Stock Market News: Foot Locker, John Deere earnings, Disney drops Florida plan
The stock market is wrapping up a winning week as optimism over a debt deal drives sentiment with a vote possibly next week. In earnings, Foot Locker and Deere in focus and Disney's feud with DeSantis takes new twist. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Coverage for this event has ended.
U.S. stocks closed out the trading week on a soft note on Friday as early gains dissipated after U.S. debt ceiling negotiations in Washington were paused, denting optimism a deal could be reached in coming days to dodge a default.
Stocks had rallied over the past two sessions on growing confidence a deal to raise the $31.4 trillion debt limit could be reached in coming days, with the benchmark S&P 500 climbing more than 2%. But an initial advance on Friday reversed on reports of the pause in talks while Federal Reserve Chair Jerome Powell spoke at a monetary policy panel.
"The market seemed to be going into this weekend thinking that the talks were going to move toward the framework for an agreement ... but what you're seeing now is the Republicans saying, no, this is not acceptable, and they just staged a walkout," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"It could be to put more pressure on the Democratic caucus and also take advantage of the fact that Biden is overseas. But this headline on a Friday afternoon is definitely not a positive."
Federal Reserve Chairman Jerome Powell said Friday that the aftereffects of recent banking sector troubles takes some pressure off the U.S. central bank to raise rates.
Tighter credit conditions mean that "our policy rate may not need to rise as much as it would have otherwise to achieve our goals," Powell said at a central bank conference in Washington.
He spoke as the end of the Fed's rate hike cycle has come into view and markets and officials are debating whether more rate increases are needed to lower inflation.
Fox Business Network Senior Correspondent Charlie Gasparino was told by people inside Morgan Stanley that brokerage chief Andy Saperstein is said to have the inside track in replacing Gorman.
While the final decision is yet to be made, Gasparino explained the logic behind the potential shift in leadership. Gorman and Saperstein are both former McKinsey consultants and like Gorman, Saperstein has experience running brokerage.
Federal Reserve Chair Jerome Powell and former Fed Chairman Ben Bernanke participate in “Perspectives on Monetary Policy” conversation before the Thomas Laubach Research Conference hosted by the Federal Reserve.
Watch LIVE on FOXBusiness.com
Exxon Mobil Corp has pushed back against investors pressing the largest U.S. oil producer to report on the risks to its business from restrictions on greenhouse gas emissions and potential environmental disasters.
In a reply on Wednesday to proxy advisor Glass Lewis, Exxon said the prospect of the world achieving net-zero carbon dioxide emissions by 2050 is remote and should not be further evaluated in its financial statements.
A shareholder proposal seeking a report on the cost of having to abandon projects faces a shareholder vote on May 31. Glass Lewis backed the initiative, concluding Exxon could face material financial risks from the net-zero scenario.
Exxon has said the world is not on a path to achieve net-zero emissions in 2050. It says limiting energy production to levels below consumption demand would lead to a spike in energy prices, as observed in Europe following oil sanctions against Russia over Ukraine.
Morgan Stanley CEO James Gorman told shareholders Friday that the company will likely appoint its next CEO in the next 12 months.
Gorman, 64, said the board has identified three strong candidates to succeed him and that he will become executive chairman once a new CEO is chosen.
Morgan Stanley co-presidents Ted Pick and Andy Saperstein, Chief Operating Officer Jonathan Pruzan, and head of investment management Dan Simkowitz are widely seen as contenders for the top job.
Disney scraps plans for a major project in Florida that has big economic implications as bad blood with Governor DeSantis worsens.
Live Coverage begins here