Morning traders, or at least those who aren't enjoying a long weekend. Thanks loungers, especially @Ravgnome.
Outlook for the day: Negative ahead of what could be a low-volume session due to public holidays in Victoria, SA, Tasmania and the ACT.
ASX futures: down 47 points or 0.6%
Friday themes:
- US stocks decline as AI leader Nvidia's golden run ends with a sharp reversal and traders digest a mixed February employment report.
- The S&P 500 and Nasdaq set new highs early in the session before chip-makers start to reverse.
- Enthusiasm for high-flying chip-makers is dented by an underwhelming full-year forecast from Broadcom and a Q1 miss from Marvell Technology. After six straight advances, Nvidia swings from a 5%+ gain to a loss of 5.55%, its worst performance since last May. The Philadelphia Semiconductor Index slumps 4.03%.
- “It doesn’t mean that the longer-term upside potential [for Nvidia] is over. It just says that maybe we’ve gotten ahead of ourselves: We’ve gotten to an overbought situation, and it’s time to take some profits” - Sam Stovall, chief investment strategist at CFRA Research (per CNBC).
- February jobs data offers something for both bulls and bears. The unemployment rate climbs to 3.9% from 3.7% in January despite a larger-than-expected increase in employment. Non-farm payrolls increase by 275,000, smashing expectations for a gain of around 200,000. However, January jobs figures are revised downward and wage growth is weaker than expected.
- Rate-sensitive real estate and utilities rally and bond yields tick lower, both signs that investors think the jobs data bolsters the case for rate cuts. The real estate sector gains 1.13% in a falling market. Energy puts on 0.39%, utilities 0.21% and financials 0.19%.
- The biggest drags are tech -1.84%, consumer staples -0.83% and materials -0.56%.
- Friday's losses seal a negative week for the major indices. The S&P 500 gave up 0.26% for the week. The Dow lost 0.93%. The Nasdaq shed 1.17%.
- Apple was the biggest drag on the market last week, losing almost 5% despite a 1.02% bounce on Friday that ended a run of seven straight losing sessions.
- Gold finishes a strong week at a fresh high as traders bet that a rise in US unemployment will push policymakers towards rate cuts. The yellow metal climbs 0.9% to US$2,185.50 an ounce, extending its gain for the week to 4.3%.
- ASX heavyweights BHP and Rio Tinto retreat in overseas trade with iron ore prices after port inventories at Chinese ports increase 2% for the week. Hot metal production contracts for a third week. Both measures imply softening demand, according to analysts.
Key events this week:
- Public holiday in Victoria, SA, Tasmania and the ACT - today
- February business confidence - Tuesday
- US February consumer inflation (CPI) - Tuesday
- US February producer inflation (PPI), retail sales - Wednesday
- China February new home prices - Friday
- US March consumer sentiment - Friday
S&P 500: down 34 points or 0.65%
Dow: down 69 points or 0.18%
Nasdaq: down 188 points or 1.16%
Dollar: down 0.25% to 66.26 US cents
Iron ore (Dalian): down 1.22% to US$122
Brent crude: down 88 US cents or 1.1% to US$82.08
Gold: up US$20.30 or 0.9% to US$2,185.50
NYSE Arca Gold Bugs: down 0.13%
Bitcoin: up 1.52% to US$69,553
Copper (LME): down % to US$8,579.50
Nickel (LME): up 0.11% to US$18,010
Uranium (spot price): up 0.22% to US$94
Lithium carbonate (China spot): up 0.44% to US$15,126
Global X Lithium & Battery Tech ETF: down 1.3%
BHP: down 0.9% (US); down 1.71% (UK)
Rio Tinto: down 1.54% (US); down 2.13% (UK)
Day trading pre-market open March 11
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