The U.S. equity market sealed its first weekly decline since early September on Friday as investors decided to cash in on yet another string of record highs. Stocks are on track to move lower once again this morning following a relatively quiet weekend. The S&P 500 futures are currently trading seven points, or 0.3%, below fair value.
Elsewhere, the Euro Stoxx 50 is down 1.0%, but the UK's FTSE (-0.3%) is holding up relatively well despite reports that 40 members of parliament from Prime Minister May's Conservative Party have agreed to sign a letter of no confidence against her--just eight shy of the 48 required to force a leadership vote.
Meanwhile, equity indices in the Asia-Pacific region began the week on a mixed note with Japan's Nikkei (-1.3%) showing relative weakness.
In U.S. corporate news, General Electric (GE) is down 1.5% after announcing that it will cut its quarterly dividend by 50% to $0.12 per share, as expected. Conversely, Mattel (MAT) has spiked 22.9% following a report that Hasbro (HAS) has made a takeover offer for the company.
At this point in the third quarter earnings season, more than 90% of S&P 500 companies have reported their quarterly results. However, there are still a handful of notable names due to report this week, including Home Depot (HD) and TJX (TJX) on Tuesday, Target (TGT) and Cisco Systems (CSCO) on Wednesday, and Wal-Mart (WMT) on Thursday to name a few.
As for economic data, investors will receive several influential reports this week, including the October Producer Price Index (Briefing.com consensus +0.1%) on Tuesday, the October Consumer Price Index (Briefing.com consensus +0.1%) and October Retail Sales (Briefing.com consensus +0.1%) on Wednesday, and October Housing Starts (Briefing.com consensus 1198K) on Friday.
Today's lone economic report--the October Treasury Budget--will be released this afternoon at 14:00 ET.
Outside the equity market, U.S. Treasuries are rallying this morning, sending yields lower across the curve; the yield on the benchmark 10-yr Treasury note is down two basis points at 2.38%. Meanwhile, WTI crude futures are up 0.2% at $56.85/bbl, the U.S. Dollar Index is higher by 0.1% at 94.35, and the CBOE Volatility Index (VIX 12.03, +0.74) is up 6.6%.