The S&P 500 futures are up six points and are trading roughly in line with fair value, the Nasdaq 100 futures are up 46 points and are trading 0.1% above fair value, and the Dow Jones Industrial Average futures are down 24 points and are trading 0.1% below fair value.
Contracts tied to the S&P 500 and Nasdaq 100 indicate a higher open following yesterday’s modest declines. The upside bias is related to a buy-the-dip mentality that has paid off for market participants recently. Also, Treasury yields are lower, providing some support to equities. The 10-yr note yield is down two basis points to 4.28% and the 2-yr note yield is down five basis points to 4.68%.
The Treasury market was little changed by this morning’s economic data so far. Durable goods orders fell 6.1% in January (Briefing.com consensus -4.4%) after a revised 0.3% decrease (from 0.0%) in December. Excluding transportation, durable goods orders decreased 0.3% (Briefing.com consensus +0.3%) after decreasing a revised 0.1% (from +0.6%) in December.
The key takeaway from the report is that it sends a poor signal about the state of business spending, as nondefense capital goods orders were down 19.4%.
Also, the FHFA Housing Price Index rose 0.1% in December following a revised 0.4% decline in November (from 0.3%) and the S&P Case-Shiller Home Price Index jumped 6.1% in December (Briefing.com consensus 6.0%) following a 5.4% increase in November.
The tone in the Treasury market may shift in response to the February Consumer Confidence Index, which is released at 10:00 ET.
Separately, earnings news since yesterday’s close has received mixed responses from investors. Namely, Unity Software (U) is down big ahead of the open after its quarterly report while shares of Zoom Video (ZM) surge in response to better than expected earnings results. Retailers Macy’s (M) and Lowe’s (LOW) are both sliding ahead of the open after reporting earnings results.Â
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Originally Posted February 27, 2024 – Mixed action indicated at the open
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