US stock futures turn negative despite CPI drop

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US
equity
futures
jumped
on
the
CPI
report
but
are
now
back
in
positive
territory,
with
S&P
500
futures
slightly
lower
ahead
of
the
open.

A
couple
thoughts:

1)
The
index
jumped
yesterday
on
no
news,
climbing
1.0%.
There
will
be
talk
that
CPI
was
leaked
and
this
was
a
‘sell
the
fact’
trade.
I
don’t
think
the
data
leaked
but
there’s
plenty
of
reason
to
sell
the
fact
and
I
believe
the
market
moved
beyond
inflation
awhile
ago.

2)
The
Fed
is
behind
the
curve.
It’s
increasingly
clear
that
growth
is
the
main
worry,
not
inflation.
The
ISM
surveys
are
both
below
50
and
many
economic
data
points
have
stumbled.
The
market
may
start
to
worry
that
the
Fed
isn’t
cutting
as
the
economy
slows,
or
isn’t
going
to
cut
enough
to
stave
off
a
recession.

3)
Some
equities
are
crowded
and
this
could
be
rotation.
Russell
2000
futures
are
comfortably
higher
on
this
and
that’s
what
you
would
expect
with
bonds
strongly
bid.
We
might
be
seeing
a
rotation
out
of
a
megacap
tech
to
the
rest
of
the
market
and
that
could
be
skewing
the
index.