S&P futures vs fair value: +1.5. Nasdaq futures vs fair value: +7.0.

Sentiment has improved since the last update, but futures were strengthening and pointing to a higher open for the cash market even before investors got wind of a tame read on inflation. May personal income rose 0.4% (consensus 0.6%) while personal spending rose 0.5% (consensus 0.7%). The more closely watched core-PCE deflator rose 0.1%, which assuages inflation concerns as the year-over-year rate drops to 1.9% and finally within the Fed's "comfort zone." Bonds have also improved, pushing the yield on the 10-yr note (+7/32) to 5.07%.