OPENING CALL
Stock futures rebounded after a tech selloff on Wednesday and ahead of U.S. economic data and central bank decisions.
CPI and jobless claims data are due for release later in the day and are likely to provide further clues about the Federal Reserve's rate cut path. However, labor-market data appears to weigh stronger in the Fed's policy considerations currently.
"CPI, frankly, doesn't matter too much, with the Fed's reaction function tilting entirely towards supporting a stalling labor market at this stage," Pepperstone said. Meanwhile, jobless claims probably won't especially move the needle either.
Economists project inflation likely accelerated a tad last month versus September. Those polled by The Wall Street Journal expect consumer prices rose 3.1% on the year.
Fed Governor Christopher Waller said interest rates remain too high while the WSJ reports that Trump was interviewing him for the Fed Chair job.
Investors also remain cautious about highly valued AI-related stocks despite strong results from chip maker Micron.
The Bank of England and European Central Bank will disclose their policy rates at 1200 GMT and 1315 GMT respectively. The Bank of Japan is widely expected to hike rates tomorrow .
The earnings calendar today includes results from Accenture, FedEx and Nike.
Stocks to Watch
Coinbase Global said it was getting into prediction markets through a tie-up with Kalshi. Shares rose roughly 2.5% before the bell.
HireQuest authorized a $20 million share-buyback program. The stock rose 5%.
Insmed said it would discontinue the development of its treatment for rhinosinusitis after the drug failed to meet primary and secondary endpoints. Shares slid 19%.
Lululemon Athletica: Elliott Investment Management has built a stake of over $1 billion in the struggling athletic apparel retailer and wants Ralph Lauren executive Jane Nielsen to be its CEO, The Wall Street Journal reported. Shares rallied 4.5% premarket.
Micron Technology said it expects growth to soar in the coming months. It raised its outlook for two key products and shared revenue guidance well above expectations. Shares jumped nearly 10% in premarket trading.
MillerKnoll's third-quarter forecast was ahead of Wall Street estimates. Shares rose 8.7% after the bell.
Woodside Energy CEO Meg O'Neill is stepping down to take the helm of BP . Shares in BP were little changed; Woodside shares fell 2.7% in Sydney.
Watch For:
CPI for November, Weekly Jobless Claims
Today's Top Headlines/Must Reads:
-Nike Earnings Will Test the Strength of Elliott Hill's Turnaround
-All That Cheap Chinese Stuff Is Now Europe's Problem
-Micron's Blowout Results Are Bad News for Anyone Buying a New Phone or PC Next Year
MARKET WRAPS
Forex:
The dollar traded steady ahead of U.S. inflation data.
The euro rose as investors waited for central bank decisions.
Sterling fell. ING said the currency has limited scope to fall if the BOE cuts rates.
Bonds:
Treasury yields edged lower, with CPI data unlikely to be a game changer, according to Pepperstone.
Ten-year Treasury yields were expected to trade in a range of 4.0%-4.5% in 2026, possibly hitting the top end in the second half of the year, iCapital said.
Energy:
Oil prices rose for a second straight session, supported by supply risks in Venezuela and Russia even as the broader outlook remained bearish.
That said, a lingering surplus means oil prices were set to continue facing pressure next year , according to Julius Baer. It added that supply risks stemming from the U.S. ramping up pressure on Venezuela were unlikely to be material.
Metals:
Gold prices slipped but remained near October's record, with investors focusing on rising geopolitical tensions in Venezuela and waiting for U.S. inflation data.
The yellow metal was increasingly becoming a cornerstone asset in a world defined by fragmentation, fiscal strain and geopolitical uncertainty, Saxo Bank said.
Despite the strong momentum, gold was not without risks heading into next year, it added, noting that in the very near term, the most tangible risk comes from positioning and flows.
Copper
Copper prices fell and further interest-rate cuts would be a tailwind for the sector.
"Copper demand has been relatively strong, with China's imports elevated, " ANZ Research said.
Iron
Iron ore prices rose as global iron ore shipments have increased steadily this month, Galaxy Futures said.
TODAY'S TOP HEADLINES
Coinbase Joins With Kalshi to Enter the Surging Prediction-Markets Business
Coinbase Global is getting into prediction markets in a bid to become a one-stop exchange for Americans' trading needs, the latest sign that tech platforms offering wagers on real-world events are finding their way into every corner of Wall Street.
The company has struck a partnership with prediction-markets specialist Kalshi that will allow Coinbase investors to trade on the outcomes of sports games, elections and economic indicators, using the yes-or-no bets that have come to define prediction markets. In the months to come, the exchange plans to offer contracts provided by other prediction platforms.
Micron Logs Sales Jump, Sees Further Growth as AI Demand Outpaces Supply
Micron Technology expects growth to soar higher in the coming months as AI developers scramble for a tight supply of memory-storage products.
The Boise, Idaho, memory provider on Wednesday raised its outlook for demand growth for two of its key products and shared revenue guidance well above Wall Street estimates. Chief Executive Sanjay Mehrotra said that supply isn't keeping up with high levels of demand, and that dynamic shows no signs of slowing.
BP Turns to Outsider as Next CEO
BP said Chief Executive Murray Auchincloss is stepping down after less than two years at the helm of the oil major and named an outsider as his successor.
The London-based company is turning to Meg O'Neill, who is resigning from her role leading Woodside Energy, as its next CEO. She will take the position April 1. With O'Neill's appointment, BP is breaking with its longstanding tradition to promote CEOs from within its own ranks.
Elliott Builds Over $1 Billion Stake in Lululemon
Activist Elliott Investment Management has built a stake of over $1 billion in Lululemon Athletica and is bringing a potential CEO candidate to the struggling athletic apparel retailer it wants to help turn around, according to people familiar with the matter.
The stake makes Elliott among the biggest investors in Lululemon, which has a market value of around $25 billion.
Trump Says U.S. Poised For Economic Boom. The Numbers Tell a Different Story.
President Donald Trump addressed the nation on Wednesday night, extolling his economic record to date and promising a bright economic future for the U.S. in the year ahead. But the economic data don't paint a rosy picture.
"We are making America great again tonight," Trump said in a roughly 20-minute address. "Our border is secure. Inflation has stopped. Wages are up. Prices are down. Our nation is strong. America is respected, and our country is back stronger than ever before. We're poised for an economic boom the likes of which the world has never seen."
The $8 Billion Black Market for Venezuelan Oil Is Suddenly Closing Down
Venezuela has long used the same playbook as Russia and Iran to get around crippling American sanctions on its oil industry, tapping a shadowy fleet of aging vessels to carry crude to customers.
President Trump's partial oil blockade threatens to devastate this black market, which U.S. officials say lines Venezuelan leader Nicolás Maduro's pockets and props up the impoverished country's fragile economy.
U.S. inflation was rising before the shutdown. Tardy CPI to show if prices have gotten worse.
The U.S. jobs market isn't so hot, investors learned this week, but inflation is hotter than anyone would like. Just how much? We'll find out Thursday.
The consumer-price index for November will give Wall Street and the Federal Reserve a glimpse into the latest trends in inflation toward the end of the year.
Several European Central Banks Make Interest-Rate Decisions Today. Only One Is Expected to Cut.
Several European central banks are likely to keep interest rates steady on Thursday-with one exception, the Bank of England.
Traders are expecting the European Central Bank and the Czech National Bank to hold borrowing costs at their current level. Sweden's Riksbank and Norway's Norges Bank kept rates unchanged early Thursday.
U.S. Approves $11 Billion in Arms Sales to Taiwan, Angering Beijing
TAIPEI-The U.S. said it had approved $11.1 billion in arms-sales packages for Taiwan, a show of support from Washington as President Trump focuses on trade deals and displays a softer U.S. stance toward China.
The approved weapons sales, announced in the U.S. late Wednesday, are intended to support Taipei's efforts to "modernize its armed forces and to maintain a credible defensive capability," the Pentagon's Defense Security Cooperation Agency said.
U.S. Accepts Fault for Reagan Airport Collision That Killed 67 People
The U.S. government accepted fault for a midair collision earlier this year that killed 67 people near Washington, D.C., saying it is willing to pay damages to the families in connection with the incident.
The Justice Department's filing in federal court Wednesday was in response to a lawsuit filed by Rachel Crafton, the wife of one of the deceased passengers. The September lawsuit accused the Federal Aviation Administration, the Army, American Airlines and its subsidiary PSA Airlines of "systemic failures" that contributed to the crash at Ronald Reagan Washington National Airport.
Trump Defends Handling of Economy, Announces Military Dividend
WASHINGTON-President Trump on Wednesday defended his handling of the economy during a rare prime-time speech and announced a $1,776 "warrior dividend" check for active-duty servicemembers that he said would be paid for with tariff revenue.
"Military servicemembers will receive a special, we call warrior dividend before Christmas, a warrior dividend in honor of our nation's founding in 1776," Trump said, speaking from the Diplomatic Room of the White House, which was decorated for the holidays. "Nobody deserves it more than our military."
Islamic State's Caliphate Is Gone. Its Influence Lives On.
More than six years after Islamic State's caliphate collapsed in the Middle East, the group's brand of extreme violence lives on, inspiring lone-wolf attacks such as the one on Sydney's Bondi Beach.
The group, which once imposed harsh Islamist rule in parts of the Levant and relied on fighters it trained there, now recruits and radicalizes operatives it finds online, many of whom have seized on the war in Gaza to justify violent acts against Jews.
Write to priscila.barrera@wsj.com
TODAY IN CANADA
Earnings:
BlackBerry Limited 3Q
Economic Indicators $(ET)$:
0830 Employment Insurance
0830 Oct Payroll employment, earnings and hours, and job vacancies
Canadian Finance Minister François-Philippe Champagne concludes visit to Europe
Stocks to Watch:
AlphaTON Capital Issues Clarification on Anduril Industries Investment Program; Contract Was Signed to Obtain Economic Exposure to Anduril Industries Common Stock Through Special Purpose Vehicle; Anduril Industries Common Stock Underlying Economic Exposure Subject to Transfer Restrictions; Anduril Won't Consent to Any Such Transfer; Anduril Tokenized Investment Program to Be Canceled; Won't Be Proceeding With Anduril Transaction
Australian Competition and Consumer Commission Opposes Yamaha Motor's Acquisition of BRP's Telwater; Transaction Would Substantially Lessen Outboard Motor Competition; Yamaha Motor Ownership of Telwater Likely to Lower Quality, Raise Prices, ACCC Says; Yamaha-Telwater Tie-Up Would Reduce Consumer Choice of Motor Brands, ACCC Says; Telwater Is Australia's Dominant Aluminum Trailer Boat Maker, ACCC Says; Yamaha Is Australia's Leading Outboard-Motor Supplier, ACCC Says; Yamaha/Telwater Could Leverage Telwater's Market Position With Dealers, ACCC Says; Rival Motor Suppliers Would Likely Lose Wholesale Sales, Face Higher Costs, ACCC Says
Boyd Group Services Raises Dividend to C$0.156
EQB Names Mike Pedersen to Board, to Nominate as Chair in April; Pedersen Nomination to Follow Retirement of Vincenza Sera
Genesis Land Development to Sell 40% Stake of Hazel Development to Two Alberta Home Builders for C$19.1M
Talisker Resources Reducing Bralorne Mine to Critical Staff Due to Atmospheric River Event in Southern British Columbia; Cites Extreme Weather Event Known as 'Atmospheric River' Impacting Southern British Columbia; Expects to Restart Ops Following Assessment of Access Conditions and Abatement of Weather Crisis
Vision Marine Technologies Announces Pricing of Public Offering of 32M Units; Expects Gross Proceeds of $9.6M; Offering Expected to Close Dec. 19; Plans to Use Proceeds for General Corporate Purposes, Working Capital
Expected Major Events for Thursday
00:01/UK: BRC Consumer Sentiment Monitor
07:45/FRA: Dec Monthly business survey (goods-producing industries)
12:00/UK: Agents' Summary of Business Conditions
12:00/UK: UK interest rate decision
13:00/RUS: Weekly International Reserves
13:30/US: U.S. Weekly Export Sales
13:30/US: Nov CPI
13:30/US: Nov Real Earnings
13:30/CAN: Oct Employment Insurance
13:30/US: Dec Philadelphia Fed Business Outlook Survey
13:30/CAN: Oct Payroll employment, earnings and hours, and job vacancies
13:30/US: 12/13 Unemployment Insurance Weekly Claims Report - Initial Claims
15:30/US: 12/12 EIA Weekly Natural Gas Storage Report
16:00/US: Dec Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing
21:00/US: Oct Treasury International Capital Data
21:30/US: Foreign Central Bank Holdings
21:30/US: Federal Discount Window Borrowings
23:30/JPN: Nov CPI (Nation), CPI ex-food (Nation)
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Expected Earnings for Thursday
Accenture PLC $(ACN)$ is expected to report $3.44 for 1Q.
AltiGen Communications (ATGN) is expected to report for 4Q.
BlackBerry Ltd (BB,BB.T) is expected to report $0.06 for 3Q.
CarMax Inc $(KMX)$ is expected to report $0.39 for 3Q.
Darden Restaurants Inc $(DRI)$ is expected to report $2.11 for 2Q.
Factset Research Systems Inc $(FDS)$ is expected to report $3.84 for 1Q.
FuelCell Energy Inc $(FCEL)$ is expected to report for 4Q.
Good Times Restaurants Inc $(GTIM)$ is expected to report for 4Q.
Heico Corp - Class A (HEI,HEIA) is expected to report $1.22 for 4Q.
Innovative Solutions & Support Inc $(ISSC)$ is expected to report $0.09 for 4Q.
KB Home (KBH) is expected to report $1.79 for 4Q.
Microbix Biosystems Inc (MBX.T,MBXBF) is expected to report for 4Q.
Optical Cable Corp $(OCC)$ is expected to report for 4Q.
Reitmans (Canada) Ltd (RET.V,RTMNF) is expected to report for 3Q.
Transat AT (TRZ.T) is expected to report $0.07 for 4Q.
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ANALYST RATINGS ACTIONS
Airbnb Raised to Outperform From Sector Perform by RBC Capital
Ally Financial Inc Raised to Overweight From Equal-Weight by Wells Fargo
Avantor Cut to Underperform From Hold by Jefferies
Bally's Cut to Underweight From Equal-Weight by Barclays
Church & Dwight Raised to Buy From Hold by Jefferies
Church & Dwight Raised to Neutral From Sell by Citigroup
Clarivate Cut to Underweight From Equal-Weight by Morgan Stanley
Clearway Energy Raised to Outperformer From Neutral by CIBC
Constellation Brands Cut to Hold From Buy by Jefferies
Coursera Raised to Overweight From Neutral by JP Morgan
Essential Utilities Cut to Underweight From Overweight by Barclays
FactSet Research Raised to Equal-Weight From Underweight by Morgan Stanley
Fortinet Cut to Underweight From Neutral by JP Morgan
Gaming & Leisure Props Raised to Outperform From Neutral by Mizuho
Gap Inc Raised to Outperform From Market Perform by Telsey Advisory Group
Gap Inc Raised to Outperform From Neutral by Baird
Guidewire Software Raised to Buy From Neutral by DA Davidson
Herc Holdings Raised to Overweight From Sector Weight by Keybanc
Hyatt Hotels Raised to Overweight From Equal-Weight by Barclays
John E. Olson, Analyst Who Was an Early Skeptic of Enron, Dies at 83 -- Journal Report
Keurig Dr Pepper Cut to Hold From Buy by Jefferies
MGM Resorts Cut to Equal-Weight From Overweight by Barclays
Moelis & Co. Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
Motorola Solutions Raised to Overweight From Equal-Weight by Morgan Stanley
NJ Resources Raised to Outperform From Neutral by Mizuho
Procter & Gamble Raised to Buy From Hold by Jefferies
PVH Corp Cut to Market Perform From Outperform by Telsey Advisory Group
Recursion Pharmaceuticals Raised to Overweight From Neutral by JP Morgan
Rollins Inc Raised to Overweight From Equal-Weight by Morgan Stanley
SEI Investments Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
Summit Therapeutics Raised to Equal-Weight From Underweight by Barclays
Sweetgreen Cut to Equal-Weight From Overweight by Wells Fargo
Texas Roadhouse Raised to Overweight From Equal-Weight by Wells Fargo
Travel + Leisure Raised to Equal-Weight From Underweight by Barclays
Udemy Cut to Hold From Buy by Canaccord Genuity
UL Solutions Raised to Outperform From Neutral by Baird
Urban Outfitters Raised to Outperform From Market Perform by Telsey Advisory Group
Victoria's Secret Raised to Outperform From Market Perform by Telsey Advisory Group
Vistagen Therapeutics Cut to Hold From Buy by Jefferies
Vistagen Therapeutics Cut to Hold From Buy by Maxim Group
Vistagen Therapeutics Cut to Market Perform From Outperform by William Blair
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 18, 2025 05:58 ET (10:58 GMT)
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