Traders will be forced to pick their spots today since it doesn't appear in the index futures indications as if there is going to be a lot of movement for the broader market when the opening bell rings.
Currently, the S&P futures are down three points and are trading just below fair value. The Dow Jones Industrial Average futures are down 11 points and are trading a fraction above fair value. The Nasdaq 100 futures are down 12 points and are trading 0.1% below fair value.
The seeming lack of interest is being attributed to a wait-and-see mentality in front of the G-20 summit this weekend. Both China and the U.S. seem to be trying to rein in expectations ahead of the meeting.
Reports today indicate President Trump is going to maintain a hard line on China implementing structural reforms as part of a deal. That demand, however, could be a red line for China that isn't going to be crossed -- not on terms set by the U.S. anyway.
The market is hoping the two sides can at least agree to hold off for the time being on implementing any new tariffs, yet it won't know what it is going to get from Presidents Trump and Xi until their meeting is concluded; hence, there isn't a lot of conviction at the moment.
Market participants are also cognizant that several Fed officials will be speaking today, including Fed Chair Powell at 1:00 p.m. ET.
That understanding adds to the wait-and-see disposition along with the impending releases of the New Home Sales Report for May (Briefing.com consensus 683,000; prior 673,000) and the Consumer Confidence Report for June (Briefing.com consensus 132.0; prior 134.1) at 10:00 a.m. ET.
In the interim, pharmaceutical company AbbVie (ABBV) has provided a trading catalyst with the news that it is going to acquire Allergan (AGN), the maker of Botox, for approximately $63 billion in cash and stock.
That offer translates to $188.24 per share, which is a 45% premium over AGN's closing price on Monday. However, the premium is narrowing some in the initial reaction to the news as shares of ABBV are indicated 7.9% lower in pre-market trading.
This proposed merger is certain to make the pharmaceutical/biotech industries a trading hot spot when the opening bell rings, yet the broader market will have only a lukewarm feel to it.