Futures little changed to start the week
S&P futures vs fair value: -0.90. Nasdaq futures vs fair value: +37.00. The S&P 500 futures trade roughly in-line with fair value to start the week after the benchmark index set intraday and closing record highs last week. There appears to be some hesitancy this morning ahead of an important Fed policy meeting later this week. The FOMC will convene tomorrow and Wednesday, and while no change in policy is expected at the conclusion of the meeting, investors will scrutinize any comments related to inflation expectations and monetary policy. The market has been under the impression that the economy is running into peak inflation rates. Peak inflation rate expectations have been most evident in the recent decline of the inflation-sensitive 10-yr yield, which is currently unchanged at 1.46% after starting the quarter at 1.75%. The 2-yr yield is flat at 0.15%. The U.S. Dollar Index is down 0.1% to 90.50. WTI crude futures are up 0.5% to $71.25/bbl.Separately, shares of Novavax (NVAX 232.10, +22.42, +10.7%) are up 10% in pre-market action after the company announced its COVID-19 vaccine was 90.4% effective overall in a Phase 3 trial. On a related note, the British government delayed its reopening plans by two days to June 21, in-line with reports from last week. Investors won't receive any notable economic data today, but key reports that will be released before the Fed's decision on Wednesday include Retail Sales for May, the Producer Price Index for May, and Housing Starts and Building Permits for May. In U.S. Corporate news:Novavax (NVAX 232.10, +22.42): +10.7% after announcing its COVID-19 vaccine was 90.4% effective overall in a Phase 3 trial. The company intends to file for regulatory authorizations in the third quarter.Chipotle Mexican Grill (CMG 1386.00, +19.20): +1.4% after the stock was upgraded to Strong Buy from Outperform at Raymond James.Lordstown Motors (RIDE 10.06, -1.35): -11.8% after announcing its CEO and CFO have resigned. The company labeled Hindenburg's report as false and misleading.Reviewing overnight developments:Equity indices in the Asia-Pacific region began the week on a modestly higher note while markets in Australia, China, and Hong Kong were closed for holidays. Japan's Nikkei: +0.7% Hong Kong's Hang Seng: CLOSED China's Shanghai Composite: CLOSED India's Sensex: +0.2% South Korea's Kospi: +0.1% Australia's ASX All Ordinaries: CLOSED.In economic data:Japan's April Industrial Production 2.9% m/m (expected 2.5%; last 1.7%) and April Capacity Utilization 1.1% m/m (last 5.6%)India's May WPI Inflation 12.94% yr/yr (expected 13.07%; last 10.49%) and WPI Manufacturing Inflation 10.83% yr/yr (last 9.01%)New Zealand's April visitor arrivals 588.3% m/m (last -12.4%)In news:The official G-7 communique called for an investigation into the origins of the coronavirus in China. Leaders from Japan and South Korea did not meet on the sidelines of the G-7 meeting due to Japan's displeasure with South Korea's military drills. Hyundai will suspend its production in the U.S. due to a shortage of supplies.Major European indices trade on a modestly higher note. STOXX Europe 600: +0.2% Germany's DAX: +0.1% U.K.'s FTSE 100: +0.3% France's CAC 40: +0.1% Italy's FTSE MIB: +0.1% Spain's IBEX 35: +0.5%.In economic data:Eurozone's April Industrial Production 0.8% m/m (expected 0.4%; last 0.4%); 39.3% yr/yr (expected 37.4%; last 11.5%)In news:The NATO summit is taking place in Brussels today. The British government delayed its reopening plans from June 21 to July 19, in-line with reports from last week. European Central Bank President Lagarde said it is too early to speculate whether the ECB's pandemic bond buying scheme will end on March 31.