OPENING CALL

Stock futures edged higher on Friday as tech stocks pared losses from the previous session.

Amazon, Microsoft and Alphabet all reported strong quarterly growth in cloud revenue, but warned of increased capital spending.

Attention may now shift to oil earnings with results due from Exxon Mobil and Chevron.

On the economic front, official monthly jobs data will be watched closely, while nervousness reigns over how the presidential election will play out.

Premarket Movers

Atlassian went up 20% following fiscal first-quarter earnings and revenue that were better than Wall Street forecasts.

Apple reported fiscal fourth-quarter earnings that beat analysts' estimates but issued weaker-than-expected guidance for the holiday quarter. Shares fell 1.2%

Amazon.com rose 5.6% after reporting third-quarter earnings that beat Wall Street estimates.

Intel rose 6.6% after it issued a better-than-expected fourth-quarter earnings forecast.

Juniper Networks, which has agreed to be acquired by Hewlett Packard Enterprise, reported third-quarter adjusted earnings that beat estimates. Shares rose 1.3%.

Postmarket Movers

Abbott Laboratories was found not responsible for a young boy's intestinal disease by a jury. Shares went up 5.4%.

MasTec raised its earnings outlook for the year after its third-quarter profit came in ahead of analysts expectations. Shares rose 5.8%.

Watch For:

Employment Report for October; ISM Report on Business Manufacturing PMI for October; Federal Reserve Bank of Dallas President Lorie Logan speaks at Women in Central Banking Workshop; earnings from Chevron, Enbridge and Exxon Mobil

Today's Top Headlines/Must Reads:

-Credit and Debit Cards Ate Cash. So What's Eating Cards?

-Trump and Harris Plans Could Both Stoke Inflation. That Means a More Hawkish Fed

-China Policy Meeting Next Week Can Tip Economic Recovery Scales, or Disappoint Again

MARKET WRAPS

Forex:

The dollar rose slightly and could be boosted by monthly jobs data, although investors' main focus remains on next week's presidential election, Danske Bank said.

Analysts in The Wall Street Journal's poll forecast 100,000 additional jobs in October after a rise of 254,000 the previous month.

While a stronger-than-expected report could "modestly" lift the dollar, Danske said any reaction will be limited, due to the likelihood that extreme weather distorted the data, and focus will quickly return to the election.

Sterling stabilized after sliding to a two-and-half month low against the dollar and a six-week low against the euro on Thursday.

The U.K. currency's drop followed the new Labour government's budget presentation on Wednesday which included tax increases and higher borrowing.

"Markets are clearly concerned that Labour's plans for massive borrowing will push up bond issuance and keep rates higher for longer, raising mortgage rates and weighing on U.K. growth," Ebury said.

Energy:

Oil soared on reports that Iran is preparing a retaliatory strike on Israel in the coming days.

According to a report from Axios, Israeli intelligence suggests Iran is preparing to attack the country, possibly before the election.

Despite the rebound, prices are still headed for modest weekly losses due to widespread concerns over a weaker demand outlook and an oversupplied market next year, with traders waiting to see if OPEC+ will stick to its plan to start hiking output in December.

"Geopolitical tensions have proved to be a temporary boost to oil bulls, " Swissquote Bank."

Despite, this the global economic outlook and supply-demand dynamics remain comfortably bearish for oil, Swissquote added.

Metals:

Gold rose after sliding in the previous session, with investors awaiting payrolls data for more insights on the Federal Reserve's next policy move.

Futures traded higher following a 2% fall on profit-taking and increasing bets that the central bank will take a more cautious approach to rate cuts in the months ahead.

"The fact that the core PCE rose the most on a monthly basis since April--along with strong spending and robust growth data released earlier this week--trimmed the Fed cut bets," Swissquote Bank said.

"Still, prices continue to be supported by strong demand for safe-haven assets due to heightened geopolitical risks in the Middle East and uncertainty around the U.S. election."

Base metals were broadly stable--with three-month copper flat and aluminum up--as a lack of strong directional appetite kept prices supported within this week's range despite positive signals from China.


TODAY'S TOP HEADLINES


Boeing Makes Another Offer to End Machinists Strike

Boeing has reached a deal with leaders of its machinists union, trying for a third time to end a strike that has halted most of its airplane production.

The strike, which began on Sept. 13, has hobbled Boeing's business, costing the company an estimated $1 billion a month. Chief Executive Kelly Ortberg has set plans to cut 17,000 jobs while raising more than $24 billion in equity to keep the company afloat.


U.S. Drugmakers Are Breaking Up With Their Chinese Supply-Chain Partners

U.S. drugmakers and biotechs have come to rely on Chinese partners for manufacturing, research and ingredients. Now, some of them are looking for alternatives as geopolitical tensions rise.

From big pharmaceutical companies such as AstraZeneca to small biotechnology firms like Amicus Therapeutics of New Jersey, which is looking for a non-Chinese company to supply raw materials for its rare-disease treatment, the companies say it is time to reduce China risk.


OpenAI Adds Search Engine to ChatGPT, Challenging Google

OpenAI has embedded a search engine into its popular ChatGPT chatbot, entering a space long dominated by Alphabet's Google as technology companies compete to use artificial intelligence to improve search results.

The San Francisco-based company on Thursday announced what it calls "ChatGPT search." The latest version of the AI chatbot will allow users to search up-to-date information from across the internet, such as sports scores, stock prices and weather, powered by real-time third-party search providers and content partners.


The Great British bond battering continues after budget speech

U.K. bond yields continued to surge on Friday, as fixed-income investors react in dismay to an increase in issuance.

On Friday, the yield on the 10-year gilt BX:TMBMKGB-10Y rose 9 basis points to 4.52%. The yield was 4.25% when Chancellor of the Exchequer Rachel Reeves began delivering her budget speech on Wednesday. Yields move in the opposite direction to prices.


China Manufacturing Activity Gauge Adds to Tentative Signs of Recovery

A private gauge of China's manufacturing activity signaled that the sector returned to growth in October, in a potential sign that Beijing's more aggressive efforts to boost the economy are having an effect.

The Caixin manufacturing purchasing managers index rose to 50.3 in October from 49.3 in September, according to data released by Caixin Media Co. and S&P Global on Friday.


Foreign Adversaries Target Specific Demographics in Attempt to Sway U.S. Election

WASHINGTON-U.S. adversaries have targeted Spanish-language speakers and other minority groups in efforts to influence the presidential election, seeking to fan internal social divisions and elevate their favored candidate through disinformation and propaganda.

Both Russia and Iran have attempted in recent months to focus on specific slices of the electorate to influence voters toward their preferred outcome, according to U.S. intelligence officials and disinformation researchers.


Canada and Mexico Fear a More Protectionist America

WINDSOR, Ontario-Some $320 million of goods a day rumbles across the Ambassador Bridge connecting this industrial Canadian city to Detroit. It's so busy that, 2 miles downriver, another six-lane crossing is going up.

The new span's entire $4.5 billion cost is borne by Canada-a symbol of how much free trade means to this country, and what's at stake in Tuesday's presidential election for America's closest neighbors.


Write to gareth.mcpherson@wsj.com TODAY IN CANADA

Earnings:

Air Canada 3Q

Enbridge 3Q

Energy Fuels 3Q

Ensign Energy Services 3Q

Imperial Oil 3Q

Magna International 3Q

TELUS 3Q

Ur-Energy 3Q

Economic Indicators (ET):

0930 Canada Manufacturing PMI for October

Stocks to Watch:

Black Diamond 3Q EPS C$0.12; 3Q Rev C$101.2M; Raises Dividend to C$0.035 Vs. C$0.03

Champion Iron Price Target Cut 0.7% to A$7.10/Share by Bell Potter; Price Target Cut 5.6% to A$6.80/Share by Citi

Cogeco Communications 4Q Rev C$747.8M; 4Q EPS C$1.94; 4Q Adj EPS C$2.35; Raises Quarterly Dividend to C$0.922 Vs. C$0.854; Sees FY25 Constant-Currency Revenue Stable

Global Medical Devices Manufacturer Selects Kneat to Digitize Validation

TVA Group 3Q EPS C$0.06; 3Q Net C$2.61M; 3Q Rev C$112.4M


Expected Major Events for Friday

00:01/UK: Oct BRC-Sensormatic IQ Footfall Monitor

00:30/JPN: Oct Japan Manufacturing PMI

05:00/JPN: Oct Auto sales

06:00/RUS: Oct Russian Manufacturing PMI

07:00/UK: Oct Nationwide House Price Index

09:00/GER: Oct Brandenburg CPI

09:30/UK: Oct S&P Global UK Manufacturing PMI

12:30/US: Oct U.S. Employment Report

13:30/CAN: Oct Canada Manufacturing PMI

13:45/US: Oct US Manufacturing PMI

14:00/US: Oct ISM Report On Business Manufacturing PMI

14:00/US: Sep Construction Spending - Construction Put in Place

20:00/US: Oct Domestic Auto Industry Sales

All times in GMT. Powered by Kantar Media and Dow Jones.


Expected Earnings for Friday

AES Corp (AES) is expected to report $0.67 for 3Q.

AdvanSix (ASIX) is expected to report $0.73 for 3Q.

Air Canada (AC.T) is expected to report $1.74 for 3Q.

Alpha Metallurgical Resources Inc (AMR) is expected to report $3.55 for 3Q.

Arbor Realty Trust Inc (ABR) is expected to report $0.30 for 3Q.

(MORE TO FOLLOW) Dow Jones Newswires

11-01-24 0653ET