Stock Market Update

The S&P 500 futures are down 33 points and are trading 0.5% below fair value, the Nasdaq 100 futures are down 173 points and are trading 0.7% below fair value, and the Dow Jones Industrial Average futures are down 150 points and are trading 0.3% below fair value.

Personal income increased 0.3% month-over-month in November (Briefing.com consensus 0.4%) following an upwardly revised 0.7% (from 0.6%) in October. Personal spending rose 0.4% month-over-month (Briefing.com consensus 0.5%) following a downwardly revised 0.3% increase (from 0.4%) in October.

The PCE Price Index was up 0.1% month-over-month (Briefing.com consensus 0.2%); however, it ticked up to 2.4% year-over-year from 2.3% in October. The core-PCE Price Index, which excludes food and energy, also increased 0.1% month-over-month and held steady at 2.8% year-over-year.

The key takeaway from the report is that there wasn't any improvement in the year-over-year readings for PCE and core-PCE inflation.

The 2-yr yield is down six basis points to 4.26% and the 10-yr yield is down seven basis points to 4.50%.