Stock markets remain mixed amid debt ceiling talks, Fed rate hike outlook

Yahoo Finance markets contributor Remy Blaire discusses current investor sentiment as markets react to the possibilities of the Fed's next move concerning interest rates.

Video Transcript

- All right, we want to do a deeper dive into the latest market action. And to help us do that, let's get to Yahoo Finance contributor Remy Blaire. She's over at the New York Stock Exchange. Remy?

REMY BLAIRE: Well, Wall Street has been trading on both sides of flat this morning after a mixed open. Keep in mind that this does come on the heels of yesterday's market rally, which saw the Dow, NASDAQ, and S&P 500 all close higher by over 1%. In today's session, the NASDAQ continues to extend its gains and is up by about 1% as we head into the noon hour.

Of course, the latest economic data releases as well as earnings are being digested this morning. We got a mixed batch of economic data. We saw existing home sales decline in April, while the Conference Board's leading economic index fell for the 13th month in a row. The Philly Fed Index of factory activity also declined. And weekly jobless claims for the latest week fell as well. Of course, it's all about the implications of all this economic data in terms of the Fed's rate hike trajectory.

Now, in terms of the latest earnings report, Bed-- Bath & Body Works shares are surging this morning. Now, the maker of body care as well as fragrance products saw shares surged by 10%. And this came on the heels of the company reporting earnings and revenue that topped forecasts. This did come in even though sales came in softer than expected. The maker of scented candles as well as hand sanitizers, body care products, body lotion, and body wash did manage to raise its full year guidance.

Now, this week, we have been following the latest earnings out from retailers, such as Target as well as Home Depot. And we have been seeing a pullback in discretionary spending from those earnings reports. But looking at the calendar up ahead, we will be getting Lowe's results next week, as well as Foot Locker at the end of this week. So we'll be getting more insight into the American consumer spending habits.

- Well, the focus has certainly been on the retailer this week. Remy Blaire, our thanks to you.