Microsoft (MSFT) crushed earnings after the bell yesterday and is poised for new all-time highs and a market cap north of $1T.  Their Azure product has increased MSFT’s cloud revenue 21% as the company becomes more partner friendly in delivering customer solutions.

Comments by the Fed’s Williams and Clarida yesterday have FedWatch pricing a rate reduction at a 50.4% chance at the Fed meeting this month.  Both commented that the Fed doesn’t have to wait for a “disaster to unfold” before changing rates.

Oil prices are up over $1 after the US Navy shot down an Iranian drone that was allegedly threatening a US vessel in the international waters near the Strait of Hormuz.  Trump tweeted “the United States reserves the right to defend our personnel, facilities, and interests.”

The economic calendar focus is UoM Consumer Sentiment @ 10:00am ET.  The Fed’s Bullard speaks @ 11:05am ET.  Volatility has ticked up however expect it to consolidate once again if the ES pushes higher.  No Size bias as Globex Size volume is both relatively light and mixed.