Futures edge higher as debt ceiling talks grind on, Target results eyed

U.S. stock index futures edged higher on Wednesday as top lawmakers inched closer to a deal to avert a debt default, ahead of Target’s quarterly results that will be gauged for any further clues of softer consumer spending.

Wall Street’s main indexes closed lower on Tuesday after weak results from Home Depot (HD.N) and a reading on U.S. April retail sales that missed expectations highlighted the impact of higher prices and interest rates on consumers.

Target Corp (TGT.N) is set to report a rise in first-quarter sales later in the day, although focus will remain on the retail giant’s annual forecast, impact of heavy discounting on its margins and how consumers are adjusting to high inflation. Shares of the company inched 0.3% higher in premarket trading.

Also on tap was T.J. Maxx parent TJX Companies Inc’s (TJX.N) results. The company is also seen reporting a rise in first-quarter revenue, helped by steady demand from cost-conscious consumers.

Democratic President Joe Biden and top congressional Republican Kevin McCarthy on Tuesday made progress in talks to determine whether to increase the U.S. debt limit. After an hour of talks, however, McCarthy told reporters the two sides remained far apart on an agreement.

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