The S&P 500 advanced on Monday, coming within 0.6% of its January 26 record high. The index was in this position just two weeks ago, but failed to progress any farther due to a plunging Turkish lira. The lira has since stabilized, but the market still has plenty of risk factors on radar, including renewed U.S.-China trade talks, which will begin tomorrow.
Optimism surrounding those talks, which mark the first official negotiations since a breakdown roughly two months ago, has helped boost the market over the last three sessions, even though President Trump said in an exclusive interview with Reuters that he does not expect much to come out of the mid-level talks.
In that same interview, the president reiterated his displeasure with the Fed, saying he was "not thrilled" with Fed Chair Jerome Powell for raising rates. That headline, which was released just before Monday's close, led to some equity selling in the final minutes, and has weighed on the dollar this morning; the U.S. Dollar Index is down 0.2% at 95.53.
However, the headline hasn't prevented a bullish bias on Wall Street this morning, as the S&P 500 futures are trading five points, or 0.2%. above fair value.
In earnings news, Medtronic (MDT 93.06, +4.03, +4.4%), TJX (TJX 105.86, +4.21, +4.1%), and Toll Brothers (TOL 37.85, +3.12, +9.0%) are up after reporting their quarterly results this morning, while Kohl's (KSS 76.48, -2.37, -3.0%) and Coty (COTY 11.85, -0.55, -4.4%) have both fallen in pre-market trading.
Elsewhere, U.S. Treasuries have given back some of yesterday's sizable gains this morning, although they have come up from their earlier levels. The yield on the benchmark 10-yr note was up at 2.85%, but is now trading at 2.83%, just one basis point above yesterday's close. Meanwhile, WTI crude futures are up 0.8% at $65.92/bbl.
On the data front, investors will not receive any notable reports for the second day in a row.