It has been a good week, and it's only one-trading day old. The Nasdaq Composite is up 2.0%; the Russell 2000 is up 1.8%; the S&P 500 is up 1.5%; and the Dow Jones Industrial Average is up 0.8%. The "terrible twos," however, can be quite a handful, so everyone will have to wait-and-see what the second trading day of the week brings.
At the moment, there is nothing too terrible about day two.
The S&P futures are up five points and are trading 0.2% above fair value. The Nasdaq 100 futures are up 21 points and are trading 0.3% above fair value. The Dow Jones Industrial Average futures, though, are down 28 points and are trading 0.1% below fair value.
Shares of Boeing are indicated 2.9% lower, which is the main source of day-two crankiness for the Dow futures.
Boeing (BA) is backsliding again on news that Australia, Singapore, and some Latin American countries have also grounded the 737 MAX, according to The Wall Street Journal. Those decisions came despite the FAA issuing a Continued Airworthiness Notification for the 737 MAX to the international community shortly before yesterday's close.
This issue is mostly company-specific, but not entirely as airlines operating the 737 MAX are also caught up in the jet wash.
Elsewhere, there is some headline uncertainty pertaining to Brexit dealings in front of today's Meaningful Vote. Bloomberg reported earlier that Prime Minister May struck a deal late yesterday with the EU to rework the provisions of the Irish backstop that many members of her party have rebelled against.
The latter news gave the pound a lift overnight, yet that lift has been removed in conjunction with a follow-up report indicating UK Attorney General Geoffrey Cox has concluded that the legal risk to the UK with the "new deal" (lower case) remains unchanged since the UK would have no lawful means of exiting the backstop arrangement.
It is assumed, therefore, that Ms. May could face another defeat on the other side of today's Meaningful Vote. If so, that paves the way for a vote tomorrow on whether to endorse a no-deal Brexit. If that is not sen as an acceptable approach, then there will be a vote Thursday on the matter of extending the divorce date deadline.
The UK has a lot on its plate at the moment, yet the U.S. market doesn't appear to want a seat at the table. To this point, it has acted fairly dismissive of the Brexit issues, and today has been no exception.
There is no fear-and-loathing about Brexit in the futures market.
The broader market is slated to open slightly higher, supported more by yesterday's buy-the-dip mojo and today's Consumer Price Index (CPI) report for February.
Total CPI was up 0.2%, as expected, while core CPI, which excludes food and energy, was up only 0.1% (Briefing.com consensus +0.2%).
A 0.4% increase in the food index, which was the largest since May 2014, and a 0.4% increase in the energy index, which was driven by a 1.5% increase in the gasoline index, factored prominently in the uptick for total CPI. The Shelter Index, meanwhile, was up 0.3%, yet core CPI was subdued on account of declines in other indexes like New Vehicles (-0.2%) and USed Cars and Trucks (-0.7%).
The key takeaway from the report is that inflation trends for total CPI and core CPI both moved lower on a year-over-year basis. Total CPI was up 1.5%, versus 1.6% for the 12 months ending in January, whereas, core CPI was up 2.1%, versus 2.2% for the 12 months ending in January. The disinflation will indeed keep the Fed in a patient state of mind, which is how the stock market likes things.