Day trading pre-market open August 16

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


Outlook for the day: Highly positive after US stocks rose for a sixth session and key commodity prices rebounded.

ASX futures: up 77 points or 0.99%


Overnight themes:

• US stocks posted a sixth straight gain after solid retail sales growth, a profit upgrade from Walmart and a dip in claims for unemployment benefits soothed recession fears.
• The S&P 500 rallied 1.61% to its highest close in almost a month. The broadest of the major US benchmarks has now regained all of its losses during a three-day "recession scare" earlier this month.
• The Nasdaq surged 2.34%. Tesla and Nvidia were notably strong.
• The Dow put on 1.39% as just four companies sat out the rally. Cisco, Walmart and Nike all gained at least 5%. Economic bellwether stocks Boeing and Caterpillar also posted solid gains.
• The odds on a 25 basis point September rate cut rose from 65% to 76.5% after several signs of strength in the US economy. Retail sales increased 1% last month, more than reversing a 0.2% dip in June. Weekly first-time jobless claims contracted by 7,000 to 227,000. Retail bellwether Walmart hiked its profit forecast as Americans continued to shop.
• "The wall of worry is beginning to crumble as sentiment is improving and the fundamentals support a risk-on bias. Retail sales were above expectations, Consumer Price Index numbers came in at a tolerable level, so the fundamental backdrop is consistent with rising equity prices" - Terry Sandven, chief equity strategist at U.S. Bank Wealth Management (per Reuters).
• Walmart's trading update helped lift the consumer discretionary sector 3.38%. A revenue beat from Cisco fuelled a 2.54% jump in tech stocks. Also strong: materials +1.5% and industrials +1.32%.
• Two sectors retreated as treasury yields climbed: utilities -0.02% and real estate -0.34%.
• Disruption at BHP's Escondida mine in Chile helped power copper to a two-week high. Benchmark copper prices on the London Metal Exchange rallied 1.89% after union workers refused BHP's request to suspend a strike. Aluminium, nickel, zinc, lead and tin gained between 0.51% and 2.92% during a strong session on the LME.
• BHP and Rio Tinto shrugged off a 14-month low in iron ore. The miners rebounded between 0.49% and 0.77% in UK and US trade overnight despite benchmark ore prices in China sliding further below US$100 a metric ton. Ore futures declined 2.09% on the Dalian Commodity Exchange to US$98.32 a metric ton. Prices fell for a fourth day after a housing report showed new construction was 23.2% weaker this year than the same period last year.

Key events today:

• Corporate earnings: NAB, Amcor, ASX, Domain Holdings, Charter Hall Retail REIT, GQG Partners, 3DP Learning (source: CommSec)
• RBA Governor Michele Bullock testifies before the House economics committee - 9.30 am AEST

S&P 500: up 88 points or 1.61%

Dow: up 555 points or 1.39%

Nasdaq: up 402 points or 2.34%

Dollar: up 0.22% to 66.12 US cents

Iron ore (Dalian): down 2.09% to US$98.32

Brent crude: up US$1.28 or 1.6% to US$81.04

Gold: up US$12.70 or 0.5% to US$2,492.40

NYSE Arca Gold Bugs: up 0.6%

Bitcoin: down 3.5% to US$56,982

Copper (LME): up 1.89% to US$9,138

Nickel (LME): up 0.68% to US$16,315

Lithium carbonate (China futures): down 2.71% to US$10,549

Global X Lithium & Battery Tech ETF: up 2.19%

Uranium (spot): steady at US$81.50

BHP: up 0.77% (US); 0.49% (UK)

Rio Tinto: up 0.5% (US); up 0.76% (UK)