Stock futures were up Friday as AI-related stocks recovered and oil
prices eased.
The Nasdaq was set to advance on Friday following a selloff in chip stocks and shares linked to the artificial-intelligence trade on Thursday.
The rebound comes as third-quarter earnings season kicks off next week, where investors will get an updated view on the AI sector.
"The big consensus for the coming earnings season is that if headline earnings growth remains strong enough, investors can postpone worrying about rising yields a little longer," Swissquote said.
Meanwhile, oil prices fell after President Trump said the U.S. wouldn't attack Iran before the midterms, citing "productive" talks with Tehran. Bond markets have also calmed, although Treasury yields reversed course and turned slightly higher on Friday after falling in early trading.
Investors will next focus on the University of Michigan's preliminary consumer sentiment data due later Friday.
Stocks to watch
AT&T, Verizon, T-Mobile US: U.S. cellphone carrier stocks sank sharply premarket on news of competition with SpaceX.
Delta Air Lines will report its results this morning, shedding light on how the sector is holding up against rising jet-fuel prices. The shares ticked up ahead of the bell.
Humana gained premarket after the U.S. government improved its rating for the company's Medicare Advantage plans, putting it in line for more bonus payments.
Nvidia, Oracle, CoreWeave: Stocks riding the AI boom gained ground premarket.
Space Exploration Technologies climbed premarket after the company struck a deal for cellular spectrum licenses in a big play to become a wireless carrier.
Watch For:
University of Michigan Preliminary Consumer Survey for September; World Agricultural Supply & Demand Estimates (WASDE); Canada Labour Force Survey for September
Today's Top Headlines/Must Reads:
- Scrapped IPO of Nvidia-Backed Company Points to Limits of AI Boom
- Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks
- American Oil Refiners Are Printing Money as Wars Shrink Global Energy Supplies
MARKET WRAPS Forex:
The dollar fell modestly as oil prices eased after President Trump said the U.S. won't attack Iran before November's midterm elections.
Bonds:
Eurozone government bond yields slid in early trade, catching up with earlier falls in Treasury yields following Thursday's well-received 30-year Treasury auction.
Treasury yields reversed course and turned slightly higher on Friday, although long-dated yields remained comfortably below the 24-year highs reached earlier in the week, helped by falling oil prices.
Energy:
In early European trading, Brent crude was down 0.8%, while WTI futures slipped 0.7%.
Brent's risk premium reached an estimated $22 a barrel in September, the second-highest monthly level on record, reflecting persistent fears of disruptions in the Middle East and demand for oil as a portfolio hedge, Goldman Sachs said.
Metals:
Gold gained more than 1% as a softer dollar and lower oil prices supported the metal, while market participants reassessed the inflation and interest-rate outlook.
Iron
Iron ore prices were lower, weighed by weak demand from steelmakers amid widespread losses across the steel industry, Baocheng Futures said.
TODAY'S TOP HEADLINES
American Oil Refiners Are Printing Money as Wars Shrink Global Energy Supplies
The earnings of America's largest oil refiners are set to go gangbusters in the third quarter, spurred on by the conflicts in the Middle East and in Ukraine that have sent the world scrambling for fuel.
Wall Street analysts are projecting that independent U.S. fuel makers Valero Energy, Marathon Petroleum, Phillips 66 and others are on track to crush their near-record earnings in the second quarter that ended in June. All three companies that quarter posted their highest profits since the onset of Russia's war in Ukraine.
Airtel Money Shares Open Higher on First Trading Day But $7 Billion Valuation Misses Mark
Shares in African digital financial-services platform Airtel Money opened slightly higher on its first trading day in London, but its $7 billion valuation came in softer than the company had targeted.
In opening trade, shares in the company, which is also known as Airtel Mobile Commerce, were 2% higher at 200 pence ($2.65) a share.
Scrapped IPO of Nvidia-Backed Company Points to Limits of AI Boom
SYDNEY-Nvidia-backed cloud-computing company Firmus Grid scrapped plans for Australia's largest initial public offering in almost 30 years, a new sign that investors are growing leery of lofty valuations for companies exposed to artificial-intelligence demand.
Firmus, which sells Nvidia-powered computing capacity to large technology companies such as OpenAI and Meta Platforms, pulled plans to raise $5 billion after investors balked at its proposed $30 billion valuation. Firmus said it would instead pursue further private investment.
Porsche Deliveries Fell 16% in First Nine Months of Year
Porsche car deliveries fell 16% in the first nine months of the year, weighed by a tough Chinese market, the end of production of the combustion-engined 718 model line and strong demand for the all-electric Macan in the same period last year.
The German luxury sports-car maker said Friday that it delivered 178,532 cars, down from 212,509 in the prior year period.
AI Stocks Recover as Futures Rise, Oil Slips
Stock futures rallied after a tech-led selloff in the previous session, as lower oil prices and a rebound in artificial-intelligence sentiment boosted markets.
Nasdaq futures rose 0.8%, partly recovering losses from a sharp drop in AI-linked stocks Thursday after a Financial Times report said OpenAI's annualized revenue would be $20 billion lower than expected. But the market shrugged off those fears, pushing chip makers and hyperscalers higher in the premarket.
U.S. Treasury Yields Edge Higher, Eurozone Bond Yields Decline
U.S. Treasury yields reversed course and turned slightly higher on Friday, although long-dated yields remained comfortably below the 24-year highs reached earlier in the week, helped by falling oil prices.
Eurozone government bond yields slid in early trade, catching up with earlier falls in Treasury yields following Thursday's well-received 30-year Treasury auction.
Oil Prices Retreat After Trump Appears to Rule out Iran Strikes Before Midterms
Oil prices fell Friday after surging the previous day, as traders weighed President Trump's pledge not to attack Iran before the U.S. midterm elections against persistent shipping risks in the Persian Gulf and extensive offshore production shut-ins in the Gulf of Mexico.
December Brent crude futures fell 1.3% to $102.90 a barrel, while December West Texas Intermediate futures dropped 1.4% to $89.50 a barrel. Both benchmarks had gained 4.4% Thursday, with Brent rising as much as 5% earlier in the session to $105.23 a barrel and WTI also climbing 5% to $92.70 before paring gains.
Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks
DUBAI-Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.
Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.
Trump Says U.S. Won't Resume Strikes on Iran Before Midterms
The U.S. won't attack Iran before the November midterm elections, President Trump said Thursday, citing "productive" talks with Tehran.
"We are having productive discussions with the Islamic Republic of Iran," Trump said in a Truth Social post. "We will not be attacking Iran at any time prior to the Midterm Elections to be held in the United States on November 3rd. IRAN WILL NOT HAVE A NUCLEAR WEAPON!"
Iran and Houthis Try to Regain Upper Hand in Hormuz With Spate of New Attacks
DUBAI-Just last week, Iran appeared to have its back against the wall in its war with the U.S., its ports blockaded and its leverage over the Strait of Hormuz slipping. Now, Tehran is trying to regain the upper hand.
Iran and its Houthi allies in Yemen delivered a one-two punch against Persian Gulf oil producers in separate attacks on Wednesday night and Thursday morning that sent oil prices sharply higher and further shattered the sense of security in Saudi Arabia's capital city.
Vance Says U.S. Will Suspend Microsoft and Other Firms From Green Card Program
Vice President JD Vance said Thursday that the administration is suspending several tech firms, including Microsoft, from a program that allows H-1B visa holders to apply for green cards.
The action by Vance's antifraud task force targets Microsoft, Adobe and several tech recruiting companies over what officials have alleged are widespread abuses of the visa system. The announcement came the same day that President Trump recognized Microsoft's CEO and other tech leaders at an event in Washington.
In Spain, Grief and Politics Mix After Death of Evicted Woman
MADRID-Hours after the death of an elderly woman known as Maricarmen in Madrid, the political jockeying over her legacy had already begun.
María del Carmen Abascal, 87, died in a hospital two weeks after she was forcibly evicted from a flat where she had lived for decades. Televised scenes of her being carried away from the flat on a stretcher sparked nationwide protests against Spain's housing crisis.
Write to priscila.barrera@wsj.com
TODAY IN CANADA Earnings:
MTY Food Grp Inc. 3Q
Economic Indicators (ET):
0830 Sep Labour Force Survey Stocks to Watch:
Bombardier Expands Support Network With New Line Maintenance Station in Sydney, Australia
Capstone Copper Price Target Raised 2.9% to A$18.00/Share by UBS
CFIA: Loblaw Recalls President's Choice Brand English-Style Gingersnap Cookies Due to Metal Wire
Southern Cross Gold Price Target Raised 3.2% to A$16.00/Share by UBS
TD Bank Group Receives Regulatory Approval For New Share Buyback Program; Buyback for Up to C$10B of Common Shares Approved
Expected Major Events for Friday 12:30/CAN: Sep Labour Force Survey
14:00/US: Oct University of Michigan Survey of Consumers - preliminary
16:00/US: World Agricultural Supply & Demand Estimates (WASDE)
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday MTY Food Group Inc (MTY.T) is expected to report $0.96 for 3Q.
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ANALYST RATINGS ACTIONS Booz Allen Hamilton Raised to Buy From Hold by Truist Securities
Caribou Biosciences Cut to Neutral From Buy by HC Wainwright & Co.
CAVA Group Raised to Buy From Hold by Melius Research
Chime Financial Raised to Buy From Hold by Deutsche Bank
Constellation Brands Cut to Hold From Buy by HSBC
Constellation Brands Raised to Buy From Hold by Freedom Broker
Delek US Cut to Neutral From Outperform by Mizuho
Editas Medicine Raised to Overweight From Equal-Weight by Wells Fargo
Fiserv Cut to Perform From Outperform by Oppenheimer
Generac Raised to Overweight From Sector Weight by Keybanc
Global Payments Raised to Outperform From Perform by Oppenheimer
HubSpot Cut to Neutral From Overweight by JP Morgan
Latham Group Cut to Market Perform From Outperform by William Blair
Leidos Holdings Cut to Neutral From Overweight by JP Morgan
ONE Gas Cut to Hold From Buy by Jefferies
Pacira BioSciences Cut to Hold From Buy by Jefferies
Pacira BioSciences Cut to Hold From Buy by Needham
Pacira BioSciences Raised to Neutral From Underweight by JP Morgan
Palantir Technologies Raised to Buy From Neutral by Goldman Sachs
Phillips 66 Cut to Neutral From Outperform by Mizuho
Prog Holdings Raised to Buy From Hold by Loop Capital
Rocket Pharmaceuticals Raised to Neutral From Sell by Goldman Sachs
Royal Caribbean Group Raised to Buy From Hold by Jefferies
Ryder System Raised to Buy From Neutral by Citigroup
SiteOne Landscape Supply Cut to Hold From Buy by Deutsche Bank
Trex Co Raised to Buy From Hold by Deutsche Bank
Tyler Technologies Cut to Neutral From Buy by Goldman Sachs
Unity Software Raised to Outperform From Market Perform by Raymond James
Universal Display Cut to Sell From Neutral by Citigroup
Xerox Cut to Sell From Neutral by Citigroup
This article is a text version of a Wall Street Journal newsletter published earlier today.
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