Stock Market Update

The stock market is on course for an upbeat open after yesterday's closure with futures on the S&P 500 trading 75 points above fair value.

The market is returning from an extended weekend with some tariff-related optimism after President Trump said that the extra 50% tariff on imports from the EU will be delayed until July 9 to give additional time to negotiate.

Like equity futures, Treasuries have been on the rise this morning after some overnight strength in Japanese debt amid reports that Japan's Ministry of Finance could reduce its issuance of ultra-long bonds after their recent slide to record lows. The 10-yr yield is down four basis points at 4.47% while the 2-yr yield is down two basis points at 3.98%.

Economic data released this morning included a smaller-than-expected drop in April Durable Orders (-6.3%; Briefing.com consensus -8.1%) and an unexpected dip in the FHA Housing Price Index for March (-0.1%; Briefing.com consensus 0.2%). Later this morning, May Consumer Confidence (Briefing.com consensus 87.0; prior 86.0) will be released at 10:00 ET.