5 things to know before the stock market opens Thursday, June 1

Here are the top stories investors need to start their trading day:

Stocks are set to start June trading with modest gains, as investors remain wary of progress on the Washington debt ceiling deal and the prospect of a Fed rate hike later this month. Dow Jones Industrial Average futures were flat Thursday, while S&P 500 futures were up 0.2% and Nasdaq futures were up about 0.1%. “We’ve been impressed by the resilience of this market since the March low, absorbing the relentless onslaught of negative sentiment and headlines,” said Piper Sandler, chief market technician, Craig Johnson. Follow live market updates.

It took a late-night vote and arm-twisting, but a bill to raise the US debt ceiling passed the House of Representatives on Wednesday, just days before the state risks its first default on June 5. The chamber approved the measure by a 314-117 vote—a more overwhelming result than would be expected for a plan that featured spending provisions that many Democrats and Republicans opposed. The Senate will move forward with the bill Thursday morning, and aims to send it to President Joe Biden’s desk as soon as Friday. It remains to be seen how quickly Majority Leader Chuck Schumer can push the bill through the notoriously slow-moving upper chamber, where one senator’s opposition can slow legislation’s swift passage. If the Treasury runs dry, it will devastate global financial markets, cost jobs and threaten vital government benefits for millions.

A slate of retail earnings reports shows stocks for a swing ahead of the market open on Thursday, as some companies pointed to consumer weakness in the spring season. Macy’s shares fell as much as 10% after the department store operator cut its full-year earnings and sales guidance. The company said it saw weaker discretionary spending starting in March and had to cut seasonal merchandise. However, Nordstrom stock rose more than 3% after the company beat forecasts in net profit on Wednesday. While the retailer expects sales to decline this year, it reported an improvement in sales in April after a slow March. Meanwhile, shares of Chewy rose more than 15% after the digital pet care retailer beat earnings and revenue estimates.

Amazon has agreed to hand over more than $30 million to the Federal Trade Commission to settle allegations of privacy violations related to Alexa and Ring products, according to filings released Wednesday. The FTC alleged in separate lawsuits that Amazon was improperly securing or maintaining video recordings and profile data of users, including children. In addition to the settlement fee, Amazon will be required to delete dozens of data. And because Ring, according to the FTC, “failed to implement basic measures to monitor and detect inappropriate access prior to February 2019, Ring has no idea how many instances of inappropriate access to sensitive customer video data have already occurred.”

More and more companies are looking to repatriate manufacturing operations, pulling away from longstanding production powers such as China, in a trend called “resupply” that could have huge ramifications for the global supply chain. According to a Bank of America analysis, references to “resupply” during S&P 500 earnings texts in the first quarter were up 128% year-over-year, outpacing even the growth in references to “AI.” There are a host of factors at play here: the war between Russia and Ukraine, the effects of the Covid-19 pandemic, US and EU incentives for local production, and changing demand due in part to the rise of TikTok. However, the redrawing of the global supply chain map will not happen overnight.

— CNBC’s Yun Li, Christina Wilkie, Melissa Rybko, Gabrielle Vonrog, Lauren Viner, Annie Palmer, and Lucy Handley contributed to this report.

– Follow the broader market actions like a pro CNBC Pro.