The S&P 500 futures trade 11 points, or 0.4%, above fair value, supported by a bounce in oil and by lingering optimism for the Fed's policy decision next week.
Many of the energy stocks are up in pre-market action following the sharp increase in the price of oil ($53.04/bbl, +$1.90, +3.7%), which fell over 4% yesterday. The rebound has been attributed to a suspected attack on two oil tankers off the coast of Iran, according to The Wall Street Journal.
Elsewhere, China's Vice Premier Liu He said that more efforts should be made to support the economy and provide ample liquidity to the financial system. Beijing has already enacted a series of stimulus measures since last year, with the most recent announcement coming on Tuesday, to boost its economy amid trade tensions. President Trump has described the current state of relations as "testy."
In corporate news, shares of lululemon athletica (LULU 180.17, +9.28, +5.4%) and RH (RH 116.70, +21.81, +23.0%) are up nicely in pre-market action after impressing investors with solid quarterly results and upbeat guidance.
Reviewing this morning's economic data:
- Import prices decreased 0.3% m/m in May after increasing a revised 0.1% (from 0.2%) in April. Excluding fuel, import prices were also down 0.3%. Export prices decreased 0.2% in May after increasing a revised 0.1% (from 0.2%) in April while export prices, excluding agriculture, were also down 0.2% after growing a revised 0.2% (from 0.4%) in April.
- The price index for fuel imports was down 1.0% in May due to lower petroleum and natural gas prices. Petroleum prices decreased 0.9% while natural gas prices fell 6.8% after falling more than 50.0% in April.
- Falling prices for nonfuel industrial supplies and materials were responsible for the 0.3% decline in nonfuel imports.
- Initial claims for the week ending June 8 hit 222,000 (Briefing.com consensus 220,000), up 3,000 from the prior week's revised level of 219,000 (revised from 218,000). Continuing claims for the week ending June 1 increased by 2,000 to 1.695 mln from the previous week's revised level of 1.693 mln (revised from 1.682 mln).
- The key takeaway from the report is that unemployment claims continue pointing to a tight labor market.
U.S. Treasuries have edged higher, pushing yields lower across the curve. The 2-yr yield is down three basis points to 1.86%, and the 10-yr yield is down two basis points to 2.11%. The U.S. Dollar Index is unchanged at 96.99.