Day trading pre-market open February 22

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Negative following a mixed night on Wall Street and continued pressure on iron ore.

ASX futures: down 21 points or 0.28%


Overnight themes:

• A late recovery helps two out of Wall Street's three main stock indices avert a third straight loss. The Nasdaq falls ahead of a trading update this morning from high-flying Artificial Intelligence market leader Nvidia. The S&P 500 and Dow swing to modest gains.
• All three indices decline in early action as the minutes from the latest Federal Reserve show the bank is in no hurry to lower interest rates. The minutes suggest policymakers are more concerned about the risk of reigniting inflation by cutting rates too soon, than the threat to the economy from maintaining restrictive policy for too long.
• "Most participants noted the risks of moving too quickly to ease the stance of policy," the minutes said. Only "a couple... pointed to downside risks to the economy associated with maintaining an overly restrictive stance for too long."
• Tech stocks fall for a second night amid questions about valuations after four months of strong gains. Nvidia declines 2.85% a day after losing 4.35%. The company had risen roughly 230% in the last year after becoming the market's poster child for the prospects of AI.
• "Markets are looking at Nvidia with a little bit of anxiety, maybe, given that we have a market that's done so well and maybe in order to keep it going short term we need to see a good report from the leader in the space and that leader is Nvidia" - Jason Ware, chief investment officer at Albion Financial Group (per Reuters).
• Also weighing on tech sentiment: a 28.44% plunge in cybersecurity firm Palo Alto Networks after it cut its full-year guidance.
• A final-hour partial market recovery leaves tech the only sector in negative territory, down 0.76%. The best of the gainers are: energy +1.86%, utilities +1.36% and real estate +0.72%.
• Iron ore retreats for a third session, ending daytime trade at its lowest since late October. Analysts say prices are falling as increased supply meets falling demand.
• "Supply from major producers Brazil and Australia so far has hovered at a relatively high level compared to past years... Weak profitability at many steel mills has limited an increase in ore demand in the near term" - Pei Hao, analyst at brokerage FIS (per Reuters).
• The busiest day of the domestic earnings season brings a slew of reports from ASX 200 companies. Potential highlights include Fortescue Metals, Qantas and several of the major lithium producers. More below.

Key events today:

• Earnings season: Fortescue Metals, Qantas, Medibank, Nine Entertainment, Tabcorp, Pilbara Minerals, Mineral Resources, Arcadium Lithium, Northern Star, IGO, IPH, Bega Cheese, Super Retail Group, Block, Telix Pharmaceuticals, APA Group, Eagers Automotive, Growthpoint, Lovisa, Qualitas, QUBE, Regis Resources, SkyCity Entertainment, The Reject Shop, Regal Partners, ARN Media, Insignia, Articore, Auckland International Airport (source: CommSec).
• Flash manufacturing/non-manufacturing PMIs - 9 am AEDT
• US flash manufacturing/non-manufacturing PMIs -tonight

S&P 500: up 6 points or 0.13%

Dow: up 48 points or 0.13%

Nasdaq: down 50 points or 0.32%

Dollar: down 0.05% to 65.5 US cents

Iron ore (Dalian): down 3.98% to US$124.29

Brent crude: up 69 US cents or 0.8% to US$83.03

Gold: down US$5.50 or 0.3% to US$2,034.30

NYSE Arca Gold Bugs: down 0.47%

Bitcoin: down 1.78% to US$51,091

Copper (LME): up 0.78% to US$8,500

Nickel (LME): steady at US$16,347

Uranium (spot price): down 1.74% to US$101

Lithium carbonate (China spot): down 0.62% to US$13,353

Global X Lithium & Battery Tech ETF: up 1.42%

BHP: down 0.59% (US); down 0.57% (UK)

Rio Tinto: down 0.65% (US); down 1.51% (UK)