daytrading jan 19 pre-market

Morning traders.

Market wrap:

Stocks are primed to open near a six-week peak after upbeat earnings and renewed hopes for a Greek debt deal pushed Wall Street to its highest level since July.

The March SPI 200 futures contract ended the night session 30 points or 0.7% stronger at 4222 as the big Australian miners rallied in US trade, gold commanded its best price in five weeks and most industrial metals improved.

US stocks were boosted by a well-received earnings report from Goldman Sachs, which broke a recent run of disappointments from the financial sector. The result helped drive the S&P 500 up 1.11% to 1,308, its first close above 1,300 in more than six months. The Dow put on 97 points or 0.78% and strength in tech stocks carried the Nasdaq 1.53% higher.

Shares in Goldman jumped more than 7% and boosted the financial sector after a soft start to the fourth-quarter earnings season in the US. This season has so far delivered fewer "positive surprises" than any in the last four years, according to Bloomberg.

US investors were also cheered by a fourth straight monthly improvement in confidence among house-builders, a rebound in industrial production and reports that a Greek debt deal is imminent and the International Monetary Fund is set to increase its lending capacity by US$500 billion.

"Investors are weighing a combination of some reasonable economic data, and data we saw from overseas looked okay, so no bad European news," the chief investment strategist at Davidson Cos in the US told MarketWatch. "We're still in a wait-and-see mode to see what the bulk of earnings look like."

European markets ended mixed as enthusiasm for the IMF announcement wore off and the Greek government returned to the negotiating table with private lenders. The Greek FTSE/ATHEX 20 index jumped 2.8%, Britain's FTSE added 0.15%, Germany's DAX gained 0.34% and France's CAC lost 0.15%.

Metals mostly improved as the US dollar weakened. Gold hit a five-week high after signs of creeping inflation in last night's US producer price index. Gold for February delivery was recently up $6.40 or 0.4% at US$1,662.40 an ounce.

The big Australian miners rallied in the US as industrial metals continued to benefit from confirmation this week that the Chinese economy is still pumping along, even if growth is moderating. Rio Tinto put on 2.7%, BHP 2.6% and Alumina 0.8%. In London, copper rallied 0.7%, lead 1.4%, nickel 0.2%, tin 0.25% and zinc 0.4%. Aluminium fell 0.6%. US copper was recently up 0.9%.

Oil inched higher despite reports that the US will reject a Canadian plan to build a pipeline from the Gulf of Mexico to the Canadian border. Crude for February delivery was lately ahead 15 cents or 0.15% at US$100.86 a barrel.

TRADING THEMES TODAY

NEW YEAR RALLY CONTINUES: Another bullish session overseas, with the threat of a Greek default momentarily receding and a positive surprise in what has so far been a disappointing US Q4 earnings season. The XJO is breaking clear of its recent trading range and may soon be threatening the 4300/4350 level that has proved a ceiling since August. There was strength across the sectors in the US, with financials and tech stocks among the picks. The US index of small caps rallied 1.6%, implying risk appetite is robust. All the signs remain positive.

JOBS: The monthly jobs report is due today at 11.30 am AEST. Two out of the last four reports have surprised to the downside with a net loss of employment, helping to push the unemployment rate up from 4.9% to 5.3% over the last few months. Analysts expect today's data to show the jobless rate steady at 5.3% and jobs growth of around 10,200 positions.

ECONOMIC NEWS: Inflation expectations are due at 11 am AEST, followed by employment change figures and the unemployment rate at 11.30 am. The Conference Board's leading index for China is due at 1 pm. Another heavy schedule tonight in the US includes weekly jobless claims, consumer price index, core CPI, building permits, Philly Fed manufacturing index, housing starts, crude oil inventories and natural gas storage.

Good luck to all.