Reply #19: futures and blather (not for the weak of heart) [View All]

like stepping off a cliff...

08:33 am : S&P futures vs fair value: -11.1. Nasdaq futures vs fair value: -9.8. Durable Orders fell for the first time since January, checking in with a larger than expected decline of 2.8% for May (consensus -1.0%) given a decline in aircraft orders. Non-defense capital goods orders excluding transportation, which provide a clearer read on business capital investment, fell 3.0%. Futures trade has dipped further below fair value following the weak data, signaling an even lower start for the cash market. Bonds, though, have strengthened as the 10-year note is now up 10 ticks to yield 5.03%.

08:00 am : S&P futures vs fair value: -9.0. Nasdaq futures vs fair value: -7.0. Early indications are pointing to yet another dismal day for equities as failure to hold intraday gains during the prior two sessions further underscores the recent shift in sentiment.

Investors are also showing some added reserve ahead of the Durables Orders report for May (8:30 ET), especially knowing that today kicks off a two-day FOMC meeting and "incoming" data impact the wording of the closely-watched policy directive. It will hit the wires tomorrow at 14:15 ET.