Morning traders. Thanks Trees and after-market regulars.
Market wrap:
Shares look likely to open modestly higher following a mixed close on Wall Street as investors pondered some uneven corporate earnings and the rate implications of an improvement in GDP.
The September SPI200 futures contract advanced nine points or almost 0.2% to 5623 despite partial pullbacks in BHP, Rio Tinto, iron ore, oil, gold and copper after two days of solid gains.
US stocks dived at the open after second-quarter GDP narrowly missed expectations and earnings from Procter & Gamble and Facebook disappointed, but recovered to end the session little changed. The S&P 500 closed less than a point or 0.1% ahead for a third straight rise. The Dow eased five points or 0.03%, while the Nasdaq outperformed with an increase of 17 points or 0.33%.
"I think there's a lot of confusion really. The focus was trying to understand what's going on with economic growth and the Fed," David Kelly, chief global strategist at JPMorgan Funds in the US, told CNBC. "People aren't quite sure whether the data makes it more likely or less likely that they will tighten [rates]."
Gross domestic product increased to 2.3% last quarter, less than the 2.6% consensus target among economists. Any disappointment at the tepid reading was soothed by an upwards revision in first-quarter growth from an original reading of -0.2% to +0.6%. Read more here.
A separate report showed claims for jobless benefits rose last week from a 40-year low by less than expected. Claims
by 12,000 to 267,000 from 255,000 the previous week, the lowest reading since November 1973. Economists surveyed by Bloomberg predicted a rise to 270,000.
A heavy swag of corporate earnings included disappointments from Facebook, Dow component Procter & Gamble and Colgate-Palmolive and gains for Western Digital, Mondelez International and Air Product & Chemicals.
Utilities and consumer discretionary were the best of the sectors. Energy was the biggest drag, breaking a two-day rally when the sector outperformed. The energy ETF fell 0.7% after West Texas Intermediate crude settled 27 cents or 0.55% lower at US$48.52 a barrel.
BHP eased 0.44% and Rio Tinto 0.75% in US trade. Spot iron ore for import to China yesterday dipped 70 cents to US$54.60 a dry ton.
The NYSE Arca Gold Bugs index slumped 4.01% towards last week's 12-year low as a rising US dollar pressured commodity prices. Gold for August delivery settled $4.20 or 0.4% weaker at US$1,088.40 an ounce.
Most base metals retreated against a rising greenback after Wednesday's Federal Reserve policy meeting left a September rate rise on the table. In London, copper declined 1.3%, aluminium 1.1%, lead 0.7%, nickel 2% and zinc 0.8%. Tin rose 0.3%. US copper for September delivery was recently down 1.3% at US$2.38 a pound.
European markets advanced in choppy action. The Stoxx Europe 600 put on 0.57%, Germany's DAX 0.4%, France's CAC 0.58% and Britain's FTSE 0.57%.
The dollar was this morning buying 72.95 US cents.
TRADING THEMES TODAY
STEADY AS SHE GOES: This morning's futures suggest a bright week should end on a mildly positive note, with the market likely to consolidate three days of good gains. The XJO is close to overhead resistance and will likely need stronger leads to punch through than it has this morning. Wall Street was eager to buy last night's dip, but there was limited enthusiasm to push the S&P 500 too far after a strong two-day rally. The rise in the US dollar suggests forex traders think a September rate rise is a real possibility. Strength in the greenback makes dollar-denominated commodities more expensive for holders of other currencies, so down went oil, gold, most base metals and iron ore. Still plenty of action at the spec end of the ASX this week. Long may it continue.
ECONOMIC NEWS: The second-quarter producer price index is due at 11.30am EST, along with June private-sector credit data. US highlights tonight include revised consumer sentiment and inflation expectations, Chicago PMI and quarterly employment cost index.
