Stock Market Update

Equity futures now point to a lower opening as yesterday's rally is not garnering much follow-through interest today. Oil continues to tick higher, currently up $4.12 (+4.7%) to $92.25 per barrel as the market waits for any update on potential negotiations between the U.S. and Iran.

Q4 productivity was revised down to 1.8% (Briefing.com consensus: 2.5%) from the preliminary estimate of 2.8%, while unit labor costs were revised up to 4.4% (Briefing.com consensus: 3.1%) from the preliminary estimate of 2.8%.

The key takeaway from the report is the dichotomy of lower productivity and higher unit labor costs, the latter of which will contribute to the Fed's reticence to cut rates soon (even though this is a dated report).