OPENING CALL
Stock futures were tracking down after disappointing earnings from Microsoft late in the previous session fueled a wider selloff in tech stocks.
Jefferies said, while it wasn't in the AI bubble camp, "We do believe that the market will question the return on capital expenditure from the tech companies."
Meanwhile Treasury yields and the dollar rose , on the prospect that Trump could announce Kevin Warsh to succeed Federal Reserve Chair Jerome Powell.
Warsh had the reputation of a hawk before he aligned himself with Trump's views on lower rates, KBC Bank analysts said.
ING said that Warsh's nomination could calm concerns about a loss of independence for the Fed and the consequent prospect that interest rates could be cut more than necessary.
"The dollar has been waiting for a catalyst for a recovery, and the news that Kevin Warsh is likely to be announced as the new Federal Reserve Chair nominee today offers exactly that."
Trump said he plans to unveil his pick to lead the central bank this morning.
Stocks to Watch
Apple posted blowout iPhone sales and quarterly profit, but investors were concerned by rising costs. Shares slipped 0.2% premarket.
CK Hutchison : Panama's high court annulled a contract for the Hong Kong-based company to operate two Panama Canal ports. Shares in Hong Kong dropped 4.6%.
Deckers Outdoor's higher sales were boosted by continued growth in its Hoka brand. The stock rallied 13% premarket.
Olin said it expects adjusted Ebitda to decline, which analysts weren't anticipating. The stock slipped 11% after the bell Thursday.
Sandisk's revenue surpassed Wall Street's estimates fueled by AI demand. The stock jumped one-fifth before the bell.
Watch For:
PPI for December; Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI for January; Canada GDP for November; Earnings from American Express; Canadian National Railway; Chevron; Exxon Mobil; Verizon Communications
Today's Top Headlines/Must Reads:
-Trump, Democrats Say Deal Reached to Avert Shutdown
-Memory Shortage Haunts Apple's Blowout iPhone Sales
-The Crypto CEO Who's Become Enemy No.1 on Wall Street
MARKET WRAPS
Forex:
The dollar rose following reports that Trump could nominate Warsh as Fed chair.
"This is an interesting pick from the President and may give the market some hope that Fed independence will be preserved by elevating a former Fed insider," XTB said.
CBA said, "While Warsh has recently argued for lower interest rates, markets have welcomed his historical reputation as a policy hawk amid concerns about potential erosion of Fed independence ."
Commerzbank said the dollar's gains might be somewhat premature.
The currency's positive reaction reflects the view that Warsh has previously favored more restrictive monetary policy and could succeed in preserving the Fed's independence.
"The U.S. administration's attacks on the Fed are unlikely to stop just because a Fed chair chosen by Trump is now at the helm--after all, Jerome Powell was originally appointed by Trump too."
MUFG also said the dollar's rise on reports Trump could nominate Warsh would likely fade.
The euro has an opportunity to play a stronger international role on diversification away from the dollar, but officials seem reluctant to bear the negative side effects, Commerzbank said.
Sterling was unlikely to extend recent gains against the dollar much further given the lack of positive U.K. catalysts, Monex Europe said.
Bonds:
Treasury yields rose as investors turn their focus to Trump's likely announcement of Warsh as next Fed chair.
TD Securities said Treasurys could steepen if Warsh's nomination eventuates.
However, if BlackRock's Rick Rieder was nominated, Treasurys would likely flatten, driven by a faster fall of long-end yields than short-end yields.
In either case, however, TD expected the reaction to be short-lived as the new chair would need to convince the rest of the committee.
The Treasury's quarterly refunding announcement will be a key point for investors next week, even as issuance volumes are likely to be unchanged for bonds and notes.
TD Securities said the Treasury could either signal increases later this year or drop the idea altogether, each with meaningful market implications.
Energy:
Oil prices retreated following a three-day rally but remained on track for significant weekly gains as the possibility of U.S. military action against Iran keeps investors on edge.
"A broad risk-off shift hit equities and metals while the dollar strengthened, prompting profit-taking in crude markets," MUFG said.
Metals:
Precious Metals
Gold retreated sharply after surging to fresh record highs, as traders booked profits and the dollar strengthened.
Silver also dropped more than 9%.
UBS said gold would likely reach $6,200 in the first nine months of the year before moderating to $5,900 by the end of 2026.
Base Metals
Base metals were lower after they resumed trade following a technical glitch in LME's electronic trading platform.
Base metals have been volatile, with moves reflecting tight prices in response to speculative macro risk sentiment rather than metal-specific fundamentals, says Sucden Financial in a note.
Positioning flows were likely to remain a dominant driver as Friday marks the end of the week and the month--when investors tend to aggressively flatten risk, it added.
"We would not be surprised to see further sharp, intraday swings as books are adjusted into the close."
Copper pulled back amid broader risk-off sentiment and a firmer dollar after breaking a new record in the previous session.
"While longer-term macro conditions remain supportive, several near-term micro drivers do not justify higher prices at this stage, increasing the risk of sharp pullbacks given the speculative nature of the latest surge, " Saxo Bank said.
TODAY'S TOP HEADLINES
AstraZeneca Strikes Obesity Multibillion-Dollar Deal With China's CSPC Pharmaceuticals
AstraZeneca said it entered into a collaboration agreement with China's CSPC Pharmaceuticals to gain rights to a portfolio of early-stage experimental obesity and diabetes drugs, in a deal potentially valued at billions of dollars.
The U.K. pharmaceutical giant said Friday that it would pay $1.2 billion upfront to CSPC, up to $3.5 billion if the drugs hit development and regulatory targets and make additional payments linked to commercialization and sales goals plus royalties. CSPC separately said the sales milestone payments could be valued at up to $13.8 billion, and the royalties at up to double percentage digits of the annual sales of the licensed products.
OpenAI Plans Fourth-Quarter IPO in Race to Beat Anthropic to Market
OpenAI is laying the groundwork for a public listing in the fourth quarter of this year, people familiar with the matter said, accelerating its plans as competition with rival Anthropic intensifies.
The $500 billion startup is holding informal talks with Wall Street banks about a potential initial public offering, people familiar with the matter said, and is growing its finance team. That includes the hire of a new chief accounting officer, Ajmere Dale, and a new corporate business finance officer, Cynthia Gaylor, who will oversee investor relations.
LG Electronics Reports First Quarterly Net Loss in a Year
LG Electronics fell into the red after three profitable quarters, ending 2025 on a weak note amid sluggish demand recovery and rising business costs.
The consumer-electronics giant's television business-once among the market leaders-has suffered a notable decline, grappling with a range of challenges, from weak demand and intense competition to higher marketing and labor costs.
Eurozone Economy Posts Resilient 2025 Growth Despite Tariff Turbulence
The eurozone economy last year expanded at its fastest pace since 2022 despite higher U.S. tariffs, and seems set for continued modest growth as increased government spending on defense and the repair of frayed infrastructure kicks in.
The pickup underlines the resilience of the bloc's economy, which has avoided recession in the face of a series of shocks that include Russia's full-scale invasion of Ukraine and rising tensions with the U.S.
Trump, Democrats Say Deal Reached to Avert Shutdown
WASHINGTON-President Trump and Senate Democrats said there is a deal to avert a partial government shutdown and temporarily fund the Department of Homeland Security, as negotiations continue on proposed restrictions to immigration enforcement.
Under the agreement, the Senate would move quickly to pass five of the six spending bills that already have cleared the House-funding most of the federal government for the rest of the fiscal year ending Sept. 30-while passing a two-week extension for DHS.
Taiwan's Economy Grew at Fastest Pace in 15 Years
Taiwan's economy expanded at the fastest pace since 2010 last year as it cashed in on the artificial-intelligence boom.
Gross domestic product rose 8.63% in 2025, accelerating from 5.27% in 2024 and beating economists' expectations for a more than 7% increase.
Trump Threatens to Ground Canadian Aircraft and Apply Tariffs to Imports
President Trump threatened to decertify Canadian aircraft and apply tariffs on imports in retaliation for what he described as the country's refusal to certify U.S.-made Gulfstream jets.
In a Thursday Truth Social post, Trump targeted to ground Bombardier Global jets as well as "all Aircraft made in Canada." He wrote that Canada needed to approve Gulfstream's G500, G600, G700 and G800 models. Without the approval, he said the U.S. could apply a 50% tariff on imports of Canadian aircraft.
Cuba Is Losing a Key Oil Supplier as U.S. Presses Mexico to Pull Back
(MORE TO FOLLOW) Dow Jones Newswires
01-30-26 0615ET
