S&P 500 futures are moving higher in premarket trading as traders look ready to push stocks to new highs despite the fact that S&P 500 historically underperformed in September.
Treasury yields are moving higher, and the yield of 10-year Treasuries has managed to climb back above the 1.30% level. However, it remains well below recent highs at 1.375%, and trading in bond markets is not volatile.
The foreign exchange market is mostly calm as well. The U.S. dollar is losing some ground against a broad basket of currencies, and weaker dollar provided some support to gold and silver, but there are no big moves.
ADP Employment Change Report Misses Analyst Expectations
The U.S. has just released ADP Employment Change report for August which indicated that private businesses added 374,000 jobs compared to analyst consensus of 613,000.
The report missed analyst consensus but market reaction was muted. Most likely, traders decided to wait for the Non Farm Payrolls report which will be released on Friday. ADP Employment Change and Non Farm Payrolls reports often paint different pictures, and traders typically focus on Non Farm Payrolls data.
Currently, analysts expect that Non Farm Payrolls report will show that the economy added 750,000 jobs in August. In case Non Farm Payrolls report misses expectations, the stock market may find itself under some pressure.
WTI Oil Moves Higher Ahead Of OPEC+ Meeting
WTI oil is currently trying to settle above the $69 level while traders wait for the results of OPEC+ meeting. According to recent reports, OPEC+ has raised its 2022 oil demand forecast, but it remains to be seen whether improved forecast will have any impact on OPEC+ policy.
Most likely, OPEC+ will stick to its plan to increase oil production by 400,000 barrels per day (bpd) per month despite U.S. calls to boost output.
Yesterday, API Crude Oil Stock Change report indicated that crude inventories declined by 4.05 million barrels compared to analyst consensus which called for a decline of 2.83 million barrels. The report was bullish for oil, but resistance in the $69 – $70 range remains strong. In case oil manages to get above the psychologically important $70 level, it will gain additional upside momentum which will be bullish for oil-related stocks.