The S&P 500 futures trade three points, or 0.1%, below fair value, although they traded as high as 0.5% above fair value overnight. Investors will continue to keep an eye out for any U.S-China trade updates.
Negotiators have reportedly been drawing up six memorandums of understanding (MoU) on structural issues: forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade. China's Ministry of Commerce, however, said there was nothing new to report on the trade front.
Separately, earnings results this morning have mostly featured those from smaller-cap companies.
Shares of Domino's Pizza (DPZ 261.50, -16.99, -6.1%) have tumbled in pre-market trading after the company missed earnings estimates. Newmont Mining (NEM 36.21, +0.82, +2.3%) and Jack in the Box (JACK 82.89, +4.07, +5.2%), meanwhile, are up after both companies beat top and bottom-line estimates.
U.S. Treasuries have edged lower this morning, pushing yields higher across the curve. The 2-yr yield and the 10-yr yield are up two basis points each to 2.52% and 2.67%, respectively. The U.S. Dollar Index is flat at 96.47. WTI crude is up 0.1% to $57.24/bbl.
Investors have received a decent batch of economic data this morning.
- Durable goods orders increased 1.2% in December
(Briefing.com consensus 1.3%) after an upwardly revised 1.0% increase (from
0.8%) in November. Excluding transportation, orders increased 0.1%
(Briefing.com consensus 0.2%) after decreasing a revised 0.2% (from -0.4%) in
- The key takeaway from the report is that business investment remained weak, evidenced by the 0.7% decline in nondefense capital goods orders excluding aircraft. Furthermore, the November reading was revised down to -1.0% from -0.6%.
- The Philadelphia Fed Index for February fell to -4.1
(Briefing.com consensus 12.0) from 17.0 in January.
- The key takeaway from the report is that the headline decrease was driven by declines in most components with the Prices Paid Index returning to its low from 2017.
- Initial claims for the week ending February 16 decreased by
23,000 to 216,000 (Briefing.com consensus 225,000). Continuing claims for the
week ending February 9 decreased by 55,000 to 1.780 million.
- The key takeaway from the report is that the decline returned the initial claims level into a sideways range that has been in place over the past year; however, the four-week moving average for initial claims remains at its highest level since January 2018.