Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Neutral following a mixed end to the US trading week and down-pressure on most commodities.
ASX futures: unchanged at 7,595
Friday themes:
- US stocks finish mostly higher, fuelled by AI chip mania and a downward revision to previously-reported inflation data.
- The S&P 500 rallies 0.57% to close above 5,000 for the first time. The Nasdaq surges 1.25%, finishing less than 0.5% below its November 2021 all-time closing high. The Dow eases 0.14% as gains in Intel, IBM and Microsoft are outweighed by declines in Chevron, Disney and Caterpillar.
- Reports of expansion plans help lift Nvidia 3.58%. Reuters reports the firm is creating a new unit to design bespoke chips for AI processors. The Philadelphia Semiconductor Index climbs 1.99% to a new record.
- Megacaps Microsoft, Amazon and Alphabet also rise as the S&P tech sector climbs 1.5%. Growth stocks outperform in a mixed market. Financials firm 0.32%, real estate 0.28% and materials 0.26%. The energy sector sags 1.56%, consumer staples 0.85% and health 0.06%.
- Market sentiment is boosted by news that consumer prices increased in December at a slower pace than first reported. The Consumer Price Index increased by 0.2%, rather than the 0.3% initially reported. The week ahead brings January inflation data.
- “We’re still seeing whopping good news on an economic front, and the market is reacting to that. The longer that story plays out, the more likely it seems to the market that we actually are sticking a landing here” - Dana D’Auria, co-chief investment officer at Envestnet (per CNBC).
- For the week, the S&P 500 gains 1.4%. The Nasdaq adds 2.3%. The Dow finishes unchanged.
- Iron ore drifts lower on weak volume as activity winds down ahead of this week's week-long Lunar New Year holiday in China. Singapore ore futures ease 0.2% to US$128.75 a ton. Prices largely mark time last week, finishing 0.1% higher for the week.
- Oil rounds off a strong week with further gains on Friday as Israel's rejection of a Hamas ceasefire offer keeps alive the threat of a wider conflict in the Middle East. Brent crude rallies 0.7% on Friday to extend its advance for the week to 6.3%.
- The Australian earnings season cranks into top gear this week with updates from a score of market heavyweights. More below.
Key events this week:
- Domestic earnings season. Highlights include: Aurizon, Beach Energy, JB Hi-Fi and Car Group (today); CSL, James Hardie (Tuesday); CBA, AMP (Wednesday); Telstra, South32, Wesfarmers, Goodman Group, Origin Energy (Thursday); and IAG and QBE (Friday).
- China Lunar New Year holiday - all week
- Consumer sentiment - Tuesday
- US consumer inflation data (CPI) - Tuesday
- January employment data - Thursday
- US retail sales - Thursday
- US wholesale inflation data (PPI) - Friday
S&P 500: up 29 points or 0.57%
Dow: down 55 points or 0.14%
Nasdaq: up 197 points or 1.25%
Dollar: up 0.07% to 65.22 US cents
Iron ore (Singapore): down 0.2% to US$128.75
Brent crude: up 56 US cents or 0.7% to US$82.19
Gold: down US$9.20 or 0.4% to US$2,038.70
NYSE Arca Gold Bugs: down 0.9%
Bitcoin: up 0.84% to US$48,298
Copper (LME): down 0.3% to US$8,169
Nickel (LME): down 0.54% to US$15,921
Uranium (spot price): up 1.24% to US$102.50
Lithium carbonate (China spot): down 0.07% to US$13,471
Global X Lithium & Battery Tech ETF: up 0.36%
BHP: up 0.23% (US); unchanged (UK)
Rio Tinto: down 0.28% (US); down 0.34% (UK)
Day trading pre-market open February 12
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