The positive Iran commentary from yesterday failed to carry over to today’s session, at least in the beginning. The S&P 500 opened down 0.3% after reported comments from Iran’s supreme leader that weapons-grade uranium must stay in Iran pushed futures to their lows earlier in the morning. Just after the open, Al Jezeera reported Iranian officials refuted the earlier uranium story. Equities rose but it was fleeting. After a few hours of the S&P trading between ~7390-7410, news that a final draft of the US-Iran agreement had been reached, with a formal announcement forthcoming. Yields and oil fell and the S&P erased the weakness to climb to its current level and day’s high ~7455 (+0.3%). The equal-weight is outperforming slightly while small caps lead (R2K +1%).

Consumer Discretionary is again a leader with retail names mostly higher on solid earnings and travel/leisure and homebuilders higher as oil and rates decline. Materials is also strong, led by miners, chemicals and packaging names. Utilities are broadly higher. The IPP’s are adding to yesterday’s gains on the PJM update. Media stocks are leading Comm Services. Energy and Consumer Staples are lagging with oil declining and more cyclical/growth sectors seeing the bigger gains on the agreement news.

Treasury yields were backing up before the Iran-US agreement news completely reversed those moves. Yields are now down 1-3bp across the curve. The US Dollar responded by broadly weakening. After rising to ~99.5, the US Dollar Index is hovering just above 99.0. Brent crude was up ~2% earlier but is now down a similar amount. IEA chief Fatih Birol said that depleting inventories and summer demand could push oil markets into a "red zone" in July or August. There's also a report that OPEC+ is likely to agree on an oil output quota hike of 188,000 bpd at the June 7th meeting.