U.S. equities gave back the bulk of Monday's gains on Tuesday, with FAANG shares leading the retreat, pushing the S&P 500's technology sector lower by 3.5%. Futures are pointing towards a modestly higher open this morning, but, as yesterday's session proved, things can look very different by the closing bell; the S&P 500 futures are trading three points, or 0.1%, above fair value. The S&P 500's 200-day simple moving average (2587) could be in play today, as the benchmark index finished just about 25 points above the key technical level on Tuesday.
Overseas, the major stock indices in the Asia-Pacific region slid on Wednesday, losing between 0.6% and 2.5%. Chinese officials confirmed that North Korea's Supreme Leader Kim Jong-un paid a visit to Beijing, during which the North Korean leader reportedly committed to denuclearization of the Korean peninsula. Mr. Kim is expected to meet with President Donald Trump by the end of May to discuss North Korea's nuclear program.
In Europe, Germany's DAX and France's CAC are down 0.7% and 0.4%, respectively, but the UK's FTSE (+0.1%) has managed to keep near its unchanged mark.
Back in the States, shares of Walgreens Boot Alliance (WBA) are up 2.3% in pre-market trading after the company beat quarterly earnings and revenue estimates and raised its profit guidance for FY18. Lululemon Athletica (LULU) shares are also higher, up 6.8%, after the athleisure brand reported better-than-expected earnings and revenues for the fourth quarter and issued positive guidance.
Outside of equities, U.S. Treasuries have extended Tuesday's rally this morning, pushing the benchmark 10-yr yield another three basis points lower to 2.76%, which is its lowest level since early February. Meanwhile, the U.S. Dollar Index is up 0.3% at 89.25, and West Texas Intermediate crude futures are down 0.8% at $64.71 per barrel after the American Petroleum Institute reported on Tuesday evening that U.S. crude inventories increased by 5.3 million barrels last week. The official government figures will be released at 10:30 AM ET.
On the data front, the third estimate of fourth quarter GDP pointed to an expansion of 2.9%, while the Briefing.com consensus expected a reading of 2.6%. The second estimate came in at 2.5%. Separately, the Advance report for International Trade in Goods for February showed a deficit of $75.4 billion (Briefing.com consensus -$74.2 billion).
Today's last piece of economic data, Pending Home Sales for February (Briefing.com consensus +2.5%), will cross the wires at 10:00 AM ET.