Stock Market Update

The stock market is on track for a modestly higher start with futures on the S&P 500 trading six points above fair value.

The market is looking for a continuation of yesterday's strong start to the week after a night that was relatively quiet when it comes to economic data and news developments. Japan's bond market received some renewed attention after a weak 40-yr bond auction but the 40-yr yield remains about 20 basis points below its high from last week.

Investors did not receive any top tier data this morning, but a couple retail stocks are on course for a strong start after reporting earnings. Abercrombie & Fitch (ANF 98.29, +21.14, +27.4%) beat Q1 expectations, issued below-consensus EPS guidance for Q2, and lowered its EPS guidance for FY26 while raising the high end of its revenue growth guidance. Separately, Macy's (M 12.48, +0.44, +3.7%) beat Q1 expectations and reaffirmed its guidance for FY26.

Treasuries hold modest losses with the 10-yr yield rising three basis points to 4.47%.