U.S. Stocks Set To Open Higher As GDP Rebounded Faster Than Expected

Initial Jobless Claims Decline To 751,000

The U.S. has just provided Initial Jobless Claims and Continuing Jobless Claims reports.

The Initial Jobless Claims report indicated that 751,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 775,000.

Meanwhile, Continuing Jobless Claims declined from 8.37 million to 7.76 million compared to analysts consensus of 7.7 million.

S&P 500 futures are gaining ground after the release of employment reports despite traders’ worries about the risks posed by the second wave of coronavirus in U.S. and Europe. Most likely, the trading action will remain very nervous until U.S. presidential election on November 3, 2020.

GDP Grew By 33.1% In The Third Quarter

The U.S. has also reported that third-quarter GDP increased by 33.1% quarter-over-quarter after it suffered a drop of 31.4% in the second quarter. Analysts expected that GDP would grow by 31% in the third quarter.

While the GDP report indicated that economy rebounded stronger than expected, traders will likely remain cautious as they wait for the presidential election.

Today, U.S. will also provide Pending Home Sales data for September. Analysts expect that Pending Home Sales will increase by 3.4% month-over month. A better-than-expected report may provide some additional support to stocks.

Oil Dives Below The $36 Level On Viris Fears

Yesterday, France imposed a second national lockdown in order to contain the spread of the virus. This lockdown will be a bit lighter than the first one as schools will stay open and people will be able to go to their jobs. However, it will still deal significant damage to oil demand in one of Europe’s biggest economies.

Germany has also announced additional restrictions, closing bars, restaurants, gyms and other public places, but stopped short of imposing a full lockdown.

According to recent reports, Britain is under pressure to introduce another lockdown but the country’s government is trying to avoid this scenario as it would deal a huge blow to the economy.

Not surprisingly, oil traders have reacted to the new risks and pushed oil below the $36 level. Most likely, today’s trading session will be challenging for oil-related stocks.

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