Stocks are rallying ever so slightly on what is expected to be a quiet pre-holiday trading day, while US bonds sunk to record lows overnight.
Dow futures were up 8.5 points, for a 0.05% gain, S&P 500 futures were up just 0.50 points, or 0.02%, while Nasdaq futures were higher by 1.0 points, a 0.02% jump as of 8:15 a.m. ET
The quiet comes after three straight days of climbing stocks that have left averages above their levels from before the UK’s Brexit vote to leave the European Union.
On the bond side, the US Treasury 10-year yield hit an all-time low overnight at 1.370%, while the 30-year yield fell to 2.204%. Both have made a comeback, with the 10-year yield sitting at 1.434% as of 8:15 a.m.
“Speculation on ECB buys and QE from the UK has Yields in France, UK, Japan, Netherlands and the USA hitting record lows this AM,” said Dave Lutz of JonesTrading in his daily commentary.
This is the fourth day in a row that markets appear to be climbing, though the day before a holiday weekend is expected to be fairly reserved with “holiday volumes” as Lutz described it.
Additionally, automakers will report sales for the month of June on Friday with economists expecting them to come in at 17.30 million on an annualized basis.
In US economic data, we will hear from both ISM and Markit on the health of the manufacturing sector at 9:45 a.m. and 10 a.m respectively.