S&P futures vs fair value: +31.00. Nasdaq futures vs fair value: +153.00.
The stock market is angling for a rebound at the open, as the S&P 500 futures trade 30 points, or 0.7%, above fair value.
The positive bias is largely based on the belief that the market is due for a bounce from an oversold condition. The Nasdaq entered correction territory yesterday, which is typically defined as a drawdown of 10% or greater from a recent high. That was the same idea yesterday, but investors sold into the early strength.
In earnings news, Union Pacific (UNP 240.27, +0.78, +0.3%), Travelers (TRV 164.76, +4.69, +2.9%), United Airlines (UAL 43.81, -0.69, -1.3%), and American Airlines (AAL 17.72, +0.41, +2.4%) each beat EPS estimates. UAL is the only one from this bunch trading lower ahead of the open.
While the Fed intends to be more assertive in tightening policy, China is taking the opposite approach: the PBOC cut its one-year and five-year loan prime rates on Thursday.
