daytrading july 26 pre-market

Morning traders.

Market wrap:

A mixed bag of corporate earnings and a slump in new home sales left most US stocks little changed overnight and has given the Australian market a cautiously positive platform.

The September SPI 200 futures contract ended the night session seven points or 0.2% higher at 4089 as a retreat in the US dollar helped oil and metals turn higher.

The Dow broke a three-session losing run with a rise of 59 points or 0.47%, a performance boosted by well-received profit reports from Caterpillar and Boeing. The broader S&P 500 dipped 0.03% and the Nasdaq lost 0.31% as market heavyweight Apple dragged on the tech sector.

Shares in Caterpillar and Boeing rallied after both raised their profit outlooks for the year. Computer chip-maker Broadcom was another strong performer after increasing its revenue expectations. But a rare earnings disappointment from Apple cast a cloud over the session as a shortfall in iPhone sales helped push the company's shares down 4.3%.

"Today's a mixed bag depending on which sector you look at, with positive results from industrial-related companies, which are being partially offset by weakness in technology and the consumer space," a portfolio manager at Federated Investors in the US told MarketWatch. "Apple is the dominant contributor to the weakness in technology."

Investor sentiment was also dented by an 8.4% drop in new home sales last month. Sales hit a two-year high in May but analysts suggested the new data reflected increasing buyer caution as the US economy slows.

Most European markets squeezed out gains and the euro rallied for the first session in six after a member of the European Central Bank spoke in favour of granting the region's permanent rescue fund a banking licence to allow it to borrow more central bank funds. The plan helped offset a drop in German business sentiment and a sharp contraction in British GDP. Germany's DAX put on 0.25%, France's CAC added 0.23% and Britain's FTSE lost 0.02%.

The recovery in the euro pushed the US dollar off a two-year high, which helped dollar-denominated commodities. Oil stage a V-shaped recovery after an unexpected rise in US inventories. West Texas crude for September delivery was recently up 49 cents or 0.5% at US$88.99 a barrel.

Gold broke out of its recent trading range, rising to its highest level since July 5. Gold for August delivery was lately up $27.30 or 1.7% at US$1,603.50 an ounce. September silver improved 47 cents or 1.8% to US$27.29 an ounce.

The turn in the dollar helped copper recover from a one-month low. In London, copper gained 0.3%, aluminium 0.55%, nickel 0.1%, tin 0.7% and zinc 0.7%. Lead eased less than 0.1%. US copper for September delivery was recently up four cents or 1% at US$3.39 a pound.

TRADING THEMES TODAY

STABILISING?: The XJO has looked to be building towards a rally over the last two sessions, but didn't quite get the platform it needs overnight. The S&P 500 held what appears a fairly important short-term support level and needs to kick higher tonight/tomorrow. A market eager to grasp at any scrap of good news got excited by the suggestion that Europe's bailout fund could be handed a licence for unlimited borrowing, but it's worth noting it was just one man's opinion and commentators dismissed the likelihood of the idea finding broader support. Pockets of strength in the US included gold/silver miners, biotechs and financials. Transport stocks and other industries exposed to the rising oil price were generally weak.

ECONOMIC NEWS: No significant domestic or Asian news scheduled today. European Central Bank President Mario Draghi is due to take part in a panel discussion tonight. A solid schedule in the US includes core durable goods, durable goods, weekly jobless claims, pending home sales, natural gas storage and further testimony from Treasury Secretary Tim Geithner in the Senate.

Good luck to all.