U.S. futures are pointing toward a lower open as we could see a retracement today if traders look to book profits after yesterday’s rally erased all of the S&P 500’s losses for the year.
What To Watch For In The US Session
• Traders Look To Book Profits
• Bank Stress Tests and NFP’s Looming
• ISM Non-Manufacturing On Tap
Stocks Looking At A Lower Open As Traders Look To Book Profits, Service Sector Data Ahead
U.S. futures are pointing toward a lower open as we could see a retracement today if traders look to book profits after yesterday’s rally erased all of the S&P 500’s losses for the year. Yet, the ISM non-manufacturing report is expected to show an improvement to 42.0 from 40.8 as an increase in consumer confidence could have sparked greater demand. An improvement in the service sector gauge would build upon the positive manufacturing reading and boost the outlook for future growth. Traders will focus on the employment component which was at its lowest level since last October at 32.3. An improvement in hiring could lower expectations for the amount of job losses in the economy for April which will be revealed in Friday’s Non-farm payroll report. The biggest concern for traders is whether the recent slew of layoffs will keep consumer spending in check and drag on future profits. Fed Chairman Ben Bernanke is also scheduled to speak today which could also impact price action.
Dow Jones 8426.74
The DJIA could trade lower today if we see the upcoming employment report and bank stress test results have a weighing factor on blue chip index as traders may become cautious ahead of the event risk
NASDAQ 1763.56
The Nasdaq may also trade heavy today, but a improvement in the service sector would go a long way toward changing sentiment. If we see an improvement in the employment component it would raise hopes of future consumer demand.
S&P 500 907.24
The S&P 500 futures are pointing toward a lower open and if banks stocks are under pressure ahead of the bank stress tests, they could drag the broader index lower.
