U.S. Stock Market

Stocks Mixed After Yesterday’s Pullback

Stocks Lack Momentum

S&P 500 futures are swinging between gains and losses in premarket trading as traders evaluate their next moves after yesterday’s inflation reports.

Inflation Rate report indicated that Inflation Rate increased by 5.3% year-over-year in August, in line with the analyst consensus. This was good news for the market as the report showed that inflation remained under control.

However, it looks that traders remain worried that Fed may announce the reduction of its asset purchase program on September 22. If these worries persist, stocks may find themselves under additional pressure.

Today, traders will take a look at Industrial Production and Manufacturing Production reports. The reports are expected to show that both Industrial Production and Manufacturing Production increased by 0.4% month-over-month in August. It remains to be seen whether these reports will have a material impact on stocks as traders stay focused on Fed’s policy.

China Feels The Impact Of Coronavirus-Related Curbs

China has recently reported that Retail Sales increased by just 2% year-over-year in August while analysts expected that they would grow by 7%. The report indicated that Chinese consumers have already felt the impact of coronavirus-related restrictions which have been introduced in various parts of the country.

Meanwhile, China’s Industrial Production grew by 5.3% year-over-year in August compared to analyst consensus which called for growth of 5.8%.

The latest economic reports show that the rebound is China’s economy may be slowing down which may serve as an additional bearish catalyst for the world markets.

WTI Oil Moves Towards The $72 Level As Crude Inventories Decline

Oil markets ignored weak economic data from China as traders focused on hurricane-related production problems in the U.S. and the recent API Crude Oil Stock Change report.

The report indicated that crude inventories decreased by 5.44 million barrels compared to analyst consensus which called for a decline of 3.9 million barrels. Crude inventories continued to decline at a fast pace, providing additional support to the oil market.

Today, oil traders will focus on EIA Weekly Petroleum Status Report. In case this report confirms API numbers, oil may gain additional upside momentum which will be bullish for oil-related stocks.

For a look at all of today’s economic events, check out our economic calendar.