Stock Market Update

The stock market is on track for a sharply lower start with futures on the S&P 500 trading 62 points below fair value.

The market is following last week's strong showing with some early profit taking prompted by Moody's lowering the credit rating of the U.S. to Aa2 from Aaa. With this cut, the U.S. government has now lost its final top rating from the three major agencies.

Investors will be eager to see whether the early weakness translates into additional selling due to a desire to lock in some recent profits or if the market will show resilience to the early pressure.

Like stocks, Treasuries are on the defensive with the 10-yr yield rising eleven basis points to 4.55% while the 30-yr yield is up 13 basis points at 5.03%, hitting a fresh high for the year.

The Leading Indicators report for April (Briefing.com consensus -0.7%; prior -0.7%) will be released at 10:00 ET.