Good morning. S&P futures have been fading from their highs since around the European open and are currently around overnight lows as we approach the open. It’s a relatively quiet start to the week, despite one part of the MAC Desk celebrating a milestone birthday. It’s not 21, and it’s not the guy typing this. Computer equipment makers are seeing some pressure in the premarket after Morgan Stanley downgraded several names. It’s another full day of Fed Speak while the economic calendar is light again, though August Construction data will be released as the federal data publishing machine starts to slowly crank back up. The Empire Manufacturing Index for November improved from last month. Current conditions and New Orders both rose while prices fell. However, expectations six months out for conditions and new orders fell from last month. US equities ended Friday around flat following a sell-off on Thursday. The S&P ended just below unchanged while the Russell 2000 gained 0.2%. Gold and crypto were weak while crude rose. Fed rate cut expectations continue to reprice lower as Fed Speak leaned Hawkish. Treasuries are flat and the US Dollar Index is trading higher, back above 99 after a gain on Friday. A lot of focus on news that NY Fed President John Williams met with primary dealers during last week’s Treasury Market conference to discuss usage of the Fed’s Standing Repo Facility (SRF). Commodities are mixed. Brent crude is up modestly, rising back to its 50d ma ~$64.50. US nat gas is lower on warmer forecasts. Metals continue to slide, down ~1% with gold falling back below $4100. Ag is trading higher. The pressure on crypto continues. Bitcoin and Ether are down 1-2% and Bitcoin has fallen below $95k.

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