Stocks Set To Test New HighsMarkets keep momentum after historic November rally.
Traders Are In A Good Mood At The Beginning Of The Month
S&P 500 futures are gaining about 1% in premarket trading as stocks look ready to test new highs.
There are no special catalysts for this move, and it looks like traders continue to believe that vaccines will soon improve the economic situation.
Shares of Moderna, whose vaccine is set to be approved by FDA in December, are the main beneficiary of traders’ hopes. After gaining more than 50% in recent days, Moderna’s stock is up by almost 10% in premarket trading.
In addition to vaccine optimism, investors look forward to the new coronavirus aid package. Expectations of more money-printing have recently put material pressure on the U.S. dollar which is trading near yearly lows.
OPEC+ Postponed Its Meeting To December 3
WTI oil is swinging between gains and losses while traders struggle to evaluate OPEC+ decision to postpone the second part of its meeting from December 1 to December 3.
On the one hand, this decision shows that OPEC+ members are willing to negotiate a viable deal. On the other hand, it is obvious that OPEC+ members failed to reach common ground during the first day of the meeting, and the extension of current production cuts is under question.
Yesterday, oil-related stocks suffered a serious pullback, and they will likely have a chance to rebound during today’s trading session in case oil manages to stay above the $45 level.
PMI Reports In Focus
Today, the U.S. will release the final reading of Manufacturing PMI report for November. Analysts expect that Manufacturing PMI increased from 53.4 to 56.7. Sometimes, final readings differ materially from preliminary estimates, so this report may have a significant impact on the market.
Traders will also have a chance to take a look at ISM Manufacturing PMI report which is projected to show a decline from 59.3 in October to 58 in November. Meanwhile, Construction Spending is projected to grow by 0.8% month-over-month in October.
It remains to be seen whether stocks will be sensitive to economic data or traders will remain focused on vaccines and the potential stimulus package that could be delivered in early 2021.
For a look at all of today’s economic events, check out our economic calendar.