Morning traders. Thanks loungers, especially @Ravgnome and @Patterns.
Outlook for the day: Positive after the Dow extends its longest win streak in six years, oil hits a three-month high and base metals rebound.
ASX futures: up 41 points or 0.56%
Overnight themes:
- The Dow rises for an 11th session, its longest run of gains since February 2017.
- The S&P 500 and Nasdaq also rally ahead of a Federal Reserve rates decision, inflation data and trading updates this week from Microsoft, Alphabet and Meta.
- Upbeat earnings lift Dow component Chevron 1.97%. Goldman Sachs and JPMorgan Chase also gain nearly 2% following last week's quarterlies.
- The Dow has narrowed the performance gap on the high-flying Nasdaq in recent weeks.
- "What you're seeing now is people broadening the breadth of the market. People are starting to maybe take some profits (in tech) and invest in other parts of the markets that they might see a little bit better bargain" - Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.
- The market shrugs off a report showing business activity slowed to a five-month low this month. Investors welcome evidence of declining input prices and slower hiring.
- The energy sector jumps 1.66% after oil settles at a three-month high. The US summer driving season lifts demand expectations.
- “The unquenched thirst for summer oil created a snowball effect that has led to a multi-week rally” - Manish Raj, managing director at Velandera Energy Partners.
- Other sectors to book gains include financials (+1.01%), real estate (+0.99%) and consumer discretionary (+0.52%). Utilities and health retreat.
Key events today:
- US consumer confidence - tonight
S&P 500: up 18 points or 0.4%
Dow: up 184 points or 0.52% (11th straight rise)
Nasdaq: up 26 points or 0.19%
Dollar: up 0.22% to 67.4 US cents
Iron ore (Dalian): up 0.06% to US$117.30
Brent crude: up US$1.67 or 2.2% to US$82.74 (3-month high)
Gold: down US$4.40 or 0.2% to US$1,962.20
NYSE Arca Gold Bugs: down 0.2%
Copper (LME): up 0.87% to US$8,525.50
Nickel (LME): up 2.98% to US$21,420
Global X Lithium & Battery Tech ETF: up 0.02%
BHP: up 1.23% (US); up 1.94% (UK)
Rio Tinto: up 0.83% (US); up 0.72% (UK)
