Good morning. Equity futures are slightly higher this morning, following a rather subdued start to the week yesterday. Feels like we’re in the Dog Days of summer and are drifting into the CPI report on Wednesday. S&P futures are just off their overnight highs, ticking lower after news that US forces fired on a Panama-flagged ship that tried to run the Iran blockade. That came after reports that negotiations between Oman and Iran on the Strait are in advanced stages, and also that Pakistan’s interior minister is in Tehran for talks.

Treasury yields were modestly higher before the Pakistan report sent yields and oil lower. Yields are currently down 1-2bp. The US Dollar Index is a bit higher. It’s another quiet day on the eco calendar. The NFIB small business index rose from 97.4 last month to 99.8, its best level since last August. The ADP weekly employment data showed a further drop today to 8.25K/week, down from 15.0K in the prior report and the sixth straight decline overall. Towards the end of yesterday’s session Cleveland Fed President and member of The Dissenters, Beth Hammack, discussed her outlook. She said a single 25bp hike was insufficient to impact current inflation, and current rates aren’t restrictive enough to slow growth.

Crude is well off its highs and turned negative after the news of the Iran negotiations. US nat gas is slightly higher following yesterday’s gain, while European gas gives back some of its sharp gains yesterday. Gold is up ~1%, pulling into the 100d ma level ~$4430. Ag is mostly lower while Bitcoin and Ether are modestly higher.