Day trading pre-market open January 24

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

Very quiet in the lounge last night. Suspect a lot of folk are licking their wounds. The specs (XEC) have been in a solid downtrend since the pandemic buying frenzy topped out in April 2022. Worryingly, the index has ignored the rebound at the top end over the last three sessions. Lithium and battery metals have turned toxic for now. But things always turn when the outlook seems gloomiest, so hang in there. This, too, shall pass.


Outlook for the day: Positive following a rebound in iron ore and industrial metals, and a mixed night on Wall Street.

ASX futures: up 13 points or 0.17%


Overnight themes:

• US stocks finish mixed as corporate earnings drag the main indices in different directions.
• The Dow is dragged off record levels by earnings disappointments from 3M and Johnson & Johnson. A downbeat earnings outlook knocks 3M down 11.03%. Johnson & Johnson sheds 1.64% despite beating analysts' Q4 expectations.
• The S&P 500 edges to a third straight record close as traders reward trading updates from United Airlines, Procter & Gamble and Verizon. The Nasdaq also eases. Netflix gains 1.33% ahead of a trading update this morning. Tesla inches up 0.16% ahead of tonight's Q4 report.
• Analysts anticipate a slowdown in earnings growth this season as higher rates bite. Average S&P 500 earnings are expected to grow by 4.6%, compared to 7.4% growth the previous quarter. Some analysts expect further deterioration this year.
• "Earnings for all equity classes peaked and will move lower as the economy weakens and revenue growth stalls" - Wells Fargo senior global market strategist Sameer Samana (per Reuters).
• Aside from corporate earnings, the market also awaits economic growth data this week (Thursday) and the Federal Reserve's preferred inflation measure on Friday.
• Consumer staples, communication services and tech are the pick of the sectors, gaining between 0.45% and 1.08%. Market drags include real estate, consumer discretionary and industrial stocks.
• Iron ore, copper and other industrial metals rally after Chinese media report government plans to inject billions of dollars into its ailing stock market to arrest a slide and restore confidence. State-owned banks reportedly intervened in money markets on Monday to stem selling in the yuan after Beijing left benchmark lending rates on hold. Iron ore hits rises to its highest in more than a week in China.
• "The speculation about life support to the stock market is aiding sentiment. It's got the renminbi trading stronger and that's feeding through to some better price action" - Ole Hansen, head of commodity strategy at Saxo Bank (per Reuters).

Key events today:

• Flash manufacturing/non-manufacturing PMIs - 9 am AEDT
• US flash manufacturing/non-manufacturing PMIs - tonight

S&P 500: up 14 points or 0.29%

Dow: down 96 points or 0.25%

Nasdaq: up 66 points or 0.43%

Dollar: up 0.08% to 65.76 US cents

Iron ore (Dalian): up 1.42% to US$134.70

Brent crude: down 51 US cents or 0.64% to US$79.55

Gold: up US$3.60 or 0.2% to US$2,025.80

NYSE Arca Gold Bugs: up 2.4%

Bitcoin: down 1.83% to US$39,125

Copper (LME): up 0.89% to US$8,420

Nickel (LME): up 1.63% to US$16,260

Uranium (spot price): steady at US$108

Lithium carbonate (China spot): up 0.14% to US$13,404

Global X Lithium & Battery Tech ETF: up 0.27%

BHP: up 1.97% (US); up 1.97% (UK)

Rio Tinto: up 2.17% (US); up 2.31% (UK)