S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: +3.5.

Total PPI unexpectedly fell 0.2% (consensus 0.1%) in June, the first decline since January. The more closely-watched core rate, though, rose 0.3% (consensus 0.2%), lifting the year/year rate to 1.8% from 1.6%. Nonetheless, the futures market so far has improved slightly following evidence of a welcome drop in food and energy prices even though bonds have weakened a bit on the slight rise in the core rate. The 10-year note is now down 5 ticks to yield 5.06%.