A good day for the stock market on Monday was followed by a bad day for the stock market on Tuesday. Still, the S&P 500 remains 0.16% higher for the week since the good was better than the bad. This morning, things are close to neutral.
The S&P futures are down one point and are trading roughly in-line with fair value.
The slide in oil prices ($43.67, +$0.17, +0.4%), which continued overnight, has been arrested by a headline out of Iran suggesting further OPEC production cuts could be a possibility. It's certainly a self-serving headline, so it needs to be taken with a grain of salt; nonetheless, it has been an expedient for a knee-jerk bounce in crude futures, which fell into bear market territory on Tuesday.
Crude futures were down more than 1.0% in overnight action, fading on the back of the weekly inventory report from the American Petroleum Institute, which showed a draw of 2.72 million barrels from oil inventories but a build of 0.346 million barrels in gasoline inventories. The Department of Energy will release its weekly inventory report at 10:30 a.m. ET.
That report will come on the heels of the Existing Home Sales Report for May (Briefing.com consensus 5.52 million; prior 5.57 million), which is largely expected to reveal the same selling constraints of tight inventory and high prices.
That's the lone economic release on today's calendar.
The earnings calendar, meanwhile, has generated some excitement as a plethora of well-known companies with May-ending quarters -- FedEx (FDX), Adobe Systems (ADBE), Red Hat, Inc. (RHT), and CarMax (KMX) -- all exceeded consensus earnings expectations by a comfortable margin.
Those positive surprises have provided some offsetting support this morning that has helped keep follow-through selling efforts from Tuesday's closing slide in check.
Other notable news items today include the following:
- Bank of America/Merrill Lynch downgraded Intel (INTC) to Neutral from Buy
- Uber CEO Travis Kalanick has resigned amid investor pressure to do so
- Saudi Arabia has created a political stir with the news that the crown prince designation has been taken away from Muhammad bin Nayef and passed to 31-year-old Mohammad bin Salman
- MSCI has approved the addition of 222 of China's A-shares companies in its Emerging Markets Index, starting next year. Combined the stocks will have a 0.73% weight in the index.
- GOP congressional candidates won the special elections in South Carolina and Georgia
- News reports suggest the Senate will release the text of its health care reform proposal on Thursday
In some respects, there is a little something for everyone today with notable news items spanning the political, economic, earnings, and commodity realms. Still, there isn't a lot of something for everybody, which is the main reason why there isn't a lot of buying or selling conviction in the futures market at this time.