Day trading pre-market open October 8

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Neutral/mildly negative after surging energy prices and treasury yields weighed on Wall Street.

ASX futures: down 4 points or 0.05%


Overnight themes:

• US stocks fell as traders adjusted interest rates expectations after Friday's jobs surprise, and as rising energy prices underlined fears of a wider conflict in the Middle East.
• The S&P 500 dropped 0.96%, reversing a rally on Friday after strong September employment growth quashed recession worries while also dousing hopes for another half-point rate cut next month.
• The Dow declined 399 points or 0.94% as just four of its thirty component companies advanced. Amazon and Apple were among the biggest drags as faltering expectations for rapid rate cuts boosted treasury yields. The yield on 10-year US treasuries rose above 4% for the first time in two months.
• The Nasdaq shed 1.18% as traders sold companies seen as most exposed to higher borrowing costs. Selling accelerated in afternoon trade after a US judge ordered Google to open its app store to greater competition. Shares in parent company, Alphabet, fell 2.49%.
• "The two things I think investors are watching with the most caution here are the yields of Treasuries are inching back up and… you’ve got energy prices creeping higher. Both those things probably have investors sort of looking at this and saying, ‘I wonder if this gets worse before it gets better,’ and we don’t think it will. It’s certainly a reason to be cautious into the start of an earnings report season” - Art Hogan, chief market strategist at B. Riley Wealth (per CNBC).
• Energy was the only S&P sector to resist the sinking tide, gaining 0.35% as oil regained US$80 a barrel for the first time since late August. Brent crude climbed US$2.88 or 3.7% to settle at US$80.93 a barrel following reports that Israel's Prime Minister was meeting with his military advisers following last week's Iranian missile attack on Israeli soil. The US benchmark, West Texas Intermediate, rose by the same percentage to US$77.14 as traders kept a wary eye on another major hurricane expected to reach US soil this week.
• The odds on a standard quarter-point interest rate cut next month climbed to 86% in the wake of Friday's employment data, according to CME's FedWatch tool. Traders had been previously pricing in a chance of a second supersized half-point cut.
• Rate-sensitive utilities were the night's biggest drag, falling 2.32%. Consumer staples, financials, consumer discretionary and communication services all declined by at least 1.1%. Materials was next best after energy, losing 0.17%.
• Iron ore leaped 3.3% in Singapore amid speculation China will announce more stimulus news at a press briefing this afternoon. Five senior officials from the National Development and Reform Commission are due to take part in this afternoon's event, according to a government notice.
• Battery metal miners rose on Wall Street after Rio Tinto confirmed its takeover interest in Arcadium Lithium. Shares in Arcadium jumped 35.71% on the New York Stock Exchange. Rivals Albemarle and SQM gained 2.32% and 2.09%, respectively. The Global X Lithium & Battery Tech ETF popped 6.47%.

Key events today:

• Consumer sentiment - 10.30 AEDT
• Minutes from the latest RBA policy meeting - 11.30 am
• Job ads - 11.30 am
• Business confidence - 11.30 am
• Speech and Q&A with RBA Deputy Governor Andrew Hauser - 12 pm

S&P 500: down 55 points or 0.96%

Dow: down 399 points or 0.94%

Nasdaq: down 214 points or 1.18%

Dollar: down 0.6% to 67.57 US cents

Iron ore (Singapore): up 3.3% to US$112.39

Brent crude: up US$2.88 or 3.7% to US$80.93

Gold (futures): down US$1.80 or 0.1% to US$2,666

Gold (spot): down US$10.35 or 0.39% to US$2,642.50

Silver (spot): down 48 US cents or 1.48% to US$31.71

NYSE Arca Gold Bugs: down 2.05%

Bitcoin: up 0.79% to US$63,167

Copper (LME): up 0.09% to US$9,952.50

Nickel (LME): up 0.5% to US$17,955

Lithium carbonate (China): steady at 75,650 yuan (China holiday)

Global X Lithium & Battery Tech ETF: up 6.47%

Uranium (spot): up 0.36% to US$83.50

Global X Uranium ETF (URA): down 1.63%

BHP: up 0.4% (US); up 1% (UK)

Rio Tinto: down 0.24% (US); up 0.04% (UK)