US open: Wall Street opens mixed as virus concerns linger
Fiona Cincotta August 9, 2021 9:57 AM
Wall Street opens mixed after Friday's strong jobs report. COVID concerns hover over the market as cases rise in China.
Dow futures -0.24% at 35119
S&P futures -0.1% at 4431
Nasdaq futures +0.05% at 15119
FTSE -0.07% at 7120
Dax -0.2% at 15727
Euro Stoxx +0.3% at 4173
Jobs data and covid cases in focus
US stocks are trading mildly lower on the open but remain close to all time highs as investors continue to digest Friday’s impressive jobs report and concerns grow over the spread of the delta variant COVID variant, particularly in China and the US.
Virus fears are predominantly being played out in the oil market, but that naturally leads to oil majors coming under pressure. Firms such as ChevroN, Exxon Mobile and Halliburton traded under pressure.
Stocks are being under pinned by a strong earnings season which saw a record number of companies beat on earnings. Whilst comparisons will last year were broadly flattering, guidance has also been strong boding well for the bull market to continue.
Today there is little in the way of fresh data to drive trading, investors will look ahead to the release of CPI data on Wednesday for further clues as to whether the Fed is likely to make an announcement on tapering support at the Jackson Hole economic forum later this month.
Where next for the Dow Jones?
The Dow Jones closed at a new record high on Friday after breaking through resistance at 34760 – 35000. The price is consolidating gains today between 35000 and the new all time high at 35250. It worth noting the RSI bearish divergence in play since late April which often suggests that momentum is slowing. It would take a move below 34760 for sellers to gain traction.
FX – USD consolidates gains, EUR shrugs off decline in confidence
Broadly speaking the FX markets are quiet today after a volatile end to last week.
USD is consolidating gains from Friday. The greenback trades flat after booking strong gains on Friday following the better than forecast NFP. The all-round strong report boosted bets that the Fed could taper bond purchases sooner rather than later.
EUR/USD has trades roughly flat even as Sentix investor confidence drops sharply in August. The index dropped to 22.2, down from 29.2 in July, whilst marking the third straight month of declines. Concerns over more lockdown restrictions in the Autumn are unnerving investors.
GBP/USD +0.02% at 1.3875
EUR/USD +0.02% at 1.1760
Oil skids a further 4% lower
Oil prices are tumbling lower at the start of the week. After falling over 7% last week, both oil benchmarks are down over 4% at the start of the week. Chinese covid restrictions and a dire UN climate warning have sent oil sliding.
Demand expectations are once again taking a hit after China imposes travel curbs in 46 cities amid the spread of delta COVID. The second largest oil consumer is seeing covid cases rise quickly which is becoming an important factor in the clouding of the oil demand outlook.
The UN gave a dire warning over climate change as global warming nears its limit.
US crude trades -3.7% at $6561
Brent trades -3.6% at $6803
No major releases
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.