Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Negative after the main indices in the US end mixed but mostly lower.
ASX futures: down 30 points or 0.41%
Friday themes:
· The S&P 500 and Nasdaq book second straight weekly declines as a retreat from high-flying tech stocks continues. Gains in blue-chip defensives help the Dow resist the sell-off.
· The Nasdaq's weekly loss of 1.9% seals back-to-back weekly declines for the first time this year. The S&P 500 shed 0.3% for the week, while the Dow gained 0.6%.
· Inflationary worries are resurrected by a 0.3% pop in headline producer price inflation last month. Core producer inflation is also stronger than expected.
· Treasury yields rise, pressuring growth companies that depend most on borrowing to fund operations.
· Stocks have struggled to hold their gains during a mixed earnings season. "Earnings haven’t been as bad as feared, but they’ve hardly been inspiring” - Josh Jamner, investment strategy analyst at ClearBridge Investments.
· Energy and health are the pick of the sectors. Tech and materials decline.
· BHP and Rio Tinto retreat in overseas trade as copper has its worst week in three months. "Dr Copper" falls more than 3% amid questions about Chinese demand. Rising warehouse inventories help drive nickel to its lowest in more than a month.
· Iron ore bounces 2.1% in China, back above US$100 per metric ton. Singapore ore rises 2.2% to US$103.
· Oil prices climb for a seventh straight week. Brent crude gains 0.7% for the week.
Key events this week:
· Minutes from this month's RBA rates meeting - Tuesday
· Quarterly wage price index - Tuesday
· China industrial production, retail sales, etc - Tuesday
· US retail sales - Tuesday
· Minutes from July Federal Reserve rates meeting - Wednesday
· July employment report - Thursday
S&P 500: down 5 points or 0.11%
Dow: up 105 points or 0.3%
Nasdaq: down 93 points or 0.68%
Dollar: up 0.11% to 65.06 US cents
Iron ore (Dalian): up 2.1% to US$100.64
Brent crude: up 41 US cents or 0.5% to US$86.81
Gold: down US$2.30 or 0.1% to US$1,946.60
NYSE Arca Gold Bugs: up 1.11%
Copper (LME): down 1.09% to US$8,294.50
Nickel (LME): down 0.98% to US$20,241
Lithium carbonate (China spot): down 1.21% to US$34,084
Global X Lithium & Battery Tech ETF: down 1.95% (3-month low)
BHP: down 0.61% (US); down 1.36% (UK)
Rio Tinto: down 0.54% (US); down 1.4% (UK)
