We may not be able to build on yesterday's solid rally even as Wall Street eked out modest gains in overnight trade.
The futures market is forecasting a 0.3% decline in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning after its 1.1% jump yesterday.
A fall in commodity prices won't be helping sentiment. Iron ore tumbled 2.2% to a three-week low of $US61.51 a tonne as copper shed 0.4% to $US2.60 a pound and the West Texas Intermediate (WTI) oil price dipped 0.1% to $US59.92 a barrel.
This could put pressure on the likes of BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FXJ), but the big bank stocks could enjoy another positive session on a Bloomberg report that global fund manager Fidelity is eyeing the sector after its 14% retreat.
Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) have enjoyed a strong bounce recently on bargain hunting and Warren Buffett's comments that he is interested in investing in the banking majors.
Embattled supermarket company Woolworths Limited (ASX: WOW) will remain in the spotlight on speculation that it could sell its loss-making hardware chain Masters and that the business would be a good fit with Metcash Limited's (ASX: MTS) Mitre 10 business.
Woolworths announced a profit downgrade and the resignation of its chief executive yesterday.
Fund manager BT Investment Management Ltd (ASX: BTT) is expected to come under pressure when it resumes trade today. The stock went into a trading halt as Westpac sells 55 million shares at $8.20. The stock last traded at $8.76.
Media stocks are also likely to be dragged lower today as the federal government scraps plans to change media ownership laws due to a lack of industry consensus, according to The Australian.
There has been rampant takeover speculation and corporate maneuvering among media companies, particularly free-to-air TV operators like Ten Network Holdings Limited (ASX: TEN) and Southern Cross Media Group Ltd (ASX: SXL), in anticipation of the media ownership changes.
But corporate action is not confined to the media. Investment bank Macquarie Group Ltd (ASX: MQG) is in talks to buy phone tower operator TorreSur for more than $1 billion, according to Reuters.
Blood products maker CSL Limited (ASX: CSL) has signed a licensing deal with BioCryst for its flu treatment Rapivab, while The Herald Sun reports that Qantas Airways Limited's (ASX: QAN) subsidiary Jetstar is expected to announce its New Zealand domestic route expansion plans as credit rating agency Moody's changes Qantas' outlook to "positive" from "stable".
This implies that Moody's is looking to upgrade the airline's credit rating over the next month or so.
