OPENING CALL

Stock futures were weaker on Friday, with Nasdaq-100 contracts leading declines, as investors considered the possibility of a government shutdown this weekend.

Donald Trump has torpedoed a bipartisan deal, insisting Republican lawmakers pass a narrower bill that meets his demands.

Trump also threatened the European Union with tariffs unless the bloc bought large amounts of U.S. oil and gas to make up for what he called a "tremendous deficit." European stocks traded sharply lower.

The Federal Reserve's preferred inflation gauge is due premarket. Economists forecast the personal-consumption expenditures index rose 0.2% in November on the month, matching October's rate.

Stocks to Watch

FedEx was rising 8% after it said it would spin off its freight trucking business and reported fiscal second-quarter adjusted earnings that topped analysts' forecasts.

BlackBerry reported third-quarter adjusted profit better than Wall Street estimates but reduced its fiscal-year outlook ahead of closing the sale of its Cylance endpoint security assets. The stock was down 5.4%.

Micron Technology ended Thursday's session down 16% and was falling a further 2.5% in premarket trading after it issued a weak outlook for its fiscal second quarter.

Mission Produce posted fiscal fourth-quarter adjusted earnings that beat analysts' estimates. The stock was up 6.6%.

Fiscal second-quarter earnings and revenue at Nike topped Wall Street expectations but shares fell 3.1% after it said it expects third-quarter revenue to fall by low double-digits-worse than analysts' estimates that called for a 7.7% decrease.

Tesla was down 4.8% after falling 0.9% on Thursday. Coming into Friday, the stock has risen 75% this year.

U.S. Steel declined 5.82% after saying it expects a fourth-quarter adjusted loss well below analysts' expectations.

Watch For:

Chicago Fed National Activity Index for November; Personal Income and Outlays for November; University of Michigan Final Consumer Survey for December; earnings from Carnival, Winnebago Industries

Today's Headlines/Must Reads:

-The Messy Government Spending Bill Explained

-Bitcoin Went Mainstream in 2024. Are Ether, Solana and Other Risky Tokens Next?

-More Men Are Addicted to the 'Crack Cocaine' of the Stock Market

MARKET WRAPS

Forex:

The prospects remain positive for the dollar near term, MUFG said, as investors continue to view the U.S. economy as best positioned for resilient growth heading into 2025.

In addition, the likelihood of U.S. monetary policy being more restrictive than elsewhere should continue to help the dollar.

HSBC said the first Trump presidency may have seen dollar weakness in its first year, but it doesn't expect a repeat performance under Trump 2.0.

That's due to relatively higher U.S. yields and a divergence in the global growth cycle, among other factors. Meanwhile, the outlook is poised to be challenging for currencies whose economies are highly linked to the U.S. via trade, or reliant on the global trade cycle, HSBC added.

Sterling fell against the euro and stayed weak against the dollar after data showed retail sales in the U.K. rose by just 0.2% in November, adding to concerns about a struggling economy.

"The U.K. consumer appears to be limping towards the finish line in 2024," Wealth Club said.

XS.com said the expected delay in Japan's rate hikes until early 2025 may keep the yen in a weakened state for an extended period unless market dynamics shift significantly. This will continue to support carry trades-a key driver of yen weakness-as investors leverage the rate gap between Japan and other markets for higher returns.

XS.com also said daily indicators suggest overbought conditions for the dollar against the yen, and may prompt profit-taking, potentially leading to a correction.

"Investors should closely monitor potential corrective levels around 155.50, where support might re-emerge to reinforce the positive trend."

Energy:

Oil prices were on track for weekly losses of roughly 3%, pressured by a stronger dollar and worries about global demand growth.

According to JPMorgan, the global oil market will shift from a balance in 2024 to a large surplus of 1.2 million barrels a day next year, followed by another surplus of 0.9 million b/d in 2026.

"The real challenge lies in the excess supply."

Metals:

Gold prices were poised for a weekly loss of more than 2% as the market digests the Fed's hawkish shift.

"The precious metal pushed back above $2,600/oz, suggesting the market saw the selloff as overdone," ANZ Research said.

"Nevertheless, the market will take some time to adjust to the pivot the Fed appears to have taken on rates."


TODAY'S TOP HEADLINES


Berkshire Hathaway Snaps Up More Occidental, Sirius XM, VeriSign

Berkshire Hathaway bought shares in Occidental Petroleum, Sirius XM Holdings, and VeriSign in recent days, according to Form 4 filings with the Securities and Exchange Commission late Thursday.

Berkshire's largest purchase was about $405 million of Occidental Petroleum. The buy of around 8.9 million shares raised Berkshire's stake in the big energy company to 264.2 million shares, approximately a 28.1% stake.


Aflac Keeps Eye on Japan Market as Others Turn Overseas for Growth

TOKYO-U.S. insurance giant Aflac is seeking to win over more younger customers to bolster its business in Japan, betting that the country will remain its largest market in the near future despite an aging population and the challenge of rising interest rates.

Chief Executive Daniel P. Amos said in an interview that addressing youth demand in Japan will be key to adapting to tough demographics and a new higher-rate environment.


After GE's Spinoff Success, What's Next for Honeywell, FedEx

Breaking up may be hard to do, but for investors it's been a winning strategy.

We're talking, of course, about breaking up companies-and the spinoffs that are supposed to create value for shareholders. Wall Street loves a good spinoff for the fees it creates and the new companies it will get to serve, and recent returns show that investors are actually doing well, too. The Bloomberg Spinoff index has risen 63% in 2024, more than double the S&P 500 index's 24% gain.


MicroStrategy Stock's Momentum Is Fading Fast. A S&P 500 Addition Seems Unlikely.

The momentum is fading from one of 2024's hottest stocks: MicroStrategy.

Shares of the big Bitcoin holder were down 6.6% Thursday to $326.46, underperforming Bitcoin, which is off 4% to about $97,000 in the past 24 hours. The iShares Bitcoin Trust, the largest Bitcoin exchange-traded fund, fell 4% Thursday.


How American Health Insurance Got So Infuriating

The killing of UnitedHealthcare boss Brian Thompson has sparked widespread reflection on the frustrations of navigating America's healthcare system. Many have shared stories of insurance denials and the devastating financial and emotional toll these have taken on families.

Every country aims to control medical costs, and many wealthy nations-Switzerland, for example-also rely on private insurers to help manage care. What sets America apart is its patchwork system that pits loosely regulated, profit-driven players against each other. The result: enormous administrative waste, uncertainty for patients and little added value.


Traders brace for volatility with a record $6.6 trillion in options due to expire in Friday's 'triple witching'

It's "triple-witching" time again, and Friday's expiration promises to be the biggest ever, with options tied to more than $6 trillion in stocks, exchange-traded funds and indexes set to expire.

Figures provided by Asym 500 showed $6.6 trillion set to expire, with others putting the notional value even higher, at $7.7 trillion.


How Mike Johnson's Misfires Ignited Republican Rebellion

WASHINGTON-On Tuesday morning, House Speaker Mike Johnson (R., La.) stood in a room full of reporters and said he had no worries about winning re-election to his post early next year when the new Congress kicks off.

Days later, his speakership is on the ropes, thanks to a severe miscalculation in crafting a sprawling short-term funding bill with Democrats. Republican colleagues rebelled against the measure, and President-elect Donald Trump and his billionaire ally Elon Musk sharply criticized it.


Taiwan Is Getting Its U.S. Weaponry-but Years Behind Schedule

TAIPEI-Taiwan hailed the arrival of its first state-of-the-art American tanks this week, celebrating what it described as "the world's greatest war machine."

Less prominently mentioned was the long wait that preceded the arrival of the 38 Abrams tanks: Taiwan placed the order five years ago in June 2019, during President-elect Donald Trump's first term.


Write to paul.larkins@dowjones.com TODAY IN CANADA

Earnings:

None scheduled

Economic Calendar [ET]:

0830 Oct Retail Sales

Stocks to Watch:

Americas Gold & Silver Names Paul Huet as Chairman; Names Scott Hand, Peter Goudie to Board

STEP Energy Services Agrees to Mutually Terminate Arrangement With ARC Financial Originally Entered Nov. 3; Decision Reached After Was Made Clear Requisite Minority Shareholder Could Not Be Achieved; Sees Near-Term Margin Pressure, Sees Additional LNG Capacity From 2H 2025

Market Insight:

Political uncertainty should keep the Canadian dollar under pressure in the short term but elections could produce a result that helps the currency to recover, RBC BlueBay Asset Management' said.

In the near term, it's too early to turn more optimistic, however.

Other News:

Trump Pick for Border Czar 'Optimistic' About Talks With Canada Amid Tariff Threat

Donald Trump's pick for border czar, Tom Homan, says Canada has submitted solid recommendations on fortifying the northern border, a suggestion the country might be able to avoid a 25% tariff on its U.S.-bound exports.


Expected Major Events for Friday

00:01/UK: Nov UK monthly automotive manufacturing figures

(MORE TO FOLLOW) Dow Jones Newswires

12-20-24 0617ET