ASX down, mixed day on Wall Street

Australian stocks should have a softer day after a late rally but mixed results on Wall Street.

ASX futures traded down 0.1% to 7,381 at 7:00 AEDT.

The Australian dollar lost 0.7 percent to 74.64 US cents.

In the US, the benchmark S&P 500 rose 0.3% to an intraday high and a record close of 4,551. The Nasdaq Composite gained 0.6% to 15,215.70.

The Dow Jones lost 6.26 points to 35,603 after being dragged down by a 9% loss at IBM.

Seven of the top 11 sectors of the S&P 500 were trading lower, with energy stocks falling the most as crude oil futures fell amid concerns about weak winter demand.

Consumer discretionary was the biggest percentage gainer among S&P sectors, with help from Amazon.

“You see oil going down a bit today, so there are potentially global growth issues. You also see inflation issues,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

Analysts expect third-quarter S&P 500 earnings to rise 33.7% year-on-year, according to Refinitiv.

“They [supply-chain constraints] are definitely a concern. Things like semiconductor chips in particular held back the economy to some extent and put upward pressure on inflation, ”said Jon Adams, senior investment strategist at BMO Global Asset Management.

Tesla was the biggest boost from the Nasdaq, erasing early declines to rise 3% as investors digested the electric carmaker’s bullish earnings, despite a supply chain warning.

American Airlines gained 1.5% after posting a smaller-than-expected quarterly loss. Southwest Airlines fell 1.8 percent after saying it expected current quarter profit to remain elusive.

Raw materials tumble

Iron ore lost US $ 6.95, or 5.6 percent, to US $ 117.50 a tonne, according to Commsec.

In the oil markets, Brent crude oil fell 1.3 percent to US $ 84.74 per barrel. Benchmark West Texas crude fell 0.9% to US $ 82.64 per barrel.

Spot gold was stable at US $ 1,783 an ounce.

In European markets, the pan-European STOXX 600 index remained stable, the German DAX lost 0.3% and the UK FTSE fell 0.4%.

ABC / Reuters

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