S&P futures vs fair value: -1.0. Nasdaq futures vs fair value: -2.5.

Total PPI rose 0.9% (consensus 0.6%) in May. The more closely-watched core rate rose 0.2%, matching economists' forecasts; but the year/year rate ticked up 0.1% to 1.6%. Initial claims were unchanged at 311K (consensus 310K), still reflective of healthy labor conditions.

The futures market has pulled back, now signaling a slightly lower start for equities. Bonds have also weakened following the first increase in the core PPI in three months; the 10-year note is now down 9 ticks to yield 5.23%.