Goldman Sachs predicts that lawmakers will not hit the deadline for raising the debt limit until late July, which is shortly before their August recess. The deadline is based heavily on tax receipts, which are volatile, and now that economists have been watching how collections around the April 18 filing deadline, they have increased confidence that lawmakers will not have to act until later in the summer. Although the Department of the Treasury is expected to update its projection of the "X date" as early as this week, Goldman Sachs maintains that the late July deadline is more likely. Non-withheld receipts, including taxes that are not subject to withholding, such as capital gains levies, are down by 29% so far this month. Treasury has been relying on cash it has on hand and accounting tricks to avoid breaking the debt limit. House Republicans have approved a slew of budget cuts tied to raising the legal cap on government borrowing, however, a plan that will be a nonstarter with Democrats in the Senate and White House.

The cost of insuring against US default has surged to the highest level in over a decade, as investors grow increasingly concerned about the upcoming negotiations to raise the nation's debt ceiling. The US government must agree to lift the $31.4tn borrowing limit, or risk defaulting on Treasury securities. Spreads on five-year credit default swaps have widened to 50 basis points, more than double the level in January, and the cost of insuring debt against default for one year stood at over 100 basis points, well above 2011 levels, when the first credit downgrade of the US government occurred due to a similar standoff. Treasury bill yields have also hit fresh highs on fears the deadline to raise the borrowing limit may come sooner than expected. Mid-August is the Treasury’s estimate for when they will run out of funds. However, JPMorgan warned that the debt ceiling could become an issue as early as May, so the deadline may come sooner than people think.

Chemical giant Dow Inc reported strong Q1 earnings with adjusted earnings per share of 58 cents from $11.9 billion in sales, beating Wall Street estimates of 36 cents and $11.4 billion, respectively. This comes as a positive surprise amid concerns of an economic slowdown. The company's success also highlights the need for companies to rely on themselves in 2023 as the economy remains uncertain. As per Asis Ghosh, this optimism may have contributed to the surge in Dow Future to 34,023. While some sectors may still be struggling, the job market and GDP growth remain robust. However, China may be a key factor to watch moving forward, given its significant impact on the global economy. Tariffs and escalating tensions between the US and China have weighed on Dow's sales in the past. If relations between the two nations improve, it could provide a much-needed boost for the company and the wider economy. Overall, Dow's earnings offer a positive outlook for the chemical industry and the economy, even as clouds loom on the horizon.

The collapse of Silicon Valley Bank and Signature Bank forced regulators to seize First Republic Bank over the weekend, giving control to JPMorgan Chase to prevent further banking turmoil in the United States. First Republic Bank is unable to survive due to the high amount of uninsured deposits and exposure to low interest rate loans. Although it had an enviable banking franchise before the collapse of Silicon Valley Bank, the majority of First Republic Bank deposits were found to be uninsured. If it failed, depositors would not get all their money back. Fear was crystalized in their recent quarterly results as depositors withdrew more than $100 billion in April. JPMorgan Chase paid the majority of the deposits and assets, allowing First Republic's 84 branches in eight states to reopen under Chase Bank ownership. First Republic Bank’s clients, mostly the rich and powerful, rarely defaulted on their loans. They were the source of the bank’s profits by making low-cost loans to the wealthy, including Meta Platforms CEO Mark Zuckerberg.

As bidders emerge for First Republic Bank ahead of a potential government seizure, the question on everyone's mind is whether JPMorgan Chase will be granted an exception to the rule forbidding banks with more than 10% of US deposits from buying competitors. The Office of the Comptroller of the Currency is said to be standing by to vet a deal and provide a verdict if the Federal Deposit Insurance Corp (FDIC) deems JPMorgan's offer attractive and seeks approval. JPMorgan, the biggest bank in the US, is leading the race with its "fortress balance sheet". The FDIC is expected to announce their decision following the deadline for offers, which recently passed. Should the bank be allowed to buy First Republic Bank, it would be a rare exception to industry rules. Representatives from the OCC and FDIC declined to comment on the matter.

ImmunoGen, Inc (NASDAQ: IMGN) saw its shares fall over 12% during regular trading hours on Thursday. There was no specific news that caused the drop, however, it is worth noting that the company recently announced a public offering of common stock, however, it is unclear whether or not this has had an effect. ImmunoGen has a pipeline of products that it is developing using its proprietary technology platform to create novel antibody-drug conjugates (ADCs) for the treatment of cancer. The company’s main product, mirvetuximab soravtansine, is currently in late-stage trials for the treatment of ovarian cancer. The ADC has shown promise as an effective treatment, however, the company has experienced setbacks with the clinical program, most recently pushing back the primary completion date for trials to 2022. ImmunoGen also saw positive results from the Phase 1 trial of its IMGN632 candidate, which it is developing for the treatment of acute myeloid leukemia. The candidate induced responses in 6 of 25 patients who were evaluated. Despite the share drop on Thursday, the company’s future prospects remain promising if it can deliver on its pipeline.

First Republic Bank's stock price saw a significant increase of 12% on Wednesday after a big peer in its sector posted some impressive quarterly results. Western Alliance Bancorporation's first-quarter numbers highlighted the concern many investors have with deposit bases at regional banks. Western Alliance's deposit base has risen by 6% since the end of March, a shift from what many had feared would happen due to the bank's high exposure to the tech industry. As one of the banks in a similar position, First Republic Bank experienced a boost in its share price after the news broke. Financial experts say it doesn't appear the banking industry is facing a significant crisis right now, thus reports of increased deposit bases are more helpful to investors. Although First Republic's one-day surge is notable, it is worth noting that earlier this week, Republic First Bancorp's (FRBK) shares closed at $1.22 and are down -$0.04 during pre-market trading.

The Vegas Golden Knights eliminated the Winnipeg Jets in Game 5 of the Western Conference First Round at T-Mobile Arena with a 4-1 win. Chandler Stephenson and Mark Stone led the way for the Golden Knights with two goals and three points, respectively. Laurent Brossoit had a solid performance with 30 saves. The team will face either the Edmonton Oilers or Los Angeles Kings in the Second Round. This victory marks the end of the Jets' season after previously storming out to a 5-1 win in Vegas in Game 1 but being unable to secure another win throughout the series. The latest news from the infirmary is not good for the Jets' 42-goal scorer, Mark Scheifele, who was knocked out of Game 4 after going hard into the end boards. Scheifele has been ruled out for Thursday, but coach Rick Bowness is leaving the door open for a potential return. With Morrissey's name taken out of Norris Trophy conversations and Nikolaj Ehlers limited in regular-season games due to injury, the Jets were unable to hold off the Golden Knights who had a strong showing overall.