Stocks are looking to recoup some of last week's losses this morning after the U.S. and Canada reached a trade deal last night, just hours before a midnight deadline. The S&P 500 futures are trading 15 points, or 0.5%, above fair value, and the tech-heavy Nasdaq 100 futures are up 0.6%.
The new United States-Mexico-Canada Agreement makes modest changes to NAFTA, giving American farmers improved access to Canada's dairy market and capping Canada's auto exports to the United States. The deal also strengthens IP provisions. In reaction, the peso and the loonie have climbed around 0.8% against the U.S. dollar.
In U.S. corporate news, Tesla (TSLA) is up 15.8% in pre-market trading after CEO Elon Musk settled charges with the SEC over his tweets about taking the electric automaker private. Under the deal, Mr. Musk can remain CEO, but has to step down as chairman for three years. In addition, both he and Tesla have to pay a fee of $20 million.
Meanwhile, struggling industrial conglomerate General Electric (GE) has spiked 14.8% in pre-market action after abruptly removing John Flannery, who was hired just over a year ago, as chairman and CEO. Former Danaher CEO Lawrence Culp will be replacing Mr. Flannery at the helm.
Looking at other markets, U.S. Treasuries are under pressure this morning, pushing yields higher across the curve, with the benchmark 10-yr yield up one basis point at 3.07%. Meanwhile, WTI crude futures are slightly higher, up 0.2% at $73.36/bbl, and the CBOE Volatility Index is down 1.6% at 11.93, which marks a more than one-week low.
Investors will receive just two pieces of economic data today, the ISM Manufacturing Index for September (Briefing.com consensus 60.4) and the Construction Spending report for August (Briefing.com consensus +0.4%). Both reports will be released at 10:00 AM ET.