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Briefing.com Summary:

*Equity futures rise alongside Treasuries amid falling energy prices

*Some improvement in Europe's growth engine

*Growing criticism of Treasury's buyback changes

The stock market tried to overcome yesterday's initial weakness, but the S&P 500 and Nasdaq could not avoid a lower finish as chip stocks weighed. This morning, however, the market is looking for an upbeat open with futures on the S&P 500 trading 20 points above fair value while Nasdaq futures outperform.

Equity futures rallied in early morning trade alongside Treasury futures while crude oil fell to a one-week low. The advance was assisted by a positive session in Europe, where today's data slate showed an upward revision to Germany's Q2 GDP (to 0.3% from 0.2%) and an above-consensus ifo Business Climate Index (88.8; expected 87.2), reflecting some overall improvement in Germany's economy.

Treasury Secretary Bessent formally announced "Operation Economic Outcast" yesterday, which involves sanctions on multiple Iran-linked entities with five critical sectors potentially facing secondary sanctions. Brokerage networks and shadow-fleet vessels will also be targeted while countries that are found to be cooperating with Iran will also face consequences. Mr. Bessent also foreshadowed that a major financial institution will be sanctioned by the end of this week.

There has also been some lingering focus on the Treasury's updated buyback plans with growing criticism of the move aimed at reducing yields on longer tenors. Stanley Druckenmiller published an op-ed in The Wall Street Journal last evening, calling the move a mistake.

On a side note, flight tracking data showed a U.S. military transport plane arriving in Moscow a few hours ago, but a reason for the visit has not been given.

Treasuries, meanwhile, are building on their gains from Monday with the 10-yr yield down four basis points at 4.66% while the 2-yr yield is down three basis points at 4.21% ahead of today's $69 bln 2-yr Treasury note auction at 13:00 ET.

Today's data slate will include the 9:00 ET release of June FHFA Housing Price Index (prior 0.3%) and July S&P Case-Shiller Home Price Index (Briefing.com consensus 1.8%; prior 1.6%), followed by July New Home Sales (Briefing.com consensus 620,000; prior 628,000) and August Consumer Confidence (Briefing.com consensus 90.6; prior 90.8) at 10:00 ET.