daytrades march 5 pre-market

Morning traders.

Market wrap: Stocks are set to open stronger for a sixth day after analyst upgrades for key companies dragged Wall Street higher overnight.

Futures traders expect our market to open 21 points up on yesterday's close despite falls in key commodity prices and a choppy night in the U.S. The March SPI futures contract closed at 4769.

Trade in the U.S. was subdued ahead of tonight's unemployment report as investors digested a mixed bag of economic reports. The S&P 500 rallied late in the day to a gain of 0.37% after analyst upgrades for market heavyweights Coca-Cola, Walt Disney and Boeing. The Dow added 0.46% and the Nasdaq 0.51%.

Health-care stocks continued to weigh on the market as executives met White House officials and a White House spokesman said President Obama hoped to see health-care legislation approved by March 18. Investors fear the legislation will crimp the companies' ability to make money.

Financial stocks were boosted by the successful launch of a Greek bond issue. The bond sale was three times over-subscribed, easing fears that the debt-laden nation will need financial assistance for other Euro-zone nations.

Economic reports were mixed. Weekly jobless claims showed a slightly larger decline than economists predicted and non-farm business productivity rose more than expected. However, factory orders in January were weaker than anticipated and pending home sales slipped more than expected as "abnormal weather conditions" hurt sales.

The U.S. dollar recovered yesterday's losses, pressuring commodity prices. The dollar index rallied 0.7%. Crude oil futures dipped below $80 but were recently back at $80.43 a barrel, a loss of 0.53% for the session. The spot gold price was recently down 0.7% or $7.90 from Wednesday's New York close at $1,131.70 an ounce.

Copper's recent run was undermined by weak U.S. housing and factory data.

"There haven't been any particular signs of a very strong demand recovery in copper or other base metals outside China," an analyst at RBS Global Banking and Markets told Reuters. "Economic data from the U.S. and Europe have been less than supportive in the last two or three weeks."

In London, copper fell 2.8%, lead 3%, nickel 2.4% and zinc 2.7%. Aluminium rose 0.2%.

The major European markets closed lower for the first day in five. Britain's FTSE retreated 0.1%, Germany's DAX 0.4% and France's CAC 0.4%.

TRADING THEMES TODAY

FRIDAY FADE?: This morning's futures number seems excessively bullish. We've had five straight days of gains so there are plenty of traders sitting on profits, key commodity prices weakened overnight, the resource-heavy Canadian indexes were recently negative, tonight's U.S. unemployment news will encourage caution and Fridays are traditionally weak as traders close out positions before the weekend. Anything is possible and Lord knows I'm often wrong but a fade after a positive start seems the likeliest outcome. I'll sit on my hands until opportunities emerge.

ECONOMIC NEWS: The Australian Industry Group's Construction Index is due at 9.30 am. The big news is tonight's U.S. monthly unemployment rate. The consensus forecast is for a rise from 9.7% to 9.8%. Also tonight: consumer credit and average hourly earnings.


Folks, I won't be around to launch today's afternoon thread - got a hospital appointment with the mother-to-be. Perhaps Noo will do the honours?

Good luck to all.