Good morning. As we await, again, the SCOTUS decision on the tariff case (expected during today’s opinions release) S&P futures are under pressure this morning, moving lower along with European equities around 5am as crude rose sharply. Mega bank earnings continue to roll out. This morning includes Bank of America (lower pre-market), Citi (higher) and Wells Fargo (lower). BAC and WFC commented on strong/resilient consumer and business in their releases. Yesterday the S&P ended modestly lower with loses cut after a rally into the close. The equal-weight was flat and the Russell 2000 was slightly lower. The big banks kicked off earnings, with JP Morgan and Bank of New York leading the way, but the Financial sector was the worst performer. Pressure on credit card and payment names from possible rate caps continued. Despite the lack of overall price changes there was constant movement of strength and weakness across sectors.

December’s CPI was the headliner yesterday for data and it was basically an inline print, with the inability to produce a regular CPI print for October and November due to the shutdown mucking up the analysis. Today’s data includes PPIs for both October and November. November looks about inline on a monthly basis but above on a yearly look, while Core was flat, ticking down sequentially and below estimates. Retail sales beat estimates and accelerated from the prior month. The control group was in line and ticked down sequentially.

Commodities are moving higher again with the exception of natural gas. Yesterday, ICE Brent closed above its 200d ma (~64.25) for the first time since Q3. Prices pulled back modestly overnight before turning higher this morning. Ag commodities are moving modestly higher recouping some of the losses after the USDA released its Grain Stocks report earlier this week. Crypto moved higher yesterday extending to the upside after the close amidst reports that senators have been filing amendments ahead of a Senate Banking Committee meeting on Thursday.