Good morning,

It finally felt like summer last week. Most major US indices ended the week modestly higher, after trading in a pretty tight range, consolidating right around all-time highs. The week’s inflation data was largely in line with expectations causing rate hike expectations to ease. The 2yr ended the week down a couple of basis points but yields at the long end moved higher. This has been a global phenomenon as investors struggle with increasing supply and shun duration. ICE Brent traded back up to the high 80’s as a deal with Iran remained elusive. The administration is pivoting to economic pressure with new measures expected to be released this week.

It is a pretty quiet start to the week. S&P futures were modestly higher for most off the overnight session but have pulled back after a Sr. Iranian official warned of an escalation in the Strait and across the region if diplomacy fails. Oil prices have ticked up modestly. Not too much in the way of corporate headlines with the focus shifting to retail earnings starting tomorrow. Tech is bid up in the pre-market after a strong overnight session in Asia (DRAM +4.5%, SMH+1%). Investors are sifting through 13fs.