The S&P 500 futures trade 13 points, or 0.5%, above fair value, as U.S.-China trade talks appear to be progressing favorably while the market gears up for the highly-anticipated IPO from Lyft (LYFT).
Treasury Secretary Steven Mnuchin tweeted on Friday that "constructive" trade talks have concluded in Beijing. Discussions are scheduled to continue next week in Washington with China's Vice Premier Liu He.
Lyft will make its debut as a public company today with an IPO price of $72 per share, the top of the previously-raised price range. Lyft will be valued at $24.3 billion, making it the biggest U.S. IPO since Snap (SNAP 10.91, +0.12) in 2017.
In other key news, Wells Fargo (WFC 50.10, +1.01, +2.1%) CEO Tim Sloan announced he is retiring, effective June 30. C. Allen Parker will serve as Interim CEO, effective immediately.
On the data front, Personal income increased 0.2% in February (Briefing.com consensus 0.3%) after decreasing 0.1% in January. Personal spending increased 0.1% in January (Briefing.com consensus 0.3%) after decreasing a revised 0.6% (from -0.5%) in December. The PCE Price Index for January decreased 0.1% while the core PCE Price Index, which excludes food and energy, increased 0.1% (Briefing.com consensus 0.2%).
The key takeaway from the report is that the core PCE Price Index slipped below the Fed's longer-run inflation target of 2.0%, which can be used by the FOMC as a reason for maintaining its newfound patient stance.
After the open, the Chicago PMI for March will be released at 9:45 a.m. ET, followed by New Home Sales for February (Briefing.com consensus 618,000) and the final reading for the University of Michigan Index of Consumer Sentiment for March (Briefing.com consensus 97.8) at 10:00 a.m. ET.
U.S. Treasuries remain under pressure, pushing yields higher across the curve. The 2-yr yield the 10-yr yield are up three basis points each to 2.26% and 2.42%, respectively. The U.S. Dollar Index is down 0.2% to 97.03. WTI crude is up 2.0% to $60.47/bbl.