U.S. Stock Market

U.S. Stocks Set To Open Lower As Virus Worries Return Again

A New Virus Record In The U.S.

The U.S. has just reported a record daily increase in the number of coronavirus cases. According to data from Johns Hopkins University, the total number of registered cases in the U.S. exceeds 2.6 million.

Today, the markets are paying attention to the worsening situation on the coronavirus front, and the S&P 500 futures are losing ground in premarket trading.

The main threat is a new set of virus containment measures which will put additional pressure on the economy that is trying to recover from the initial shock.

It remains to be seen whether the market that hopes for the never-ending monetary stimulus will focus on the virus situation in the longer-term. In recent weeks, traders have shown their ability to quickly forget about the virus when they saw positive headlines.

Gold Rallies Towards $1800

Meanwhile, traders continue to buy gold as a means to protect themselves from rampant money-printing and potential global market sell-off.

Gold futures have already touched the $1800 level, while spot gold has settled close to this level.

I’d note that major gold stocks like Barrick Gold, Newmont Mining or Agnico Eagle Mines are still well below their highs that were reached in May so a rally is possible across the whole gold mining segment.

Fundamentals remain very bullish for gold which looks set for additional upside following the period of consolidation in April – June.

ADP Employment Change Report Is Worse Than Expected

The U.S. has just released the ADP Employment Change report for June which showed that private employment has increased by 2.37 million. Analysts expected that ADP Employment Change report will show that the private sector added as much as 3 million jobs in June.

Tomorrow, the U.S. will release additional employment reports which include Initial Jobless Claims, Continuing Jobless Claims and Non Farm Payrolls.

The Initial Jobless Claims report is expected to show that 1.35 million Americans filed for unemployment benefits in a week, while Continuing Jobless Claims are projected to drop to 19 million. Meanwhile, the Non Farm Payrolls report is expected to show that 3 million jobs were added in June.

In case the upcoming employment reports are worse than expected, the market may experience a sell-off since a fast economic recovery cannot take place without a rapid recovery of the job market.

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