MARKET WRAPS
Watch For:
Canada Labour Force Survey for August
Today's Top Headlines/Must Reads:
- Economic Data Lead Markets and Governments Astray
- Companies Pay More to Borrow in Record Bond Rush
- The Fall in Home Prices May Already Be Over
Follow WSJ market coverage here
Opening Call:
Stock futures leaned lower on Friday, with investors continuing to question whether the Federal Reserve will keep interest rates higher for longer as the economy remains hot.
A surprise decline in weekly jobless claims to mid-February levels, a day after a surprisingly strong reading of a services sentiment gauge, unsettled investors hoping for a gradual deceleration in the economy to stomp out inflation.
"In recent conversations with institutional investors, it is clear to us that investors are incrementally nervous. Foremost is their concern that economic momentum has been improving at a pace that might warrant the Fed to have to increase the path of hikes," Fundstrat said.
Two days of losses for Apple also proved to be a headwind. "When a tech giant like Apple, with a market cap of nearly $2.8 trillion sneezes, the whole market catches a cold," Swissquote Bank said.
Apple has shed nearly $190 billion in market value over the last two days. The stock edged higher premarket.
More Premarket Movers
AMC Entertainment fell another 3%, looking to extend its slide into a third day.
DocuSign raised its outlook for the year after swinging to a profit on higher revenue in the second quarter. Shares rose 2.8%.
Planet Labs said it expects fiscal-year revenue of $216 million to $223 million, down from its prior range of $225 million to $235 million. Shares fell 1%.
Thursday's Post-Close Movers
Express said CEO Tim Baxter has resigned, and was replaced by Stewart Glendinning. Shares rose 4.6%.
Hudson Pacific Properties fell over 10% after it suspended its dividend due to the impact of the Hollywood strikes.
RH guided for lower-than-expected revenue in the third quarter because of pressure on the luxury housing market. Shares fell 7.7%.
Smartsheet posted quarterly results and full-year revenue guidance that beat analyst estimates. Shares rose 6.5%.
Smith & Wesson rose nearly 13% after it reported a 35% rise in revenue and beat analysts' estimates on profit.
Forex:
The euro traded firmer against the dollar, extending Thursday's gains.
Statements by ECB speakers on Thursday had little impact on the euro, while the tenor of Fed speakers, indicating that the Fed will probably leave the federal funds rate in the current range of 5.25%-5.50%, "provided the euro some lift," DZ Bank Research added.
Energy:
Oil prices edged lower in Europe but were on course for a second weekly gain after Saudi Arabia and Russia rolled over their supply curbs.
Saudi Arabia's extension of its one million barrel-a-day supply cut until the end of the year should prompt a deficit of more than 1.5 million barrels a day in the fourth quarter of the year, UBS said.
That, coupled with falling inventories, should push Brent price to $95 a barrel by the end of the year, it added.
Metals:
Base metals were lower in early London trading, adding to across the board weekly losses, with data suggesting a sluggish Chinese economy continuing to weigh on hopes for demand.
TODAY'S TOP HEADLINES
Chevron Workers Begin Industrial Action at Australian Natural-Gas Plants
ADELAIDE, Australia-Workers at two large natural-gas plants run by Chevron in Australia began industrial action Friday, intensifying a dispute that has rattled global gas markets.
A week of talks between Chevron and staff at its Gorgon and Wheatstone liquefied-natural-gas facilities had failed to produce an agreement on issues such as pay. Industrial action had originally been planned to start on Thursday but was delayed to allow the talks to continue.
Apple Becomes the Biggest U.S.-China Pawn Yet
Apple might be the king of tech. But in the growing cold economic war between the world's two biggest economies, it is becoming just another game piece-albeit a big one.
Still the world's largest public company by market value, Apple has seen that value take a notable hit this week on increasing signs that its business in China might be coming under threat.
Will the ECB hike rates or not? Decision set to be cliff hanger as eurozone sentiment indicators deteriorate
Central bankers love to steer the market, but the messages coming from European Central Bank officials on what they will do on Thursday are anything but crystal clear.
Swaps trading imply a roughly one-in-three chance the ECB will hike interest rates next week from the deposit rate's current 3.75%. That's as the central bank has to balance inflation still uncomfortably high, at 5.3% year-over-year for both the headline and for core, with survey data showing the economy weakening, if not unravelling.
India Hosts G-20 Summit in Shadow of Geopolitical Rivalries
Deepening global rivalries will overshadow this week's gathering of the world's largest economies in India, as the leaders of China and Russia stay home and the U.S. seeks to strengthen ties to India as a counter to Beijing.
President Biden is expected to arrive Friday for the summit of the Group of 20, made up of 19 economically advanced and developing nations and the European Union. Ahead of the trip, Indian and U.S. officials stressed they would focus on climate change and economic issues, with Biden aides promising to press for changes to international financial institutions to better serve developing countries.
Russian Election Candidates Praise Putin's Support for War Families
As Russia's war in Ukraine drags on, a wave of Russian gubernatorial elections is turning into an effort to gloss over the horrific cost of the conflict and instead laud the generous handouts and other support the Kremlin has provided for families of those killed in combat and those with loved ones still in the field.
Candidates for the most part are careful to follow President Vladimir Putin's line on the conflict, minimizing talk of the war itself while talking up his efforts to support the Russian people through a drawn-out war. There are few, if any, campaign messages or posters glorifying the war or the toll the fighting has taken, according to analysts who are closely following the election campaign. There is scant mention of the need to demilitarize an increasingly Westward-looking Ukraine, which was the justification Putin gave to invade Russia's smaller neighbor last year.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
None scheduled
Economic Calendar (ET):
0830 Jul Stocks of Canadian Grain at July 31
0830 Aug Labour Force Survey
0830 2Q Industrial Capacity Utilization Rates
Stocks to Watch:
Air Canada Announces Prepayment of Aircraft Related Debt Totaling Approximately C$589M; Prepays Loans of About C$462M From Export Development Corp. Previously Used by Help Fund Acquisition of 14 Airbus A220-300 Aircraft; Additionally Prepaid Financings of Approximately C$127M Supported by Export-Import Bank of the U.S. That Were Used to Help Fund Purchase of Four Boeing 787-8 Aircraft; As a Result of the Prepayments, These Aircraft Will Be Added to Air Canada's Unencumbered Asset Pool, Bringing Total to About C$6.3B, Excluding Aeroplan
---
Christina Lake Cannabis Plans Non-Brokered Private Placement to Raise Up to C$5M in Gross Proceeds; to Issue Convertible Promissory Notes Secured by Land, Buildings; Notes Bear Interest at Rate of 15% a Year Over 36 Months; Notes Convertible Into Common Shares at C$0.06 Each; to Use Proceeds for Debt Payment, Working Cap, Other Purposes
---
CT Real Estate Investment Trust Enters Into Automatic Purchase Plan in Connection With Its Normal Course Issuer Bid
---
Mountain Valley MD Appoints Lucie Letellier to Chief Fincl Officer, Effective Sept 11
Expected Major Events for Friday
04:30/JPN: Aug Corporate Insolvencies
05:00/JPN: Aug Economy Watchers Survey
06:00/GER: 2Q Labour cost index
06:00/GER: Aug CPI
06:45/FRA: Jul Industrial production index
08:59/JPN: Jul Provisional Labour Survey - Earnings, Employment & Hours Worked
12:30/CAN: Jul Stocks of Canadian grain at July 31
12:30/CAN: Aug Labour Force Survey
12:30/CAN: 2Q Industrial capacity utilization rates
12:30/US: U.S. Weekly Export Sales
14:00/US: Aug Online Help Wanted Index
14:00/US: Jul Monthly Wholesale Trade
19:00/US: Jul Consumer Credit
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Friday
9 Meters Biopharma Inc (NMTRQ) is expected to report for 2Q.
Ayala Pharmaceuticals Inc (ADXS) is expected to report for 3Q.
Franklin Resources Inc (BEN) is expected to report.
Great Elm Group Inc (GEG) is expected to report for 4Q.
Hooker Furnishings Corp (HOFT) is expected to report $0.26 for 2Q.
Hurco Cos (HURC) is expected to report for 3Q.
Kroger Co (KR) is expected to report $0.90 for 2Q.
MGT Capital Investments (MGTI) is expected to report for 2Q.
Micron Solutions Inc (MICR) is expected to report for 2Q.
Rent the Runway Inc (RENT) is expected to report for 2Q.
Republic First Bancorp (FRBK) is expected to report $0.05 for 2Q.
WVS Financial Corp (WVFC) is expected to report for 4Q.
iSign Solutions Inc (ISGN) is expected to report for 2Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
AeroVironment Cut to Neutral From Overweight by Alembic Global
Akoustis Technologies Cut to Neutral From Buy by B. Riley Securities
Bassett Furniture Cut to Market Perform From Outperform by Noble Capital Markets
ChargePoint Cut to Equal-Weight From Overweight by Fox Advisors
Crocs Cut to Neutral From Buy by B. Riley Securities
Dave & Buster's Cut to Outperform From Strong Buy by Raymond James
Dell Technologies Cut to Underweight From Equal-Weight by Barclays
Greenbrier Cos Cut to Equal-Weight From Overweight by Wells Fargo
(MORE TO FOLLOW) Dow Jones Newswires
09-08-23 0616ET
