Stocks Pull Back From Record Highs
Stocks Decline In Premarket Trading
S&P 500 futures are losing ground in premarket trading as some traders continue to take profits near all-time high levels.
The major sell-off in China, which was triggered by the regulatory crackdown on various industries, had some negative impact on emerging markets, but investors in U.S. stocks do not look worried. In fact, some capital may flow from China’s stock market to U.S. stock market in the upcoming weeks.
The yield of 10-year Treasuries failed to settle above 1.30% and declined towards 1.25% as traders increased purchases of safe-haven U.S. government bonds. Meanwhile, U.S. dollar, which also serves as a safe-haven asset, is under some pressure against a broad basket of currencies, so there is no major rush to safety, which is bullish for stocks.
Durable Goods Orders Increased By 0.8% In June
U.S. has just released Durable Goods Orders report for June which indicated that Durable Goods Orders increased by 0.8% month-over-month compared to analyst consensus which called for growth of 2.1%. Excluding Transportation, Durable Goods Orders increased by 0.3% compared to analyst consensus of 0.8%.
Today, traders will also have a chance to take a look at housing market data for May. Case-Shiller Home Price Index is expected to grow by 16.4% year-over-year as housing prices continue to increase.
WTI Oil Slips Back Below The $72 Level
WTI oil moved back below the $72 level as traders remained worried about the spread of coronavirus in Asia, which may trigger additional restrictions.
However, the current pullback is modest, as recent data suggests that demand for oil continues to rebound at a healthy pace.
Today, traders will focus on API Crude Oil Stock Change report which is projected to show that crude inventories declined by 3.4 million barrels. If the report confirms that crude inventories continued to move lower after the previous increase of 0.8 million barrels, oil may get more support, which will be bullish for oil-related stocks.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
