U.S. Stock Market

Stocks Set To Open Lower As Traders Continue To Take Profits Near Record Highs

Stocks Move Lower As Traders Wait For Additional Upside Catalysts

S&P 500 futures are losing ground in premarket trading as traders remain cautious at a time when the stock market trades near record levels.

Yesterday, U.S. provided the final reading of Manufacturing PMI report for April which indicated that Manufacturing PMI increased from 59.1 to 60.5 compared to analyst consensus of 60.6. While the report was a bit worse than analyst expectations, it highlighted the strong growth of the U.S. manufacturing segment.

Today, traders will have a chance to take a look at Factory Orders data for March. Analysts expect that Factory Orders increased by 1.3% month-over-month after declining by 0.8% in February. It remains to be seen whether additional economic data will have a material impact on stocks as traders look increasingly focused on valuations as the market remains close to record levels.

WTI Oil Tries To Settle Above The $65 Level

WTI oil managed to get above the $65 level and made an attempt to get to the test of the $66 level as traders remained optimistic about the speed of oil demand recovery despite current problems with coronavirus in India.

Oil traders continue to bet that problems in India will remain an isolated case, and that the driving season will be strong, boosting demand for oil.

API Crude Oil Stock Change report, which is set to be published today, is expected to show that crude inventories declined by 2.19 million barrels. In case crude inventory draw is bigger than expected, oil may get additional support.

U.S. Dollar Rebounds, Putting Some Pressure On Precious Metals

The U.S. Dollar Index managed to settle back above the 91 level and is currently testing the resistance at the 20 EMA at 91.35. It looks that there is some demand for safe haven assets today, which is bullish for the American currency.

Stronger dollar puts pressure on gold and silver which are losing ground despite falling Treasury yields. Shares of miners enjoyed strong support during yesterday’s trading session, but they look ready for a pullback today.

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