Stocks Move Higher Ahead Of Big Tech EarningsMeanwhile, short squeeze plays are under significant pressure in premarket trading.
Stocks Are Ready To Continue Yesterday’s Upside Move
S&P 500 futures are gaining ground in premarket trading as traders bet on tech stocks ahead of earnings reports from Amazon and Alphabet. Both companies will provide their quarterly reports today after the market close. If the reports are encouraging, the market will get another boost.
Meanwhile, U.S. President Joe Biden stated that he was not ready to settle for a package that did not meet the needs of the current situation during the talks with Republican senators who pushed for a limited coronavirus aid bill.
If Democrats manage to pass a full $1.9 trillion coronavirus aid package bill, stocks will get additional support. In this scenario, some speculative stocks may experience additional volatility as some of the stimulus money will likely move to the stock market.
Oil Tries To Settle Above The $55 Level
WTI oil gained strong upside momentum and managed to get above the recent highs at $53.90. Currently, oil is trying to settle above the psychologically important $55 level.
The number of new coronavirus cases in the world continues to trend down which is bullish for oil. In addition, Saudi Arabia will cut its oil production by 1 million barrels per day (bpd) in February and March in order to provide support to the market.
While Saudi Arabia’s decision was made public a month ago, it has just began to impact the physical market. Not surprisingly, oil-related stocks will have a strong start of today’s trading session.
Short Squeeze Plays Are Under Strong Pressure
Shares of GameStop are down by more than 40% in premarket trading after losing about 30% of value in yesterday’s trading session. Other short squeeze plays like AMC Entertainment Holdings or Koss Corp. are also under major pressure in premarket action.
Retail traders failed to push silver above the $30 level, and silver is currently trying to settle below $27.50. Shares of silver miners like First Majestic Silver or Pan American Silver are also moving lower.
The trading in short squeeze plays will be very active today, and traders should be prepared for very fast moves.
For a look at all of today’s economic events, check out our economic calendar.