daytrading april 9 pre-market

Morning traders.

Market wrap:

A second day of gains is within reach after US stocks and key commodities rallied ahead of the start of the US corporate earnings season this morning.

The June SPI 200 futures contract rallied 18 points or 0.4% to 4929 following a muted reaction to Alcoa's Q1 profit report, released after the close of regular trade on Wall Street.

US stocks rebounded from their worst week of the year with solid gains as investors continued to view market weakness as a buying opportunity. The S&P 500 put on 10 points or 0.63%, led by a rise in consumer stocks. The Dow added 48 points or 0.33% and the Nasdaq advanced 0.57%.

"The declines are shallow as buyers come in because they need additional equity exposure," the CEO of Chaikin Analytics told MarketWatch. "The path of least resistance is up... pullbacks like last week are frustrating the bears, since there is no downside follow through.”

The initial reaction to Alcoa's earnings report this morning appeared to be mild disappointment. Shares in the aluminium giant rallied 1.88% in regular trade ahead of its Q1 profit report and were lately down 1.19% in after-market action as earnings came in lower than analysts predicted. Read more here. Alcoa enjoys unusual influence because it is the first Dow component to report each earnings season, however, most analysts downplay its value as a bellwether for the rest of the market.

Expectations for this earnings season have been downplayed by company heads as the US economy continues to struggle for traction. Wall Street analysts expect earnings for companies listed on the S&P 500 earnings to have improved by just 1.5%, compared to expectations for growth of 4.3% earlier in the year. Read more here.

Most European markets inched higher overnight despite a slump in Portugal after the nation's highest court ruled against key austerity measures, throwing an EU/IMF rescue package into doubt. Portugal's PSI 20 index sagged 1.39% after the court said proposed cuts to public sector pay and state pensions were unconstitutional. Germany's DAX edged up 0.06%, France's CAC 0.1% and Britain's FTSE 0.44%.

Oil logged its first rise in four sessions as rising geopolitical tensions raised questions over the supply outlook. West Texas Intermediate crude for May delivery was lately up 86 cents or 0.9% at US$93.56 a barrel after talks over Iran's nuclear ambitions ended in a stalemate and militants in Nigeria killed 12 police officers over the weekend.

Copper led a partial recovery in base metals as a trade union announced a nationwide strike in Chile, which produces roughly a third of the world's supply of the metal. US copper for May delivery was recently up three cents or 0.9% at US$3.38 a pound. In London, copper rose 0.8%, aluminium 0.3%, lead 0.6%, nickel 0.65%, tin 0.1% and zinc 2%.

Gold slipped for the fourth time in five sessions as a rising greenback sapped demand for alternative stores of wealth. Gold for June delivery was recently down $2.80 or 0.2% at US$1,573.10 per ounce.

TRADING THEMES TODAY

CHINESE INFLATION, US FUTURES TO SET TONE: Looks like a positive platform to start the day, with Alcoa's tepid result unlikely to set alarm bells ringing. Still, US futures carry more force with our market than usual early in the reporting season, so it may be worth watching for any change in mood. Other potential market-movers this morning include a speech by Federal Reserve Chairman Ben Bernanke at 9.15am EST and the release of domestic business confidence and Chinese inflation figures at 11.30am. Consumer inflation in China is predicted to have eased to 2.5% from 3.2% last month, clearing the way for further stimulus measures.

ECONOMIC NEWS: NAB's monthly business confidence report is due at 11.30am EST, the same time as China's consumer price and producer price indices. A quiet night ahead in the US includes wholesale inventories and a small business index.

Good luck to all.