daytrading jan 15 pre-market

Morning traders.

Market wrap:

Shares face a flat start following a mixed night on Wall Street as the first rounds were fired in Washington's next budget battle and market heavyweight Apple sagged on demand worries.

The March SPI 200 futures contract ended the night session one point or less than 0.1% stronger at 4690 as the recent consolidation on the XJO continued.

The benchmark stock indexes pared early losses despite a 3.6% tumble in Apple, the world's most valuable company by market capitalisation, following reports of cutbacks in production of the latest iPhone. The S&P 500 dipped 0.07% amid caution as early fourth-quarter corporate reports continued to be marred by weak earnings outlooks. The Dow, which does not count Apple as a component, rallied 19 points or 0.14%, while the Nasdaq lost 0.24%.

Shares in Apple retreated after reports that the iPhone maker has cut orders for parts for the latest model because demand has not met expectations. Read more here.

"Apple is the story for the market," the chief investment strategist at Wells Capital Management in the US told Bloomberg. "It brings fear that if Apple's doing something, the other companies and industries would be doing the same. That makes it even more important for investors to watch corporate guidance or CEOs' expectations."

The early profit reports have been coming in roughly in line with previous earnings seasons, with around 80% of companies meeting or exceeding profit expectations. However, analysts have been troubled by weak earnings guidance from many of the 27 S&P 500 companies that have reported so far.

Also weighing on market sentiment was an early exchange of fire between politicians ahead of next month's budget clash. President Obama urged Republicans not to tie the US debt ceiling to the debate over spending cuts, at the same time as Republican congressional leaders declared their intention to use the issue to force through substantial reductions in government spending.

European markets were held back by a 0.3% fall in industrial production across the euro-zone in November. Germany's DAX edged up 0.05%, France's CAC put on 0.19% and Britain's FTSE lost 0.22%.

Oil rallied towards a four-month high as an on-going rebound in the euro continued to help US dollar-denominated commodities. West Texas crude for February delivery was lately up 64 cents or 0.7% at US$94.22 a barrel.

Gold advanced ahead of a speech this morning by Federal Reserve chairman Ben Bernanke, which is expected to clarify the central bank's monetary policy. Gold for February delivery was recently up $7.20 or 0.4% at US$1,667.20 an ounce.

"There have been more hawkish noises coming from certain Federal Open Market Committee members of late, and any signs that suggest the [US] recovery is on track or that inflation risks are heating up would lend weight to their calls for an earlier end to accommodative policies," the chief economist at BullionVault told MarketWatch.

Most industrial metals lost ground as last week's disappointing Chinese copper import figures continued to weigh on demand. US copper for March delivery was recently off about one cent or 0.3% at US$3.64 a pound. In London, copper lost 0.5%, aluminium 2.1%, lead 0.4%, nickel 1.4% and zinc 0.8%. Tin added 0.4%.

TRADING THEMES TODAY

CONSOLIDATION CONTINUES: The XJO has gone nowhere since the "fiscal cliff" surge that launched the year, but anyone hoping for a genuine pullback to reload has been disappointed. The market appears happy to bob around these levels until something changes. Unfortunately, unless the US Q4 earnings season heats up, the next impetus is likely to be the budget battle in Washington looming next month. Politicians from both sides offered a reminder overnight that they are no nearer agreement on the debt ceiling or spending cuts. Some reports suggested Republicans are even considering forcing a default. Oh dear. But all that is further down the track. Keep an eye on the reaction in US futures to Fed chairman Bernanke's speech, which was due to commence at the close of regular trade on Wall Street this morning. Our other major lead, the Shanghai Composite, surged 3.08% yesterday and that should help ensure the speccy end of our market continues to run hot.

ECONOMIC NEWS: No significant domestic news scheduled today. Europe has trade and inflation figures out tonight. The US will be reacting to Ben Bernanke's speech this morning, plus tonight's retail sales/core retail sales report, consumer price inflation/core CPI, business inventories and Empire State manufacturing index.

Good luck to all.