Oil Rig Counts and the Energy Market Crash
What’s in Today’s Report:
- Why Did Stocks Rally 3% Yesterday?
- U.S. Oil Rig Counts Plunged Last Week – Here’s Why that Won’t Stop the Oil Crash… Yet
U.S. stock futures are hanging on to modest gains while international markets were mixed overnight as global equities are poised to close out their worst quarter since 2008.
The growth rate of new COVID-19 cases in the U.S. encouragingly slowed to a one month low of just 13% yesterday.
Economically, data out of China, Japan, and the EU was all better-than-feared, helping drive the tentative risk on money flows this morning.
Today, there are two economic reports to watch: S&P CoreLogic Case-Shiller HPI (E: 0.4%) and Consumer Confidence (E: 111.0) while no Fed officials are scheduled to speak.
The Consumer Confidence report could move markets in early trade however investor focus will largely remain on the coronavirus outbreak statistics and ongoing government response to the pandemic while end of quarter book squaring could lead to an uptick in volatility over the course of the day. Near term momentum continues to favor the bulls though and the path of least resistance remains higher right now as the relief rally continues.
