Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Positive after month-end buying and surprise-free US inflation data helped fuel the Dow's best session of the year.
ASX futures: up 38 points or 0.49%
Friday/weekend themes:
US stocks kicked higher on Friday as a late buying surge helped put the icing on early gains after April inflation data defied the market's worst fears.
The Dow soared 1.51% to its best return of 2024, thanks in part to a 7.54% rebound in Salesforce. All but two of its 30 component companies advanced.
The S&P 500 gained 0.8% as the odds on a September rate cut crept towards evens.
The Nasdaq finished near flat as Nvidia, Amazon, Atlassian and Netflix sat out the rally.
Buyers were encouraged by news that a measure of inflation, the personal consumption expenditures price index, increased by 0.3% in April, in line with expectations. Core prices increased 0.2%, also as expected. While the data continued a run of "sticky" inflation reports that has continued for most of this year, investors were relieved the figures were not worse.
"People were pleased that it wasn't hotly surprising but also underneath the surface, the consumer continues to show a little bit of strain" - Carol Schleif, chief investment officer at the BMO family office (per Reuters).
In the wake of the report, market pricing on September and December rate cuts was finely balanced around 50:50.
Ten of eleven sectors rose, led by energy +2.49% and the rate-sensitive real estate (+1.86%) and utilities (+1.67%) sectors. The materials and financial sectos both gained more than 1%. Tech was the only laggard, finishing near flat.
Despite Friday's gains, the major benchmarks finished lower for the week. The S&P 500 and Nasdaq Composite ended five-week winning runs with losses of 0.51% and 1.1%, respectively. The Dow recorded a second straight losing week with a decline of 0.98%.
An unexpected contraction in Chinese factory activity helped drag iron ore lower at the end of a challenging week. Benchmark prices in China eased 1.7% after the official manufacturing purchasing managers index dropped to 49.5 last month from 50.4 in April. Readings below 50 indicate shrinking activity.
Oil fell on Friday, but may draw support this week from weekend news that the OPEC+ cartel extended voluntary production cuts to the end of next year. The caps were introduced last November in a bid to support prices. Brent crude settled 0.29% lower on Friday at US$81.62 a barrel.
A busy week ahead on the economic calendar includes domestic GDP data (Wednesday) and several US employment measures. Tax-loss selling could be an increasing factor as we enter the last month of the financial year.
Key events this week:
May job ads - 11.30 am AEST
China manufacturing PMI - 11.45 am
US manufacturing PMI - tonight
Company operating profits - Tuesday
Current account - Tuesday
US job openings - Tuesday
Q1 GDP - Wednesday
US private payrolls - Wednesday
US services PMI - Wednesday
Trade balance - Thursday
European Central Bank rates decision - Thursday (cut expected)
"Fireside chat" with RBA Deputy Governor Guy Hauser - Friday
US May jobs report - Friday
S&P 500: up 42 points or 0.8%
Dow: up 575 points or 1.51%
Nasdaq: down 2 points or 0.01%
Dollar: down 0.1% to 66.53 US cents
Iron ore (Dalian): down 1.7% to US$121.71
Brent crude: down 24 US cents or 0.29% to US$81.62
Natural gas (US futures): up 0.27% to US$2.58
Gold: down US$20.70 or 0.89% to US$2,345.80
Silver: down 77 US cents or 2.47% to US$30.41
NYSE Arca Gold Bugs: down 0.67%
Bitcoin: up 0.04% to US$67,722
Copper (LME): down 0.94% to US$10,040
Nickel (LME): down 1.76% to US$19,710
Uranium (spot price): down 1.12% to US$90
Lithium carbonate (China spot): up 0.05% to US$14,614
