OPENING CALL
Stock futures were flat on Friday after the three major stock market indexes again set records even though an antitrust lawsuit against Apple sent shares of the tech giant lower.
Apple dipped in premarket trading after it tumbled 4.1% on Thursday as it was sued by the Justice Department, which alleged the company violated federal law to preserve its dominant position in the mobile phone market.
Other Premarket Movers
FedEx reported fiscal third-quarter earnings that beat analysts' estimates as the company's cost-cutting efforts overshadowed lower sales and reduced demand. Shares were up 13%, while UPS rose 3.6%.
Nike posted fiscal third-quarter revenue that rose slightly from a year earlier but shares were falling 6.3% after the company said the first half of fiscal 2025 would be challenging, with sales down by low single-digit percentages year over year.
Reddit opened for trading on Thursday at $47 a share and closed at $50.44, a jump of 48.4% above the IPO of $34. The stock was falling 3.4% in premarket trading to $48.74.
Post-Close Movers
Cutera's loss in the fourth quarter widened compared with a year earlier, as revenue tumbled 26%. Shares dropped 11%, to $2.05, after-hours.
Fourth-quarter earnings at Lululemon Athletica topped expectations, but the stock fell 12% after the company's guidance for the fiscal first quarter and year was short of analysts' expectations.
Market Insight
For the first time in more than two years, markets have comparatively high visibility of European Central Bank and Federal Reserve rate paths, Commerzbank Research said. This follows "the unprecedented swing from terminal rate fears to rate cut euphoria."
With long-end Treasurys also calming down, rate volatilities have dropped to new cyclical lows in both the eurozone and the U.S., Commerzbank Research said.
Watch For:
Fed Listens event with Jerome Powell, Philip Jefferson and Michelle Bowman participating; Canada Retail Trade for January
Today's Headlines/Must Reads:
- Monopoly Case Pits Justice Department Against Apple's Antitrust Winning Streak
- Immigration Is Helping the U.S. Edge Out Asia
- The New Normal for Mortgage Rates Will Be Higher Than Many Hope
- Who Is Fueling the Surge in Shares of the Trump SPAC?
MARKET WRAPS
Forex:
The dollar hit a one-month high against a basket of currencies, buoyed by strong U.S. economic data, but its gains look overdone given the Fed's focus on slowing inflation, ING said.
"We don't see the dollar rally having legs. The Federal Reserve sent a rather clear message earlier this week: some resilience in activity data won't be a barrier to cutting as long as inflation shows downward momentum."
After a busy week for central-bank announcements, markets could scale back long dollar positions following the Fed's "relatively dovish message."
The yuan weakened against the dollar in onshore and offshore markets after the People's Bank of China lowered the daily CNY fixing by the most since early February earlier in the Asian session.
This fixing appears to have sent USD/CNY higher, as it was perceived as a sign that the PBOC is willing to allow some weakness in the yuan, as the dollar acquires a bit of bullish bias recently, Maybank said. The next key resistance for the currency pair is at 7.2500, it added.
The PBOC's CNY fixing was at 7.1004 versus 7.0942 on Thursday.
Energy:
Crude futures edged lower on a stronger dollar and as international leaders ratchet up pressure on Israel for an immediate ceasefire in Gaza.
Metals:
Metals prices were lower, with Commerzbank saying the gold rally was likely over for now.
It added that in the absence of new impetus, the growth in base metals prices should abate in the short term, especially as Chinese copper smelters are unlikely to agree on a minimum treatment charge or production cuts.
TODAY'S TOP HEADLINES
Samsonite Considering U.S. for Potential Second Listing
Luggage maker Samsonite is looking at the U.S. as a potential venue for a second listing, tapping investor appetite in a market that has been hitting new highs, according to people with knowledge of the plan.
The potential fundraising could be less than $500 million, one of the people said, adding that these details are yet to be finalized.
Hyundai, Kia to Recall EVs in U.S. Over Charging Unit Issues
Hyundai Motor and sibling company Kia will recall a combined 147,110 electric vehicles in the U.S. over possible defects in a charging unit that could cause a loss of power while running, the U.S. federal auto safety regulator said.
Hyundai will recall 98,878 vehicles of certain Ioniq and Genesis brands, while Kia will recall 48,232 units of its affected EV6 vehicle model, the National Highway Traffic Safety Administration said in a statement Thursday.
ECB's Nagel Sees Increased Probability Of Rate Cut Before Summer Break
It is increasingly likely that the European Central Bank will lower its key interest rate over the coming months, the head of Germany's central bank said Friday.
"The probability is increasing that we will see a first rate cut before the summer break," said Joachim Nagel, who is a member of the European Central Bank's governing council.
Beijing Concerned Funds From Liquidity Boosts Aren't Finding Borrowers
China's policymakers are growing concerned that intensified monetary policy support has led to excessive liquidity in the banking system that isn't being funneled into the real economy.
Chinese lenders have been flush with cash since early last year when Beijing started to cut banks' reserve requirements and guide down lending rates to aid the country's faltering economy. But weak demand for loans from businesses and consumers means vast cash deposits sit idle in banks, eroding the effectiveness of policies meant to stimulate growth, economists say.
Trump Is in a Race Against Time to Protect His Fortune
In the span of just a few days, Donald Trump's financial position has moved from seemingly dire-facing the seizure of prized real estate if he doesn't obtain a large bond-to potentially dazzling, with revelations that his social-media company could bring him more than $3 billion.
It is nothing new for a man who has long ridden a roller coaster of luck, acquiring and losing valuable assets repeatedly. When his financial position appears to be the most at risk, again and again, he finds a way to squirm out of it and emerge strong.
Israel's Final Showdown With Hamas Puts Rafah on Edge
In the dark hours of a quiet early morning last month, explosions suddenly shattered the windows of Karan Saidam's home in the Gaza Strip.
More than 70 relatives woke up and huddled in the living room, as helicopters and jet fighters flew overhead and the sound of live ammunition ripped through the air. They had heard that their city, Rafah, was Israel's next target in the war against Hamas, and Saidam said his first thought was: "They were taking Rafah by surprise."
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings [4Q unless stated otherwise]:
dentalcorp
Karora Resources
Orezone Gold
Economic Calendar (ET):
0830 Jan Retail Sales
Expected Major Events for Friday
00:01/UK: Mar UK Consumer Confidence Survey
05:00/JPN: Feb Steel Production
07:00/GER: Jan Foreign trade price indices
07:00/UK: Feb UK monthly retail sales figures
08:59/JPN: Mar Monthly Economic Report
09:00/GER: Mar Ifo Business Climate Index
11:00/UK: Mar CBI Industrial Trends Survey
12:30/CAN: Jan Retail trade
14:00/US: Feb State Employment and Unemployment
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Friday
374Water Inc (SCWO) is expected to report for 4Q.
ACELYRIN Inc (SLRN) is expected to report $-0.90 for 4Q.
Agile Therapeutics Inc (AGRX) is expected to report for 4Q.
American Shared Hospital (AMS) is expected to report for 4Q.
Ampio Pharmaceuticals Inc (AMPE) is expected to report for 4Q.
Annexon Inc (ANNX) is expected to report $-0.47 for 4Q.
AstroNova Inc (ALOT) is expected to report for 4Q.
Avid Bioservices Inc (CDMO) is expected to report $-0.06 for 3Q.
Biohaven Ltd (BHVN) is expected to report for 4Q.
Bird Global Inc (BRDSQ) is expected to report for 4Q.
BuzzFeed Inc (BZFD) is expected to report for 4Q.
Crimson Wine Group Ltd (CWGL) is expected to report for 4Q.
Dawson Geophysical Co (DWSN) is expected to report for 4Q.
Evolve Transition Infrastructure LP (SNMP) is expected to report for 4Q.
Exicure Inc (XCUR) is expected to report for 4Q.
Express Inc (EXPR) is expected to report for 4Q.
HOOKIPA Pharma Inc (HOOK) is expected to report for 4Q.
Harpoon Therapeutics Inc (HARP) is expected to report $-0.64 for 4Q.
Humacyte Inc (HUMA) is expected to report $-0.24 for 4Q.
Hyzon Motors Inc (HYZN) is expected to report $-0.20 for 4Q.
Impel Pharmaceuticals Inc (IMPLQ) is expected to report for 4Q.
Interpace Biosciences Inc (IDXG) is expected to report for 4Q.
KALA BIO Inc (KALA) is expected to report $-3.62 for 4Q.
Korro Bio Inc (KRRO) is expected to report for 4Q.
Lendway Inc (LDWY) is expected to report for 4Q.
Marathon Gold Corp (MOZ.T) is expected to report for 4Q.
Meta Materials Inc (MMAT) is expected to report for 4Q.
Neurogene Inc (NGNE) is expected to report $-0.94 for 4Q.
Oncorus Inc (ONCR) is expected to report for 4Q.
Perpetua Resources Corp (PPTA.T) is expected to report for 4Q.
RegenETP Inc (RGTPQ) is expected to report for 4Q.
SANUWAVE Health (SNWV) is expected to report for 4Q.
Sonim Technologies Inc (SONM) is expected to report $0.01 for 4Q.
Spectral Medical is expected to report for 4Q.
Star Equity Holdings Inc (STRR) is expected to report $-0.09 for 4Q.
TOR Minerals International Inc (TORM) is expected to report for 4Q.
Table Trac Inc (TBTC) is expected to report for 4Q.
Terns Pharmaceuticals Inc (TERN) is expected to report $-0.28 for 4Q.
(MORE TO FOLLOW) Dow Jones Newswires
03-22-24 0603ET
