Yahoo Finance U.S. Stocks Mixed As Traders Are Undecided About The Next Move
The Market Needs Additional Catalysts
S&P 500 futures are swinging between gains and losses in the premarket trading session as the market lacks catalysts.
I’d note that traders seem to be interested in safe haven assets since the U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is gaining ground.
The U.S. Dollar Index has managed to settle above the key resistance at 97.5 and continues the upside move. While the S&P 500 futures are currently flat, the upside move of the U.S. dollar highlights the rather bearish mood of the market which is still worried about the situation on the coronavirus front.
Right now, the main risk for stocks is an additional round of virus containment measures. For example, Britain has just been forced to impose a new lockdown on the city of Leicester as coronavirus cases surged. If similar developments happen in other places, stocks will likely find themselves under increased pressure.
All Eyes On Employment Data Which Is Due To Be Published On Wednesday
It looks like the market is waiting for a new portion of economic data which is due to be published on Wednesday.
The U.S. will provide ADP Employment Change report for June which is expected to show that private employment has increased by 3 million. The report for May showed that 2.76 million workers were fired after a devastating April when 19.6 million people lost their jobs.
In addition to the ADP Employment Change report, traders will have to digest Manufacturing PMI data. Markit Manufacturing PMI is expected to increase from 39.8 in May to 49.6 in June, while ISM Manufacturing PMI is projected to grow from 43.1 to 49.5. Numbers below 50 show contraction.
Cirque Du Soleil Files For Bankruptcy Protection, Highlighting The Troubles Of The Entertainment Sector
The famous Cirque du Soleil was forced to file for bankruptcy protection as the company was not able to continue business with zero revenue since all its shows were cancelled due to the coronavirus pandemic.
Cirque du Soleil is a household name so it attracts a lot of attention but similar stories will happen across the entertainment sector this summer as businesses do not have the cushion to survive without revenue for months.
It remains to be seen whether the market will take this threat seriously, but a slower-than-expected reopening of the economy will deliver additional blow to services and result in lower GDP numbers.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
