Stock Market Update

The stock market is on track for a higher start with futures on the S&P 500 trading twelve points above fair value.

Equity futures spent the bulk of the morning near their flat lines after a quiet night in global markets. However, there was a recent spike to highs after Xinhua reported that President Trump spoke with China's President Xi, giving the market some hope that trade negotiations are moving along.

Unlike equity futures, Treasuries have had a limited reaction to the report with the 10-yr yield down two basis points at 4.35% while the 2-yr yield is down one basis point to 3.87%.

The market received a handful of economic reports this morning, including a larger-than-expected weekly jobless claims count (247,000; Briefing.com consensus 235,000), a smaller-than-expected trade deficit for April (-$61.6 bln; Briefing.com consensus -$117.2 bln), and a downward revision to Q1 Productivity (to -1.5% from -0.8%; Briefing.com consensus -0.8%), combined with an upward revision to Q1 Unit Labor Costs (to 6.6% from 5.7%; Briefing.com consensus 5.7%).