OPENING CALL
Stock futures were on the rise after a cooler-than-expected inflation reading sparked a rally on Wall Street Thursday.
The inflation print cemented expectations for further interest rate cuts by the Federal Reserve.
"Traders are now assigning a roughly 25% chance of a reduction in January and almost fully pricing one by April," ANZ said.
Investors are also hoping the positive reaction to inflation data sets the stage for the traditional Santa rally at the end of the year.
However, there were missing data due to the recent government shutdown and the "methodological issues meant that investors treated it with some caution ," Deutsche Bank said.
On Friday, the Bank of Japan raised interest rates as expected , a move which might even push up the cost of borrowing in the U.S.
Stocks to Watch
Cassava Sciences said the FDA had placed a hold on its trial for a drug to treat epilepsy. Shares slid 13% after the bell.
FedEx posted better-than-projected results , boosted by higher package shipments. It raised the lower end of its annual guidance. However, shares dropped about 1.5% premarket.
KB Home delivered fewer homes and profit fell, weighed down by the stagnant housing market. Shares dropped 5% off-hours.
Nike expects sales to decline due to continued weakness in China . Its gross margin decreased as tariffs pushed up product costs. The stock fell 10% premarket.
Oracle: TikTok parent Bytedance has formalized agreements to form a new U.S. joint venture that will be 50% held by a consortium of new investors, including Oracle. Shares in Oracle jumped 5.5% before the bell.
Scholastic increased its profit as book fairs in the back-to-school season buoyed revenue . Shares fell 1% offhours, however.
Watch For:
Existing Home Sales for November, University of Michigan Final Consumer Survey for December
Today's Top Headlines/Must Reads:
-Jobs Could Soon Replace Prices as Focus of Anxiety
-Insurance Rates Should Fall Next Year. Hopefully Not Too Much.
-Axel Springer's CEO Wants His Latest Deal-but Can't Find Anything to Buy
MARKET WRAPS
Forex:
The dollar recovered after a knee-jerk decline in reaction to the inflation data .
The euro fell, but could rise against the dollar as further interest-rate cuts by the European Central Bank seem unlikely for now, Commerzbank said.
Sterling fell against a stronger dollar but was little changed against the euro after weaker-than-expected U.K. retail sales data.
The currency looks vulnerable due to the prospect of further BOE interest rate cuts , Convera said.
Bonds:
Treasury yields rose across maturities.
Bond prices fell around the world, pushing up yields. The Japanese 10-year bond yield settled above 2% for the first time since 1999.
Energy:
Oil prices were headed for a weekly loss of more than 2% as concerns over a looming supply surplus outweighed geopolitical risks.
Metals:
Gold prices slipped in early trading on a firmer dollar, but remained on track for a weekly gain.
Nickel
Nickel climbed, extending the previous session's gains. The metal likely rose after reports that Indonesia, the world's top nickel producer, plans to reduce production to 250 million metric tons next year to support prices, Sucden Financial said.
Iron
Iron ore edged higher. Overall market sentiment has been relatively upbeat this week, though there's been a broad period of fluctuation, Galaxy Futures said.
TODAY'S TOP HEADLINES
TikTok Signs Agreement for U.S. Venture. Oracle Stock Jumps.
TikTok and Chinese owner ByteDance signed agreements with Oracle and two other investors to form a new U.S. joint venture. Shares of the tech firm jumped on the news.
CEO Shou Zi Chew told employees in a memo viewed by Barron's that the joint venture will be 50% held by a consortium of new investors, which includes Oracle, Silver Lake, and MGX. Each of those firms will hold 15% in the new entity, named TikTok USDS Joint Venture LLC.
Nike says turnaround plans are 'in the middle innings,' but investor worries remain
Nike Inc. on Thursday said its turnaround plans were "in the middle innings," but the sneaker giant forecast shrinking sales and margins for its third quarter, as a rebound in North America runs up against tariff costs and struggles in China.
Shares NKE sank about 10% ahead of Friday's market open. In Europe, shares of sportwear makers Puma DE:PUMA and Adidas XE:ADS fell 2% and 1%, respectively.
OpenAI's New Fundraising Round Could Value Startup at as Much as $830 Billion
OpenAI is aiming to raise as much as $100 billion as it seeks to pay for ambitious growth plans in a market that has cooled recently on the artificial-intelligence boom.
The fundraising round, which is in the early stages, could value the company at as much as $830 billion, if it raises the full amount it is targeting, people familiar with the matter said. The startup aims to complete the round by the end of the first quarter at the earliest. Terms of the deal could still change, and it is unclear whether there will be sufficient investor demand to reach the goal.
How Trump Spun a Social Network Into a Nuclear-Fusion Company
First there was Truth Social. Then a streaming platform. A suite of financial products came later, as did a multibillion-dollar deal to stockpile cryptocurrency.
Now, a merger with a fusion-energy company aims to capitalize on the latest sizzling-and speculative-market: the AI boom's insatiable appetite for power. Welcome to the shotgun strategy of Trump Media and Technology Group.
The Bank of Japan Raised Rates. Here's Why You Should Care.
TOKYO-In 1995, O.J. Simpson was acquitted of murder charges, Coolio's "Gangsta's Paradise" topped the charts, and the first Toy Story movie hit the theaters. It was also the last time the Bank of Japan's benchmark interest rate was as high as 0.75%.
The BOJ raised its policy rate target to its highest level in 30 years on Friday, another small step back from the world's longest and biggest experiment with ultra-expansionary monetary policy.
Jobs Could Soon Replace Prices as Focus of Anxiety
President Trump is clearly frustrated by all the talk of an "affordability crisis." I don't blame him. As Thursday's admittedly distorted consumer-price index report showed, inflation simply isn't behaving badly.
But don't define affordability too narrowly. It means not just the prices we pay, but the means to pay them. We may be focusing too much on the first and not enough on the second.
Insurance Rates Should Fall Next Year. Hopefully Not Too Much.
The U.S. got lucky during hurricane season. That could help lower insurance costs next year. But don't bet on too much.
This year marked the first time in 10 years that none of the hurricanes that formed during the Atlantic season made landfall on the U.S. coast, according to the Swiss Re Institute. In most years, these are among the costliest catastrophes for insurers.
Brown and MIT Shooting Suspect Found Dead in New Hampshire
The man suspected of killing two Brown University students and later an MIT professor was found dead in a storage unit in New Hampshire on Thursday night after a six-day manhunt, officials said.
The alleged gunman, identified as 48-year-old Portuguese national and former Brown student Claudio Neves Valente, fatally shot himself in the storage unit, authorities said Thursday night.
Military Welcomes $1,776 'Warrior Dividends'
One Army staff sergeant said he planned on putting his $1,776 check from the federal government into his retirement fund. A longtime infantryman said he would invest the money in the stock market. A military spouse said she intends to pay down credit-card debt her family has incurred from basic expenses like food and baby supplies.
"It may not seem like a lot to normal Americans, but it's like getting an extra paycheck for us," said Meghan Holliday, whose husband is an Army staff sergeant. "Especially during the holidays, it gives us a sense of relief. We won't have to stretch as much as we usually have to."
Wisconsin Judge Convicted of Obstructing Immigration Agents in Courthouse
A Wisconsin state judge was convicted Thursday for her role in helping a defendant in her courtroom avoid immigration agents, in a closely watched case that highlighted tensions surrounding the Trump administration's aggressive deportation drive.
After six hours of deliberations, jurors in Milwaukee found Judge Hannah Dugan guilty of obstructing law enforcement, a felony that carries a maximum sentence of up to five years in prison, but acquitted her on a charge of concealing a man wanted by immigration authorities, in an unusual federal criminal prosecution of a sitting state-court judge.
New York Mayor Adams Moves to Block Zohran Mamdani's 2026 Rent Freeze
New York City's departing mayor is launching a last-ditch effort to thwart Mayor-elect Zohran Mamdani's plan to freeze rents next year.
Mayor Eric Adams, who has opposed a rent freeze, is appointing two new members and reappointing two current members to the Rent Guidelines Board, according to the mayor's office.
Write to priscila.barrera@wsj.com
TODAY IN CANADA
Earnings:
NA
Economic Indicators (ET):
0830 Nov New Housing Price Index
0830 Oct Retail trade,Total Retail Sales
Stocks to Watch:
BlackBerry 3Q EPS 2c; 3Q Rev $141.8M; Sees 4Q Rev $138M-$148M; Sees 4Q Adj EPS 3c-Adj EPS 5c; Sees FY26 Rev $531M-$541M; Sees FY26 Adj EPS 14c-Adj EPS 16c; 3Q QNX Revenue $68.7M; 3Q Adj EPS 5c
Dye & Durham Exempted by Court Order From Requirement to Send FY25 Financial Statements to Shareholders at Least 21 Days Before Annual Meeting; Sees Audit of Annual Financial Statements Complete by Dec. 23
Freegold Ventures Announces $30 MBrokered Private Placement Financing
(MORE TO FOLLOW) Dow Jones Newswires
12-19-25 0612ET
