S&P 500 futures lack direction in premarket trading as traders wait for additional catalysts that could push stocks higher.
Trading may be calm at the beginning of this week in absence of major economic reports that could move markets. On Wednesday, traders will have a chance to take a look at ADP Employment Change report for June which is projected to show that private businesses hired 600,000 workers.
On Thursday, the market will focus on Initial Jobless Claims reports which is expected to indicate that 393,000 Americans filed for unemployment benefits in a week.
On Friday, traders will pay attention to the important Non Farm Payrolls report. Analysts expect that it will show that U.S. economy added 690,000 jobs in June.
Precious Metals Decline As Dollar Gains Ground At The Start Of The Week
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has managed to settle above the resistance at 91.80 and made an attempt to settle above the next resistance level at 92.
This move was bearish for gold and silver which found themselves under pressure at the beginning of the week. In this light, gold mining stocks and silver mining stocks will likely continue their pullback at the beginning of today’s trading session.
WTI Oil Pulls Back Below The $74 Level
WTI oil lost momentum and declined below the $74 level after an unsuccessful attempt to settle above $74.50. It looks that a rapid increase in the number of new coronavirus cases in densely populated Indonesia may have served as a bearish catalyst for the oil market, although profit-taking near the psychologically important $75 level likely played the leading role in the current pullback.
It should be noted that the oil market remains very bullish, and WTI oil managed to get from the $65 level to the $74 level without any material pullback. OPEC+ is projected to announce a production increase when it meets at the beginning of July, but oil traders remain confident that any increase will be modest.