daytrading april 4 pre-market

Morning traders. Thanks Trees.

Market wrap:

Shares are likely to open little changed after disappointing economic data and renewed selling in momentum stocks ended Wall Street's four-session win streak.

The June SPI 200 futures contract eased six points or 0.1% to 5404 as US stocks backed off record levels ahead of tonight's closely-watched monthly government jobs report.

The S&P 500 pushed briefly to new highs in early trade before ending a choppy session mildly lower, off two points or 0.1%. The Nasdaq was once again the focal point of the selling, sliding 38 points or 0.9% as tech stocks and biotechs surrendered most of their recovery-gains for the week. The Dow was the best of the major indexes, closing dead flat as some of the money leaving momentum stocks found its way into blue chips.

The Nasdaq Biotechnology Index shed 2.71%, with all but five of the 121 stocks in the measure down in late trade, according to Bloomberg. Out-of-favour former market darlings Facebook, Twitter and Tesla also fell heavily. The Russell 2000 index of small caps fell 0.98%.

"Momentum names are usually the ones that take the quickest hit when investors get anxious or worried, in this case, a bit of hesitancy ahead of [tonight's] payrolls," Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research in the US, told Reuters.

The night's economic news included an increase in weekly jobless claims, a widening trade deficit and a smaller-than-expected increase in services activity. First-time jobless claims rose by 16,000 to a seasonally adjusted 326,000 last week, more than economists predicted. The trade gap blew out by 7.7% in February to a seasonally-adjusted US$42.3 billion, a five-month high, from a revised US$39.3 billion. The Institute for Supply Management's non-manufacturing index improved to 53.1% last month from 51.6% in February. Economists had predicted a March reading of 53.3%.

Rio Tinto lost 2% in US trade and BHP 0.34% after spot iron ore for import to China yesterday edged up 20 cents to US$115.50 a dry tonne.

Aluminium reached a four-month high on speculation that recent production cutbacks by major producers may push the market from over-supply into deficit. In London, aluminium advanced 0.3% to its highest level since early November, nickel added 0.7%, tin 1.3% and zinc 0.6%. Copper fell 0.5% amid disappointment over a modest Chinese stimulus plan announced this week. Lead lost 0.2%. US copper for May delivery was recently off 0.5% or nearly two cents at US$3.03 a pound.

Oil regained the US$100 a barrel level, rising for the first time in four sessions as traders focussed on the increase in US services activity. West Texas Intermediate crude for May delivery was lately up 72 cents or 0.7% at US$101.33 a barrel after settling at US$99.93.

Gold was pressured by a rising US dollar after the European Central Bank dashed hopes for further easing measures. Gold for June delivery was recently down $4.20 or 0.3% at US$1,282.20 an ounce after settling at US$1,284.60.

European stocks overcame disappointment at ECB policy inaction, gaining for an eighth night as ECB President Mario Draghi talked up a range of possible measures to combat low inflation. The Stoxx Europe 600 index edged up 0.09% as Germany's DAX gained 0.06%, France's CAC added a more robust 0.41% and Britain's FTSE dipped 0.15%.

TRADING THEMES TODAY

STEADY EDDIE: For all the volatility and record highs and economic disappointments, last night's trade didn't add up to much change on the NYSE. Wall Street reran last week's trading theme: a rotation from momentum stocks (biotechs, techs, small caps) to stolid old value stocks (Dow). That suggests a bit of bet-hedging - not a huge surprise with the market sitting at record levels and some uncertainty over the strength of the economy. CZI injected some excitement into the Australian spec market yesterday but there was no obvious follow-through elsewhere in the sector. Let's hope it ignites another of the spec market's periodic and unpredictable bull runs.

ECONOMIC NEWS: No significant domestic news scheduled today. Europe releases German factory orders, but tonight's main event is the monthly non-farm employment change report and unemployment rate in the US. Also tonight in the US: average hourly earnings.

Good luck to all.