Stocks Futures Lower; VIX Moves Higher

contributor Mark Caton is live from the Sebo trading floor.

Hi Mark, good morning.

So we are seeing a lot of action pre-market here in New York.

So break down where the US markets stand from your perspective.

Yes, good morning, Remy.

So let's take a look at what's moving the markets this morning, starting with the S&P 500.

So the SPX closed yesterday down about 0%, and futures are pointing to another lower open this morning.

Investors are watching higher Treasury yields, rising oil prices, and some renewed pressures on technology stocks.

The VIX has been sitting at relatively low levels, which tells us investors haven't been expecting major savings in the market.

But this is one to keep an eye on.

If stocks continue.

Moving lower and uncertainty increases, we could see the VIX move higher.

The VIX uses S&P 500 option prices to tell us how much volatility the market expects over roughly the next 30 days.

Now to small caps and the Russell 2000.

These smaller companies tend to be more sensitive to interest rates and borrowing costs.

So with Treasury yields moving higher, the R is another important number to watch today.

And finally, one of the big earnings stories this morning, Home Depot that you talked about.

So the company beat expectations.

Reported nearly $48 billion in quarterly sales, but the bigger story may be what Home Depot is telling us about the consumer and housing.

People are still spending money on their homes, but they're not focusing more on repairs and maintenance and smaller projects instead of those big, expensive renovations, and that makes sense in this environment.

Interest rates remain high, borrowing is expensive, and the housing market is still sluggish.

People may not be moving or putting in a brand new kitchen, but they're still spending money to maintain.

The home they already have and also it's part of the S&P 500, so movement in the stock contributes to the index.

Earnings can also drive increased activity and options.

So a company this closely tied to housing gives the investors another clue about the health of the American consumer interest rates and the overall economy.

So this morning, Home Depot isn't just a retail story, it's a consumer story, housing and broader market story, and another piece of the puzzle investors here at CEO are watching very closely today.

And Mark, you gave us a great overview of what we're seeing pre-market here, and you mentioned Home Depot earnings.

Now this week we will also be hearing from major big box retailers including Target as well as Walmart.

And in a few minutes we will be sitting down with Michael Rein King here at the New York Stock Exchange to talk about what's happening here in New York.

But give us a sense of how traders at the CEO are reacting this morning.

Yes, they're keeping a close eye on that because if you think about Home Depot, that is like the thread of the common person, right?

It's how they're spending, and it seems like they're spending, but they're cautious with what they're spending.

You mentioned too some of the other big box retailers, right?

So some of those numbers are coming out.

That's the true pulse of the economy.

So that is something to take notes on, and they're going to react to that.

Well, Mark, really appreciate your time.

Thank you so much for joining us from Chicago this morning.

Thank you, Remy.