NVCR - S&P Dow Nasdaq futures continue cautious trading

2023-06-07 06:21:00 ET

Stock index futures were slightly lower, with investors still reluctant to commit to a firm direction a week before CPI and the Fed.

S&P futures ( SPX ) -0.1% , Dow futures ( INDU ) -0.2% and Nasdaq 100 futures ( NDX:IND ) -0.1% were off a bit.

"Markets are generally swimming slightly against the tide this week, with the S&P 500 still not quite able to break out into bull market territory that it crossed intra-day on Monday," Deutsche Bank's Jim Reid wrote. "Having said that the index did just about close at a high for 2023 so the momentum is still there to some degree. In a week of limited data and a Fed blackout there have been a few stories swirling around in the background that have dampened sentiment without reversing it."

The 10-year Treasury yield ( US10Y ) fell 2 basis points to 3.68%. The 2-year yield ( US2Y ) fell 2 basis points to 4.50%.

The inverted 2s10s yield curve gap hit a post-SVB low on Tuesday.

"In the US, there is a stark juxtaposition between strong ongoing payroll growth versus PMIs and ISMs entering recessionary territory (low 40s for some components of the manufacturing PMI)," ING said. "While there are some good reasons to expect market rates to fall (weak PMIs for example), our preferred expectation from here is to see some further upward pressure on market rates first. The 4% area for the 10yr Treasury yield for example remains a generic target that could well be hit in the coming month or so."

Before the bell, the U.S. trad balance figures arrive. Economists expect the deficit to widen to $75.2B.

Earlier, China reported its smallest trade surplus since February.

"China’s May trade data had a fairly large drop in exports, attributed to weakness in exports to the US and Japan," UBS' Paul Donovan wrote. "This does not necessarily signal a sharp decline in global demand. Global demand patterns now favor services than goods (China is not a service exporter)."

"The US is still a fairly important manufacturer, so its export data might offer some insight into trade flows. Ultimately, however, the US is the world’s key consumer, so it is the import numbers that will attract market attention."

Among active stocks, NovoCure ( NVCR ) rebounded a little after plunging more than 40% on concerns about a cancer treatment device.

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