Market wrap: Stocks look set to tread water today after Wall St and commodity markets finished mixed.
U.S. stocks hit new highs early in the session overnight but closed flat as caution crept in ahead of a heavy week of economic data. The Dow advanced 3 points or 0.03% for its fifth straight gain, the S&P 500 retreated 1 point or 0.06% and the Nasdaq lost 0.14%. Major European markets were around 1% higher but closed before U.S. markets weakened.
Financials and consumer stocks were the main drag in the US ahead of tonight's consumer confidence figures. The S&P Bank Index slipped 2.5%. Also on the radar this week: new home sales data tomorrow night and reports on second quarter GDP, personal income and consumer spending on Friday.
Crude oil futures earlier hit a 10-month high of $74.81 but followed equities lower, recently trading at $74.02, a gain of 13 cents for the session. A strengthening US dollar knocked gold futures off a one-week high, sending the price down $13 or 1.3% to $940.60.
Lead was the big gainer on the London Metals Exchange after news that China has shut refineries on health worries. Lead jumped 8.7% to a 12-month high. Copper hit a new 2009 high, up 2.5%. Nickel, tin and zinc also rose in London, while aluminum was little changed.
Futures traders expect a little profit taking in our market at the open today. With 35 minutes left to trade, the SPI futures index was down 9 points at 4410.
TRADING THEMES TODAY
BREAKOUT TRADES: When the futures are negative I usually concentrate on setting alerts at support levels for potential bounce/reversal trades in retracing shares. However, there should be enough momentum from yesterday's big gains to drive many shares to new highs today. My favourite set-up is the third run at a resistance level - the third attempt has a high probability of breaking through, often with explosive results.
LEAD: News that China's Henan province has shut down 240,000 tonnes of annual lead smelting capacity on reports of lead poisoning sent the price of the metal flying to a 12-month high last night. Got to be trading prospects here but I don't know the local sector well enough to pick the beneficiaries. Ideas?
COMPANY REPORTS: Today is one of the heaviest days of the reporting season: AAX, ALL, AMM, AMU, AOE, APD, AXA, ASB, AWE, CER, CGF, CHC, CIF, CLH, CND, DKN, ENE, ETC, FGL, FAN, FLT, GFF, GJT, HLG, HST, IIF, KAM, MGR, MLB, MRZ, OSH, PBG, PDN, PFL, PRT, QRX, RCR, REA, RDF, SBM, DSI, SIV, SLX, SPT, SUN, SXE, VBA, VGH, VPG, WBB, WTF. (Sources: Egoli, BRR, Dan68 - thanks buddy.)
