S&P 500 futures are swinging between gains and losses in premarket trading while traders wait for the details of Biden’s infrastructure plan.
Today, U.S. President Joe Biden will reveal his infrastructure plan at an event in Pittsburgh. According to recent reports, Biden will present a $2 trillion package which should come on top of the recent $1.9 trillion coronavirus relief package.
Traders will evaluate the details of the plan and also take a close look at funding sources. At this point, the plan is expected to be financed by raising taxes on corporations and wealthy individuals.
Private Businesses Added 517,000 Jobs In March
The U.S. has just provided ADP Employment Change report which indicated that private businesses added 517,000 jobs in March compared to analyst consensus of 550,000. The report was a bit worse than expected, but it still highlighted strong job growth in March.
It remains to be seen whether ADP Employment Change report will have a material impact on today’s trading as some traders may prefer to see additional job market reports which will be published later this week. Initial Jobless Claims are expected to decrease from 684,000 to 680,000 while Unemployment Rate is projected to decline from 6.2% in February to 6% in March.
Today, traders will also have a chance to take a look at the latest Pending Home Sales data. Analysts expect that Pending Home Sales declined by 2.6% month-over-month in February after falling by 2.8% in January.
Oil Gains Ground Ahead Of OPEC+ Meeting
WTI oil is currently trying to get to the test of the $61 level while traders wait for the OPEC+ meeting which will take place on Thursday. The market expects that OPEC+ members will keep current production cuts intact in order to provide additional support to the oil market at a time when some countries have to deal with the third wave of the virus.
Traders will also focus on the upcoming EIA Weekly Petroleum Status Report which will be published today. Analysts expect that crude inventories will grow by 0.1 million barrels. In case crude inventories decline, the oil market may get additional support which will be bullish for oil-related stocks.