Day trading pre-market open October 20

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


Outlook for the day: Negative after US stocks fall for a second night as a speech by Federal Reserve Chair Powell fails to arrest the relentless rise of treasury yields.

ASX futures: down 45 points or 0.64%


Overnight themes:

• US stocks fell after Tesla missed earnings expectations and the Federal Reserve said inflation was still too high, keeping further interest rate hikes on the table.
• Electric carmaker Tesla slumped 9.3% after Elon Musk "tempered expectations" for Cybertruck. Musk said it would take 18 months before the firm's "best product ever" made a significant contribution to earnings.
• Netflix soars 16.05% after adding nine million subscribers and flagging price increases.The yield on the closely-watched US 10-year treasury continued to push towards 5% after Fed Chair Jerome Powell said "inflation is still too high" and rates were not yet over-restrictive. “Does it feel like policy is too tight right now? I would have to say no,” he said during an address to the Economic Club of New York .
• The 10-year yield rose as high as 4.996% and was lately trading eight basis points ahead at 4.982%. The 10-year yield has not broken above 5% since 2007.
• "I don't think he's un-muddied the waters so much" - Michael James, managing director of equity trading at Wedbush Securities.
• The strength of labour demand is undermined by a fall in first-time claims for unemployment benefits to a nine-month low of 198,000.
• Ten of eleven sectors decline. Hit hardest are real estate -2.44%, consume discretionary -2.2% and financials -1.25%. Communication services gains 0.33%, thanks to Netflix.
• Iron ore resumes its advance after data earlier in the week shows China's economy grew more than expected last quarter.
• Gold adds to earlier gains following Powell's speech. The yellow metal adds US$8 in recent action after settling US$12.20 higher this morning.

Key events today:

• US Q3 earnings season continues tonight

S&P 500: down 37 points or 0.85%

Dow: down 251 points or 0.75%

Nasdaq: down 128 points or 0.96%

Dollar: flat at 63.33 US cents

Iron ore (Dalian): up 0.4% to US$118.49

Brent crude: up 88 US cents or 0.96% to US$92.38

Gold: up US$12.20 or 0.61% to US$1,980.50

NYSE Arca Gold Bugs: down 0.26%

Copper (LME): up 0.48% to US$8,010.50

Nickel (LME): down 0.48% to US$18,530

Lithium carbonate (China spot): steady at US$24,166

Global X Lithium & Battery Tech ETF: down 3.26%

BHP: down 1.08% (US); down 1.19% (UK)

Rio Tinto: down 0.84% (US); down 0.69% (UK)