Stocks Look Ready To Continue Their Pullback

S&P 500 futures are under pressure in premarket trading as traders remain worried about rising coronavirus cases in the world while Netflix results weigh on tech stocks.

The situation in India continues to get worse. Yesterday, the country reported more than 294,000 new COVID-19 cases. Latin American countries like Argentina and Colombia are also facing a strong wave of the virus.

Virus-related concerns put significant pressure on airlines and other leisure-related stocks in yesterday’s trading session, and it remains to be seen whether they will be able to rebound during today’s trading session.

Meanwhile, tech stocks are under pressure after a disappointing earnings report from Netflix. The company added 3.98 million subscribers compared to its guidance of 6 million and provided cautious guidance.

Oil Stays Under Pressure As Crude Inventories Increase
WTI oil gained additional downside momentum after API Crude Oil Stock Change report indicated that crude inventories increased by 0.44 million barrels. Analysts expected that inventories would decline by 2.86 million barrels so the report missed analyst estimates.

Today, oil traders will focus on EIA Weekly Petroleum Status Report. Typically, numbers from EIA report have more impact on the market compared to API numbers.

In case EIA confirms API figures, oil may find itself under more pressure which will be bearish for oil-related stocks. Concerns about rising coronavirus cases in the world may also serve as a bearish catalyst for oil during today’s trading session.

Precious Metals Continue To Move Higher
Gold and silver look ready to continue their rebound as demand for safe haven assets increases. U.S. dollar is also gaining ground, and the U.S. Dollar Index is trying to settle above the resistance at 91.30.

Interestingly, Treasury yields are moving higher as well, providing traders with a rare combination of higher yields, stronger dollar and stronger precious metals.

Such situations typically indicate that markets are nervous, which is not surprising as stocks are trading at high valuations while the number of daily coronavirus cases in the world is close to all-time high levels.

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