On Wednesday, U.S. stock indexes opened higher as Western Alliance Bancorp led a bounce among regional banks. Cautious optimism about a potential breakthrough in the deadlock in Washington over the nation’s debt limit boosted sentiment. Target Corp and TJX Companies Inc reported mixed results, while Home Depot and a reading on U.S. April retail sales that missed expectations highlighted the impact of higher prices and interest rates on consumers.
Tesla Inc rose 1.3% after its annual shareholder meeting, where CEO Elon Musk played down market rumors that he may step down as CEO and touched upon two new mass-market models it is developing. U.S. single-family homebuilding increased in April, but data for the prior month was revised sharply lower, suggesting that the embattled housing market was struggling to find a floor. Investors will now await retail behemoth Walmart’s earnings on Thursday.