OPENING CALL
Stock futures were on the rise on Wednesday, reversing the worst of this week's heavy losses on a rebound in cryptocurrency stocks.
Market participants are closely watching upcoming data, including ADP employment figures, the ISM services index, and the PCE price index.
Weak data could increase prospects of the Federal Reserve cutting rates at its meeting next week.
Meanwhile, Trump signaled publicly that longtime adviser Kevin Hassett is a leading contender to head the central bank, firming investors' rate cut expectations.
Markets currently price an 85% chance of a December rate cut by the Fed, LSEG data show.
Risk appetite has improved from a gloomy start to the week but an undertone of caution persists, said Mizuho Securities.
Crypto's comeback overnight dovetailed with a pick-up in equities and bonds, but the confluence of "feel-good" markers looks more like a respite than full-throated "risk on," it added.
This week's batch of retail earnings kicks off today, with results from Macy's and Dollar Tree.
Stocks to Watch
Airbus lowered its annual aircraft-delivery target , but reiterated its financial outlook. Shares rose more than 2.5% in France.
American Eagle raised same-store sales guidance as it sees a strong start to the holiday shopping period. The stock jumped roughly 15% before the bell.
CrowdStrike posted a bigger quarterly loss than last year and narrowed its annual sales-growth forecast. Shares fell 2% premarket.
GitLab swung to a quarterly loss . Shares dropped roughly 8% ahead of the open.
Leslie's said it plans to close 80 to 90 underperforming stores in an effort to cut 10% of its inventory. Shares fell 11%.
Marvell Technology agreed to buy Celestial AI in a deal valued at $3.25 billion , and posted largely robust quarterly results and forecasts. Marvell shares rallied 9% premarket.
Nike is creating a new role of chief operating officer , as it shakes up its leadership team as part of a turnaround plan.
Royal Bank of Canada is due to post earnings this morning, as are retailers Dollar Tree and Macy's. Shares in the latter were up nearly 2% premarket.
Watch For:
ADP National Employment Report for November; Import Prices for September;Industrial Production & Capacity Utilization for September; EIA Weekly Petroleum Status Report; Royal Bank of Canada 4Q earnings
Today's Top Headlines/Must Reads:
-A Newly Confident China Is Jockeying for More Global Clout as Trump Pulls Back
-Can 'Trump Accounts' for Babies Change the Economics of Having a Family?
-Retailers Are Snatching Up Real Estate Again
MARKET WRAPS Forex:
The dollar fell after Trump touted Kevin Hassett as a potential candidate for the next Fed Chair and as investors turned cautious ahead of jobs data.
Nomura economists see several risks that could lead to a larger move lower in the dollar next year. The potential triggers include U.S. portfolio positioning, forex hedging risk, the Supreme Court's decision on Trump tariffs, issues around Fed independence, and U.S.-China trade de-escalation.
The euro rose. Lower energy prices are a key driver of the currency's gains, ING said.
"Softer energy prices are sending the eurozone's terms of trade to the highest levels of the year and supporting the eurozone's external accounts," it added.
Bonds:
Treasury yields mostly edged lower as expectations for Fed rate cuts grow.
Steepeners were set to be "the trade of choice" over the coming weeks in U.S. rates markets, Jefferies said.
Energy:
Oil prices rose in choppy trade as investors continued to monitor developments in Russia-Ukraine peace talks.
"Oil markets and prediction markets do not appear to price a large probability of a near-term peace agreement and removal of the sanctions on Russia oil," Goldman Sachs said.
Metals:
Gold edged higher in early trade. Gold's rally could be challenged if sentiment improves next year and asset allocations return to risky assets, said William Blair.
Prices were likely to remain range-bound until the Fed provides firmer guidance on its monetary policy trajectory, Sucden Financial said.
Copper
Copper rose. Bullish copper positioning continues to recover modestly , said Sucden Financial analysts, citing the recent Commitments of Traders report.
However, it still remains below the peak for investment funds marked in February, which could indicate more room to add.
Iron
Iron ore futures edged higher in early trade. Most analysts remain neutral as the fundamentals remain weak. Supply and demand are relatively sluggish , Everbright Futures said.
TODAY'S TOP HEADLINES
Binance Names Co-Founder Yi He as Co-CEO of Crypto Exchange
Binance, the world's largest crypto exchange, has named co-founder Yi He as its co-chief executive.
Yi, who led the strategy to develop Binance from a crypto-to-crypto trading platform into a global blockchain ecosystem, will take the helm of the company alongside CEO Richard Teng.
Shares in Zara Owner Inditex Jump on Strong Sales Growth
Shares in Inditex climbed after the Zara owner reported accelerating sales growth at the start of the key shopping season, pointing to strong Black Friday performance.
The Spanish fashion group, which also houses Massimo Dutti and Pull & Bear, said Wednesday that sales jumped nearly 11% at constant currency from Nov. 1 to Dec. 1 compared with the same period a year earlier.
Airbus Cuts Plane Delivery Goal Due to A320 Fuselage Quality Issue
Airbus said it was lowering its aircraft delivery target for the year due to a quality issue with metal panels on hundreds of A320 jets, a major blow to the group as it struggles to overcome supply-chain hurdles.
The European plane maker said Wednesday that it expects to deliver about 790 commercial planes to customers this year compared with a prior target of roughly 820, but it reiterated its financial targets.
HSBC Names Chairman After Yearlong Search
HSBC named Brendan Nelson as chairman following a yearlong search to fill one of the biggest jobs in the global finance industry.
The 76-year-old Nelson, a longtime partner at KPMG, joined the U.K. bank's board in September 2023 and had been serving as interim chairman since Oct. 1. Nelson's predecessor, Mark Tucker, stepped down as chairman on Sept. 30 and joined Hong Kong insurer AIA.
Trump's Aides Cancel Fed Chair Interviews as President Homes In On Pick
WASHINGTON-The Trump administration canceled a slate of interviews set to start this week with a group of finalists to be the next chair of the Federal Reserve as President Trump again suggested he had made up his mind about who should lead the central bank.
Trump's team informed candidates that interviews scheduled for Wednesday with Vice President JD Vance had been canceled, according to people familiar with the matter. No reason was given for the decision. A person familiar with the matter said the cancellation was because of a scheduling conflict for the vice president. The person said it wasn't clear if the meetings would be rescheduled.
November ADP Jobs Data Could Complicate the Fed's Rate Decision
The latest private employment numbers are expected to show that the labor market remained relatively stable in November. That could create further divides among Federal Reserve officials when they set interest rates next week with less economic data on hand than usual.
The monthly ADP National Employment Report for November is set to be released at 8:15 a.m. Eastern on Wednesday. Economists surveyed by FactSet expect that the U.S. private employers added 40,000 jobs in November, though the Bloomberg consensus is for just a 5,000 monthly gain.
EU Reaches Deal to Ban Russian Gas Imports by 2027
The European Union reached a deal to permanently halt imports of Russian gas, a significant milestone in the bloc's efforts to sever energy ties with Moscow following the invasion of Ukraine.
Under the agreement, all imports of Russian gas will be banned from the fall of 2027, with earlier phase-out deadlines for liquefied natural gas and short-term supply contracts.
Ukraine Goes After Moscow's Shadow Fleet in International Waters
The sun was setting over the Black Sea on Friday as a naval drone sped toward an oil tanker headed for a Russian port. The Sea Baby drone, developed by Ukrainian security services, slammed into the vessel's hull moments later, triggering a fireball that lit up the pink-hued sky.
The grainy footage-which Ukrainian intelligence says shows a strike on a Russia-linked oil tanker-offers a glimpse into Kyiv's widening campaign against Russia's energy architecture. Ukraine is now targeting the Kremlin's shadow fleet, which relies on an opaque web of ships to skirt sanctions on its oil exports and reap funds for its war in Ukraine.
Trump Says He Doesn't Want Somali Immigrants in U.S. as ICE Plans Operation
WASHINGTON-President Trump lashed out against immigrants from Somalia, saying he didn't want them in the U.S. and describing them in disparaging terms ahead of an expected federal operation against Somalis in Minneapolis.
"I don't want them in our country, I'll be honest with you...their country is no good for a reason," Trump said Tuesday, speaking at a cabinet meeting at the White House. "We're at a tipping point," he said, adding that the country would "go the wrong way if we keep taking in garbage into our country."
Pope Leo Urges the U.S. Not to Threaten Venezuela With Force
ROME-Pope Leo called on the Trump administration to work for change in Venezuela through dialogue and economic pressure rather than by threatening military action, against a background of rising tensions between Washington and Venezuelan leaders.
(MORE TO FOLLOW) Dow Jones Newswires
12-03-25 0615ET
