Investing.com -- Stocks were wobbling on Tuesday as investors await news on negotiations between lawmakers on raising the nation's debt ceiling, as the deadline for the U.S. to avoid a possible default draws swiftly near.
The lawmakers met at the White House on Tuesday amid a sense of urgency. President Joe Biden, who has urged them to raise the debt ceiling without attaching spending conditions, is scheduled to leave for Japan tomorrow for the annual summit of G-7 world leaders. Congress only has a few days left this month when both chambers are in session to vote on a bill, and administration officials have put a possible deadline as early as June 1.
Analysts have warned that a default could result in market chaos, though most held out hope that a last-minute deal -- or at least an extension -- can be reached.
The drama is unfolding amid weakening economic data that has futures traders betting the Federal Reserve will pause its interest rate hikes at its meeting in June, and possibly even begin cutting rates later this year.
But Fed officials in recent days have said it's likely the Fed will have to keep rates higher for longer because inflation, though cooling, is still running at more than twice the Fed's 2% target.
Here are three things that could affect markets tomorrow:
1. Housing starts
The housing market as been hit by declining demand because of rising mortgage rates and a lack of available houses for sale. Housing starts for April, due out at 8:30 ET (12:30 GMT) are expected to show annualized sales of 1.4 million versus 1.42M the prior month.
2. Target earnings
Retailer Target Corporation (NYSE:TGT) is expected to report earnings per share of $1.78 on revenue of $25.3 billion. Fellow retailer TJX Companies Inc (NYSE:TJX) is expected to report earnings of 71 cents a share on revenue of $11.8B.
3. Take-Two
Game company Take-Two Interactive Software Inc (NASDAQ:TTWO) is expected to report earnings per share of 69 cents on revenue of $1.35B.