.04% at 4,192.00, and the Nasdaq is up 0.07% at 14,310.50.

Daily S&P 500 Index

Crucial Fiscal Responsibility Act Passed

The bipartisan-supported Fiscal Responsibility Act was passed by a vote of 314-117, and Senate Majority Leader Chuck Schumer hopes for swift passage in the Senate and prompt approval by the President. The market has already factored in a resolution to the debt ceiling issue, despite its potential impact.

Strong May Payrolls Defy Expectations

In May, private payrolls surpassed economists’ expectations, with ADP reporting a growth of 278,000 compared to the estimated 180,000 by Dow Jones. Additionally, the number of jobless claims filed last week was lower than what economists had predicted. These data points indicate the ongoing strength and resilience of the labor market, an area of the economy that is closely monitored. There are concerns that this sustained strength may prompt the Federal Reserve to consider raising interest rates again at its upcoming policy meeting later this month.

Nordstrom Surges, Plummets

In the pre-market session, several companies experienced notable stock movements. Nordstrom’s shares rose 4.7% after surpassing Wall Street’s expectations in its first-quarter results. faced a 21% decline in its shares due to disappointing guidance for the fiscal first quarter. Salesforce shares fell 6% due to higher-than-expected capital costs and lower demand for consulting deals in its fiscal first quarter. Okta’s shares tumbled over 20% as decelerating subscription revenue growth and a worsening macro environment impacted investor sentiment.

Macy’s and Dollar General Face Pre-Market Declines, Chewy Soars

Macy’s shares slid 7% premarket as the company missed revenue estimates for its recent quarter and lowered its full-year earnings and sales guidance. Lucid Group saw a 12.5% decrease in its shares after announcing a new stock offering to raise approximately $3 billion. Chewy had a positive pre-market performance, with shares jumping 17% as it reported an earnings and revenue beat for the first quarter. Dollar General’s shares tumbled 9% after reporting an earnings and revenue miss for the first quarter.

CrowdStrike, Target, and Victoria’s Secret: Stock Performance Woes

CrowdStrike’s shares fell 10% despite beating analyst expectations for the first quarter, primarily due to concerns about a slowdown in annual recurring revenue growth. Target’s shares traded down 1.4% following a downgrade by JPMorgan, citing a weakening consumer spending environment and other factors. Victoria’s Secret experienced a stock drop of 13.6% after reporting a quarterly earnings and revenue miss and reducing its full-year revenue guidance.

CSX, Veeva Systems, and Pure Storage: Pre-Market Gains Shine

On the positive side, CSX saw its shares rise 1.5% in premarket trading following an upgrade by UBS, highlighting the company’s strong network operation and anticipated leverage in the next volume upturn. Veeva Systems received a 9% boost in its stock price after posting better-than-expected earnings and revenue for the first quarter and raising its full-year earnings per share guidance. Pure Storage’s shares rallied 5% as the company reported better-than-expected first-quarter earnings and provided full-year revenue guidance that exceeded analysts’ estimates.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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