Yesterday was a quiet session with equities giving back some of Monday’s gains. A move lower in both rates (2-5bp) and oil (-4%) didn’t provide much lift for equities overall. The S&P 500 was down 0.6%, equal-weight down 0.3% and Russell down 0.9% however, the Dow bucked the trend, rising 0.6% as there was a defensive tilt to the tape. Semis sold off, putting pressure on the headline index while financials and yield oriented sectors moved higher.

It has been a choppy session as we await new Fed Chair Warsh’s first FOMC presser, and the MAC Desk Watch Party, at 2:30pm. There have been a lot of headlines coming out of the G7. Axios reported that the signing of the MOU which is scheduled for Friday could be moved up to as early as today. Oil prices had been moving higher throughout the morning on some of the harsh Trump rhetoric and accelerated to the upside after big inventory draws but have pulled back since the Axios report. Equities were holding around unchanged throughout much of the morning but have started to move higher over the last hour. President Trump’s press conference at the G7 is ongoing but hasn’t broken any new ground.