OPENING CALL
Stock futures edged higher after the major indexes notched another week of gains, with the Dow closing above 40000 for the first time.
Also in recent trading, Treasury yields crept up and gold and copper futures traded around records.
Premarket Movers
GameStop was up 0.7% after falling 20% on Friday as it announced it was selling up to 45 million shares and issued disappointing fiscal first-quarter guidance.
Nvidia was 1.1% higher. The company is scheduled to report quarterly earnings on Wednesday after the stock market closes and is expected to confirm huge demand for its chips to power AI systems.
Watch For:
JPMorgan Chase 2024 investor day/webcast & conference call; Canada financial markets closed for Victoria Day/Patriot's Day holidays
Today's Headlines/Must Reads:
- The U.S. Finally Has a Strategy to Compete With China. Will It Work?
- Tariffs Push Up Costs. But Not Always Inflation
- Musk Effect Drives Spread of Supersize CEO Pay Packages
- A $10 Billion Real-Estate Fund Is Bleeding Cash and Running Out of Options
MARKET WRAPS
Forex:
Sterling is likely to strengthen in the short-term if the U.K. services inflation data due on Wednesday beats market expectations, Monex Europe said.
"An overshoot, [in U.K. services inflation] would likely see August become the base case for a [Bank of England] first cut to its bank rate, keeping sterling bid in the short term."
Nonetheless, a reading in line with market expectations or below the expectations is likely to support a BOE cut in June, weighing on sterling, Monex added.
Energy:
Oil futures edged higher with the market awaiting OPEC's next move, with three possible scenarios for the June 1 meeting-extend, unwind or completely remove the voluntary cuts of 2.2 million barrels a day.
Prices have traded in less than a $3.50 range since early May, and more clarity might be needed from OPEC+ and its output policy for the second half of the year to provide any impetus to the market for it to break out of its recent range, ING said.
Metals:
Gold futures were just shy of their recent record as softer U.S. data last week raised expectations of Fed interest rate cuts.
Markets are pricing in around an 85% chance of a Fed rate cut by September, compared with around 75% prior to the release of the CPI data, Commonwealth Bank of Australia said.
TODAY'S TOP HEADLINES
Red Lobster Files for Bankruptcy
Red Lobster, the largest seafood restaurant chain in the U.S., has filed for bankruptcy protection in an effort to reduce debt and will sell its assets.
The casual-dining chain operator filed for relief under chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida, it said late Sunday.
Li Auto's First-Quarter Net Profit Fell Despite Higher Revenue
Li Auto's first-quarter net profit dropped 36% despite higher revenue, though the company maintained a gross margin above 20%.
The Chinese electric-vehicle maker said Monday that its net profit was 592.6 million yuan ($82.0 million), down from CNY929.7 million a year ago and CNY5.66 billion in the fourth quarter.
Dimon Led Bank CEOs to Fend Off Tougher Capital Rules
WASHINGTON-JPMorgan Chase's Jamie Dimon and other big-bank CEOs played hardball with the Federal Reserve over proposals that the lenders hold more capital. Now, it looks like those tactics are paying off.
The Fed and two other federal regulators are moving toward a plan that would significantly lessen a nearly 20% mandated increase in capital for the biggest U.S. banks, according to people familiar with the matter.
Facebook Parent's Plan to Win AI Race: Give Its Tech Away Free
Mark Zuckerberg has an unusual plan for winning the artificial-intelligence race: giving away his company's technology free.
Like many of its rivals, Zuckerberg's Meta Platforms is spending tens of billions of dollars on high-end computer chips, top-flight computer scientists and gigawatts of electricity to build the most powerful AI tools it can. Unlike any of those rivals, some of whom made AI announcements last week, Zuckerberg is giving away the fruit of that investment-Meta's most advanced chatbots and the technology that drives them.
China Benchmark Lending Rates Held Steady
China's benchmark lending rates were held steady this month, central bank data showed Monday after Beijing announced bold moves to address property-sector malaise.
The one-year loan prime rate was steady at 3.45% while the five-year rate was unchanged at 3.95%, according to the official data.
Iranian President, Foreign Minister Killed in Helicopter Crash
Iranian President Ebrahim Raisi was killed in a helicopter crash on Sunday, according to state-run Press TV, depriving Supreme Leader Ayatollah Ali Khamenei of a longtime ally as Tehran angles for regional dominance through armed militias that are fighting the U.S. and Israel.
Raisi's death was announced early Monday, after state TV reported Sunday afternoon that a helicopter carrying him and Foreign Minister Hossein Amir-Abdollahian had made a "difficult landing" in northwestern Iran.
New Taiwan President Swings at China-but Pulls Punches-in First Speech
TAIPEI-Taiwan's new president said the island democracy would serve as a "helmsman of global peace" under his watch in a carefully calibrated inauguration speech reflecting his delicate status at the fulcrum of tensions between the U.S. and China.
With Beijing and Washington both listening carefully, Lai Ching-te offered to keep Taiwan open to engagement with China. At the same time, he pushed back with some gusto against Beijing's territorial claims over Taiwan, which is officially known as the Republic of China.
Europe Sees Signs of Russian Sabotage but Hesitates to Blame Kremlin
European investigators increasingly see Russian fingerprints around recent acts of suspected sabotage on strategic infrastructure but are struggling to respond.
Reacting to clandestine threats is difficult because evidence around the suspected attacks-including a severed undersea gas pipeline, cuts in a vital internet connection and the disruption of a rail network-often isn't conclusive. Potential culprits in big cases include commercial shipping or fishing vessels that have been engaged in apparently legitimate maritime transport or trawling for fish near sensitive seabed installations that were destroyed around the same time. They rarely have direct connections to Russian authorities, investigators say.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
None scheduled
Economic Calendar:
Victoria Day/Patriot's Day. Financial markets closed
Stocks to Watch:
Genesis Land Development Announces Sale of 40% of Huxley Development in Calgary; to Sell Stake to Two Separate Homebuilders for Gross Proceeds of C$21.4M
IntelGenx Initiates Restructuring Proceedings Under the CCAA to Implement a Review of Its Strategic Alternatives; Board Determined It Was in the Best Interest of IntelGenx and Stakeholders to File Creditor Protection; Expect to Seek Court Approval to Initiate a Formal Sale and Investment Solicitation Process
Sensible Meats Appoints Brad Nichol As CEO & Nathan Steinke As CFO
Expected Major Events for Monday
04:30/JPN: Mar Tertiary Industry Index
05:00/JPN: Apr Convenience Store Sales
10:00/UK: Apr Aluminium Production report
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Monday
3D Systems Corp $(DDD)$ is expected to report $-0.13 for 1Q.
Accord Financial (ACD.T) is expected to report for 1Q.
Adicet Bio Inc $(ACET)$ is expected to report $-0.33 for 1Q.
Aerovate Therapeutics Inc $(AVTE)$ is expected to report $-0.76 for 1Q.
Akoustis Technologies Inc (AKTS) is expected to report $-0.31 for 3Q.
Americas Gold & Silver Corp (USA.T,USAS) is expected to report for 1Q.
Ayala Pharmaceuticals Inc (ADXS) is expected to report $-1.95 for 1Q.
Beam Global (BEEM) is expected to report $-0.30 for 1Q.
Brainstorm Cell Therapeutics Inc $(BCLI)$ is expected to report $-0.07 for 1Q.
CASI Pharmaceuticals Inc $(CASI)$ is expected to report for 1Q.
CPI Aerostructures Inc $(CVU)$ is expected to report $0.21 for 1Q.
ContraFect Corp (CFRXQ) is expected to report for 1Q.
DMK Pharmaceuticals Corp (DMKPQ) is expected to report for 1Q.
Digital Media Solutions Inc (DMSL) is expected to report for 1Q.
Fathom Digital Manufacturing Corp $(FATH)$ is expected to report for 1Q.
Flanigan's Enterprises Inc $(BDL)$ is expected to report for 2Q.
Focus Universal Inc $(FCUV)$ is expected to report for 1Q.
Global-E Online Ltd $(GLBE)$ is expected to report $-0.24 for 1Q.
Ikena Oncology Inc $(IKNA)$ is expected to report $-0.40 for 1Q.
Immunovant Inc $(IMVT)$ is expected to report $-0.45 for 4Q.
Imperial Metals Corp (III.T,IPMLF) is expected to report $-0.22 for 1Q.
Lightning eMotors Inc (ZEVY) is expected to report for 1Q.
NetSol Technologies Inc $(NTWK)$ is expected to report for 3Q.
Pioneer Power Solutions $(PPSI)$ is expected to report $-0.06 for 1Q.
Poseida Therapeutics Inc $(PSTX)$ is expected to report $-0.40 for 1Q.
Pressure BioSciences Inc (PBIO) is expected to report for 1Q.
PrimeEnergy Resources Corp $(PNRG)$ is expected to report for 1Q.
Psychemedics Corp $(PMD)$ is expected to report for 1Q.
SOPerior Fertilizer Corp (SOP.H.V) is expected to report for 1Q.
Spruce Biosciences Inc $(SPRB)$ is expected to report $-0.33 for 1Q.
Star Equity Holdings Inc $(STRR)$ is expected to report $-0.09 for 1Q.
Sutro Biopharma Inc (STRO) is expected to report $-0.92 for 1Q.
Tonix Pharmaceuticals Holding Corp $(TNXP)$ is expected to report $-0.31 for 1Q.
Trevena Inc (TRVN) is expected to report for 1Q.
UL Solutions Inc (ULS) is expected to report for 1Q.
Unity Biotechnology Inc (UBX) is expected to report for 1Q.
VBI Vaccines Inc $(VBIV)$ is expected to report for 1Q.
Vivani Medical Inc $(VANI)$ is expected to report $-0.12 for 1Q.
(MORE TO FOLLOW) Dow Jones Newswires
May 20, 2024 06:01 ET (10:01 GMT)
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