Equity futures edge higher while 10-yr yield keeps dipping
S&P futures vs fair value: +6.50. Nasdaq futures vs fair value: +31.30. The S&P 500 futures trade seven points, or 0.2%, above fair value at the end of a mixed, yet record-setting, week. The S&P 500 is up just 0.2% this week but managed to close at a record high yesterday.   Positive-sounding developments this morning include news that a bipartisan group of senators agreed on framework for infrastructure spending without tax hikes, the Bundesbank increased its forecast for Germany's 2021 GDP growth to 3.7% from 3.0%, and Japan may lift Tokyo's state of emergency on June 20. The market, however, doesn't appear to be influenced by any specific news right now. Perhaps more supportive for growth stocks is the continued decline in long-term interest rates. The 10-yr yield is currently down two basis points to 1.44% after starting the quarter at 1.75% while the 2-yr yield is down one basis point to 0.14%. On a related note, The Wall Street Journal published a report indicating that foreign investors and pension funds have recently been increasing their Treasury holdings, in part due to their positive yields and the low hedging costs of the dollar. The U.S. Dollar Index is currently up 0.2% to 90.24 but is down 3.2% this quarter. WTI crude futures are up 0.2% to $70.43/bbl.Separately, investors will receive the preliminary University of Michigan Index of Consumer Sentiment for June (Briefing.com consensus 83.5) at 10:00 a.m. ET. In U.S. Corporate news:Chewy (CHWY 78.25, -1.10): -1.4% despite beating EPS estimates and guiding Q2 revenue above consensus. Dave & Busters (PLAY 46.50, +2.42): +5.5% after beating top and bottom-line estimates and guiding Q2 revenue and adjusted EBITDA well above consensus. The company said its "brand is back."Biogen (BIIB 419.12, +4.41): +1.1% amid an analyst upgrade to Outperform from Mkt Perform at Bernstein.Reviewing overnight developments:Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: -0.6%, India's Sensex: +0.3%,  South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: +0.2%.In economic data:Japan's Q2 BSI Large Manufacturing Conditions -1.4 (last 1.6)South Korea's May Import Price Index 13.8% yr/yr (last 15.3%) and Export Price Index 12.3% yr/yr (last 11.1%)New Zealand's May Business PMI 58.6 (last 58.4)In news:The Japanese government may lift Tokyo's state of emergency on June 20. Bank of Korea Governor Lee said that policy will be normalized once a recovery is certain, adding that household debt has become a bigger issue. South Korea's trade figures for the first ten days of June showed a 40.9% yr/yr jump in exports with semiconductor exports growing 37.0%. China's National Development and Reform Commission announced that subsidies for solar plants and onshore wind farms will not be issued for the remainder of the year.Major European indices are looking to end the week on a higher note. STOXX Europe 600: +0.6%, Germany's DAX: +0.5%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.7%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.4%.In economic data:Germany's May WPI 1.7% m/m (last 1.1%); 9.7% yr/yr (last 7.2%)U.K.'s April GDP 2.3% m/m (expected 2.2%; last 2.1%). April Construction Output -2.0% m/m (expected 1.4%; last 5.8%); 77.9% yr/yr (expected 83.4%; last 6.0%). April Industrial Production -1.3% m/m (expected 1.2%; last 1.8%); 27.5% yr/yr (expected 30.5%; last 3.6%). April Manufacturing Production -0.3% m/m (expected 1.5%; last 2.1%); 39.7% yr/yr (expected 41.8%; last 4.8%). April trade deficit GBP10.96 bln (expected deficit of GBP12.10 bln; last deficit of GBP11.71 bln)Spain's May CPI 0.5% m/m (expected 0.4%; last 1.2%); 2.7% yr/yr, as expected (last 2.2%)In news:The Bundesbank increased its forecast for Germany's 2021 GDP growth to 3.7% from 3.0% while the outlook for 2022 was increased to 5.2% from 4.5%. Bank of France Governor Villeroy de Galhau said that there is no need to change monetary policy at this time. G-7 leaders are expected to voice support for the global minimum tax rate that was recommended by G-7 finance ministers.