S&P futures vs fair value: flat. Nasdaq futures vs fair value: +0.5.

As expected, retails sales rebounded in May, checking in with a strong 1.4% rise (consensus 0.6%). The more closely-watched sales, ex-autos, rose 1.3% (consensus 0.7%) to further suggest that consumer spending remains healthy. Import prices surged a larger than expected 0.9% in May, perhaps stirring inflation concerns.

With the market more sensitive to the potential of stronger than expected data diminishing the likelihood of a Fed rate cut anytime soon, the futures market has pulled back and now points to a flat open for equities. Bonds have also weakened as the 10-year note is now down three ticks to yield 5.30%.