Day trading pre-market open July 16

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


Outlook for the day: Negative after inflation fears weighed on the Dow and S&P 500.

ASX futures: down 66 points or 0.77%


Overnight themes:

• US stocks closed mixed but mostly lower as mixed bank earnings and evidence of a resurgence in inflationary pressures dented buying interest.
• The S&P 500 swung from a record open to a loss of 0.4%. The Dow declined 436 points or 0.98% as tech gains were dwarfed by losses across the wider market. The Nasdaq Composite lifted 0.18% to a new high, thanks in large part to Nvidia.
• Stocks mostly fell and the US dollar and treasury yields rallied after June inflation data underscored fears that the White House's tariff hikes will increase consumer prices for Americans. Consumer prices increased 0.3% last month, accelerating from growth of 0.1% in May. Headline annual inflation rose to 2.7% from 2.4% the month before. Core inflation grew 0.2% for the month and 2.9% for the year, below expectations but not by enough to steady investor nerves.
• “The latest U.S. inflation report practically confirmed that President Trump’s tariffs acted to push up consumer prices in June,” Matthew Ryan, head of market strategy at global financial services firm Ebury, told CNBC. “While there was a mild miss in the core number, both the main and underlying inflation measures are now printing at their highest levels in four months. The big fear for Fed officials is that stormier waters lie ahead, as not only is there a time lag between the tariffs and an increase to prices, but additional tariff hikes on 1st August would almost certainly herald further inflationary pressures ahead.”
• "Today's report showed that tariffs are beginning to bite," Omair Sharif, head of Inflation Insights, told Reuters. "Apparel prices rose, household furnishing prices jumped ... and recreation commodities increased."
• The US dollar index climbed 0.58% to its highest in three weeks. The US 10-year treasury yield neared 4.5% for the first time in more than a month.
• A new quarterly reporting season got off to a downbeat start, with more misses than hits from last night's financial heavyweights. With the market mood, deteriorating as the session wore on, Wells Fargo lost 5.48%, BlackRock 5.88% and JPMorgan Chase 0.74%. Citigroup bucked the trend with a rise of 3.68%.
• Nvidia helped propel the Nasdaq to a record close. The chip-maker's shares popped 4.04% after the government cleared the way for it to resume sales of its key H20 AI chip to China. The news lifted other chip-makers, including AMD and Super Micro Computer.
• Ten of eleven S&P sectors declined. Hardest hit were materials -2.11%, health -1.88% and financials -1.65%. Tech was the outlier, rising 1.27%.
• Strength in the greenback and rising treasury yields dented appetite for alternative stores of wealth, including gold and silver. US gold futures settled US$22.40 or 0.7% lower at US$3,336.70 an ounce. Spot gold was lately down US$22.94 or 0.69% to US$3,319.86. Spot silver declined 43 US cents or 1.14% to US$37.69 an ounce.
• Stronger-than-expected China factory production last month helped iron ore and copper edge higher. Benchmark iron ore on the Dalian Commodity Exchange swung out of the red to a gain of 0.13% at US$106.91 per metric ton after a report yesterday morning showed Chinese industrial output expanded 6.8% last month, accelerating from growth of 5.8% in May. On the London Metal Exchange, benchmark copper firmed 0.4% to US$9,657.50 a metric ton. US copper futures dropped 0.6% on Comex to US$5.517 per pound.

Key events today:

• US wholesale inflation (PPI) - tonight

S&P 500: down 25 points or 0.4%

Dow: down 436 points or 0.98%

Nasdaq: up 37 points or 0.18%

VIX: up 1.05% to 17.38

US 10-year treasury yield: up 5 points to 4.488%

Dollar: down 0.4% to 65.17 US cents

Iron ore (Dalian): up 0.13% to US$106.91

Brent crude: down 50 US cents or 0.72% to US$68.71

Gold (futures): down US$22.40 or 0.7% to US$3,336.70

Gold (spot): down US$22.94 or 0.69% to US$3,319.86

Silver (spot): down 43 US cents or 1.14% to US$37.69

Palladium (spot): down US$3 or 0.24% to US$1,240.50

Antimony (China ore): down 0.08% to US$19,815

NYSE Arca Gold Bugs: down 1.36%

Bitcoin: down 2.99% to US$116,561

Copper (LME): up 0.4% to US$9,657.50

Nickel (LME): up 1% to US$15,215

Lithium carbonate (China spot battery grade): up 0.31% to 7,987 yuan

Global X Lithium & Battery Tech ETF: down 1.5%

Uranium (spot): steady at US$72

Global X Uranium ETF (URA): up 0.54%

BHP: down 2.99% (US); down 2.42% (UK)

Rio Tinto: down 2.26% (US); down 1.81% (UK)