North American Morning Briefing: Stock Futures Point To Lower Open As Tariffs Dominate

Dow Jones2025-07-11

OPENING CALL

Stock futures suggested shares would lose ground after Thursday's record close, as investors digested Trump's latest tariff moves .

Trump also signalled in a late interview with NBC News that he was planning to raise blanket tariffs to 15%-20% on most trading partners.

Meanwhile, the dollar rose and so too did Treasury yields.

Stocks to Watch

Boeing shares were down 0.3% as India's Aircraft Accident Investigation Bureau was expected to release a preliminary report on Air India flight 171.

Coinbase rose 2.2%, MicroStrategy gained 3.3%, and MARA Holdings gained 4.1% on the back of gains by Bitcoin.

Delta Air Lines traded 1% down after reporting quarterly earnings. United Airlines, meanwhile, fell 0.5% after it posted its largest daily percentage increase since April 9.

Levi Strauss shares rose 7.2% after posting its first-half results and raised its outlook.

Nvidia shares fell 0.7% after it set a record closing high on Thursday.

PriceSmart shares rose 7.1% after its fiscal third-quarter earnings rose.

Tesla slipped 0.3% after the company closed Thursday 4.7% higher.

Watch For:

Canada Labour Force Survey for June

Today's Top Headlines/Must Reads:

- Trump Doubles Down on Using Tariffs as Tool of American Power

- Global Oil Supply to Rise Faster Than Expected, IEA Says

- Banks Had a Blistering Rally. Earnings Are the Next Test.

- Air India Probe Puts Early Focus on Pilots' Actions and Plane's Fuel Switches

MARKET WRAPS

Forex:

The dollar edged higher against a basket of currencies as the market appeared to look past Trump's tariff threats.

The Canadian dollar fell against the U.S. dollar after hitting a two-week low against the currency.

The Canadian dollar faces turbulence ahead and traders ought to expect that Trump won't leave his northern neighbor alone, Commerzbank said.

Sterling fell against the dollar and against the euro after data showed the U.K. economy contracted in May.

The euro fell against the dollar. A potential trade deal with the U.S. was unlikely to have significant impact on the euro's direction as the exchange rate remained primarily driven by the Federal Reserve and U.S. economic data, ING said.

Bonds:

Bond markets were wary of economic uncertainty and the difficulty of quantifying the inflationary shock that tariffs will produce, OFI Invest Asset Management said, adding that investors were trying to dial down their exposure to the dollar and U.S. assets.

"Even so, we expect these fears to lessen in the medium term and believe that current yields are at the right level."

Treasury yields rose after the Treasury's 30-year bond auction on Thursday went "well enough," ING said, adding that the auction was helped by a cheapening process going into the event.

Metals:

Gold futures rose as the market weighed up tariff risks and the unclear outlook for monetary policy easing, MUFG said.

London copper prices fell , so too did three-month futures, amid Trump's 50% tariff on the metal.

The economic rationale for the levy was unclear and will likely be reversed, BMI analysts said, adding the timing of any reversals was uncertain.

Energy:

Oil prices rose on prospects of potential sanctions on Russian oil and reports that OPEC+ was considering pausing output hikes after August.

At the same time, n ew Houthi attacks on cargo vessels transiting the Red Sea were adding a risk premium, BMI said.

Brent will likely face pressure in the second half of 2025 and through 2026 as demand declines and as the market get oversupplied.

   
 
 
   
 
 

TODAY'S TOP HEADLINES

 
 

Nintendo's Use of a Rare-Earth Magnet for the Switch 2 Could Expose It to China's Whims

TOKYO-Nintendo's new Switch 2 videogame machine uses a rare-earth magnet to attach its hand-held controllers to the main console, according to a teardown, highlighting the company's vulnerability to potential Chinese supply-chain disruptions.

Nintendo's Switch 2, which starts at $450 in the U.S., has had a strong debut, with global sales surpassing 3.5 million units in the four days following its introduction in June. Nintendo's stock is up 37% this year.

   
 
 

Justice Department Won't Seek Injunction for T-Mobile Acquisition of U.S. Cellular

A major hurdle has been removed on the path to a deal between T-Mobile and U.S. Cellular.

The Justice Department on Thursday said its antitrust division won't seek an injunction to prevent T-Mobile from closing on its proposed acquisition of U.S. Cellular.

   
 
 

Eli Lilly Has Seized the Lead in Anti-Obesity Drugs. Next Up: a Pill.

CVS Health has a new feature for weight loss patients: less weight loss. The company's pharmacy benefit manager, Caremark, has made Wegovy its preferred obesity-fighter, and dropped coverage of Zepbound. This opposite-of-a-benefit started this month.

Shares of Indianapolis-based Eli Lilly, the company behind Zepbound, have fallen 16% over the past year, not counting dividends. But Denmark's Novo Nordisk, which makes Wegovy, is down 50%. That's because Zepbound is overwhelmingly considered the more effective of the two drugs. Even though Novo had a head start hitting the market, Zepbound now has a 60% share, including 75% of treatment starts.

   
 
 

Unilever Picks New Ben & Jerry's CEO, Escalating Dispute With Independent Board

Unilever has appointed a new CEO for Ben & Jerry's, stepping up a dispute with the ice-cream brand's independent board.

Jochanan Senf, a longtime Unilever executive who previously served as managing director of Ben & Jerry's Europe business, will start in the new role this month

   
 
 

ECB's Bar for Another Rate Cut Is High, Schnabel Says

The European Central Bank should refrain from lowering interest rates again after inflation in the 20-nation currency area hit the 2% target in June, rate setter Isabel Schnabel said Friday.

"Our interest rates are also in a good place, and the bar for another rate cut is very high," Schnabel said in an interview with Econostream Media.

   
 
 

Trump Doubles Down on Using Tariffs as Tool of American Power

President Trump's threat for a 50% tariff on Brazilian imports expanded his use of punitive duties over matters that have nothing to do with trade, breaking with more than a half-century of global economic precedent.

Trump cited the trial of the president's close political ally, former Brazilian President Jair Bolsonaro, as the rationale for new tariffs set to take effect Aug. 1 on imports from the largest economy in Latin America.

   
 
 

Taiwan Resists China With Military Displays and History Lessons

HSINCHU, Taiwan-The island democracy of Taiwan is demonstrating its fortitude against the threat of Chinese invasion with an annual defense exercise that is twice as long and far bigger than in the past.

The expanding event, which opened Wednesday, parallels what security officials describe as the growing menace of China's armed forces as they muscle in on territorial claims and try to prevent the U.S. and its partners from challenging Beijing's influence in its own neighborhood.

   
 
 

Rubio Cites New Path to Ukraine Peace Talks After Meeting Russia's Lavrov

KUALA LUMPUR, Malaysia-Secretary of State Marco Rubio said he discussed new ideas for Ukraine peace talks with Russian Foreign Minister Sergei Lavrov while conveying the White House's "disappointment and frustration" at the intensifying war.

After a 50-minute conversation with Lavrov on the sidelines of the Association of Southeast Asian Nations forum in Malaysia, Rubio said he would tell President Trump about "a new and different approach" to peace talks raised in the meeting.

   
 
 

Write to pierre.bertrand@wsj.com

TODAY IN CANADA

Earnings:

MTY Food Group Inc. 2Q

Economic Indicators $(ET)$:

0830 Labour Force Survey for June

0830 Building Permits for May

Stocks to Watch:

Endeavour Silver Announces At-the-Market Offering of Up to $60M

Euro Sun Mining Enters Into Facility and Offtake Agreements; Changes Address

MAG Silver Hldrs Approve the Proposed Acquisition by Pan American Silver

Velan 1Q Sales $72.2M; EPS $3.58; EPS Cont Ops 83c; Adjusted EPS 0c

Market Talk:

The Canadian dollar weakened sharply after Trump ramped up the threat of higher tariffs against Canada, but it recouped losses after the exemption for Canadian imports in compliance with the existing USMCA trade pact would remain in place.

   
 
 

Expected Major Events for Friday

06:00/UK: May Index of production

06:00/UK: May UK trade

06:00/UK: May Index of services

06:00/UK: May Monthly GDP estimates

06:00/GER: Jun WPI

06:45/FRA: Jun CPI

08:00/FRA: Jul IEA Oil Market Report

11:30/UK: Jun NIESR Monthly GDP Tracker

12:30/CAN: Jun Labour Force Survey

12:30/CAN: May Building permits

16:00/US: World Agricultural Supply & Demand Estimates (WASDE)

16:59/GER: May Balance of Payments

18:00/US: Jun Monthly Treasury Statement of Receipts and Outlays of the U.S. Government

All times in GMT. Powered by Onclusive and Dow Jones.

   
 
 

Expected Earnings for Friday

Barnes & Noble Education Inc $(BNED)$ is expected to report for 4Q.

CCA Industries Inc (CAWW) is expected to report for 2Q.

Cryo-Cell International Inc $(CCEL)$ is expected to report $-0.05 for 2Q.

Encision Inc $(ECIA)$ is expected to report for 4Q.

Nurix Therapeutics Inc (NRIX) is expected to report $-0.73 for 2Q.

Ocean Biomedical Inc (OCEA) is expected to report for 4Q.

Tel Instrument Electronics Corp (TIKK) is expected to report for 4Q.

Unity Bancorp Inc (UNTY) is expected to report $1.18 for 2Q.

Powered by Onclusive and Dow Jones.

   
 
 

ANALYST RATINGS ACTIONS

Advanced Micro Devices Raised to Buy From Hold by HSBC

Carlyle Group Raised to Buy From Neutral by Citigroup

Centene Cut to Equal-Weight From Overweight by Morgan Stanley

Cheesecake Factory Cut to Neutral From Buy by Goldman Sachs

Coinbase Cut to Sell From Buy by HC Wainwright & Co.

Columbia Banking System Cut to Equal-Weight From Overweight by Wells Fargo

Comstock Resources Cut to Sell From Neutral by UBS

Core Scientific Cut to Hold From Buy by Needham

Core Scientific Cut to Neutral From Outperform by Macquarie

CoreWeave Cut to Hold From Buy by Needham

CrowdStrike Holdings Cut to Hold From Buy by CFRA

Huntington Ingalls Raised to Buy From Hold by TD Cowen

Lockheed Martin Cut to Hold From Buy by TD Cowen

McDonald's Raised to Buy From Neutral by Goldman Sachs

MFA Financial Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Molina Health Cut to Equal-Weight From Overweight by Morgan Stanley

National Health Investors Raised to Overweight From Sector Weight by Keybanc

Oracle Corp Raised to Overweight From Neutral by Piper Sandler

Oracle Raised to Overweight From Neutral by Piper Sandler

Piper Sandler Raised to Outperform From Peer Perform by Wolfe Research

Redwood Trust Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Roku Raised to Overweight From Sector Weight by Keybanc

RxSight Cut to Hold From Buy by Jefferies

Synovus Raised to Overweight From Equal-Weight by Wells Fargo

Trex Co Raised to Outperform From Neutral by Baird

UWM Holdings Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Warby Parker Cut to Market Perform From Market Outperform by JMP Securities

Workday Cut to Underweight From Neutral by Piper Sandler

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

July 11, 2025 06:15 ET (10:15 GMT)

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