Good morning. The S&P’s daily winning streak ended at nine yesterday but fortunately that didn’t stop the Knicks from extending theirs to 12 last night in Game 1 of the NBA Finals. Tech weakness weighed on the market with software pulling back within its 2-month recovery and mega caps mostly lower. Crude and yields rose, providing a headwind for equities overall and driving small caps to underperform.

S&P futures are trading lower this morning despite a pullback in crude. There were a few Middle East headlines overnight, which skewed positive. In macro data, weekly initial jobless claims rose from last week’s 215K to 225K, and were above consensus. That’s the highest level since early February, but the period includes the Memorial Day holiday, which could have skewed things. Continuing claims, however, fell slightly from last week. Challenger Job Cuts rose to 97K, up from last month’s 83K. It was the highest May total since 2020- the teeth of the pandemic.

Yields moved steadily lower overnight, following oil lower on the relatively positive Iran headlines. The Dollar is weaker as well. Heading into the Open treasuries have essentially reversed yesterday’s move, down ~5b across the curve. Crude is lower on the geopolitical headlines, though natural gas is higher. Brent is testing support at its 50d ma. Precious metals are gaining as rates and oil fall. Crypto continues to come under pressure with Bitcoin down 3% and falling back towards $60K, currently around Feb lows. High-flying alt-coins are also seeing weakness after weeks of sharp moves for many.