S&P 500 futures are swinging between gains and losses in premarket trading as traders wait for additional catalysts that could push stocks to new highs.
Yesterday, Tesla reported revenue of $10.4 billion and adjusted earnings of $0.93 per share, beating analyst estimates on both earnings and revenue. While the report easily beat expectations, Tesla shares are down by more than 2% in premarket trading.
At this point, Tesla earnings had little impact on the general market. Microsoft and Alphabet will release their quarterly reports today after the market close, and these reports will likely have a bigger impact on S&P 500.
Oil Rebounds As Traders Bet On Demand Recovery
While Turkey has recently announced a lockdown until May 17 and India reported more than 300,000 coronavirus cases for several days in a row, oil traders focused on encouraging data from other parts of the world.
WTI oil managed to get above the $62 level and is currently trying to settle above $62.50. In case this attempt is successful, WTI oil will move towards the $63 level which will be bullish for oil-related equities.
Today, traders will have a chance to take at the latest API Crude Oil Stock Change report. Analysts expect that crude inventories increased by 0.375 million barrels. If the increase is bigger than expected, oil may find itself under pressure.
10-Year Treasury Yield Is Getting Closer To 1.60%
Trading has been calm in bond markets in recent trading sessions, but it looks that Treasury yields have found some upside momentum. Currently, the yield of 10-year Treasuries is trying to get to the test of the 20 EMA at 1.60%.
A move above this level will signal that bond traders remain worried about higher inflation. Such a move will likely provide more support to the U.S. dollar which will be bearish for commodities.
Higher yields may also put some pressure on tech stocks, although it remains to be seen whether they will be sensitive to yields during the busiest week of the earnings season.