The S&P 500 futures trade ten points, or 0.4%, above fair value in a rebound trade after yesterday's sell-off. Sentiment has somewhat eased in front of a three-day holiday weekend.
Despite U.S. claims that China's Huawei Technologies poses national security risks, President Trump said last night that its issues with Huawei could be included in a trade deal with Beijing. No trade talks are currently planned.
Separately, UK Prime Minister Theresa May announced she will resign as the leader of the Conservative and Unionist Party on June 7 after three years of trying to get a Brexit deal passed. Ms. May will remain Prime Minster until a successor is chosen.
In earnings news, shares of Foot Locker (FL 47.98, -4.85, -9.2%), Autodesk (ADSK 156.39, -13.15, -7.8%), and Ross Stores (ROST 92.15, -2.36, -2.5%) have declined noticeably after disappointing investors with their results/guidance.
U.S. Treasuries have declined, pushing yields higher, after yesterday's flight-to-safety trade. The 2-yr yield is up three basis points to 2.14%, and the 10-yr yield is up two basis points to 2.32%. The U.S. Dollar Index is down 0.1% to 97.76. WTI crude has rebounded 1.2% to $58.63/bbl after falling nearly 6% yesterday on fears of weaker demand.
Durable goods orders for April decreased 2.1% (Briefing.com consensus -2.0%) while orders, excluding transportation, were unchanged (Briefing.com consensus 0.2%).
- The key takeaway from the report is that orders for nondefense capital goods, excluding aircraft, decreased 0.9% while the previous month's increase was revised down to 0.3% from 1.3%. These orders are a proxy for business spending, so it can be said that business spending decelerated in April after a smaller than previously estimated increase in March.