Futures Tick Lower. U.S. equity index futures drifted mostly lower at the start of the final week of the second quarter. S&P 500 futures erased earlier fractional gains while Nasdaq 100 futures are off 0.25% as Nvidia shares continue to struggle after 3% daily losses on Thursday and Friday to cap their first weekly loss since April. There are no major economic releases today. Moving into the week, the Fed’s annual stress results for major big banks is released on Wednesday while the Fed’s latest PCE preferred inflation data is announced on Friday.
Equal Weight Insight. The S&P 500 equal weight index is trailing the S&P 500 market cap index by 9.9% this year (total return), after lagging by 12.4% last year. The last time the S&P 500 market cap index outperformed by this magnitude in back-to-back years was 1998-99. Eurozone Business Recovery Weakens. Major U.S. banks are expected to show they have sufficient capital to weather any renewed turmoil during this week's Federal Reserve health checks but will likely be conservative on investors payouts amid economic and regulatory uncertainties. The Fed releases results of its annual bank "stress tests" which assess how much cash lenders would need to withstand a severe economic downturn and how much they can return to investors via dividends and share buybacks Treasury Yields Edge Higher. The yield on benchmark 10-year Treasury notes rose just 1 basis point (bps) to 4.267% while the yield on policy sensitive 2-year Treasurys similarly rose, currently at 4.743%. Three-month T-Bills are little changed, currently 5.362%. Key Commodities. U.S. gold futures rose 0.3% at $2,338/ounce after falling 1.6% on Friday. U.S. WTI crude oil futures is little changed near $80.75/barrel. Tuesday, June 25: Chicago Fed National Activity, S&P Case-Shiller Home Prices, Consumer Confidence.
Wednesday, June 26: Mortgage Activity, New Home Sales, Fed Bank Stress-Test Results.
Thursday, June 27: Jobless Claims, Q1 GDP Revision, Durable Goods Orders, Goods-only Trade Balance, Pending Home Sales.
Friday, June 28: Personal Income/Spending, PCE Prices, Chicago PMI Business Barometer, Consumer Sentiment. |
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