Morning traders. Thanks loungers, especially @Ravgnome. Outlook...

Morning traders. Thanks loungers, especially @Ravgnome.


Outlook for the day: Positive

ASX futures: up 24 points or 0.32%


Friday/weekend themes:

• US stocks bounce as upbeat trading updates from Microsoft and Alphabet help offset a modest increase in inflation.
• The Nasdaq soars 2.03% during its strongest session since February. Google owner Alphabet jumps 10.22% after beating Q1 earnings expectations, announcing its first ever dividend and launching a buyback. A profit beat lifts Microsoft 1.82%. Other market megacaps also advance, including Amazon, Meta and Nvidia.
• The S&P 500 puts on 1.02%, with gains in growth stocks offsetting declines in utilities, energy producers and banks. The Dow gains 0.4%.
• “We are finishing a volatile week on a strong note. It’s nice to see some green on the screen. Clearly one of the drivers has been the stellar reports coming out of megacap technology” - Mona Mahajan, senior investment strategist at Edward Jones (per CNBC).
• Investors found the positives in mixed inflation data. Inflation increased by 2.7% through the 12 months to March, in line with expectations but up from a 2.5% rate in February. The personal consumption expenditures price index increased by 0.3% for the month, also in line but ahead of the 0.2% growth needed to bring inflation back within the Federal Reserve's target band.
• Alphabet's result helps lift the communication services sector 4.7%. Also strong: tech +1.85%, consumer discretionary +1.32% and materials +0.63%. Selling pressure is strongest in utilities -1.12%, energy -1.02% and financials -0.2%.
• Friday's rebound helps the S&P 500 break a three-week losing streak with a weekly rise of 2.7%. The Nasdaq ends a run of four weekly losses by bouncing 4.2%. The Dow gains 0.7% for the week.
• BHP looks set to drag on the ASX for a second session following Friday night losses on overseas markets after Anglo American knocks back the Big Australian's US$59.6 billion takeover offer. The UK-listed copper miner says BHP's offer "fails to value" Anglo American's prospects. BHP shares 2.64% in the UK and 1.36% in the US amid speculation it will have to raise its bid. An anonymous source quoted by Reuters over the weekend says BHP is considering improving its offer.
• Soft Chinese economic data released over the weekend may also prove a handbrake on ASX gains today. Industrial profits declined 3.5% year-on-year in March, raising questions about the strength of Chinese economic growth.
• Copper breaks above US$10,000 a metric ton in London for the first time in two years. Benchmark copper trades as high as US$10,028 on the London Metal Exchange before paring its advance to 1.02% at US$9,965.50. Copper prices hit an all-time high in Shanghai.
• Iron ore seals a third straight weekly advance with a consolidation session on Friday. Prices improve less than 0.1% in China on Friday for a weekly gain of 2%.

Key events this week:

• Retail sales - Tuesday
• Private sector credit - Tuesday
• China manufacturing - Tuesday
• US consumer confidence, employment cost index - Tuesday
• China market holiday - Wednesday to Sunday
• US interest rate decision - Wednesday
• US private payrolls, job openings, manufacturing PMI - Wednesday
• Building approvals - Thursday
• Trade balance - Thursday
• US jobs report - Friday

S&P 500: up 52 points or 1.02%

Dow: up 154 points or 0.4%

Nasdaq: 316 points or 2.03%

Dollar: down 0.04% to 65.29 US cents

Iron ore (Dalian): up 0.06% to US$122.07

Brent crude: up 49 US cents or 0.6% to US$89.50

Gold: up US$4.70 or 0.2% to US$2,347.20

NYSE Arca Gold Bugs: up 0.86%

Bitcoin: down 0.13% to US$63,656

Copper (LME): up 1.02% to US$9,965.50

Nickel (LME): down 0.3% to US$19,100

Uranium (spot price): up 1.57% to US$88

Lithium carbonate (China spot): down 0.38% to US$15,341

Global X Lithium & Battery Tech ETF: up 1.45%

BHP: down 1.36% (US); down 2.64% (UK)

Rio Tinto: up 0.68% (US); up 1.38% (UK)