S&P 500 futures are swinging between gains and losses in premarket trading as traders prepare for the most active week of the earnings season.
Tesla, Alphabet, Amazon, Apple and Microsoft will report earnings this week. These reports will have a material impact on general market dynamics due to the companies’ huge market capitalization.
S&P 500 is close to all-time high levels, and recent trading sessions indicated that traders are quickly buying every pullback, which means that demand for stocks remains strong.
Treasury yields have started to move higher at the beginning of this week, and this move may put some pressure on tech stocks although earnings reports will serve as the main catalyst for the market.
WTI Oil Tests The $61 Level Amid Problems In India
India has recently reported another record number of new coronavirus cases while India’s states continued to introduce new virus containment measures. The situation in India is getting worse, and many countries have already offered their help.
Commodity markets look strong at the beginning of this week but the oil market found itself under pressure as traders worry that the situation is getting out of control in India.
Currently, WTI oil is testing the $61 level. If this test is successful, WTI oil will head towards the psychologically important $60 level which will be bearish for oil-related equities.
Durable Goods Orders Increased By 0.5% In March
The U.S. has just released Durable Goods Orders report which indicated that Durable Goods Orders grew by 0.5% month-over-month in March after declining by 0.9% in February. Analysts expected that Durable Goods Orders would grow by 2.5%. Excluding Transportation, Durable Goods Orders increased by 1.6%, in line with the analyst consensus.
While the headline number missed analyst consensus, the report should not have a negative impact on the market as Durable Goods Orders managed to get back to growth after a temporary setback in February.