Stock Market Update

The stock market is on track for a mixed start with futures on the S&P 500 trading five points below fair value while Nasdaq futures outperform, trading 31 points above fair value.

The market is following yesterday's poor finish with some cautious optimism on a day that has already seen some additional upward pressure on the 30-yr yield, which is up two basis points at 5.11%. Earlier this morning, the House of Representatives passed the large reconciliation bill with just a single vote margin.

This week has been quiet on the economic front, but today, the market received the latest jobless claims report. Initial jobless claims for the week ending May 17 decreased by 2,000 to 227,000 (Briefing.com consensus 232,000), while continuing jobless claims for the week ending May 10 increased by 36,000 to 1.903 million. The key takeaway from the report is that initial jobless claims are running steady at levels that are well below recession-type readings; moreover, this report covered the period in which the survey for the May employment report was conducted and should contribute to expectations that nonfarm payrolls will again show a relatively solid print.

There is more data ahead with flash Manufacturing (prior 50.2) and Services (prior 50.8) PMI readings for May set to be released at 9:45 ET, followed by April Existing Home Sales (Briefing.com consensus 4.15 mln; prior 4.02 mln) at 10:00 ET.