The stock market clearly liked what it saw in the February Employment Situation report. The major indices rallied in unison, comforted by the perspective that job growth is strong while wage growth is modest. In other words, it saw a basis to relax its concerns about the Federal Reserve being overly aggressive with rate hikes this year.
The latter view will be subject to change depending on what future inflation reports reveal, but for the moment, a relief valve opened up with the year-over-year deceleration in average hourly earnings growth.
There will be more inflation data this week, too. The Consumer Price Index for February will be released on Tuesday and it will be followed by the Producer Price Index on Wednesday.
Overall, it will be a busy week of economic reporting. Other reports out include the Retail Sales, Industrial Production, and Housing Starts reports. Today's lone report is the Monthly Treasury Statement for February, which will be released at 2:00 p.m. ET.
There isn't much news of note at this juncture. One of the more interesting reports from The Wall Street Journal involves speculation that Intel (INTC) might look to acquire Broadcom (AVGO) to preempt a possible acquisition of Qualcomm (QCOM).
That news could kick up some trading dust in the semiconductor space, but it isn't doing a whole lot for the broader market.
The S&P futures are up five points, which leaves them 0.1% above fair value. The Nasdaq 100 futures are up 26 points, or 0.3% above fair value, and the Dow Jones Industrial Average futures are up 42 points, which is about 0.2% above fair value.
If anything, the modestly positive bias is a function of carryover momentum from Friday. That momentum helped drive gains in Asia and it has been a supportive element for European bourses.
Market participants here, though, will be focused on whether the market relents to selling pressure or whether it gets driven higher and fuels the fear-of-missing-out trade.
There will be two Treasury auctions today: a $28 billion 3-yr note auction at 11:30 a.m. ET and a $21 billion 10-yr note reopening at 1:00 p.m. ET.
The Treasury market is little changed ahead of those auctions. The benchmark 10-yr note is unchanged at 2.89%.
Looking elsewhere, the tariff issue, North Korea's diplomatic overtures, and a report that China has approved a plan to do away with term limits, putting Xi Jinping on track to rule indefinitely, have been popular press topics along with speculation that former Microsoft CFO, Chris Liddell, is a frontrunner to take over for Gary Cohn as the White House Chief Economic Adviser.
There is plenty to talk about, but using the S&P futures as our gauge, that talk is speaking louder than action at the moment.