[BRIEFING.COM] S&P futures vs fair value: -17.30. Nasdaq futures vs fair value: -60.00.
Stocks are on course for a solidly lower open, as the S&P 500 futures are trading 17 points, or 0.6%, below fair value.
The Trump administration escalated its trade dispute with Beijing on Tuesday evening, threatening another round of tariffs -- by far the biggest round to date -- just days after implementing duties on $34 billion worth of Chinese goods. The administration says it'll impose a 10% tariff on $200 billion worth of Chinese goods, including fish, petroleum, chemicals, handbags, and textiles, if Beijing refuses to change its trade practices. China threatened to retaliate, but provided no specifics.
Investors received the June Producer Price Index earlier, which increased a more-than-expected 0.3% (Briefing.com consensus +0.2%). The core PPI also rose 0.3% (Briefing.com consensus +0.2%). The key takeaway from the report is that producers are facing increased cost pressures throughout all stages of production, which will fuel concerns about profit margin pressures if they don't pass those costs onto customers and concerns about consumer inflation pressures if they do.
Today's last economic report, Wholesale Inventories for May (Briefing.com consensus +0.5%), will be released at 10:00 AM ET.
Meanwhile, U.S. Treasuries are mostly higher this morning, pushing yields lower; the benchmark 10-yr yield is down two basis points at 2.85%. WTI crude futures are down 1.0% at $73.37/bbl ahead of the 10:00 AM ET release of the government's weekly crude oil inventory report, and the U.S. Dollar Index is flat at 93.88.