Today, traders will focus on the avalanche of economic data. The U.S. has just released Initial Jobless Claims report which indicated that 199,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would total 260,000. Continuing Jobless Claims declined from 2.1 million to 2.05 million compared to analyst consensus of 2.03 million.
Durable Goods Orders decreased by 0.5% month-over-month in October while analysts expected that they would grow by 0.2%. The second estimate of the third-quarter GDP Growth Rate report indicated that GDP grew by 2.1% quarter-over-quarter compared to analyst consensus which called for growth of 2.2%.
S&P 500 futures are losing some ground in premarket trading, and it remains to be seen whether traders will be ready to increase their long positions ahead of the holiday.
Later, traders will have a chance to take a look at Personal Income and Personal Spending reports. Personal Income is projected to increase by 0.2% month-over-month in October while Personal Spending is expected to grow by 1%.
New Home Sales are expected to decline by 2% month-over-month in October. The final reading of Michigan Consumer Sentiment report is projected to show that Consumer Sentiment declined from 71.7 in October to 66.9 in November.
WTI Oil Made An Attempt To Settle Back Above The $79 Level
WTI oil managed to get above the 50 EMA at $78.45 and tested the $79 level as traders were disappointed with the U.S. decision to release just 50 million barrels from the Strategic Petroleum Reserve. The market expected that U.S. will be more aggressive in its battle against high oil prices.
The market’s focus will now shift to OPEC+ which is expected to meet at the beginning of the next month. OPEC+ may decide to keep its production levels intact due to the release of reserves and the challenging situation with coronavirus in Europe. Such decision will provide additional support to the oil market.
U.S. Dollar Moves To Yearly Highs
Demand for the U.S. dollar stays strong due to problems in Europe. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has recently managed to get above the resistance at 96.70 and is moving towards the 97 level.
The strong dollar puts additional pressure on gold, which is moving towards the support at $1775. Not surprisingly, gold mining stocks have already found themselves under pressure in premarket trading.