The S&P 500 futures trade roughly in-line with fair value after trading lower for most of the morning amid continued strength in the U.S. Treasury market. Treasury yields remain lower but have come off their early morning levels.
Overseas, European Central Bank President Mario Draghi acknowledged that weak growth may prompt the ECB to further adjust its forward guidance. The ECB chief also said the central bank stands ready to mitigate the impact of negative interest rates if they end up harming the transmission mechanism of monetary policy.
Germany reopened 10-yr bunds at an average yield of -0.05%. In the U.S, the 2-yr yield is down five basis points to 2.21% (was at 2.17% at its low), and the 10-yr yield is down one basis point to 2.40% (was at 2.36% at its low). The U.S. Dollar Index is flat at 96.78.
In key corporate news, Southwest Airlines (LUV 48.16, -0.59, -1.2%) trades lower after issuing a Q1 revenue warning due to the Boeing (BA 371.30, +0.92, +0.3%) 737 grounding. Centene (CNC 51.50, -3.35) is down 10.5% after agreeing to acquire WellCare (WCG 255.00, +23.73, +10.3%) for roughly $305.39/share, or $17.3 billion, in cash and stock.
On the data front, the trade deficit narrowed to $51.1 bln in January (Briefing.com consensus -$57.5 bln) from a revised $59.9 bln (from $59.8 bln) in December. The key takeaway from the report is that the trade deficit narrowed after hitting its widest level in a decade in the previous reading.
The Current Account Balance for the fourth quarter (Briefing.com consensus $-126.6 billion) will be released at 10:00 a.m. ET.