Morning Wrap: ASX 200 to fall, Dow Jones breaches 40,000 level for first time, Walmart at all-time highs

ASX 200 futures are trading 52 points lower, down -0.68% as of 8:30 am AEST.

Some of yesterday's post-inflation and retail sales rally was given back today but not before the Dow Jones hit 40,000 points for the first time in intra-day trading. Consumer giant Walmart upped its earnings outlook despite admitting that spending momentum started to slow in April.

It's expected to be a muted day locally given there are no major corporate and economic items previewed for today.

Let's dive in.

S&P 500 SESSION CHART

A last minute sell order caused the S&P 500 to close lower. (Source: TradingView)

OVERNIGHT MARKETS

• Dow closes lower Thursday after briefly topping 40,000 for first time

• Europe stocks close lower as earnings dampen rally following soft U.S. inflation data; BT up 17%

• Treasury yields move higher as investors digest inflation data

• Oil prices rise as crude inventories fall and U.S. inflation eases

• Gold eases as dollar gains, Fed rate cut bets lend support

• Gold, silver and platinum’s red-hot rally still has further to go, strategists say

Author's Note: The strategists in question work at Saxo Bank. They have predicted that gold prices could soon test the $2,400 level, silver may climb as high as $30 per ounce, while platinum has upside potential to reach $1,130 per ounce. If you want to read some background on those calls, you can find that here and here.

INTERNATIONAL STOCKS

• Walmart surges to all-time high as earnings beat on high-income shopper, e-commerce gains

• FDA approves Amgen’s treatment for most deadly form of lung cancer

• Cisco gives upbeat sales and profit guidance following rebound in orders

• Berkshire Hathaway unveils $6.7B stake in insurer Chubb, ending months of speculation

• Deutsche Bank dials back expectations for second share buyback this year

• Disney says it is dramatically cutting investments in traditional TV

CENTRAL BANKS

• Chicago Fed's Goolsbee wants to see more progress on disinflation

• Minneapolis Fed's Kashkari says Fed should hold rates for a while longer

• ECB highlights financial stability risks on high debt levels, low productivity and geopolitics

ECONOMY

• U.S. data fuels bets of Fed rate cuts as early as September — but analysts aren’t convinced

• China activity data seen broadly improving, buoying outlook for recovery as policymakers ramped up support

• Japan's economy shrunk by more than expected, raising spectre of stagflation

• Surprise jump in Australian unemployment rate

Economic calendar (AEST):

• 11:30am – CNY – New home prices

• 12:00pm – CNY – Industrial production, retail sales, fixed asset investment, unemployment rate

• 7:00pm – EUR – Final core CPI

This Morning Wrap was written by Hans Lee and Chris Conway.