The Day Ahead: Futures Down Ahead of Slow Data Day

Less than an hour before the opening bell, futures on the S&P 500 are down 10 points to 1,103 and the 10 year Treasury note is up 14/32 yielding 3.373%.

The Wall Street Journal reports this morning that Moody’s wants the US and the UK to prove their ability to reduce budget deficits in order to maintain AAA credit ratings.

“In a report released on Tuesday, Moody's set the two countries apart from other top-rated sovereign borrowers, calling them merely ‘resilient’ rather than ‘resistant,’ a label it applied to Canada, France and Germany, where public finances are in better shape.”

Recap: Yesterday, Fed chairman Ben Bernanke reiterated that the economy is seeing  some pickup in activity but that “formidable headwinds” remain. The jobless rate will decline “at a pace slower than we would like,” he added, noting that inflation will likely remained “subdued for sometime” and that policy will remain accommodative for “an extended period.”

The day is pretty slow as far as data goes. No major data is set for release aside from the usual weekly survey of retail sales.

In a survey published at 7:45 this morning, the International Council of Shopping Centers said chain store sales fell 1.3% last week; compared to last year sales up 2.6%.

“The now annual post-Thanksgiving week lull in consumer holiday gift buying once again showed up as consumers continued to be well behind on their holiday gift buying completion pace,” said Michael Niemira, ICSC’s chief economist. 

The weekly Johnson Redbook survey will be released at 9:55 am.

Meanwhile, the Treasury is holding two auctions today. Ahead of the open, the benchmark 10-year yield is down three basis points at 3.43%.

• Treasury Auctions:
• 11:30 ― 4-Week Bills
• 1:00 ― 3-Year Notes