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

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


Outlook for the day: Negative as traders balance declines in key commodities and the dollar against slender gains on Wall Street.

ASX futures: down 33 points or 0.43%


Overnight themes:

• Optimism over rate cuts next year helps the S&P 500 draw within four points of a record close before trimming its advance. The broadest of the three major US stock benchmarks trades as high as 4,793.3 before closing 0.04% ahead at 4,783. The index's highest-ever close was 4,796.56 on January 3, 2022.
• The Dow also edges ahead as economic reports support the narrative that the US economy is softening enough to take rate hikes off the table, but not enough for a "hard landing". The Nasdaq finishes narrowly red.
• All three major indices remain on track for a ninth straight winning week.
• "This is one of the best end-of-year rallies we've ever seen and a lot of this rally happened before the Fed pivot in the middle of December" - Ryan Detrick, chief market strategist at Carson Group (per Reuters).
• First-time claims for unemployment benefits increase by 12,000 last week to 218,000. Continuing claims have increased steadily since mid-September in a sign that the labour market is tightening. Housing data also falls short of expectations.
• A rally in Chinese blue-chip companies boosts their US listings. Alibaba and JD Com are among companies aided by the tailwind from China.
• Utilities and real estate are the pick of the sectors. Financials and health are next best. The market's gains are kept in check by declines in energy, materials and consumer stocks.
• Oil retreats for a second day as Red Sea shipping-disruption fears abate. Shipping giant Maersk says it has several dozen container ships scheduled to pass through the Red Sea in coming weeks after previously redirecting ships away from the area following attacks by Houthi rebels. Brent crude drops 1.58%.
• Iron ore reverses ahead of weekend data tipped to show Chinese manufacturing contracted for a third month in December. China-traded ore drops 1.3%.
• Copper backs off its highest level in almost five months as traders reportedly cash in on a year-end rally. Other metals also retreat. Nickel declines as inventories at the London Metal Exchange touch levels last seen in July 2022.
• "Copper has gone a long way over the past few sessions, so it looks like a bit of profit taking. There are still a few worries about Chinese growth and the property sector" - broker Robert Montefusco at Sucden Financial (per Reuters).

Key events today:
No significant economic data scheduled

S&P 500: up 2 points or 0.04%

Dow: up 54 points or 0.14%

Nasdaq: down 4 points or 0.03%

Dollar: down 0.26% to 68.33 US cents

Iron ore (Dalian): down 1.3% to US$137.48

Brent crude: down US$1.26 or 1.58% to US$78.39

Gold: down US$9.60 or 0.46% to US$2,083.50

NYSE Arca Gold Bugs: down 2.55%

Bitcoin: down 1.83% to US$42,551

Copper (LME): down 0.87% to US$8,615

Nickel (LME): down 1.45% to US$16,655

Uranium: steady at US$93

Lithium carbonate (China spot): US$14,000 (last price: Dec 21)

Global X Lithium & Battery Tech ETF: up 3.42%

BHP: down 0.38% (US); up 0.9% (UK)

Rio Tinto: down 0.3% (US); up 0.6% (UK)