MARKET WRAPS
STOCKS: Stocks finished higher after blockbuster results from Micron restored investor faith in the artificial-intelligence boom.
TREASURYS: Treasury yields fell after softer-than-anticipated consumer inflation data.
FOREX: The U.S. dollar ticked up after the consumer inflation data.
COMMODITIES: Oil futures rose modestly with market focus on efforts toward a Russia-Ukraine peace agreement and stepped up U.S. actions against Venezuela.
HEADLINES
Inflation Eased to 2.7% in Report Distorted by Government Shutdown
Inflation eased unexpectedly in November, but economists cautioned against reading too much into the report because of gaps in data collection during the long government shutdown.
The government's closure made it impossible for Labor Department workers to collect some of the data they normally would have to compile the report on the consumer-price index. Even before the release, economists warned that technical workarounds that the agency used to deal with the collection issues may have biased the November figure downward, causing inflation to be understated.
The Thursday report, which was released later than normal because of the shutdown, said that consumer prices rose 2.7% in November from a year earlier. That was down from 3% in September and lower than the 3.1% forecast by economists polled by The Wall Street Journal.
Trump Media to Merge With Nuclear Fusion Firm in $6 Billion Deal
Trump Media & Technology Group agreed to merge with an Alphabet-backed fusion energy company in a merger valued at $6 billion, seeking to capitalize on the artificial-intelligence boom's growing power requirements.
The all-stock transaction for TAE Technologies values each share of TAE stock at $53.89, but TAE is a privately held company, making the total value of its portion of the deal unclear. Trump Media, which has a market capitalization of around $2.9 billion, would provide $200 million in cash to TAE at the deal's closing, expected in mid-2026, the company said.
The deal combines Trump Media's "access to significant capital" and TAE's "leading fusion technology" to supply power for AI technology, the companies said in a statement Thursday.
FedEx's Earnings Were Strong. Cost Cuts and Shipment Volume Helped.
A lot is going on at FedEx, so the stakes were high for its second-quarter results, reported Thursday evening. Investors were looking for solid results amid trade uncertainty and weak shipping markets amid the peak shipping season, and the company delivered.
For the fiscal second quarter, FedEx reported adjusted earnings per share of $4.82 from sales of $23.5 billion. Wall Street was looking for EPS of $4.12, from $22.8 billion in sales.
"FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment," said Raj Subramaniam, FedEx CEO, in a news release. "I am extremely proud of our team members worldwide for their commitment to make every FedEx experience outstanding this Peak season."
Nike Sales Tick Up, But China Weakness Persists
Nike recorded a slight uptick in sales during the fiscal second quarter as it continues its turnaround efforts, though weakness in its China business persisted.
The footwear and apparel company on Thursday posted a profit of $792 million, or 53 cents a share, in the quarter ended Nov. 30, compared with $1.16 billion, or 78 cents a share, a year earlier. Analysts expected 39 cents a share, according to FactSet.
Revenue rose 0.6% to $12.43 billion. Analysts surveyed by FactSet forecast revenue of $12.21 billion.
Hedge Fund Elliott Considering IPO for Barnes & Noble, Waterstones
Hedge fund Elliott Investment Management is considering taking bookseller Barnes & Noble and U.K. book chain Waterstones public, according to people familiar with the matter.
The public offering could come as early as the second half of next year with a potential listing either in London or New York, the people said.
Elliott is talking with banks about the idea of an initial public offering but hasn't chosen an underwriting syndicate, the people said. It also hasn't committed itself to making such an offering next year.
Wegovy Maker Novo Nordisk Files For FDA Approval of Obesity Drug CagriSema
Novo Nordisk filed for U.S. Food and Drug Administration approval of CagriSema, a once-weekly shot that combines two compounds to treat obesity.
CagriSema combines the main ingredient in Wegovy with cagrilintide, an experimental drug that mimics a hormone known as amylin that regulates appetite.
Early study data of CagriSema late last year disappointed investors with the weight loss it achieved, wiping out nearly $100 billion of the drugmaker's stock-market value. The trial showed overweight or obese volunteers without type 2 diabetes lost an average of 22.7% of their weight after 68 weeks, falling short of the 25% Novo Nordisk had expected.
Trump Orders Cannabis to Be Reclassified as Less Dangerous Drug
President Trump directed the federal government to reclassify cannabis as a less-dangerous drug, a seismic shift in U.S. drug policy that is poised to boost the legal marijuana industry.
The president signed an executive order Thursday calling for Attorney General Pam Bondi to expedite the rescheduling of cannabis to a less-restrictive category. Senior administration officials said the move aimed to expand medical research into cannabis applications, including medical marijuana and CBD.
The move doesn't legalize cannabis federally, and wouldn't directly resolve banking challenges for marijuana businesses. But it would open the door for medical research that was previously stymied by pot's stringent drug classification.
Darden Posts Higher Profit, Shrugging Off Beef Inflation
Darden Restaurants reported higher fiscal second-quarter sales and profit and raised its full-year sales-growth guidance as it shrugged off impacts from soaring beef prices.
Darden said it faced "significant commodity headwinds" in the recent quarter as beef prices surged, which presents margin headwinds to Darden's LongHorn Steakhouse and Ruth's Chris Steak House. But the company said it has seen signs of beef prices improving in recent weeks and that lower demand and increased production should lead to beef inflation easing.
Darden also said it expected to raise prices the rest of the fiscal year to help narrow the gap between its prices and inflation. "We're taking some pricing, but also we expect inflation to come down," said Chief Financial Officer Raj Vennam in the company's earnings call.
CarMax Cutting Prices to Draw Car Shoppers Back
CarMax reported a plunge in quarterly sales and plans to lower prices and increase marketing spending as it tries to regain its footing in the used-car market.
The company is in the midst of searching for a new chief executive after its termination of top executive Bill Nash in November. CarMax has reported falling sales in recent quarters with analysts saying the company is losing market share because consumers view its prices as too high.
"Based on recent results, it is clear CarMax needs change," Interim Chief Executive David McCreight said Thursday on the company's earnings call. "Our average selling prices have drifted upward and appear to be less attractive to customers. To ensure that CarMax is a preferred choice, we will work to shrink the gap between our offering and the marketplace."
Instacart Ordered to Pay $60 Million to Settle FTC Deceptive-Practices Claim
Instacart has been ordered to pay $60 million in refunds to customers to settle allegations from the Federal Trade Commission that it used deceptive practices to raise costs for shoppers.
The FTC alleged that the grocery-delivery platform falsely advertised free delivery and 100% satisfaction guarantee, and also didn't adequately disclose the terms for Instacart+ membership.
Consumers were still charged a service fee for deliveries, despite the free-delivery advertising, the FTC claimed. The regulatory body also said that Instacart's satisfaction guarantee implied a refund to unsatisfied customers, though it didn't give them their money back.
TALKING POINT The Stock Market Has a 10% Chance of a 30% Crash in 2026. Here's What Could Cause It.
It's a week until Christmas, and the stock market might not get a Santa rally under the tree this year. There's a chance 2026 might not be very jolly either.
While the S&P 500 is still up for the year, it's in the red for December-raising doubts whether the index can eke out a winning streak during the last five sessions of December and the first two of the new year.
That hasn't stopped a steady stream of upbeat 2026 outlooks from strategists, nearly all of which see high-single or double-digit percentage gains for the benchmark index, including from formerly cautious voices.
Still, stocks' recent rough patch might mean investors are feeling less confident about the future than they did a couple months ago. There is also a small, but significant, number of investors betting that 2026 will bring a market selloff as bad as-or worse than-this spring's tariff turmoil.
As TS Lombard's Chief U.S. economist Steven Blitz writes, options trading suggests the market is pricing in as much of a 10% chance that there will be a 30% drop in the stock market in the coming year. He looked at December 2026 puts, which give holders the right (but not the obligation) to sell an asset at a fixed future price and date.
Since World War II, the S&P 500 embarked on a decline of 30% or more every 12.7 years on average, Blitz writes.
"A 30% decline in 2026 would clearly be ahead of schedule but always remember the lie of averages (head in the oven, feet in the ice box, average is 72 degrees)," he writes. The shortest period between declines or 30% or more was from 1968 to 1973. And widen the pool to declines of 20% or more, and the selloff frequency rises.
--Teresa Rivas, Barron's
Expected Major Events for Friday
00:01/UK: Dec UK Consumer Confidence Survey
00:01/UK: Nov UK monthly automotive manufacturing figures
00:01/UK: Nov Zoopla House Price Index
07:00/GER: Dec GfK consumer climate survey
07:00/GER: Nov PPI
07:00/UK: Nov Public sector finances
07:00/UK: Nov UK monthly retail sales figures
07:45/FRA: Nov PPI
08:59/JPN: Japan Monetary Policy Meeting decision
08:59/JPN: Dec Monthly Economic Report
09:00/ITA: Dec Consumer Confidence Survey
09:00/ITA: Dec Business Confidence Survey
09:30/UK: Nov Monthly Insolvency statistics
09:30/UK: 3Q Bank of England statistics on UK banks' external claims
10:00/ITA: Oct Balance of Payments
10:00/ITA: Oct Industrial turnover
11:00/UK: Dec CBI Distributive Trades Survey
13:30/CAN: Nov New Housing Price Index
13:30/CAN: Oct Retail trade
15:00/US: Oct Employment Trends Index
15:00/US: Nov Employment Trends Index
15:00/US: Nov Existing Home Sales
15:00/US: Dec University of Michigan Survey of Consumers - final
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Expected Earnings for Friday
Bio-Path Holdings Inc $(BPTH)$ is expected to report for 3Q.
Carnival Corp $(CCL)$ is expected to report $0.24 for 4Q.
Conagra Brands Inc $(CAG)$ is expected to report $0.43 for 2Q.
Lamb Weston Holdings Inc (LW) is expected to report $0.60 for 2Q.
Paychex Inc $(PAYX)$ is expected to report $1.12 for 2Q.
TX Rail Products Inc (TXRP) is expected to report for 4Q.
Winnebago Industries Inc $(WGO)$ is expected to report $0.00 for 1Q.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 18, 2025 16:41 ET (21:41 GMT)
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