Day trading pre-market open October 18

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


Outlook for the day: Positive as on-going rebounds in iron ore and the dollar help offset a mixed close on Wall Street.

ASX futures: up 20 points or 0.28%


Overnight themes:

• Rising treasury yields cap buying interest in US stocks after stronger-than-expected retail sales data adds to worries that rates will stay high for longer. Wall Street's main indices finish mixed as an afternoon rally fades.
• Retail sales increase 0.7% last month as Americans buy cars and eat out, defying expectations for weaker growth as consumer confidence softens. The increase in sales is more than twice what economists predicted.
• The dollar and treasury yields rally after the retail sales report as investors factor in stronger economic growth in the third quarter. Goldman Sachs hikes its GDP forecast.
• The 2-year US treasury yield reaches 5.2%, its highest since 2006. The 10-year yield hits 4.8%. Higher yields dent buying interest in stocks because of the improved returns offered by risk-free government bonds.
• “It’s more the bond market driving the stock market at this point. You’re seeing the trend that we’ve seen for the last two months reassert itself” - Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance.
• Chip stocks weigh after the White House announces plans to tighten a ban on the export of AI chips to China. Nvidia declines 4.68%.
• Bank of America and Bank of New York Mellon rise on trading updates. Goldman Sachs falls.
• Resource stocks and banks outperform. The materials sector gains 1.01%, energy 0.98% and financials 0.55%. Tech and real estate are the biggest drags, falling 0.77% and 0.54%, respectively.
• Iron ore adds to Monday's gains as customs data shows Chinese imports reach record levels over the first nine months of the year. Demand for steel is also on the rise, with transaction volumes of construction steel products the highest this week since May.

Key events today:

• New RBA Governor Michele Bullock participates in a "fireside chat" about the economy at a Sydney summit - 9.35 am AEDT
• China industrial production, retail sales - 1 pm
• US housing data - tonight

S&P 500: down less than a point or 0.01%

Dow: up 13 points or 0.04%

Nasdaq: down 34 points or 0.25%

Dollar: up 0.44% to 63.65 US cents

Iron ore (Dalian): up 2.12 % to US$118.42

Brent crude: up 25 US cents or 0.28% to US$89.90

Gold: up US$1.40 or 0.1% to US$1,935.70

NYSE Arca Gold Bugs: up 1.99%

Copper (LME): down 0.19% to US$7,961

Nickel (LME): up 0.27% to US$18,625

Lithium carbonate (China spot): steady at US$24,096

Global X Lithium & Battery Tech ETF: up 0.68%

BHP: up 1% (US); up 0.04% (UK)

Rio Tinto: up 0.36% (US); down 0.02% (UK)