Stock Market Update

The stock market is on track for a higher open with futures on the S&P 500 trading 20 points above fair value.

Equity futures displayed slim losses in early morning trade before rebounding over the past couple hours. That rebound accelerated after Fed Governor Waller told CNBC that he sees the potential for a rate cut as early as the FOMC's next meeting in July. The comments caught the market's attention since the implied likelihood of a rate cut on July 30 is under 15% in the eyes of the fed funds futures market.

Treasuries started the day in negative territory, but they have inched up off their lows after the comments from Mr. Waller. Even with the small bounce, the 10-yr yield remains up two basis points at 4.42%.

On the economic front, the Philadelphia Fed survey for June remained at -4.0 (Briefing.com consensus 0.3) that was seen in May. The market will receive the May Leading Indicators (Briefing.com consensus -0.1%; prior -1.0%) report at 10:00 ET.

Today's session is likely to see reduced participation due to yesterday's holiday closure, but consumer stocks should garner some interest after Darden Restaurants (DRI 236.00, +13.25, +6.0%) and CarMax (KMX 69.25, +4.92, +7.7%) beat their respective earnings expectations.