OPENING CALL
The euphoria from the Federal Reserve's policy meeting didn't last long.
Stock futures were lower Friday as attention shifted from the Fed to the prospect of further tariffs.
Trump said in a social media post that the planned imposition of reciprocal tariffs on April 2 would be "Liberation Day" in the U.S.
"We maintain our view that the FOMC outcome was effectively a one-day move, with minimal legacy in terms of immediate direction. That said, we also view the FOMC outcome as a whole as nodding towards dovishness, but with numerous caveats," ING said.
Quantum-computing stocks are likely to be in focus after suffering steep falls on Thursday as investors appeared unimpressed by their contributions to Nvidia's Quantum Day at its GTC developers' event.
The market also faces a test as an estimated $4.5 trillion in options contracts expire, which could increase volatility.
Stocks to Watch
FedEx fell 5.1% off hours after it cut its outlook for the year.
Lennar management warned investors of a weak housing market. Shares fell 3%
Nike's expected sales decline is more than Wall Street forecast. Shares fell 4.9%.
Watch For:
Canada Feb New Housing Price Index; Earnings from Carnival
Today's Headlines/Must Reads:
- Wall Street's Bank Outlooks Dim as Trump's Trade Wars Weigh
- Why Many Americans Are On Board With Federal Worker Firings
- Frackers, Once Jubilant, Are Unnerved by Trump's First Weeks in Office
MARKET WRAPS
Forex:
The dollar rose, however Pepperstone said this recent bout of currency strength probably won't last, particularly with the idea of U.S. exceptionalism now over and the dollar being the "most exposed of all to the to-and-fro over tariffs."
ING is looking to the U.K. budget with some concern from a sterling perspective and added that the implications for growth and the bond market argue against short-term sterling upside.
Market pricing implies roughly two more rate cuts by year-end, according to LSEG, whereas ING expects three.
Bonds:
Barclays recommended trades which are positive on Treasurys, for example being long in five-year Treasurys.
The rally in Treasurys this week suggests that markets have taken note of the slowing growth narrative, however it reckons the risks to growth still aren't appropriately priced.
Market-based measures were consistent with only a modest slowing of the economy, it added.
Investors abroad sold longer-term Treasuries for three consecutive months, a sign of central bankers reducing their reliance on the U.S. as a financial buffer.
Energy:
Oil prices held their ground, supported by geopolitical risks and supply concerns, Tickmill said, however traders appear hesitant to pile in, which could lead to intraday volatility as participants digest the real extent of developments.
Fresh sanctions on Iran have raised expectations of tighter global supply while OPEC+ has announced a plan to curb excess production, reinforcing expectations of reduced output.
If production cuts are maintained, long-term prices could rebound further, though any signs of slowing consumption--particularly from China--or rising non-OPEC supply could introduce volatility, it added.
Metals:
Gold prices might continue to consolidate in the near term, and in the long term, heightened geopolitical risks will continue to support the precious metal's outlook, Value Partners said.
Investors are concerned about the de-dollarization trend as the greenback's importance as a global trade currency might be eroding, it added.
Gold chart
Comex gold futures' bullish trajectory is still intact, the commodity remains on track to test the $3,000 level, RHB Retail Research said, according to the daily chart.
Iron Ore
Citi sets its 0-3-month iron ore forecast at $100/metric ton , highlighting limited supply disruptions in Australia and Brazil, and tipping the pace of supply growth to accelerate.
TODAY'S TOP HEADLINES
Google's Cybersecurity Deal Spins Tiny Investment Into $4 Billion Windfall
Shardul Shah got the call he had been waiting for on his 37th birthday in January 2020.
A promising Israeli cybersecurity founder that he had been asking for years to launch a company was in need of funding. "It's time," the voice on the other end of the line said. Shah kicked in $3.5 million on behalf of Index Ventures.
Meituan Nearly Triples Profit Despite Competition
Chinese food-delivery giant Meituan reported a near tripling of fourth-quarter profit as revenue jumped, continuing its run of strong earnings even as it faces fierce competition and a weaker Chinese economy.
The Beijing-based shopping-and-delivery platform on Friday said fourth-quarter net profit was 6.22 billion yuan, equivalent to about $858 million, up from 2.22 billion yuan a year earlier. The result was lower than the 7.94 billion yuan expected of analysts polled by Visible Alpha.
Rio Tinto Has 'Strong Desire' to Invest More in U.S., Copper Chief Says
Rio Tinto, the world's second-biggest miner by market value, wants to increase its investment in the U.S., especially in copper, the head of the company's copper business said, after President Trump signed an executive order to streamline permitting processes and boost government financing for minerals projects.
"We have a strong desire to invest more in the U.S., particularly in copper," Katie Jackson said in emailed remarks Friday.
Nvidia's Next-Gen Chips Will Guzzle Electricity. Will the U.S. Have Enough Power?
Nvidia just unveiled new AI chips that will be several times as powerful as anything on the market today, and use considerably more electricity. By 2027, a server rack stacked with its top-of-the-line chips will use five times the power of today's machines, Nvidia CEO Jensen Huang told a jam-packed audience at a California conference this week.
Big tech companies, which are all betting heavily on AI, will undoubtedly buy those chips, even if the price skyrockets. But there's growing evidence that there won't be enough electricity to power all of their AI dreams.
Power Outage Shuts Heathrow, Snarling Air Travel
London's Heathrow Airport was shut down for the day on Friday after being hit by a power outage, sealing a major gateway for U.S. travelers to Europe and upending journeys for hundreds of thousands of passengers.
The airport, one of the busiest in the world for international traffic, said it was set to remain closed until 11:59 p.m. local time Friday. Heathrow urged passengers not to travel to the airport and asked them to contact their airlines for more information.
Musk Set to Receive Top-Secret Briefing on U.S. War Plans for China
WASHINGTON-Elon Musk is scheduled to receive a briefing Friday on the U.S. military's top-secret war plans for China, according to two U.S. officials, giving the wealthy businessman and presidential adviser insight into one of the Pentagon's most closely guarded operational blueprints.
Musk is expected to be briefed on how U.S. forces would fight in a potential China war, including maritime tactics and targeting plans, the officials said. China will be one of several topics to be discussed at the Defense Department, one of the officials said.
Write to clare.kinloch@wsj.com
TODAY IN CANADA
Earnings:
dentalcorp Holdings 4Q
Premium Brands 4Q
Economic Indicators $(ET)$:
0830 Feb New Housing Price Index
0830 Jan Retail trade
Stocks to Watch:
Canacol Energy 4Q Loss/Shr 75c; 4Q Rev $98.3M
Element Fleet Management to Sell $650M of 5.037% Sr Notes Due 2030
K-Bro Linen 4Q Rev C$95.4M
TD Bank Announces Redemption of 3.105% Medium Term Notes; Redeem C$3B of Notes
Expected Major Events for Friday
00:01/UK: Mar UK Consumer Confidence Survey
05:00/JPN: Feb Convenience Store Sales
07:00/UK: Feb Public sector finances
07:45/FRA: Mar Monthly business survey (goods-producing industries)
09:30/UK: 4Q Bank of England statistics on UK banks' external claims
10:00/ITA: Jan Balance of Payments
12:30/CAN: Feb New Housing Price Index
12:30/CAN: Jan Retail trade
14:00/US: Jan Metropolitan Area Employment and Unemployment
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Friday
Adverum Biotechnologies Inc $(ADVM)$ is expected to report for 4Q.
Avenue Therapeutics Inc (ATXI) is expected to report for 4Q.
Bio-Path Holdings Inc (BPTH) is expected to report for 4Q.
Boundless Bio Inc $(BOLD)$ is expected to report for 4Q.
Carnival Corp $(CCL)$ is expected to report $0.02 for 1Q.
Checkpoint Therapeutics Inc $(CKPT)$ is expected to report $-0.19 for 4Q.
Coffee Holding Co Inc (JVA) is expected to report $0.06 for 1Q.
Desktop Metal Inc $(DM)$ is expected to report for 4Q.
Dixie Group Inc (DXYN) is expected to report for 4Q.
FibroBiologics Inc (FBLG) is expected to report $-0.09 for 4Q.
Forte Biosciences Inc $(FBRX)$ is expected to report for 4Q.
Immuneering Corp (IMRX) is expected to report $-0.30 for 4Q.
Immunome Inc $(IMNM)$ is expected to report $-0.69 for 4Q.
Lazydays Holdings Inc (GORV) is expected to report for 4Q.
McEwen Mining Inc (MUX,MUX.T) is expected to report for 4Q.
Mega Matrix Inc (MPU) is expected to report for 4Q.
Neurogene Inc $(NGNE)$ is expected to report $-1.04 for 4Q.
Olema Pharmaceuticals Inc $(OLMA)$ is expected to report $-0.65 for 4Q.
Opus Genetics Inc $(IRD)$ is expected to report $-0.15 for 4Q.
Premium Brands Holdings Corp (PBH.T,PRBZF) is expected to report $0.65 for 4Q.
ProPhase Labs Inc (PRPH) is expected to report for 4Q.
Pure Bioscience Inc (PURE) is expected to report for 2Q.
SigmaTron International Inc $(SGMA)$ is expected to report for 3Q.
Solarmax Technology Inc $(SMXT)$ is expected to report for Full year.
Starcore International Mines Ltd (SAM.T) is expected to report for 3Q.
U.S. Gold Corp $(USAU)$ is expected to report for 3Q.
XOMA Royalty Corp $(XOMA)$ is expected to report $-0.29 for 4Q.
Zenas BioPharma Inc $(ZBIO)$ is expected to report for 4Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
ACV Auctions Raised to Overweight From Neutral by Piper Sandler
Beacon Roofing Supply Cut to Market Perform From Outperform by William Blair
Boston Beer Raised to Buy From Neutral by Citigroup
Carvana Raised to Overweight From Neutral by Piper Sandler
CAVA Group Raised to Overweight From Neutral by JP Morgan
Constellation Brands Cut to Neutral From Buy by Citigroup
Coty Raised to Buy From Neutral by Citigroup
Freeport-McMoRan Raised to Overweight From Neutral by JP Morgan
KKR & Co. Raised to Overweight From Equal-Weight by Wells Fargo
Malibu Boats Cut to Sector Weight From Overweight by Keybanc
Mosaic Raised to Outperform From Perform by Oppenheimer
Nike 3Q Profit Set to Plunge, Sales to Drop -- Earnings Preview
Open Lending Cut to Hold From Buy by Jefferies
Optinose Cut to Hold From Buy by Lake Street
Polaris Cut to Sell From Neutral by Citigroup
Polaris Inc. Cut to Sell From Neutral by Citigroup
Rivian Automotive Cut to Neutral From Overweight by Piper Sandler
Southwest Airlines Raised to Hold From Sell by Melius Research
Southwest Airlines Raised to Neutral From Sell by UBS
Spire Inc Raised to Overweight From Neutral by JP Morgan
Thor Industries Cut to Underweight From Sector Weight by Keybanc
Williams-Sonoma Raised to Neutral From Sell by UBS
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 21, 2025 06:02 ET (10:02 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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