Stocks Try To Rebound After Yesterday’s Sell-Off
S&P 500 Looks Ready To Open Higher
S&P 500 futures are gaining ground in premarket trading as traders look ready to buy stocks after another sell-off which was triggered by fears over the new variant of coronavirus.
The first Omicron case was found in the U.S., raising fears about the potential spread of the new variant in the world’s largest economy. However, it was obvious that Omicron would ultimately get to U.S., so traders try to evaluate whether there is a reason for more panic.
A Bloomberg report, which indicated that demand for Apple‘s iPhone 13 may stay under pressure as customers who failed to purchase new phones due to supply chain problems may choose to wait for the next version. Currently, the stock is down by about 3.5% in premarket trading.
WTI Oil Stays Close To $65.50 While Traders Wait For OPEC+ Decision
WTI oil is swinging between gains and losses while traders wait for the results of OPEC+ meeting.
It looks that the market believes that OPEC+ will continue to increase production by 400,000 barrels per day (bpd) each month as OPEC+ countries are not sure whether Omicron presents a material threat to oil demand in the longer-term.
While WTI oil failed to rebound after sell-off, oil-related stocks are gaining ground in premarket trading.
Continuing Jobless Claims Declined To 1.96 Million
Analysts expected that Initial Jobless Claims would total 240,000. Continuing Jobless Claims declined from 2.06 million to 1.96 million compared to analyst consensus of 2 million.
Yesterday, ADP Employment Change report indicated that private businesses hired 534,000 workers in November. The recent reports higlighted the strong recovery of the job market, and it looks that Fed will rush to cut its asset purchase program in order to put pressure on rising prices.
It remains to be seen whether strong job market reports will be bearish for the stock market as they indicate that economy is in a good shape.
For a look at all of today’s economic events, check out our economic calendar.