daytrading dec 23 pre-market

Morning die-hards. Thanks Trees.

Market wrap:

A holiday-shortened week should open on a positive note after an acceleration in the US economy pushed US stocks to record levels on Friday.

The March SPI 200 futures contract rallied 11 points or 0.2% to 5236 as BHP, Rio Tinto and metal prices were boosted by news that US GDP increased at its fastest pace in two years last quarter.

The S&P 500 crowned its best week since October with a gain of eight points or 0.46% for an all-time closing high of 1,818. The Dow also breached record levels before paring its tally to 42 points or 0.26% during a 'quadruple witching' session. The Nasdaq added 1.15%

"If there are any doubts that the Fed made the right decision on Wednesday to begin tapering, let them be laid to rest," Douglas Coté, chief market strategist at ING US Investment Management, told MarketWatch. "The final reading for third quarter US GDP came in much better than expected at 4.1% growth, revised up from 3.6%... The economy is strong enough to stand on its own two feet, and we are winding down 2013 in better shape than when we began."

The S&P 500 reversed back-to-back weekly losses with a rise of 2.4% last week, moving into positive territory for the month. The Dow put on 3% over the week, its best return since September.

Small caps were among the standouts. The Russell 2000 index surged 1.87% on Friday. Tech and utility stocks were the pick of the S&P 500 sectors as nine out of ten industry groups advanced.

BHP advanced 1.46% in US trade and Rio Tinto put on 0.26%. Spot iron ore for import to China

Gold edged back above US$1,200 an ounce but ended the week 2.5% lower than where it started. Gold for February delivery recouped $9.20 or 0.8% on Friday at US$1,202.80 an ounce.

Base metals also pared Thursday's "taper" losses after the Federal Reserve announced it will start its stimulus spending next month. US copper for March delivery rose around a cent or 0.3% to US$3.31 a pound. In London, copper bounced 0.5%, aluminium 0.65%, lead 1.9%, nickel 1.6%, tin 0.4% and zinc 2.5%.

"Metals reacted negatively... to news of the Fed tapering," BNP Paribas strategist Stephen Briggs told Reuters. "But when you look around... wider financial markets have taken it in their stride really, and so perhaps market thinking this morning [is] the reaction was a bit overdone."

Oil held above US$99 a barrel for a weekly gain shy of 3%. West Texas Intermediate crude for February delivery rose six cents or 0.1% to US$99.10 a barrel.

Europe's benchmark index wrapped up its best week since April with further gains on Friday as upbeat monthly consumer confidence figures in Germany offset a third decline in the UK. The Stoxx Europe 600 index rallied 0.53% for a weekly gain of 3.7% as Germany's DAX added 0.69%, France's CAC 0.41% and Britain's FTSE 0.34%.

TRADING THEMES THIS WEEK

HOLIDAY-SHORTENED WEEK: The Christmas holiday trading week on the ASX looks like this:
Today: normal operating hours.
Tuesday: Early close 2.10pm EST (including auction)
Wednesday: Closed.
Thursday: Closed.
Friday: normal operating hours.
More information about settlements here.

SANTA RALLY: Ho-ho-ho. It was late reaching Australia this year, but the traditional holiday rally got underway on Thursday and - barring black swans and allowing for the usual setbacks - appears likely to continue through to the new year. A possible dampener on our market tomorrow is the fact Wall Street trades on Boxing Day, however, the current market mood is so buoyant that any impact should be muted. Economic newsflow will be slow, leaving traders and investors to invent their own reality in which every stock has a bright, shining future and we all live happily ever after as millionaires. Enjoy while it lasts.

HOUSEKEEPING: Endless may not be around this week (he has probably done enough this year to earn a break). If he doesn't post the usual morning thread we can let this one run through to lunchtime. Posting volumes drop off at this time of year, reducing the need for multiple threads. Best of the season to anyone who does not expect to look in here again until after the holidays.

ECONOMIC NEWS: There is no significant domestic news scheduled for release this week. The highlights of a predictably light week in the US include: personal spending and income, revised consumer sentiment (tonight); durable goods/core durable goods, new home sales (Wed); and weekly jobless claims (Thu).

Good luck to all.