OPENING CALL
Wall Street was starting to question how long the recent rally can last, given that fears about higher inflation have pushed up yields and stocks looked set to open in the red early Friday.
Brent crude oil futures were up more than 3% after shifting messages from Trump about the Hormuz Strait.
He said in an interview with Fox News that the U.S. didn't need the waterway open, even as energy inventories dwindle fast.
He then told reporters that he and Chinese leader Xi Jinping wanted the conflict in Iran to end.
LBBW said bond investors must be prepared for the Federal Reserve to increasingly shift its focus to inflation if the blockade of the Strait isn't resolved in the near future.
This is already reflected to a certain extent on money markets, with the consensus now assigning an around 40% probability to a Fed rate hike by the end of 2026, up from last week's pricing of almost flat interest-rate expectations.
"If there is no new movement in the Middle East conflict following the Trump-Xi summit, rate hiking speculation could pick up again."
Intel fell more than 4% and chip stocks slid after the meetings in China concluded without any major tech deal annoucements.
Trade Representative Jamieson Greer said that China would make its own determinations on whether to buy Nvidia chips.
Washington authorized Nvidia to export its H200 chips to China, but Beijing hasn't formally approved shipments.
"They're very committed to domestic production," Greer told Bloomberg.
Stocks to Watch
Aardvark Therapeutics said the FDA put its drug on a clinical hold. The stock slid premarket.
Advanced Micro Devices, Intel, Nvidia fell with chip stocks retreating premarket, following a ferocious rally in their shares.
Applied Materials also fell premarket amid a broader selloff in AI-related stocks.
Figma raised its outlook, citing more customers for its AI products. Shares rose after hours.
Gambling.com cut both its guidance and workforce. Shares plunged.
P3 Health Partners gained more than 30% premarket after it lifted its earnings outlook.
Watch For:
Industrial Production and Capacity Utilization for April; Canada Housing Starts for April
Today's Top Headlines/Must Reads:
-Tightly Choreographed Visit Masks Big Differences Between U.S. and China
-Beijing's 'Industrial Policy of Everything' Leaves Rest of the World in the Dust
-The Blockbuster Cerebras IPO Is a Huge Bet on Nvidia Fatigue
MARKET WRAPS
Forex:
The dollar rose to an 18-day high against a basket of currencies as Iran war tensions persisted and recent higher-than-expected prices data fueled speculation the Fed could pivot toward raising interest rates.
Sterling fell to a five-week low against the dollar and the euro on the prospect of Prime Minister Keir Starmer facing a drawn-out leadership challenge.
Bonds:
Treasury yields rose with oil prices.
ING said that the 4.5% yield level for 10-year Tresaurys was a buy level .
Jefferies said higher inflation and deficits supported its view that investors should stay away from the longer end of the curve and have a steepening bias , adding that its order of concern remained the U.K., Europe and then the U.S.
Energy:
Oil prices gained after the U.S. China meetings ended with few concrete agreements.
Trump told reporters that both he and Xi want the conflict in the Middle East to end and for Iran not to have a nuclear weapon.
However, tensions between Washington and Tehran continued, with little progress toward a lasting peace agreement.
"The Strait of Hormuz remained effectively closed, prolonging disruptions to global energy supplies and keeping markets on edge," MUFG said.
"The prolonged supply shock is also adding to inflation concerns globally as energy inventories continue to tighten."
Metals:
Gold prices dropped, pressured by a stronger dollar and rising Treasury yields as a surge in U.S. inflation fueled fears of higher interest rates.
Gold futures in New York fell 2.2%, while silver plunged 7%.
"The stronger-than-expected rise in consumer and producer prices raised concerns that the Fed may need to increase interest rates in the short term," ANZ said.
TODAY'S TOP HEADLINES
Toyota Mulls $2 Billion Investment to Add Assembly Line in Texas
Toyota Motor is considering investing $2 billion to add a vehicle assembly line near its manufacturing facility in San Antonio, Texas.
The Japanese carmaker plans to begin construction later this year, with production targeted to start in 2030, according to application documents filed by a company unit for a Texas state economic-incentive program.
Stellantis, Dongfeng Ink $1.17 Billion Deal to Make Peugeot, Jeep EVs in China
Stellantis has struck another deal with a Chinese automaker, this time partnering with Dongfeng Group to produce electric vehicles under the Peugeot and Jeep brands in China.
The $1.17 billion tie-up underscores a broader shift in the global auto industry that is driving deeper collaboration between Western carmakers and their Chinese counterparts.
Hana Bank to Buy $670 Million Stake in Crypto Exchange Operator Dunamu
Hana Bank will buy a roughly $670 million stake in crypto-exchange operator Dunamu, marking the largest single investment by a South Korean bank in digital-asset entities.
The commercial lender will buy 2.284 million shares, or a 6.55% stake, in Dunamu from an affiliate of internet company Kakao on June 15 for 1.003 trillion won, equivalent to $672.5 million, parent Hana Financial Group said in a statement Friday.
Honda's Never Faced a Crisis Like This-and a Comeback Won't Be Easy
Honda Motor managed to stay profitable through a global financial meltdown, natural disasters, a safety crisis and the pandemic. Then came America's electric-vehicle whiplash.
The Japanese company, the fifth-largest automaker in the U.S. by sales, is confronting some of the steepest challenges it has faced in its nearly seven decades as a public company. U.S. tariffs have squeezed profits in its biggest market. Chinese upstarts provide a new threat. Above all, its electric vehicle ambitions in North America have collapsed.
Fed's Barr: Shrinking The Balance Sheet Is The Wrong Objective
NEW YORK - Federal Reserve Gov. Michael Barr said shrinking the balance sheet is the wrong objective for the central bank, and many of the proposals to meet that objective would threaten financial stability.
Speaking at an event in Midtown Manhattan, Barr delivered the comments after Kevin Warsh's confirmation as Fed chair. Warsh has argued for shrinking the Fed's balance sheet to reduce the central bank's large presence in financial markets. Barr said some of the proposals to shrink the balance sheet would actually increase the Fed's role in markets.
The New Boss at DHS Is Trying to Clean House After Kristi Noem
WASHINGTON-Homeland Security Secretary Markwayne Mullin has embarked on a wholesale effort to clean house at his embattled department, firing officials closely associated with his predecessor's leadership and reviewing her spending decisions, according to people familiar with the matter.
Mullin's moves follow the ouster of former Secretary Kristi Noem, who attracted unflattering attention for her department's aggressive immigration enforcement-culminating in the killing of two U.S. citizen protesters in Minneapolis-as well as her spending millions on a flashy government-run ad campaign prominently featuring herself.
CIA Director Meets With Cuban Officials in Havana
Central Intelligence Agency Director John Ratcliffe flew to Havana on Thursday for a rare meeting with Cuba's interior minister and the head of the country's intelligence service, as the country grapples with extreme fuel shortages and growing street protests.
Cuba's government said the meeting took place at the request of the U.S. Ratcliffe said Cuba needed to make fundamental changes to work with the U.S. on economic and security issues, a CIA official said. Ratcliffe told Cuban officials they have a limited window to stabilize the island's economy and engage with the Trump administration, the official added.
Senators to Suspend Their Pay During Government Shutdowns
WASHINGTON-Republican and Democratic senators unanimously adopted a resolution to suspend their pay during future government shutdowns, a measure designed to put more pressure on lawmakers to fund federal departments on time after record-setting lapses in the past year.
Sen. John Kennedy (R., La.) introduced the resolution, which passed the Senate on Thursday by a voice vote. The measure only applies to members of the Senate and doesn't need to be passed by the House or signed by President Trump. Lawmakers had drawn criticism in recent shutdowns for continuing to draw salaries while hundreds of thousands of federal employees were furloughed or working without pay.
Crypto Industry Notches Win in Washington After Brawl With Banks
WASHINGTON-A bill that would create a pathway for crypto to further upend the world of traditional finance moved one step closer to law Thursday, the latest testament to the sector's influence in Washington.
The Senate Banking Committee approved a bill that would establish rules regulating different types of cryptocurrencies across the Securities and Exchange Commission and Commodity Futures Trading Commission. Two Democrats joined the committee's Republicans in passing the legislation, potentially putting it on a path to clear the full Senate.
The Mayor's Video, Ken Griffin's Threat and the Future of New York
Wall Street by and large laid low in its criticisms of Zohran Mamdani's first few months as New York City's mayor. While many loathed the "tax the rich" rhetoric that colored his campaign, there were brief glimmers that the democratic socialist could be less doctrinaire as mayor than they had feared: vowing to build hundreds of thousands of new residences, cutting red tape and even participating in photo-ops with President Trump.
But the detente didn't last.
Write to clare.kinloch@wsj.com
TODAY IN CANADA
Earnings:
Americas Gold
Information Services Corp
Economic Indicators $(ET)$:
0815 Apr Housing Starts
0830 Mar Monthly Survey of Manufacturing
0830 Mar International transactions in securities
Stocks to Watch:
Africa Energy 1Q Operating Expenses $0.54M; 1Q Net Loss $0.52M; Reports 1Q Operating Expenses of $0.54 Million
Americas Gold and Silver 1Q Net Income $10M; 1Q Revenue $67.8M; FactSet Est. $70.6M; 1Q Revenue Misses Estimates
American Hotel Income Properties REIT 1Q FFO Per Share $0.03; 1Q EBITDA $5.1M; 1Q Hotel EBITDA $7.28M; 1Q Revenue $36.4M; 1Q FFO $1.98M; 1Q Revenue of $36.4 Million
Bonterra Energy 1Q Rev $66.4M
Denarius Metals 1Q Loss/Shr 11c; 1Q Loss $18.4M; 1Q Rev $3.53M
Diversified Royalty Announces Agreement To Acquire Mr. Lube + Tires Franchisor Business for C$235M; Board Maintaining Current C$0.285 a Share Annualized Dividend
Eastern Platinum 1Q Net Loss $4.1M; 1Q Mine Operating Income $0.7M; 1Q Revenue $13.8M; 1Q Operating Loss $3M; 1Q Revenue of $13.8 Million
Frontera Energy 1Q Rev $26.83M Vs. $25.14M; Adj Ebitda $28.5M Vs. $27.6M; 1Q Net Income From Continuing Ops $13.1M Vs. $11.8M>FEC.T
Global Atomic: At-The-Market Equity Program Re-Established; Allowed to Issue Common Shares Having Aggregate Offering Price of Up to C$50M
Madison Pacific Properties 1Q EPS C$0.18
Olympia Financial Group 1Q Net Income CAD 3.38M; 1Q EPS CAD 2.32; 1Q Revenue CAD 22.1M; Reports 1Q Revenue of CAD 22.1 Million
POET Technologies 1Q Operating Cash Flow Loss $8.8M; 1Q Loss/Shr $0.08; FactSet Est. Loss $0.05 (1 Est.); 1Q Net Loss $12.3M; POET Technologies 1Q EPS Misses Estimates
Velan 4Q Loss/Shr 18c; 4Q Sales $84.9M; 4Q Gross Margin 20.7%; 4Q Gross Profit $17.6M; 4Q Sales $84.9M; 4Q Loss/Shr $0.18; 4Q Net Loss $3.85M; 4Q Sales of $84.9 Million
Expected Major Events for Friday
06:00/JPN: Apr Preliminary Machine Tool Orders
08:00/ITA: Apr CPI
12:15/CAN: Apr Housing Starts
12:30/US: May Empire State Manufacturing Survey
12:30/CAN: Mar Monthly Survey of Manufacturing
12:30/CAN: Mar International transactions in securities
13:00/RUS: Weekly International Reserves
13:15/US: Apr Industrial Production and Capacity Utilization
14:00/US: ISM Semiannual Supply Chain Planning Forecast
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Expected Earnings for Friday
ARS Pharmaceuticals Inc $(SPRY)$ is expected to report $-0.49 for 1Q.
Abaxx Technologies Inc (ABXX.GR) is expected to report for 1Q.
AgEagle Aerial Systems Inc (UAVS) is expected to report for 1Q.
Arrive AI Inc (ARAI) is expected to report for 1Q.
Bally's Corp $(BALY)$ is expected to report for 1Q.
Beam Global (BEEM) is expected to report $-0.21 for 1Q.
Canlan Ice Sports Corp (ICE.T) is expected to report for 1Q.
Cenntro Inc $(CENN)$ is expected to report for 1Q.
Chaince Digital Holdings Inc $(CD)$ is expected to report for 1Q.
ContextLogic Holdings Inc (LOGCD) is expected to report for 1Q.
DNA X Inc $(SONM)$ is expected to report for 1Q.
Flexible Solutions International Inc (FSI) is expected to report $-0.05 for 1Q.
HLS Therapeutics Inc (HLS.T) is expected to report for 1Q.
Hyperscale Data Inc (GPUS) is expected to report for 1Q.
Immuneering Corp (IMRX) is expected to report for 1Q.
Jasper Therapeutics Inc (JSPR) is expected to report $-0.34 for 1Q.
Koil Energy Solutions Inc (KLNG) is expected to report for 1Q.
Lument Finance Trust Inc (LFT) is expected to report $0.01 for 1Q.
Mastech Digital Inc $(MHH)$ is expected to report $0.02 for 1Q.
McCoy Global Inc (MCB.T) is expected to report for 1Q.
Noble Romans Inc (NROM) is expected to report for 4Q.
Northern Dynasty Minerals Ltd (NAK,NDM.T) is expected to report for 1Q.
Onex Corp (Canada) (ONEX.T) is expected to report for 1Q.
PrimeEnergy Resources Corp $(PNRG)$ is expected to report for 1Q.
ProKidney Corp $(PROK)$ is expected to report for 1Q.
RBC Bearings Inc (RBC) is expected to report $2.72 for 4Q.
Ravelin Properties REIT (RPR.UN.T) is expected to report for 1Q.
Skillz Inc (SKLZ) is expected to report for 1Q.
Smith-Midland Corp $(SMID)$ is expected to report for 1Q.
Solana Co (HSDT) is expected to report for 1Q.
Spanish Broadcasting System Inc - Class A (SBSAA) is expected to report for 4Q.
Tofutti Brands Inc (TOFB) is expected to report for 1Q.
Tree Island Steel Ltd (TSL.T) is expected to report $0.00 for 1Q.
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ANALYST RATINGS ACTIONS
Amphastar Pharmaceuticals Cut to Equal-Weight From Overweight by Wells Fargo
AN2 Therapeutics Raised to Outperform From Market Perform by Leerink Partners
Assurant Raised to Overweight From Equal-Weight by Morgan Stanley
Camden Property Trust Cut to Sector Underperform From Sector Perform by Scotiabank
Cheesecake Factory Raised to Neutral From Underweight by JP Morgan
Commercial Metals Raised to Buy From Neutral by UBS
Compass Minerals Raised to Neutral From Underweight by JP Morgan
Doximity Cut to Equal-Weight From Overweight by Wells Fargo
Doximity Cut to Hold From Buy by Jefferies
Doximity Cut to Neutral From Buy by BTIG
Doximity Cut to Neutral From Outperform by Baird
Doximity Cut to Sector Weight From Overweight by Keybanc
Everpure Cut to Neutral From Buy by Citigroup
Mid-America Apartment Cut to Sector Underperform From Sector Perform by Scotiabank
NetApp Cut to Mixed From Positive by BWG Global
Prestige Consumer Hlthcr Cut to Perform From Outperform by Oppenheimer
SOLV Energy Cut to Neutral From Buy by UBS
Staar Surgical Raised to Outperform From Neutral by Wedbush
Starbucks Raised to Buy From Hold by TD Cowen
Tango Therapeutics Cut to Hold From Buy by Jefferies
Whirlpool Cut to Neutral From Buy by Goldman Sachs
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
May 15, 2026 05:58 ET (09:58 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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