U.S. futures point to a higher start this morning with sentiment boosted by U.S. lawmakers reaching an agreement in principle to possibly avert another government shutdown later this week. The S&P 500 futures trade 18 points, or 0.7%, above fair value.
Congress and President Trump will still have to approve the deal before the Feb. 15 deadline, but the progress was encouraging to hear after the prior impasse. Investors will also keep an eye for any signs of progress on the latest round of U.S.-China trade talks, which have entered their second day today.
Separately, several Federal Reserve officials are expected to speak in separate events today. Fed Chair Jerome Powell is slated to speak at the Hope Enterprise Corporation Rural Policy Forum in Mississippi at 12:45 p.m. ET. Kansas City Fed President Esther George (FOMC voter) will speak at 5:30 p.m. ET, and Cleveland Fed President Loretta Mester (Non-FOMC voter) will speak at 6:30 p.m. ET.
There have been some notable movers in pre-market trading this morning.
Shares of Coty (COTY 11.39, +1.73) are up 17.9% after JAB Holding Company commenced a tender offer to acquire up to 150 million additional shares of Coty at $11.65/share in cash. Ellie Mae (ELLI 99.10, +17.18) has spiked 21.0% after news that the company has entered into a definitive agreement to be acquired by private equity firm Thoma Bravo for $99/share in cash, or approximately $3.7 billion.
On the data front, investors will receive the JOLTS - Job Openings report for December at 10:00 a.m. ET. Earlier, the NFIB Small Business Optimism Index for January decreased to 101.2 from the prior reading of 104.4 in December.
U.S. Treasuries are under some selling pressure, pushing yields higher across the curve. The 2-yr yield is up three basis points to 2.51%, and the 10-yr yield is up two basis points to 2.68%. The U.S. Dollar Index is down 0.1% to 96.93. WTI crude is up 2.3% to $53.59/bbl.