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

Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.


Outlook for the day: Positive as Wall Street gains help offset weaker commodity prices ahead of July jobs data this morning.

ASX futures: up 28 points or 0.36%


Overnight themes:

• US stocks rose for a fifth night after a decline in annual inflation kept an interest rate cut on the table next month.
• The S&P 500 firmed 0.38% despite some disappointment that consumer prices likely increased too much last month to justify a 50 basis point September rate cut. The Dow gained 0.61%. The Nasdaq finished little changed, up 0.03% at the end of a choppy session.
• Annual headline US inflation fell to 2.9% last month, dropping below 3% for the first time in almost three and a half years. The decline came as consumer prices ticked up 0.2%, in line with expectations. Core inflation also increased 0.2% across the month for year-on-year growth of 3.2%. Both figures were in line with expectations.
• The odds on a 25bp rate cut rose to 55% following the report.
• "This report shows continued progress towards the Fed's inflation goals. Nothing in it would keep the Fed from cutting in September, but market hopes for a bigger cut still seem like a long shot" - Scott Anderson, chief economist at BMO Capital Markets (per Reuters).
• The Nasdaq struggled for direction as the Magnificent Seven group of stocks turned mixed after providing much of the market momentum over the previous four sessions. Alphabet reversed 2.35% on reports that the US Department of Justice was considering breaking up the company, which dominates the market for search engines.
• Financials and energy were the pick of the sectors, gaining 1.29% and 0.66%, respectively.
• The materials sector finished flat despite a downbeat night on commodity markets. The Bloomberg Commodity Index eased 0.24%. Copper, nickel, gold, silver, uranium, iron ore and oil all declined.
• BHP and Rio Tinto slid in overseas trade after iron ore slumped to its lowest in more than a year. Benchmark ore on China's Dalian Commodity Exchange dropped 3.32% in daytime trade to US$99.74 a metric ton. The contract price traded as low as US$98.97 before a partial recovery. The sell-off followed news of a 15-year low in Chinese bank lending last month as a property crisis drags on.
• “The credit data in July remained weak, souring sentiment... hot metal output showed signs of further declines given that many mills are suffering losses” - analysts at Everbright Futures (per Reuters).
• Brent crude settled under US$80 a barrel after US oil inventories increased last week. The international benchmark declined for a second night, falling 1.2% to US$79.76 a barrel.
• Precious metals retreated as traders bet last night's US inflation data favoured a 25 basis point cut next month, rather than 50bp. Gold declined 1.12%. Silver shed 2.1%.
• "A September cut is a mortal lock; at the moment the data is suggesting the Fed will start with 25 bps which would be a disappointment to the market which likes to overshoot" - Tai Wong, independent metals trader (per Reuters).

Key events today:

• Corporate earnings: Telstra, Goodman Group, Origin, Cochlear, Magellan, Arena REIT, Centuria Office REIT, Treasury Wine Estates, NRW Holdings, Enoro Group (source: CommSec)
• July jobs report - 11.30 am AEST (expected: +20.2K; 4.1%)
• China July industrial production - 12 pm
• US July retail sales - tonight
• US unemployment claims - tonight

S&P 500: up 21 points or 0.38%

Dow: up 243 points or 0.61%

Nasdaq: up 5 points or 0.03%

Dollar: down 0.6% to 65.96 US cents

Iron ore (Dalian): down 3.32% to US$99.74

Brent crude: down 93 US cents or 1.2% to US$79.76

Gold: down US$28.10 or 1.12% to US$2,479.70

Silver: down 2.1% to US$27.26

NYSE Arca Gold Bugs: down 0.4%

Bitcoin: down 2.91% to US$59,055

Copper (LME): down 0.16% to US$8,944.50

Nickel (LME): down 1.19% to US$16,205

Lithium carbonate (China futures): down 0.06% to US$10,843

Global X Lithium & Battery Tech ETF: down 2.12%

Uranium (spot): down 0.49% to US$81.50

BHP: down 2.63% (US); down 1.63% (UK)

Rio Tinto: down 2.05% (US); down 1.54% (UK)