Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

US Open: Biden’s Infrastructure Proposal, Oil Steady, FX Quiet

By Matthew WellerStock MarketsApr 01, 2021 12:02AM ET
US Open: Biden’s Infrastructure Proposal, Oil Steady, FX Quiet
By Matthew Weller   |  Apr 01, 2021 12:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

US index futures

European indices

US indices pointing to a tepid open

US stocks are pointing to a mixed start as traders weight the continued strength in treasury bond yields (a close near the current 1.73% level in the benchmark 10-year yield would mark the highest since January 2020) against better-than-expected Chinese manufacturing data overnight (51.9 vs. 51.3 expected).

As of writing, the US ADP employment report had just been released, showing 517k jobs were created, a tick below expectations of a 552k reading after last month’s upwardly-revised 176k figure. This report paints a potentially bullish picture ahead of Friday’s highly-anticipated NFP report.

Biden’s stimulus plan

The biggest development yesterday would have been the high-level proposals in U.S. President Joseph Biden’s infrastructure plan. The proposal was expected to come with a $2T price tag to revitalize U.S. transportation infrastructure, water systems, broadband and manufacturing, among other goals. This represents just the first of two infrastructure bills, with a second, more partisan proposal focused on “human infrastructure” (read: education and health care reforms) expected in the coming weeks.

Of course, politicians try to avoid outright deficit spending, so the bill is expected to come with an increase in the corporate tax rate and attempts to close loopholes around “offshoring” corporate profits, a development that may hurt technology companies more than other firms, if passed.

US stocks in focus

  • Chewy (NYSE:CHWY) earned a surprise profit of $0.05 per share, well above expectations of a $0.10 loss, with revenue surging 47% y/y. The stock was trading up more than 13% in pre-market trade.
  • Marijuana stocks like Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Aphria (NASDAQ:APHA), and Aurora Cannabis (NYSE:ACB) were all on the rise in pre-market trade on news that New York State would become the 15th state to legalize recreational use of the drug.
  • Apple (NASDAQ:AAPL) was upgraded to “buy” at UBS on expectations of more stable long-term iPhone demand. The stock was trading up nearly 2% in pre-market trade.

Where next for Chewy share price?

After seeing a sharp drop in February to test its 200-day EMA, Chewy (CHWY) is poised to open near its 50-day EMA near $91.00. The stock’s RSI indicator has been showing a bullish divergence over the last couple of weeks. This signaling that selling pressure was waning even before Tuesday's strong earnings report, so bulls will want to see if the stock can re-establish a foothold above 91.00 to open the door for a potential continuation back into triple-digit territory in the coming weeks:

Chewy Inc Daily Chart
Chewy Inc Daily Chart

FX: quiet with a dash of yen weakness

The FX market was seeing a relatively quiet end to the quarter, with yesterday’s most notable development being the slight weakness in the Japanese yen.

EUR/USD was stabilizing above its nearly 6-month low at 1.1700, though market’s bias remains to sell any near-term bounces in the pair for now.

GBP/USD was in the middle of this week’s range at 1.3766.

USD/JPY was extending its rally for a 6th straight day to approach the 111.00 handle.

Oil steady ahead of today's big OPEC+ meeting

Oil was ticking up in slow trade ahead of today's highly-anticipated OPEC+ meeting. The group is expected to leave production unchanged as COVID variants force lockdowns in a number of major markets. But there is risk of increasing production if the different blocs within the cartel are unable to reach an agreement, as we saw at this time last year.

Attention now turning towards the API stockpiles report.

  • US crude trades +0.3% to $60.55
  • Brent trades +0.2% at $64.04

Original Post

US Open: Biden’s Infrastructure Proposal, Oil Steady, FX Quiet

Related Articles

Gary S. Morrow
Copart Breakout? By Gary S. Morrow - Apr 09, 2021

Copart Inc (NASDAQ:CPRT) is extending Thursday’s trendline break. This key overhead trendline links the January and February highs. With solid footing underneath we believe...

US Open: Biden’s Infrastructure Proposal, Oil Steady, FX Quiet

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email