OPENING CALL
Stock futures were mostly higher on Friday ahead of February's jobs report.
The jobs report is expected to show the economy added 198,000 jobs and that the unemployment rate held at 3.7%.
A softer labor market could translate into less spending power for consumers, and lower inflation, making the case for interest-rate cuts.
Overseas Markets
Overseas stocks mostly rose, as the Nikkei 225 and the Hang Seng closed higher, while Europe's Stoxx 600 edged up.
Premarket Movers
BigBear.ai was falling 19% after fourth-quarter revenue of $40.6 million rose just 0.5% from a year earlier and missed analysts' estimates of $42.8 million.
Broadcom's latest quarterly profit missed Wall Street forecasts on deal-related costs. But it provided a stronger outlook for AI chip revenue for the fiscal year. Shares were down more than 1%.
Costco reported higher-than expected quarterly profit, but lower sales than forecast. Shares dropped 4%.
DocuSign posted better-than-expected revenue in its latest quarter. Shares were up 10%.
Gap said it swung to a profit in the holiday quarter, citing strong results at its namesake brand and Old Navy banner. Shares rose 5%.
Marvell Technology was falling 6.8% after its fiscal first-quarter outlook was well short of Wall Street forecasts.
MongoDB was down 9.5% in after it issued disappointing guidance for both its fiscal first quarter and year.
Rivian Automotive was rising 2.9% after it unveiled two new, lower-priced SUVs.
Samsara was rising 14% after it posted better-than-anticipated fourth-quarter adjusted earnings and issued fiscal 2025 earnings and revenue guidance that topped estimates.
Watch For:
Employment for February; Canada Labour Force Survey
Today's Top Headlines/Must Reads:
- Rivian Follows Tesla's Lead, but Is It Too Late?
- Deutsche Bank Says the Bitcoin Rally Still Has Legs. Here's Why.
- Cruises Are More Popular Than Ever-and Investors Are Late to the Party
MARKET WRAPS
Forex:
The euro could rise against the dollar if February U.S. jobs data are on the weak side, Danske Bank Research said.
"If our expectation of a softer U.S. labor market holds true-we forecast non-farm payrolls at 180k alongside average hourly earnings at 0.2% m/m-we could see EUR/USD rise further in the very near term."
In the near term, sterling is expected to remain within the range it has been in so far in 2024, DZ Bank Research said.
The currency was minimally impacted by the 2024-2025 budget, it said.
"The implications for the pound are limited," as the spending and taxation plans outlined will not have a huge effect on economic growth this year, DZ Bank added.
Bank of England rate cuts starting in the summer are still realistic.
"With no significant shift in fiscal policy, nor in the monetary outlook, the pound in the short-term is likely to continue to trade in the ranges that have already been seen this year in GBP/USD and EUR/GBP."
Bonds:
February had $5.6 billion of Treasury notes and bonds 'stripped', where a bond's principal and coupon payments are broken up and sold separately to investors, Barclays Research said.
Demand for stripped bonds was higher despite historical trends pointing to slowing demand, it said.
Activity was strongest within the longest-dated maturities, for the November 2053 and February 2054 debts.
Energy:
Oil prices were higher after reports that operations at TC Energy's Keystone pipeline were partially suspended on Thursday, restricting a crucial conduit for carrying Canadian crude to the U.S. Midwest and Gulf Coast.
"The company reported that the pipeline is safely operating after a brief suspension, although details on supply disruption are not available yet," ING said.
Oil futures gained support from signs of tightness in physical markets and OPEC+ extending output curbs, as well Red Sea disruptions. Meanwhile, data showed U.S. gasoline inventories fell last week and Chinese crude imports rose on year, pointing to growing demand in the world's top oil consumers.
Metals:
Metal prices rose, with gold boosted by expectations for U.S. rate cuts, geopolitical tensions and China's economic woes.
Investor interest in the precious metal has returned, with the latest Comex data showing money managers adding fresh long positions, reflecting bullish sentiment in the gold market, ING said.
Gold has also been supported by Chinese central bank buying, and the country's domestic market, as buyers flocked to the precious metal amid economic woes there, ING added.
"We expect gold prices to trade higher this year as safe-haven demand continues to be supportive amid geopolitical uncertainty with the ongoing wars and the upcoming U.S. election."
Citi said it remains tactically bullish on copper, iron ore and zinc over the next couple of months despite continued weakness in global soft manufacturing indicators and no meaningful catalysts yet from China's ongoing National People's Congress.
It also turned tactically bullish on palladium last week.
TODAY'S TOP HEADLINES
Boeing to Tie More of Employees' Incentive Pay to Safety
Under fire for production snafus, Boeing is overhauling how it pays employee bonuses to emphasize quality and safety over meeting financial targets.
The move, one of many to address quality issues following the door-plug blowout on an Alaska Air flight, applies to Boeing's nonunion workforce of more than 100,000 employees, managers and executives, according to a memo sent to employees and reviewed by The Wall Street Journal.
Airlines Train Pilots to Manage GPS Tampering
European airlines are training pilots about how to handle incidents of GPS spoofing and jamming, which are becoming more common around war zones.
Pilots and airline safety managers say they added training to help crews manage what can be risky situations but that haven't affected flight safety.
A TikTok Stunt Motivates Lawmakers to Take on the App
WASHINGTON-U.S. lawmakers are mounting their most serious attempt to effectively either ban popular video app TikTok or separate it from its Chinese owner, advancing a bill that has more political momentum than previous attempts.
As lawmakers prepared to consider the legislation on Thursday, users of the app, which is accessed by more than 170 million Americans, saw notifications urging them to complain to their House representative about the bill. Then the app let people call their representative with a few presses of buttons, fueling congressional concerns about TikTok.
China's Vehicle Sales Dropped in February Amid Price War, Long Holiday
China's vehicle sales fell sharply in February, dragged by weaker demand during the Lunar New Year holiday and an intensifying price war in the world's biggest auto market.
Retail sales of passenger cars in China declined to 1.095 million units, down 21% from a year earlier and 46% from January, the China Passenger Car Association said Friday. The association attributed the sharp decline to lower demand ahead of the Lunar New Year and some consumers bringing forward purchases to the start of the year. Consumers are also holding back after the latest round of price cuts as competition stiffens in China's market, the CPCA said.
White House Revives Plan to Save Homeowners Money on Closing Costs
WASHINGTON-The Biden administration on Thursday announced a program to save homeowners thousands of dollars in closing costs on certain mortgages, bulldozing opposition from an industry that had scuttled a similar plan last year.
The initiative aims to reduce one of the biggest costs associated with closing on a mortgage: title insurance. Under a pilot program, government-controlled mortgage giant Fannie Mae will waive a requirement for title insurance on mortgage refinancings it purchases from certain lenders.
Biden and Trump, in Two Speeches, Speak to Two Visions of America
A resurgent America making steady progress toward a future of shared prosperity.
A dystopian backwater on a path to ruin.
Biden Seeks to Boost Emergency Aid to Gaza With Offshore Pier
WASHINGTON-President Biden said in his State of the Union speech Thursday that the U.S. military will install a temporary pier off the coast of the Gaza Strip for cargo ships to unload food, water and other emergency supplies, boosting the direct American role in addressing the enclave's humanitarian crisis.
Biden directed the military to carry out the emergency project, aiming to ease food shortages and lack of shelter and medical services for Gaza's 2.2 million residents, according to U.S. officials who briefed reporters ahead of Biden's speech Thursday evening. The president has been under pressure to do more to alleviate civilian suffering in Gaza, where the Israeli military is fighting the Hamas militant group.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
Algonquin Pwr & Utilits 4Q
AltaGas 4Q
Economic Indicators (ET):
0830 Feb Labour Force Survey
0830 Q4 Industrial capacity utilization rates
Stocks to Watch:
Automotive Prop REIT 4Q Loss C$15.2M; 4Q Rev C$23.3M
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Extendicare 4Q Rev C$350.2M; 4Q EPS C$0.10
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Peyto Exploration 4Q EPS C$0.46; 4Q FFO C$1.05/Shr
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Ramelius Resources: Confirms Exclusive Talks With Karora on Potential Corporate Transaction; Discussions Concerning Valuation Ongoing; Karora Market Cap About C$841 Million; Will Continue to Update Market as Required
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Taseko Mines 4Q Rev C$153.7M; 4Q Basic EPS C$0.23; 4Q Adjusted EPS C$0.08
Expected Major Events for Friday
04:30/JPN: Feb Corporate Insolvencies
05:00/JPN: Jan Indexes of Business Conditions - Preliminary Release
06:00/JPN: Feb Economy Watchers Survey
07:00/GER: Jan PPI
07:00/GER: Jan Industrial Production Index
07:45/FRA: Jan Foreign trade
07:45/FRA: Jan Balance of payments
09:00/ITA: Jan PPI
13:30/US: Feb U.S. Employment Report
13:30/CAN: Feb Labour Force Survey
(MORE TO FOLLOW) Dow Jones Newswires
03-08-24 0617ET
