Our market is set to surge further ahead after Wall Street staged its best one-day rally in four years on the belief that the US Federal Reserve will be reluctant to raise interest rates next month in the wake of the market turmoil.
The futures market is pointing to a 1.2% jump in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open and if our market can hang on to those gains it will mark the third consecutive day of rises since the index crashed to a more than two-year low of 5001 points on fears that a slowdown in China will drag the world into a recession.
But resource stocks could struggle to join in the rally as most commodities fell. The West Texas Intermediate oil price was again under pressure on a bigger-than-expected rise in gasoline inventories and shed 1.8% to $US38.60 a barrel as copper plunged 2.9% to $US2.2350 a pound.
Iron ore bucked the trend as it marches to its own beat. The steel making commodity inched up 0.4% to $US53.67 a tonne and that could be enough to give Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) a lift as their US-listed stocks gained 1.2% and 3.5%, respectively.
However, BHP Billiton could suffer a credit rating downgrade as the Chinese slowdown shaved off half its earnings, according to Bloomberg. That would drive up its cost of debt.
Gold miner EVOLUTION FPO (ASX: EVN) could come under pressure on news that Newcrest Mining Limited (ASX: NCM) has sold down its stake in the company to 8.1% from 10.73%. This could indicate that Newcrest is no longer keen on making a play for Evolution Mining.
On the earnings front, building supplies company Boral Limited (ASX: BLD) is likely to find support after it delivered an underlying net profit of $249.2 million, which is at the top end of its $240-250 million forecast range, and said it expected earnings growth in the current financial year thanks to higher earnings from its US operations.
On the flipside, hospital operator Ramsay Health Care Limited (ASX: RHC) could come under pressure after it warned that 2015-16 profit growth will be lower than what the market was expecting even as its core profit increased 19% to $412.1 million, which is ahead of consensus forecast of $406.2 million.
Television broadcaster Nine Entertainment Co Holdings Ltd (ASX: NEC) will also be in focus after it posted a 1% increase in adjusted net profit to $140.1 million that was a little under consensus but said it expected the free-to-air (FTA) market to grow modestly in the current financial year. The market has downbeat expectations on the FTA market and the comments might be enough to give the stock a much needed boost following its 24% fall since January.
Other notable companies that will report results today include travel agent Flight Centre Travel Group Ltd (ASX: FLT), fund manager Perpetual Limited (ASX: PPT) and toll road operator Macquarie Atlas Roads Limited (ASX: MQA).
Finally, grocery distributor Metcash Limited (ASX: MTS) will also be in the spotlight as it holds its annual general meeting today. Investors will be keen on getting an update on its "price match" strategy as it fights to win back market share from its bigger rivals.
The market is sceptical so far with the stock hovering close to its 14-year low.