Daytrading October 15 pre-market

Morning traders. Thanks Trees and after-market regulars.

Market wrap:

Overnight gains in resource stocks point to a flat start to Australian trade despite a losing session for US stocks amid  negative signals from the global economy.

The December SPI200 futures contract eased one point or less than 0.1% to 5173 as BHP, Rio Tinto, oilers and gold stocks bucked the downtrend on Wall Street after a bleak outlook from retail giant Wal-Mart cast a pall over the market.

The S&P 500 slid nine points or 0.47% to a second straight loss as economic data disappointed. The Dow dived 157 points or 0.92% as Wal-Mart suffered its heaviest fall in 15 years. The Nasdaq was the best of the major indices with a loss of 14 points or 0.29%.

“Wal-Mart’s sizable reset of expectations has shaken the overall market,” Chad Morganlander, money manager at Stifel, Nicolaus in the US, told Bloomberg. “Investors are reconsidering their future forecasted growth rates for S&P earnings.”

Consumer stocks led the retreat after Wal-Mart said it expected zero sales growth for the year as a strengthening US dollar weighs on sales. The retailer plunged 10.04%, its biggest decline since 2000 stripping 42 points off the Dow. The dour outlook exacerbated fears about the impact on US companies of a slowdown overseas following unexpectedly weak Chinese inflation data yesterday.

“Wal-Mart’s difficulties suggest that the US may be less insulated than many were thinking,” Kate Warne, investment strategist at Edward Jones in the US, told MarketWatch.

Economic data missed expectations, dulling expectations that rates will rise this year. Retail sales grew an anaemic 0.1% last month from the month before, while core retail sales contracted 0.3%. Read more here. Producer prices declined by the largest percentage in eight months, a sign that inflation is likely moving further away from the Federal Reserve's target. The producer price index slid 0.5% during September, the gauge's 12th straight decline.

There was a mixed reception for the night's other major earnings reports. While Bank of America rallied 0.77% and Blackrock 2.33%, Wells Fargo lost 0.69% and JPMorgan Chase 2.53%. Shares in Netflix were last down 6.09% in volatile after-market trade.

Cushioning the market from deeper falls were rises in biotechs, energy and materials. The iShares Nasdaq Biotechnology Index bounced 0.83%. Resource stocks were supported by gains in select commodities as the weak US economic data pushed the greenback lower. BHP improved 1.13% and Rio Tinto 2.62% in US trade. Spot iron ore for import to China yesterday eased 60 cents to US$54.30 a dry ton.

Gold stocks surged to a three-month high as gold marked its highest close in four months. The NYSE Arca Gold Bugs index closed 7.75% ahead. Gold for December delivery settled $14.40 or 1.2% ahead at US$1,179.80 an ounce. Silver also lodged its highest close since late June.

Copper rebounded as the falling greenback improved pricing for holders of other currencies. US copper for December delivery was recently up 1.3% at US$2.42 a pound. London copper rose 0.5%, lead 0.9%, nickel 0.1% and tin 1.3%. Aluminium shed 0.1% and zinc 0.2%.

Energy stocks fed off the positive mood towards resource stocks, despite a flat night for crude oil. The US energy ETF put on 0.82%. West Texas Intermediate crude for November delivery settled 2 cents lower at US$46.64 a barrel.

European stocks declined for a third session after disappointing industrial production figures and Chinese inflation data underlined concerns about slowing global growth. The Stoxx Europe 600 gave up 0.74%, Germany's DAX 1.17%, France's CAC 0.74% and Britain's FTSE 1.15%.

The dollar was this morning buying 73.07 US cents.

TRADING THEMES TODAY

JOBS DATA ON TAP: Another losing night on Wall Street but there were hopeful signs in yesterday's ASX action and in this morning's futures that buyers are getting interested. Wall Street hasn't moved far enough from its rebound-peak to raise any red flags. The upside to the night's lousy economic data was weakness in the greenback, which supported commodities and gave BHP and Rio a leg up. Today also brings an opportunity to play the monthly Australian employment data lottery. As students of the economy know, the monthly updates from the Australian Bureau of Statistics are about as easy to predict as Kanye's behaviour at an awards night. For what it's worth, the consensus expectation is for jobs growth of 7,200 and unemployment to hold steady at 6.2%, according to Forex Factory. But anything is possible - I can't remember the last time the actual figures landed anywhere within coo-ee of expectations.

ECONOMIC NEWS: The September inflation expectations report is due at 11am EST and vehicle sales at 11.30am, but today's big-ticket item is the September jobs report at 11.30am. Another night of meaty US data includes the consumer price index/core CPI, weekly jobless claims, Empire State Manufacturing Index, Philly Fed Manufacturing Index and crude oil inventories.

Good luck to all.