daytrading march 25 pre-market

Morning traders. Thanks Meme.

Market wrap:

Shares face a negative open after profit-taking in Wall Street's most successful sectors dragged US stocks to a second straight loss.

The June SPI 200 futures contract dropped 33 points or 0.6% to 5315 as US traders sold small caps, biotechs, health and consumer discretionary stocks.

The S&P 500 slid 10 points or 0.51% following a modest retreat in a measure of US manufacturing and losses on European markets after yesterday's weak Chinese factory data. The Nasdaq dived 51 points or 1.19% as traders reassessed some of this year's market darlings, including Facebook, Twitter and biotechs. The blue-chip companies of the Dow avoided the worst of the selling, retreating just 26 points or 0.16%.

"It's expected choppiness, but it's unnerving nonetheless, especially when the areas of strength are all of a sudden in question," Chris Bouffard, chief investment officer at The Mutual Fund Store in the US, told Bloomberg. "The high flyers are really being reeled in."

Biotechs, which surged 17% during January and February, skidded to a fourth straight loss. The Nasdaq Biotechnology index fell 3.02% but closed above its low.

The S&P 500's strongest sectors over the last year, health and consumer discretionary, led today's pullback. The Russell 200 index of small caps, which has rallied nearly 250% since the lows of the GFC, sagged 1.29% amid speculation about stretched valuations relative to the rest of the market.

The night's only economic data, preliminary US manufacturing data for March, had minimal impact. The Markit index dropped to 55.5 from a record 57.1 a month earlier. Despite the decline, this month's reading was the second-highest in a year.

European shares took their cues from news yesterday that Chinese factory activity fell to an eight-month low and private-sector activity in Germany unexpectedly contracted. The Stoxx Europe 600 index slipped 1.07% as Germany's DAX lost 1.65%, France's CAC 1.37% and Britain's FTSE 0.57%.

Materials was one of the better sectors in the US, helping BHP rise 0.57% and Rio Tinto 0.25%. Spot iron ore for import to China yesterday fell 20 cents to US$110.50 a dry tonne.

Gold stocks tumbled as the metal hit a five-week low as debate continued over the timing of the first interest-rate rise in the US next year. The Gold Bugs Index dropped 3.99% as gold for April delivery fell $24.80 or 1.9% to US$1,311.20 an ounce.

Speculation about potential Chinese government measures to stimulate the economy helped copper rally off last week's lows, but the gains proved short-lived. US copper for May delivery was recently down nearly 0.4% or a cent at US$2.94 a pound. In late trade in London, copper was up 0.35%, aluminium 0.5%, nickel 0.4% and tin 0.6%. Zinc was down 0.2% and lead 0.3% (NB: London figures not closing prices).

Oil was little changed despite an oil spill that closed the Houston Ship Channel, one of the US's busiest seaports. West Texas Intermediate crude for May delivery was lately off seven cents or 0.1% at US$99.39 a barrel after settling at US$99.60.

TRADING THEMES TODAY

PULLBACK LIKELY TO CONTINUE: Wall Street is treading water near the highs while it waits for enough data to conclude whether the recent deterioration in economic data was down to the weather or something more. Meantime, there was some pretty serious sector rotation going on overnight, with strength being sold in favour of under-performing sectors. The big two Aussie miners came through unscathed, but gold stocks took a fairly heavy hit. Biotechs remained on the nose but closed near an obvious horizontal support area.

ECONOMIC NEWS: The Conference Board releases its leading index for China at 1pm EST. RBA Deputy Governor Phil Lowe is due to address the Australian Securities Investment Commission Annual Forum at 3.45pm. US highlights tonight include consumer confidence, new home sales, Richmond Manufacturing Index and house price index.

Good luck to all.