OPENING CALL
Stock futures were inching higher early, and the DXY Dollar Index reached its highest in a month, strengthening in particular against the yen.
Investors are preparing for two risk events Friday: nonfarm payrolls, due at 8:30 a.m. ET, and a potential Supreme Court ruling on the legality of Trump's tariffs.
Investors will focus on whether the White House will immediately announce backup plans if the Court rules against the administration , UniCredit said.
Uncertainty and volatility will follow if those countermeasures take time to implement, hurting equity markets even if trade barriers fall.
Trump is also expected to announce his pick for the Fed chair later this month, however--whoever is anointed-a new chair can't reset policy direction on arrival.
This leaves 2026 looking less like a turning point for monetary policy and more like a transition year.
European and Asian indexes mostly rose with big moves from Rio Tinto and Glencore, on the announcement they restarted talks to form the world's biggest miner.
Stocks to Watch
Cemtrex completed its acquisition of a Texas military engineering firm. Shares gained 35.5% after hours.
General Motors said it would book a $6 billion charge on its EV business. Shares dropped 1.4% off hours.
Olin cut its outlook, citing a slowdown in operations at its Texas facility and a decline in chlorine demand. The stock fell 7.8% after the bell.
Pacira BioSciences'
preliminary revenue results were lower than analysts were expecting. Shares declined 9.7%.
Watch For:
Housing Starts for September and October; Employment Report for December; University of Michigan Preliminary Consumer Survey for January; Canada Labour Force Survey for December
Today's Top Headlines/Must Reads:
-Trump's Risky Fixation With Other Countries' Oil
-How RFK Jr. Won Over His Skeptics and Overhauled Federal Food Guidelines
-China Auto Sales Slump Amid Slowing Demand
MARKET WRAPS
Forex:
The dollar rose to a four-week high against a basket of currencies, continuing to gain after data Thursday showed U.S. jobless claims increased less than expected and ahead of Friday's key labor market data.
The euro fell to a four-week low against the dollar with ING saying it risks falling below $1.1600.
Solid jobs data on Friday could lift the dollar as near-term rate cuts look less likely, it said and a Supreme Court ruling against U.S. tariffs could also weaken the currency.
"The euro, which benefited hugely from the initial tariff chaos, may face a bit more pressure if tariffs are paused."
Bonds:
Treasury yields were little changed as investors awaited the employment data.
"A stronger-than-expected print could trigger a short-term hawkish reaction, particularly with equities at record highs and economic data improving, reducing urgency for the Federal Reserve to commit to further easing," ADSS said, adding that risks around Friday's release appeared skewed to the upside.
Federated Hermes said that beginning 2026, actual and implied volatilities in the Treasury market have fallen to four-year lows, returning to levels common before the pandemic.
It added separately that a variety of forces have emerged lately that collectively confine yields to a narrow trading range.
Energy:
Oil extended gains as traders monitored geopolitical developments.
Brent crude and WTI settled more than 3% higher in the previous session and were on track for solid weekly gains, supported by Trump's warning that the U.S. would hit Iran very hard if the government there violently suppresses protesters.
Sentiment was further lifted by a congressional bill that would allow for hefty sanctions against buyers of sanctioned Russian oil.
Meanwhile, traders await a Friday meeting between Trump and American oil executives to discuss investments in Venezuela's oil sector.
Metals:
Gold rose, with traders awaiting the nonfarm payrolls data.
MUFG said that traders were also closely watching the upcoming selection of a new Fed chair.
UOB raised its gold forecast, given the recent $150/oz jump in gold price following events in Venezuela and signs of increasing volatility in gold price at higher price levels, and now expects it to reach $4,400, up from $4,300 earlier in 1Q.
TODAY'S TOP HEADLINES
Bain Capital-Backed Bridge Data Centres Plans Foray Into Japan, Australia, Middle East
Bain Capital-backed Bridge Data Centres is planning a foray into the Middle East, Australia and Japan as data-center operators worldwide race to build hyperscale infrastructure for the fast-growing artificial-intelligence sector.
The Singapore-based company, which also counts South Korea's SK Group and Singapore's Keppel as shareholders, is "actively engaging expansion plans," BDC Chief Executive Eric Fan said in a recent interview. This includes assessing potential market-entry opportunities and exploring possible tie-ups with companies in the energy and infrastructure industries, such as power producers and grid operators.
Johnson & Johnson Reaches Deal With Trump Administration to Lower Drug Prices
Johnson & Johnson has agreed to lower the prices of medicines that certain U.S. patients pay, making it the latest pharmaceutical company to strike a pact with the Trump administration.
The healthcare conglomerate said in a statement Thursday that it has reached an agreement with the U.S. government to improve access to medicines and lower costs for millions of American patients. The agreement provides the company's pharmaceutical products an exemption from tariffs, it said.
Saks Closes In on Bankruptcy Financing Package
The parent of Saks Fifth Avenue and Neiman Marcus is closing in on a bankruptcy financing package of roughly $1.25 billion, as it prepares to file for bankruptcy in the coming days, according to people familiar with the situation.
A group of bondholders led by Bracebridge Capital and Pentwater Capital is proposing a $1.25 billion debtor-in-possession loan to fund the chapter 11 proceedings, the people continued. The group expects to take control of the company, the people said. A stipulation of the bondholder-group loan is that the management team of the parent company, Saks Global, is terminated, one of them said.
xAI Under Fire for Sexualized Child Photos on Grok
Elon Musk has repeatedly expanded the boundaries of permitted speech on his social-media platform X. Child-safety watchdogs and international regulators say a recent update to its artificial-intelligence chatbot Grok crossed a dangerous line: permitting sexualized editing of photos, including of children.
Now Musk, who has called himself a free-speech absolutist, while also vowing to take a hard line on child exploitation, faces growing calls for enforcement around the world and in the U.S.
Eurozone Retail Sales Rise Despite Cautious Consumer Backdrop
Eurozone retail sales rose in November, providing a boost for the economy in the final quarter of 2025 despite a consumer backdrop that remains cautious.
Volumes rose 0.2% in the month compared with a revised 0.3% uptick for October, the European Union's statistics agency said Friday. This was in line with a consensus of economists polled by The Wall Street Journal.
German Industry Records Surprise Pickup on Car Production
Germany's industrial output unexpectedly rose for a third straight month in November, helped by a rebound in car production, as manufacturing firms shrugged off economic worries midway through the final quarter of last year.
Industrial production climbed 0.8%, after a 2.0% jump in October, Germany's statistics agency Destatis said Friday, the first time output has increased for three consecutive months since 2022. A consensus of economists polled last week by The Wall Street Journal instead expected a 0.7% decline in November.
China Sees Consumer Inflation Edge Up as Deflation Lingers
China's consumer inflation picked up modestly in December, while factory-gate prices remained in contraction, capping another year marked by persistent deflationary pressures amid weak domestic demand.
The consumer-price index rose 0.8% from a year earlier in December, matching market expectations, data from the National Bureau of Statistics showed Friday.
FBI Blocks State Law Enforcement From ICE Shooting Investigation
MINNEAPOLIS-Minnesota law-enforcement officials said Thursday that the FBI blocked them from participating in an investigation into the fatal shooting of a woman by an ICE agent, intensifying the dispute between the state and the federal government over the death.
Minnesota Gov. Tim Walz denounced the Federal Bureau of Investigation's decision to exclude the state from the investigation, saying any probe that doesn't include state law enforcement can't be trusted. "It feels very, very difficult that we will get a fair outcome," Walz said Thursday.
Largest Protests in Years Sweep Through Iran's Capital
Large groups of protesters swept through Tehran on Thursday, chanting anti-government slogans and setting fires in a display of public discontent not seen in at least three years.
Anti-government demonstrators gathered late Thursday in several areas across the capital, according to videos verified by Storyful, which is owned by News Corp, the parent company of The Wall Street Journal. The protests were the biggest since the unrest started in late December and haven't been seen at such a scale in the capital since 2022 during an uprising over the death of a young woman detained for not wearing a headscarf.
Ukraine's Spymaster Was Known for Killing Russians. Now He'll Negotiate With Them for Peace.
KYIV-A new key Ukrainian negotiator in peace talks with the Russians is a man who has spent the past four years specializing in something else: killing them.
(MORE TO FOLLOW) Dow Jones Newswires
January 09, 2026 06:00 ET (11:00 GMT)
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