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A sloppy rally.. that's one way of putting it.

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Gunslinger27

5,742 Posts.

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03/01/24

08:15

Post #: 71702492
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Originally posted by highlandlad: ↑

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

Outlook for the day: Negative after Wall Street starts 2024 in retreat. The ASX 200 ended yesterday just 1.1 points from an all-time closing high.

ASX futures: down 77 points or 1.01%

Overnight themes:
US stocks start the year mostly lower as investors take some profits from last year's bull run, treasury yields rebound and a broker downgrade for index heavyweight Apple weighs on the tech sector.
The Nasdaq suffers its heaviest fall since October. The S&P 500 also declines. A late, late bounce lifts the Dow back into positive territory.
Stocks struggle as the US 10-year treasury yield touches a two-week high. The 10-year rises to 3.977% before paring its advance to 3.94%, a gain of almost six basis points. Rising yields reflect moderating expectations for official rates this year. The odds on a rate cut in March have drifted below 70% from nearer 75%, according to CME's FedWatch tool.
A sharply-divided market sees gains in energy and mostly defensive sectors outweighed by sharp falls in rate-sensitive growth stocks. The tech sector slumps 2.58%. Health, utilities, energy and consumer staples all rally more than 1.1%.
Apple drops 3.58% after Barclays lowers its rating to "Underweight", citing underwhelming iPhone demand. The rest of the so-called 'Magnificent 7' tech stocks (Microsoft, Nvidia, Amazon, Tesla, Alphabet and Meta) also decline.
The Dow is cushioned by gains in defensive stocks, including Merck, UnitedHealth and Walgreens.
The major indices were coming off nine straight weeks of gains that lifted the Dow to an all-time high and the S&P 500 to within 0.2% of a record.
"What we saw in December was kind of a sloppy rally where people seem to be wanting to things on their books maybe or cover shorts. That rally lasted a little bit too long" - Joe Saluzzi, co-manager of trading at Themis Trading (per Reuters).
Crypto stocks buck the downtrend as Bitcoin hits US$45,500 a coin for the first time since April 2022. The crypto rally comes amid speculation the US regulator will approve a Bitcoin ETF (exchange-traded fund).
Iron ore surges to a 28-month high in China after December factory activity expands faster than expected. The Caixin/S&P Global China manufacturing purchasing managers' index inches up to 50.8 from 50.7 in November, beating the consensus forecast of 50.4. Buyers are also encouraged by a pledge from President Xi Jinping on Sunday that China will "consolidate and enhance the positive trend of economic recovery". China-traded ore jumps 2.93% to the highest since August 2021. Singapore ore touches an 18-month high.
Oil falls despite escalating tensions in the Red Sea, a major shipping route. Prices briefly rally, then fade after Iran sends a warship to the area. The cargo has been plagued by Houthi rebel attacks on shipping. Brent crude trades as high as US$79.06 a barrel before rolling over to a loss of 1.49% at US$75.89.

Key events today:
US job openings, manufacturing PMI - tonight
Minutes from last month's Federal Reserve policy meeting - tonight

S&P 500: down 27 points or 0.57%

Dow: up 26 points or 0.07%

Nasdaq: down 245 points or 1.63%

Dollar: down 0.71% to 67.59 US cents

Iron ore (Dalian): up 2.93% to US$140.58

Brent crude: down US$1.15 or 1.49% to US$75.89

Gold: up US$1.60 or 0.1% to US$2,073.40

NYSE Arca Gold Bugs: down 1.54%

Bitcoin: up 2.66% to US$44,759

Copper (LME): down 0.31% to US$8,532.50

Nickel (LME): down 0.24% to US$16,580

Uranium: steady at US$93

Lithium carbonate (China spot): down 2.76% to US$13,614.45

Global X Lithium & Battery Tech ETF: down 1.26%

BHP: down 0.56% (US); up 0.39% (UK)

Rio Tinto: down 0.27% (US); up 0.84% (UK)

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A sloppy rally.. that's one way of putting it.
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