Day trading pre-market open June 4

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Mildly negative following a mixed night on Wall Street and multi-week lows in iron ore and oil.

ASX futures: down 12 points or 0.15%


Overnight themes:

• Wall Street's main share benchmarks finished mixed as a decline in manufacturing weighed on cyclical sectors and treasury yields, while a jump in Nvidia lifted the tech sector.
• The Institute of Supply Management's manufacturing PMI shrank to 48.7 last month from 49.2 in April. Economists had been expecting an improvement to 49.8. Readings below 50 indicate contracting activity. The dollar fell and treasury yields retreated after the report.
• The Dow dropped 0.3% as stocks linked to economic growth declined. Chevron, Dow Inc and Caterpillar were prominent among the drags.
• "What you're seeing when you look at the overall market is that it is trading down based on growth concerns relative to the continuation of more sluggish economic data... The 10-year treasury note is down about 8 basis points, and that's another signal that investors are concerned about economic growth because they're now buying the 10-year" - Keith Lerner, co-chief investment officer at Truist Advistory Services (per Reuters).
• A 4.9% surge in Nvidia helped lift the Nasdaq 0.56% after the chip-maker announced new AI chips. Meta and Amazon also rallied.
• The S&P 500 edged up 0.11% as gains in tech companies and healthcare providers helped offset weakness in cyclicals.
• The energy sector slumped 2.6% as oil fell to a four-month low (more below). Also notably weak were industrials -1.24%, materials -0.61% and financials -0.6%.
• The odds on a September rate cut crept up to 59% after the factory data from 53% before, according to CME's FedWatch tool.
• Trade in some stocks was suspended temporarily after technical glitches triggered wild swings in prices. Normal service resumed around midday.
• BHP and Rio Tinto retreated in overseas trade after rising portside inventories in China helped drag iron ore to its lowest in more than six weeks. Ore inventories at Chinese ports are the highest in two years amid a long-running property slump, according to Reuters. Benchmark ore prices in China declined 2.65%.
• Oil settled at a four-month low after the OPEC+ cartel extended voluntary production cuts to the end of next year, but announced plans to start reducing the caps in stages from September. Brent crude skidded US$2.75 or 3.4% to US$78.36 a barrel.
• “Barring a material upside surprise in demand, lifting previous cuts after this coming September could prove premature” - Peter McNally, global head of sector analysts at Third Bridge (per MarketWatch).

Key events today:

• Company operating profits - 11.30 am AEST
• Current account - 11.30 am
• job openings - tonight

S&P 500: up 6 points or 0.11%

Dow: down 115 points or 0.3%

Nasdaq: up 94 points or 0.56%

Dollar: up 0.49% to 66.88 US cents

Iron ore (Dalian): down 2.65% to US$116.45

Brent crude: down US$2.75 or 3.39% to US$78.36

Natural gas (US futures): up 6.64% to US$2.76

Gold: up US$23.50 or 1% to US$2,369.30

Silver: up 32 US cents or 1.04% to US$30.73

NYSE Arca Gold Bugs: up 0.12%

Bitcoin: up 2.24% to US$69,239

Copper (LME): up 1.52% to US$10,193

Nickel (LME): down 0.25% to US$19,580

Uranium (spot price): down 1.12% to US$90

Lithium carbonate (China spot): down 1.16% to US$14,445

Global X Lithium & Battery Tech ETF: up 0.41%

BHP: down 0.25% (US); down 0.56% (UK)

Rio Tinto: down 0.97% (US); down 0.77% (UK)