2023-05-24 06:29:34 ET
Stock index futures continued this week's pattern of indecisive action as debt ceiling negotiations still hold sway.
S&P futures ( SPX ) -0.3% , Dow futures ( INDU ) -0.4% and Nasdaq 100 futures (NDX:DIN) -0.2% were lower, but choppy.
The 10-year Treasury yield ( US10Y ) fell 1 point to 3.69% and the 2-year yield ( US2Y ) fell 4 basis points to 4.29%.
Stocks and the front end of the yield curve sold off in the previous session with little progress on a debt ceiling deal.
"It’s true that both sides are still talking and the mood music sounds (mostly) positive, but we might only be days away from the deadline in early June, and any deal that’s reached is still going to need to be passed through both houses of Congress," Deutsche Bank's Jim Reid wrote. "So there are real concerns that this could go right down to the wire, and investors are slowly gearing up accordingly."
"There’s also been talk about whether a short-term extension might now be needed to get this over the line, but for the time being, Speaker McCarthy has continued to downplay the prospect that will happen," Reid said. "So investors continue to wait nervously with no signs of a deal emerging just yet."
There is little on the economic calendar premarket, so investors will have to wait until the latest Fed minutes out this afternoon.
We "would be very surprised to see any serious discussion of the potential for near-term rate cuts in the minutes," Pantheon Macro's Ian Shepherdson said. "But we are curious to see how many members pushed for a May pause, fretting about the potential impact of the banking crisis on growth."
"Looking at the composition of the 2023 voters and their comments since the meeting, the answer to that question probably is only a few, with Chicago Fed president Goolsbee, governor Cook and Philadelphia Fed president Harker the most likely."
"It is always worth remembering the fictional UK government official’s quote: 'the purpose of minutes is not to record events. It is to protect people,'" UBS' Paul Donovan said.
(The follow-up to that quote from Yes, Prime Minister is: "You do not take notes if the Prime Minister says something he did not mean to say, particularly if it contradicts something he has said publicly." Our latest Wall Street Breakfast survey showed less than 2% of respondents trusting economic data completely. Does that extend to minutes?)
Among active stocks, Agilent slumped after missing on guidance .
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S&P, Dow, Nasdaq futures edge down; Fed minutes on tap