Stock market set for negative open despite more good news
S&P futures vs fair value: -24.60. Nasdaq futures vs fair value: -115.40. The stock market is headed for a lower start today, as the S&P 500 futures trade 25 points, or 0.6%, below fair value. There are no confirmed news catalysts for the negative bias, although there are quite a few good news items. For instance, Pfizer (PFE 40.13, +0.30, +0.8%) and CVS Health (CVS 79.10, +1.41, +1.8%) beat top and bottom-line estimates and issued upside FY21 EPS guidance; The New York Times reported that Pfizer's COVID vaccine could soon be approved by the FDA for emergency use in children ages 12-15; and the EU is aiming to allow vaccinated tourists from the U.S. in late June.In addition, the Trade Balance report for March showcased sharp increases in exports and imports, signaling a global recovery. The trade deficit widened to $74.4 billion (Briefing.com consensus -$74.7 billion) from $70.5 billion. All this suggests that the market has priced in a lot of good recovery/earnings news and that the inability to react positively has supported the peak growth narrative. The 10-yr yield is down three basis points to 1.58% amid increased demand, contrary to improved growth expectations.