S&P futures vs fair value: +17.2. Nasdaq futures vs fair value: +22.8.
July personal income rose 0.5% (consensus 0.3%) while personal spending rose 0.4% (consensus 0.3%). The more closely watched core-PCE deflator rose just 0.1% again (consensus 0.2%), which assuages inflation concerns as the year-over-year rate stays at 1.9% and within the Fed's "comfort zone." The futures market is retracing its morning highs, still signaling a strong start for stocks; but the tame inflation data has done little to excite bond traders as the flight-to-quality bid in Treasuries continues to unwind. The 10-year note is down 9 ticks to yield 4.54%.