Two down and three to go -- that's the reporting line in terms of the major indices that have established new record closing highs. The Nasdaq Composite joined the Russell 2000 yesterday in doing so, which leaves the S&P 500, Dow Jones Industrial Average, and S&P Midcap 400 still looking up to the promised land.
Currently, the S&P 500 is 4.4% below its prior closing high; the Dow Jones Industrial Average is 6.8% below its prior closing high; and the S&P Midcap 400 Index is 1.4% below its prior closing high.
If things heated up today, the S&P 400 would have a small chance of hitting record territory. At the moment, though, there isn't much of a basis to think things will heat up so dramatically that the S&P 400 will be in record territory by the closing bell.
The S&P 500 futures are currently unchanged; the Nasdaq 100 futures are up eight points; and the Dow Jones Industrial Average futures are down four points.
Rather than heating up, things have cooled down on the buying front after a two-day splurge that saw the S&P 500 increase 1.5% and the Nasdaq Composite increase 2.2%.
There are some individual movers of note, like Twitter (TWTR), which is up 4.0% on the news that it will be added to the S&P 500 before the open on June 7, and Navistar (NAV), which is up 3.7% after impressing investors with its fiscal second quarter results and outlook. Starbucks (SBUX), meanwhile, is down 1.0% following the news Howard Schultz will be stepping down as Chairman to pursue other interests.
Movement at the index level, however, is quite subdued.
The latter is understandable as some of the market's skeletons are reaching a hand or two out of the closet.
Italy's new prime minister called for a universal basic income, a fairer tax system, and the EU to review sanctions against Russia in his inaugural address. The yield on Italy's 10-yr BTP has risen 13 basis points to 2.68% in the wake of his remarks.
Meanwhile, NEC Director Kudlow has talked up the possibility in a FOX News interview of the U.S. perhaps having bilateral trade talks with Canada and Mexico as the NAFTA negotiations remain bogged down.
Maybe that works and maybe it doesn't. The halting factor is that it feeds into the uncertainty about what will ultimately happen with NAFTA; hence, it has acted as a headline headwind in the early going.
There haven't been any new developments of note on trade dealings with China, so the status quo of uncertainty remains in place there.
Separately, oil prices ($64.46, -$0.29, -0.5%) continue to backslide, pushed lower this morning by a Bloomberg article that suggests the U.S. reportedly lobbied Saudi Arabia and other OPEC nations to increase production by 1 million barrels per day as part of an effort to combat rising gas prices.
The oil price weakness could continue to be a pressure point for energy-related stocks, which were notable underperformers on Monday.
Today's economic data lineup includes the ISM Non-Manufacturing Index for May (Briefing.com consensus 58.0; Prior 56.8) and the JOLTS - Job Openings Report for April (Prior 6.55 million). Both reports will be released at 10:00 a.m. ET, yet neither has an illustrious reputation for being a market mover.