This will be a shortened week of trading due to the Thanksgiving holiday on Thursday, which will shutter capital markets in the U.S. that day and be followed by a half day of trading on Friday. Trading conditions, therefore, will be thinner than usual, creating the potential for outsized moves in either direction.
One shouldn't expect an outsized move in the major indices, however, at the start of today's trading. The futures market is signalling limited gains when the opening bell rings, although it would be remiss not to mention that the futures market has had a steady bid in it since overnight lows were hit around 1:00 a.m. ET.
The S&P futures, which had been down eight points, are now up three points and are trading slightly ahead of fair value. Similar strides have been made by the Nasdaq 100 and Dow Jones Industrial Average futures.
Not surprisingly, the morning newswires have been tangled up with various reports pertaining to tax reform efforts and whether they will be successful as the Senate engages in a more contentious review of the tax plan.
It's not really worth going into the latest "he thinks, she thinks" diatribe, because tomorrow it could be an entirely different story.
Tax reform is a big issue and getting it done before the end of the year won't be easy, so the market has effectively been vacillating as the negotiations are coming closer to the 2017 calendar-end wire.
This issue will linger throughout the week and will compete for the market's attention with the retail storyline that is always so prominent during the Thanksgiving week, which features Black Friday.
On a related note. Goldman Sachs downgraded Walmart (WMT) to Neutral from Buy following that stock's huge run in the wake of the company's earnings report last week.
The corporate news in general is somewhat sparse this morning, although there is a "Merger Monday" item in the mix, with Marvell (MRVL) announcing it will acquire Cavium Networks (CAVM for approximately $6 billion, or $80.00 per share, in cash and stock.
Elsewhere, political uncertainty is rising in Europe as talks in Germany to form a coalition government have failed. The Free Democratic Party cited "irreconcilable differences" for the fracture, which now raises the specter of Chancellor Merkel trying to govern with a minority government or Germany calling for a new election altogether.
True to form, markets in Europe, which are underpinned by friendly monetary policy, don't appear too bothered by the political news at this juncture. The DAX index is up 0.3%, the 10-yr German bund yield is up one basis point to 0.36%, and the euro is down just 0.2% against the dollar to 1.1770.