It's one of those mornings where there is a host of news to consider, but ultimately not much in the way of market-moving action. Currently, the S&P futures are down two points and are trading 0.1% below fair value.
The Nasdaq 100 futures are down 21 points and are trading about 0.5% below fair value. Alphabet (GOOG) is the main drag there, as it is trading 1.0% lower in pre-market action following the news that it has been hit with a $2.7 billion antitrust fine from EU authorities, which have found the company unfairly skewed search results to provide an unfair advantage for its Google Shopping service.
Alphabet can appeal the ruling to the European Court of Justice, but the headline today is what the headline is and investors don't appear to like the sound of it.
Other headlines catching some added attention include the following:
- ECB President Draghi talked up the broadening recovery unfolding in the eurozone and pressed the need to maintain current policy since inflation dynamics are more muted than expected. Draghi, however, also suggested temporary factors are holding down inflation, which led some traders to think he is starting to shed his ultra-dovish feathers. That thinking has pushed the euro (1.1277) up nearly 1.0% against the dollar and it has further weighed on sovereign bond markets.
- The CBO released its score of the Senate GOP's revised healthcare bill. It found that 22 million more Americans would be uninsured in 2026 than under current law, that average premiums would first increase and then decline, and that the deficit would be reduced by $321 billion from 2017 to 2026, with cuts to Medicaid spending playing a key role there.
- The Bank of England upped its countercyclical capital buffer requirement for banks by 0.5% due in part to concerns about rising levels of consumer credit
- Press reports indicate Brazil's president, Michel Temer, has been charged with corruption
- Western Digital (WDC) raised its fiscal fourth quarter outlook for non-GAAP earnings per share, but to the chagrin of some investors, left its revenue forecast unchanged
- Darden Restaurants (DRI) reported better than expected fiscal fourth quarter earnings results and raised its dividend
- Oil prices ($43.98, +$0.60, +1.4%) are moving higher, aided by the weaker dollar, some short covering perhaps, and thoughts that Tropical Storm Cindy could invite some bullish inventory readings this week
Market participants are also cognizant that Fed Chair Yellen will be making headlines starting at 1:00 p.m. ET, which is when she will participate in a moderator-led discussion of global economic issues. That conversation will take place in London, yet it will reverberate globally if there is any type of policy-setting tilt to it.
The relatively neutral disposition of the S&P futures, therefore, could be a function of waiting to see what Ms. Yellen has to say. Before then, Philadelphia Fed President Harker (an FOMC voter) will be speaking at 11:15 a.m. ET on international trade and the economic outlook.
Today's economic calendar features the S&P Case-Shiller Home Price Index for April (Briefing.com consensus +5.9%; prior +5.9%) at 9:00 a.m. ET and the Conference Board's Consumer Confidence Report for June (Briefing.com consensus 116.7; prior 117.9) at 10:00 a.m. ET.
Neither is expected to have any significant market-moving impact, although you never know considering this market is sitting on a lot of news and doing little with it all at the moment.