U.S. Stocks Mixed As Initial Jobless Claims Decline To 1.19 MillionS&P 500 futures have managed to cap their losses in premarket trading after the release of better-than-expected employment reports.
Continuing Jobless Claims declined from 17 million to 16.1 million compared to analyst consensus of 16.7 million.
Better-than-expected employment reports may provide additional support to stocks.
S&P 500 futures were losing ground in premarket trading but have managed to cap their losses after the release of employment reports.
Republicans And Democrats Continue Negotiations
While the market eagerly awaits the next coronavirus aid package, Democrats and Republicans continue their intense negotiations.
Republicans have reportedly offered to increase unemployment benefits to $400 per week from their previous offer of $200 per week but Democrats want to keep benefits at $600 per week.
Democrats are also pushing for massive state and local aid programs while Republicans look determined to keep the size of the stimulus package near $1 trillion.
According to Treasury Secretary Steven Mnuchin, negotiators want to reach an agreement on major issues by Friday. Republicans’ plan B is to use Donald Trump’s executive orders to maintain unemployment benefits if no deal is reached.
The markets will continue to watch the story closely since the U.S. economy clearly needs another aid package to support consumer activity.
Silver Rallies Above $28.00 While Oil Gets Back Below $42.50
Commodity-related stocks will be very active today as gold and silver rallied to new highs while oil returned below the resistance at $42.50.
Precious metals continue to move higher despite the rebound of the U.S. dollar. The U.S. Dollar Index has found support at 92.50 and is trying to get above the 93 level.
Meanwhile, oil failed to develop momentum above the resistance at $42.50 and returned back to the previous trading range.
This is a worrisome development for oil bulls as it highlights fears about a second wave of lockdowns and the corresponding decline of demand for oil.
For a look at all of today’s economic events, check out our economic calendar.