daytrading jan 23 pre-market

Morning traders.

Market wrap:

Shares are aiming higher after another round of solid earnings reports helped US stocks extend last week's five-year highs.

The March SPI 200 futures contract ended the night session 11 points or more than 0.2% ahead at 4753 as oil and metals benefitted from a soft US dollar and the Bank of Japan's new asset-buying program announced yesterday.

The S&P 500 shook off a soft start to advance 0.47% as most companies continued to hurdle low quarterly earnings expectations. The Dow advanced 62 points or 0.46% and the Nasdaq put on 0.26%.

"Earnings aren't growing very much overall, but expectations are so low that I don't think earnings are going to hurt the market much," the chief investment strategist at Robert W Baird told MarketWatch. "The glaring potential problem is sentiment; it's hard to find anyone who believes the market is not going up now, which is always some cause for concern, at least in the short term."

Resource stocks led the sector gains after Freeport-McMoRan's copper sales exceeded expectations. BHP put on 1.39% and Rio Tinto added 1.16%. Other stand-outs reporting overnight included insurer and Dow component Travelers and chemical market DuPont. The Dow Jones Transportation Average, a traditional measure of risk appetite, was also notably strong, rising 1.1%.

Technology was the worst of the S&P 500 sectors ahead of Apple's earnings report tonight. Commentators said recent weakness in Apple's share price and a weak outlook from Intel have harmed sentiment towards the sector.

Also weighing on market sentiment was disappointing housing news: sales of existing homes declined 1% last month. There were also further signs of deterioration in manufacturing conditions: the Richmond index of manufacturing activity slumped to -12 this month from 5 in December. More positively, the House of Representatives is expected to vote tonight to lift the US government debt ceiling for three months, giving politicians breathing space to negotiate spending cuts postponed from the end of last year.

Commodities benefitted from the promise of additional liquidity entering world markets after the Bank of Japan yesterday announced a US Federal Reserve-style open-ended stimulus program. The bank raised its inflation target to 2% from 1% and vowed to pursue "aggressive monetary easing". However, there was some disappointment that the bank's "open-ended" buying will not start until its current stimulus program runs out at the end of this year.

Oil settled above US$96 a barrel for the first time since mid-September. West Texas crude for February delivery was up 66 cents or 0.7% at US$96.15 a barrel.

Copper pushed to its highest level in a week as industrial metals were well supported. US copper for March delivery was recently up four cents or 1.1% at US$3.70 a pound. In London, copper added 0.9%, aluminium 1.4%, lead 1.3%, nickel 0.3% and zinc 1.4%. Tin eased 1.2%.

"The main driver today is the announcement out of Japan," a T-Commodity metals consultant told Reuters. "In the medium and the long term it represents a bullish driver for base metals, because the Bank of Japan and the Federal Reserve are two of the main central banks which will continue to inject a lot of liquidity into the financial markets."

Precious metals, traditional havens in time of rising inflation, were helped by the change of direction in Japan. Silver for March delivery advanced 32 cents or 1.2% to US$32.20 an ounce. Gold for February delivery pared initial gains to trade virtually unchanged, down 10 cents or less than 0.1% at US$1,690.70 an ounce.

European markets retreated as minor disappointment over the start date for Japan's new stimulus policy overshadowed an unexpected rebound in German economic sentiment. Germany's DAX dropped 0.68%, France's CAC 0.59% and Britain's FTSE 0.03%.

TRADING THEMES TODAY

ONWARDS AND UPWARDS: The stars continue to align for global shares with the US likely to push back a damaging political row until later in the year, sentiment in Europe on the mend, the Chinese economy gathering pace and Japan finally rising from its torpor. Wall Street extended five-year highs overnight and commodity markets cheered the prospect of Japan firing up the printing presses. Markets in general look overbought, but they've been looking that way for weeks and there is no obvious catalyst on the horizon for a pullback. As for today, quarterly domestic inflation figures, due at 11.30am EST, may have an impact. In broad terms, weak inflation is generally positive for shares because it allows the Reserve Bank to stimulate the economy. US after-market earnings released this morning from the likes of Google could also have an influence.

ECONOMIC NEWS: The Melbourne Institute's leading index of economic indicators is due at 10.30am EST, followed by quarterly consumer inflation figures at 11.30am. The Conference Board releases its Chinese leading index at 1pm. A quiet night for economic news overseas includes European consumer confidence and the house price index in the US. However, the US has plenty happening elsewhere, with Apple due to report earnings and the House of Representatives due to vote on lifting the debt ceiling.

Good luck to all.