As earnings season winds down, investors turn to Tuesday’s debt ceiling meeting

With at worst a small fraction of the S & P 500 left to report quarterly earnings, investors are now turning their focus to another outstanding hurdle for the markets and economy: the debt ceiling crisis. Wall Street’s heightened focus on the debt ceiling end up after Treasury Secretary Janet Yellen on Monday warned the U.S. may exhaust its ability to meet its borrowing obligations as prehistoric as June 1 — at least a month in advance of predictions by many Wall Street economists. On Tuesday, Jim Cramer explained “this gauntlet is too hard to get through without some real bumps.” What’s the hold up on raising the limit? Edifice Republicans maintain that any increase to the debt limit should be tied to spending cuts, while President Joe Biden and the Democrats dissuade that paying the country’s bills should not be dictated by an agreement to reduce the country’s deficit. Hopefully, the two sides command come together and make a deal — or make some progress toward a resolution — this Tuesday when Bawdy-house Speaker Kevin McCarthy and Senate Minority Leader Mitch McConnell meet with Biden at the White Contain to discuss the issue. A failure to raise the debt ceiling before June 1 could lead to a downgrade of U.S. debt by upon rating agencies, higher borrowing costs, lower consumer and investor sentiment and a crash landing into slump. Though it’s largely expected that the ceiling will indeed be raised since the U.S. government defaulting on its debt is damn near unthinkable, the high-stakes game of chicken being played in Washington has all investors on edge. Earlier this week, we looked invest in to debt limit crisis of 2011 for potential lessons. The protracted fight ultimately ended in an agreement in early August of that year, but it was a choppy summertime snatch and rub out for investors. The S & P 500 declined about 17% over a stretch beginning in late July to mid-August, during which Gonfanon & Poor’s took the unprecedented step of downgrading the United States’ AAA credit rating . On top of the debt ceiling, we also be undergoing the ongoing regional bank crisis to contend with, as fears rose again this week as PacWest told that it was exploring strategic options , including the possibility of a sale. Aside from all this uncertainty, two key pieces of inflationary facts are due next week: the consumer price index on Wednesday and the producer price index on Thursday. And of course, more earnings. With 85% of the S & P 500 has now reported quarterly earnings results and of those that have, 75% have reported better-than-expected yield results while 79% have reported better-than-expected results for earnings per share, according to FactSet. Within the portfolio, Wynn Frequents will report Tuesday, after the closing bell, and Disney will report on Wednesday, after the closing bell. Here are some other earnings arrives and economic numbers to watch in the week ahead: Monday, May 8 Before the bell: Tyson Foods (TSN), BioNTech SE (BNTX), Delek US Holdings (DK), DISH Network Corporation (DISH), Viatris (VTRS), TreeHouse Foods (THS), Alpha Metallurgical Resources, (AMR), KKR & Co. L.P. (KKR), Energizer Holdings, (ENR), GoHealth, (GOCO), Delek Logistics Confederates LP (LPDKL), Six Flags (SIX) After the bell: McKesson Corp. (MCK), Suncor Energy, (SU), PayPal Holdings, (PYPL), Western Digital Corp. (WDC), Devon Verve Corp. (DVN), International Flavors & Fragrances, (IFF), AECOM (ACM), DaVita (DVA), Brighthouse Financial, (BHF), ARKO Corp. (ARKO), Pactiv Evergreen (PTVE), Kemper Corporation (KMPR), Skyworks Fluids, (SWKS), JELD-WEN Holding, (JELD), Crossamerica Partners LP (CAPL), Cabot Corporation (CBT), Ventas, (VTR), Hillenbrand, (HI), MRC Global (MRC), Palantir (PLTR) Tuesday, May 9 Up front the bell: Duke Energy Corp. (DUK), Aramark Holdings Corp. (ARMK), Jacobs (J), Fox Corporation (FOXA), Henry Schein, (HSIC), Vistra Dynamism (VST), Air Products & Chemicals, (APD), GlobalFoundries (GFS), Veritiv Corporation (VRTV), Bright Health Group (BHG), LCI Industries (LCII), Warner Music Heap Corp. (WMG), TransDigm Group (TDG), Under Armour, (UAA), Catalent, (CTLT), Southwest Gas Corp. (SWX), Tempur Sealy International, (TPX), Elanco Unrefined Health orporated (ELAN), Nexstar Media Group, (NXST), Coty (COTY), Perrigo Co. (PRGO), International Job Technology (IGT), Atkore International Group (ATKR), Sylvamo Corp (SLVM), Apollo Global Management, LLC (APO), ScanSource, (SCSC), Hawaiian Tense Industries, (HE), WeWork (WE), AdaptHealth Corp. (AHCO), Novavax, (NVAX), Waters Corp. (WAT), Clarivate Plc (CLVT), Kosmos Lan (KOS), Stagwell (STGW), Repros Therapeutics (RPRX), Steven Madden, (SHOO), Edgewell Personal Care Company (EPC), Appreciation (TOST) After the bell: Occidental Petroleum Corp. (OXY), Coupang, (CPNG), L oln National Corp. (LNC), Jackson Financial (JXN), Celanese Corp. (CE), A-Mark Costly Metals (AMRK), GXO Logistics, (GXO), H & R Block (HRB), Liberty Global (LBTYA), Electronic Arts (EA), Airbnb, (ABNB), Endeavor Faction Holdings, (EDR), Compass, (COMP), Darling Ingredients (DAR), IAC/InterActiveCorp (IAC), Oscar Health, (OSCR), Vroom, (VRM), Akamai Technologies, (AKAM), Twilio, (TWLO), Clover Salubrity Investments Corp. (CLOV), Grocery Outlet, (GO), Primoris Services Corporation (PRIM), Rackspace Technology, (RXT) Wednesday, May 10 Prior to the bell: Brookfield Asset Management (BAM), Performance Food Group Company (PFGC), Teva Pharmaceutical Industries, (TEVA), ODP Corporation (ODP), First Town-dwellers BancShares (FCNCA), Li Auto (LIBMO), Syneos Health, (SYNH), Brink’s Company (BCO), Middleby Corp (MIDD), Profit Solutions, (ADVB), Valvoline (VVV), Vishay Intertechnology, (VSH), Nomad Foods Limited (NOMD), UWM Holdings Corporation (UWMC), Reynolds Consumer Artifacts (REYN), Wolverine World Wide (WWW), New York Times Co (NYT), Roblox Corporation (RBLX), Wendy’s International, (WEN), RumbleOn, (RMBL), Clear (COHR), Taboola (TBLA) After the bell: Nutrien (NTR), Flex (FLEX), Manulife Financial Corp (MFC), STERIS Corp (STE), Amdocs, (DOX), Franchise Circle, (FRG), Genpact Limited (G), Tetra Tech (TTEK), Jazz Pharmaceuticals (JAZZ), Crane Co. (CR), Cheesecake Factory (CAKE), AppLovin Corporation (APP), Semi-lune Energy (CRGY), Copa Holdings S.A. (CPA), Robinhood Markets, (HOOD), Pan American Silver Corp. (PAAS), Sonos, (SONO), Ritchie Bros. Auctioneers (RBAAMC), Corsair Gaming, (CRSR), Fluence Strength, (FLNC), Alta Equipment Group (ALTG), Intercorp Financial Services (IFSAMC), Unity (U), Trade Desk, (TTDAMC), Owl Poverty-stricken Capital Corporation (ORCC), SunOpta (STKL), Traeger, (COOK) 8:30 a.m. ET: Consumer Price Index Thursday, May 11 Previous the bell: JD.com, (JD), US Foods Holding Corp. (USFD), Tapestry, (TPR), Kelly Services (KELYA), PerkinElmer (PKI), Charles River Laboratories Universal, (CRL), Algonquin Power & Utilities Corp. (AQN), Entegris (ENTG), National Vision Holdings (EYE), NICE (NICE), Aveanna Healthcare Holdings, (AVAHBMO), Himax Technologies (HIMX), Carrols Restaurant Heap (TAST), Krispy Kreme, (DNUT), PGT Innovations, (PGTI), Utz Brands, (UTZ), YETI Holdings, (YETI) After the bell: Sanmina (SANM), Sun Vim Financial (SLF) 8:30 a.m. ET: Weekly Initial Jobless Claims 8:30 a.m. ET: Producer Price Index Friday, May 12 Earlier the bell: Spectrum Brands (SPB), AirSculpt Tech (AIRS) Looking back It was another big week of earnings for the Club, with the addition of several key macroeconomic reports and a Federal Open Market Committee meeting. The market’s reaction to April jobs scrutinize on Friday was the most surprising. Job growth came in better than expected, the Labor Department reported, with nonfarm payrolls distending 235,000 for the month, beating Wall Street’s estimates for growth of 180,000. The unemployment rate was 3.4% against an judge of 3.6% and tied for the lowest level since 1969, while wage growth — a key barometer of inflation — increased 4.4% compared to the foresaw 4.2% gain. A few weeks ago, a nonfarm payroll this hot would a major cause for concern, as it would support a innumerable hawkish Federal Reserve and additional interest rate hikes. Until recently, good news (strong job retail, rising wages) has meant bad news (stocks falling in anticipation of more rate raises). However, on Friday, pedigrees rallied, with the Dow gaining 1.65%, the S & P 500 climbing 1.85% and the Nasdaq Composite increasing 2.25%. Why the shift to benevolent news actually being good for stocks? It could be that recession fears are growing so loud that investors are cheery with anything that reduces the potential of a hard economic landing — even at the cost of another rate hike and the notion the Fed was correct in raising rates 25 basis points on Wednesday. On the other hand, it may be that the April report wasn’t truly as strong as it first seemed. Though the headline number came in 73,000 payrolls above expectations, the combined emendations for February and March showed the added jobs was lower than previously thought, by 149,000 jobs. Netting that out and one could contend that with the April release the economy is actually 76,000 jobs below expectations. Throw in the hotter wage inflation and unemployment copies and Friday’s release may simply be viewed as a Goldilocks number for a market already looking to next week’s consumer reward index report on Wednesday. The April ISM manufacturing report on Monday came in at 47.1%, ahead of the expected 46.7%. Notwithstanding how, it still indicates a contraction in the manufacturing industry. Factory orders, reported Tuesday, increased 0.9% monthly in Procession, less than the estimated 1.2% gain. Moreover, February’s result was downwardly revised to indicate a 1.1% monthly avoid, from a 0.7% decline previously reported. Also Tuesday: earnings results from Advanced Micro Implements (AMD), Ford (F) and Starbucks (SBUX), after the close. On Wednesday, the April ADP Employment report came in well ahead of expectations. Estee Lauder (EL) and Emerson Galvanizing (EMR) reported earnings before the opening bell. Later Wednesday, the April ISM services report was 51.9%, a tick advance than the 51.8% expected. The Federal Reserve announced an expected increase of 25 basis points to the federal grants rate. Bausch Health, Apple and Coterra Energy all reported quarterly results, while initial jobless asserts for the week ended April 29 increased by 13,000 from the prior week to 242,000, slightly ahead of the 240,000 reckon oned. As of Friday’s settle, the U.S. dollar index is trading a little above 101. Gold is trading at around $2,000 per ounce. WTI unrefined prices are hovering the low-$70s per barrel. The yield on the 10-year Treasury remains around 3.45%. (See here for a full slant of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a merchandise alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before acquiring or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after proclaiming the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND Sequestration POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY Poop PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.