The U.S. stock market put together an impressive rebound yesterday, with the S&P 500 finishing the day nearly flat after opening lower by around 1%. Equity futures are trying to hold onto that rebound this morning, but they've edged lower as the morning has progressed and S&P futures are now down by four points.
The increased fear and uncertainty that was evident yesterday morning has also subsided for now, with a reversal in market volatility as measured by the VIX Index.
Yesterday's rebound in U.S. stocks has helped global markets stabilize as well. Japan's Nikkei recouped most of yesterday's 1.4% loss and European markets are trading flat to modestly higher, with relative strength in energy and financials. Strength in energy is being helped by a rebound in oil, with crude oil futures up 1.0% in early action as OPEC continues to mull over the possibility of extending its production cut agreement beyond June.
News flow has been light today, with little macro data of note. February advanced Wholesale Inventories were reported at +0.4% vs. the +0.2% Briefing.com consensus, but had no market impact. There are a few items left on today's economic calendar, with the S&P Case-Shiller Home Price Index at 9:00 ET, followed by Consumer Confidence at 10:00 ET. Neither report is likely to have much market impact, but a big beat or miss on Consumer Confidence could see a response in markets.
Fed Chair Yellen, Dallas Fed President Kaplan (FOMC voter), Kansas City Fed President George (non-FOMC voter), and Fed Governor Powell are all scheduled to speak today. However, they aren't expected to provide much market-moving content. The benchmark 10-year yield is currently down one basis point at 2.37%.
In corporate news, Red Hat (RHT) is trading higher by 5% after reporting in-line earnings on better than expected sales, while issuing FY18 EPS and revenue above consensus. Darden Restaurants (DRI) is higher by 4% after it beat earnings expectations on in-line revenue, while issuing upside FY17 EPS guidance and announing the acquisition of Cheddar's Scratch Kitchen. IHS Markit (INFO) and FactSet (FDS) are little changed following their respective earnings reports. After the close tonight look for earnings reports from Restoration Hardware (RH), Verint Systems (VRNT), Ollie's Bargain Outlet (OLLI) and Dave & Busters (PLAY), among a few others.
In other news, shares of Snap (SNAP) are trading down by 2.5% after Facebook (FB) launched 'camera effects' and 'stories' that compete directly with Snapchat.
It's shaping up to be a more stable morning today, but the recent market action has put a damper on the strong uptrend that was in place up until March.