OPENING CALL
U.S. futures pointed to a lower open Friday as uncertainty over whether the Federal Reserve will cut interest rates at its December meeting and investor concerns about high tech valuations weighed on stocks.
Also dampening sentiment was uncertainty related to the impact of a large backlog of economic reports to be released in the wake of the end of the federal government shutdown. However, the timing and reliability of the expected deluge of data are unclear.
Several key releases like the October CPI and employment reports may never be published, according to Sucden Financial, leaving markets to navigate the last quarter of the year with fewer data anchors than usual.
It comes as remarks from Fed officials including Neel Kashkari, Beth Hammack and Alberto Musalem raised doubts over another interest-rate cut in December.
"It is also no secret that the Fed remains divided and cautious," FP Markets said, adding that the Fed's meeting next month presents a tough challenge for policymakers who lack official data due to the government shutdown.
Markets appear split about the Fed's December meeting, with money-market pricing showing a roughly equal chance of a rate cut versus unchanged rates, Danske Bank said.
Market Insight
European Union goods exports to the U.S. rebounded in September. Exports to the U.S. were up 61% on month in September to $61.76 billion, according to Eurostat data. Compared with the same month of last year, exports were up 15.4%.
Stocks to Watch
Applied Materials shares dropped 4.8% after the company reported its earnings.
Cidara Therapeutics stock soared 92% amid reports Merck is close to a deal to buy the company.
Gap climbed 2.2%after Jefferies upgraded the company's stock to Buy from Hold, and raised its price target.
Nvidia stock slipped 1.5% after Amazon joined Microsoft in supporting legislation that could curb the chip maker's exports to China.
Tesla stock slipped 2.8%. The stock has fallen as the market rotates away from Big Tech.
Warner Bros. Discovery climbed 3.3% as Paramount Skydance, Comcast, and Netflix are preparing bids for the company.
Watch For:
U.S. Retail Sales and PPI data for October were due; U.S. Business Inventories figures for September were due; World Agricultural Supply & Demand Estimates; Canada Manufacturing Survey for September; Canada Wholesale Inventories for September
Today's Top Headlines/Must Reads:
- China Registers Worst Investment Decline in Years as Slowdown Continues
- Inside the Frantic Push to Reverse Verizon's Decline
- Why Every Company Suddenly Wants to Become a Bank
MARKET WRAPS
Forex:
The dollar rose against a basket of currencies after remarks from Fed officials fueled doubts over another interest-rate cut.
U.K. fiscal concerns were also weighing on risk sentiment and contributing to the dollar's current gains , Monex Europe said.
Sterling fell
to a two-and-a-half-year low against the euro, and it lost ground against the dollar, after a report that the U.K. government will ditch plans to raise income taxes in its November budget.
Sterling's negative reaction to a Financial Times report that the U.K. government will drop plans to raise income taxes indicates credibility concerns
over the November 26 budget, MUFG Bank said.
The decision could be seen as the government prioritizing its "popularity with the public and the stability of the Labour party over doing what is best to restore confidence in the public finances."
Bonds:
The 10-year Treasury yield rose slightly and it has hovered just above the 4% mark for two months now, but LBBW said a clear directional move isn't expected for the time being.
Yields on shorter-dated Treasurys were little changed
while longer-dated yields rose. Treasurys took clues from remarks from several Fed members on Thursday suggesting interest rates could stay unchanged in December.
Volatility in rates could pick up
again, led by Treasury rates, as the U.S. government shutdown ends, and economic data could surprise to either direction, Societe Generale said.
"As the economy reboots, expect most action in dollar rates and keep a preference for U.S. Treasurys over Bunds."
Metals:
Gold prices slipped but remained on track for a weekly gain
of more than 4%.
Spot gold rose slightly while Comex gold futures' bullish technical setup
remained intact, with futures staying above both the 20- and 50-day simple moving averages, RHB Retail Research said.
Energy:
Oil prices rose as reports of a Ukrainian drone strike on a major Russian export hub raised concerns over supply .
"Overnight Ukraine launched a major drone attack on Novorossiysk, a vital Black Sea port, which handles oil cargoes from Russia as well as oil exports from Kazakhstan," DNB Carnegie said.
Fears of disruptions to Russian supply outweighed concerns regarding an impending glut, as Brent and WTI prices rose.
"Any prolonged disruption would force traders to source supplies elsewhere, adding further support to prices," Saxo Bank said.
TODAY'S TOP HEADLINES
BHP Found Liable by English Court for 2015 Fundao Dam Failure
BHP Group said that the English High Court found it liable under Brazilian law for the 2015 Fundao dam failure, and that it intends to appeal the decision.
The mining group said potential damages will be determined in later trials which are expected to be completed in 2028 or 2029. The group said it will appeal the decision.
Inside the Frantic Push to Reverse Verizon's Decline
Hans Vestberg was in trouble.
The Verizon Communications board, meeting at a Texas office of the carrier in September, was losing patience with its CEO, according to people familiar with the matter.
Cartier-Owner Richemont's Sales Accelerate as Jewelry Continues to Shine
Richemont, the owner of upscale brands including Cartier, reported a pick-up in sales growth, propelled by its jewelry division and as hopes for recovery in the luxury sector emerge.
The Swiss jeweler and watchmaker said Friday that sales for its fiscal second quarter ended Sept. 30 climbed 14% from the same period a year earlier at constant exchange rates. In the first quarter, group sales jumped 6% on year.
Google Offers Remedies to EU After $3.4 Billion Ad Tech Fine
Alphabet's Google submitted remedies to the European Commission after the bloc's 2.95 billion-euro ($3.42 billion) fine over alleged dominance of the company's advertising technology business, but stopped short of offering to sell parts of the business.
"Our proposal fully addresses the [European Commission's] decision without a disruptive break-up that would harm the thousands of European publishers and advertisers who use Google tools to grow their business," the company said in a statement on Friday.
U.K. Assets Fall on Prospect of U-Turn on Government's Income Tax Hike Plans
Sterling, U.K. government bonds and equities have sold off on fresh concerns about fiscal sustainability ahead of the Nov. 26 budget after the Financial Times reported that the Labour government has dropped plans to raise income taxes.
Fears of a backlash from voters and Labour MPs prompted the U-turn, the report said.
U.S. to Cut Tariffs on Bananas, Coffee and Other Goods From Four Countries
The U.S. plans to eliminate tariffs on bananas, coffee, beef and certain apparel and textile products under framework agreements with four Latin American nations, a senior administration official told reporters Thursday.
The expected move-which would apply to some goods from Ecuador, Argentina, El Salvador and Guatemala-is part of a shift from the Trump administration to water down some of its so-called reciprocal tariffs in the midst of rising prices for consumers, as well as legal uncertainty after a Supreme Court hearing this month.
South Korea to Expand Support for Tariff-Hit Auto Industry
South Korea plans to expand policy support for its auto industry in the wake of a trade deal struck between Seoul and Washington.
The export-dependent economy is planning more than 15 trillion South Korean won, equivalent to $10.2 billion, of support measures for domestic manufacturers of cars and car parts. These include new loan programs and tariff quotas for raw materials used in manufacturing, the prime minister's office said Friday.
Low-Income Americans Are Struggling. The Economy Is Hammering Them.
Nearly a third of low-income households now live paycheck to paycheck while middle- and high-income earners show little sign of the same strain, according to a new analysis that underlines the recent caution expressed by the banking industry about Americans' diverging fortunes.
The discrepancy stems in large part from lower-income earners' slowing wage growth, wrote Joe Wadford, an economist at Bank of America Institute, which published the report on Monday. Inflation, recently rising at a 3% annual rate, has outpaced growth of 2% and 1%, respectively, in middle- and low-income after-tax wages and salaries, Wadford wrote.
Justice Department Seeks to Block California Redistricting
The Justice Department is suing California over its new congressional map adding five Democratic-leaning districts for the 2026 midterm elections, further fueling a political and legal fight that could determine control of the House of Representatives.
Lawyers for the federal government argue that California legislators relied too heavily on race in creating the new electoral lines, which were approved by voters in a ballot measure earlier this month.
Customs and Border Protection Agents Expected in North Carolina
U.S. Customs and Border Protection personnel are headed to Charlotte, N.C., a local sheriff's office said, making it the latest Democratic-led city to receive an influx of federal agents.
(MORE TO FOLLOW) Dow Jones Newswires
11-14-25 0631ET
