Market wrap: A positive start to local trade lies ahead after Wall Street recovered from an early wobble to close higher for a fourth straight session and Intel trumped expectations with its after-market profit result.
With 15 minutes left to trade this morning, the local June SPI futures contract was ahead 21 points at 4985.
Wall Street swooned in early trade after aluminium miner Alcoa missed earnings expectations with its first-quarter report released after Monday's U.S. market close. However, the market recovered as investors looked ahead to results due this week in the financial and technology sectors, including Intel's report released after this morning's market close.
The S&P 500 closed 1 point or 0.07% higher, the Dow added 13 points or 0.12% to reach 11,019 and the Nasdaq gained a healthier 0.33%.
Intel shares have spiked more than 4% in the last hour after its Q1 profit of $2.4 billion or 43 cents a share beat consensus expectations of 38 cents a share.
Earlier, investors took heart from further signs of an improving economy. The U.S. trade deficit widened in February as imports rose, implying that consumer spending is recovering.
"With the slowly improving U.S. economy and U.S. consumers beginning to spend again, whether due to pent-up demand or something more, the U.S. trade deficit is back near its highest level since December '08," wrote an equity strategist told MarketWatch.
U.S. bank shares closed 1.1% lower. Also lower were precious metals miners -0.7% and oilers -0.4% but REITs had a bright session, rising 2.4%.
Commodity prices remained under pressure. Oil closed lower for a fifth day ahead of inventory news and after a forecast that OPEC will increase production. Crude futures slumped to $82.50 a barrel in early trade but partially recovered cents to trade recently at $83.89 a barrel, a loss of 45 cents or 0.5% for the session.
The spot gold price dipped under $1,150 an ounce but recently was trading at $1,151.30, down $4.70 or 0.4% on Monday's New York close.
Industrial metals were mixed. U.S. copper futures closed higher following Wall Street's recovery and a successful Greek debt auction, despite a lower close in London. In late trade in London, aluminium was up 0.2%, lead down 1.2%, nickel down 1.1%, tin down 0.5% and zinc down 1.5%.
Declines in metal stocks after Alcoa's result dragged the major European markets to losses. Britain's FTSE dropped 0.28%, Germany's DAX 0.32% and France's CAC 0.46%.
TRADING THEMES TODAY
U.S. EARNINGS - INTEL: Alcoa missed expectations yesterday but fellow Dow component Intel put the earnings season back on track this morning. Shares in the technology sector bellwether spiked 3.7% in after-market trade after its Q1 earnings beat analyst expectations. That has given U.S. futures a lift, which should support our market today despite weaker commodity prices. Dow futures were recently at +20. Track Dow futures here: http://liveindices.com/
ECONOMIC NEWS: Monthly consumer sentiment figures are due at 10.30 am. A packed night lies ahead in the U.S., including monthly retail sales, consumer price index, testimony from Fed chairman Ben Bernanke, the Fed's Beige Book, crude oil inventories and business inventories.
