AI-related stocks including Nvidia, Oracle and CoreWeave were in the red
before Friday's opening bell with yesterday's tech selloff intensifying.
Google's worst day on record Thursday weighed on indexes, amplifying fears that the costs of the global AI build-out might be outrunning returns with results from Amazon and Intel compounding worries.
Today, the concerns come with a side order of crypto angst in the wake of a massive cyberattack on Binance.
Bitcoin and other cryptocurrencies fell after hackers made off with an estimated $6.3 billion from an attack on the crypto exchange.
"User funds are safe. Binance will cover all hacking losses," Binance co-founder Yi He said on X.
Oil was climbing after a tanker transiting Hormuz came under attack, and Ukraine struck an oil refinery in Russia, ending a pause that the Trump administration had pushed for.
Ahead of Tuesday's midterms, Robeco said technology and healthcare remained the key sectors to watch with regard to the elections.
The administration has supported investment in AI-which continued to provide a powerful structural tailwind-and healthcare is another area where the election outcome could influence sentiment, given its role as a political battleground.
Stocks to Watch
Amazon was down sharply premarket after its earnings showed booming growth at the company's cloud-computing division-but left investors wanting more. Intel fell nearly 25% premarket after the memory-chip crunch and other hiccups weighed on PC sales. Roblox reported declining user and engagement metrics. The stock fell 16% after hours Thursday.
Stryker cut its outlook. Shares shed 12% after hours Thursday.
Watch For:
Employment Cost Index for 3Q; Canada GDP for August; Earnings from Canadian National Railway; Chevron; ExxonMobil, Kenvue, Regeneron, AbbVie, General Dynamics, Colgate-Palmolive
Today's Top Headlines/Must Reads:
-Trump Administration, States Harden Battle Lines Ahead of Election Day -The Market Isn't Buying Skydance's Balance-Sheet Math -Chinese Executive Close to Nvidia CEO Suspected of Giving China Information
MARKET WRAPS Forex:
The dollar fell along with Treasury yields as results from Alphabet raised fresh concerns about the payoff from investments in A infrastructure.
The euro fell to a 19-month low against sterling and traded near a four-month low versus the Swiss franc on worries about France's debt and the ECB's cautious stance about raising interest rates, while the BOE is widely expected to raise rates in November.
Bonds:
Treasury yields fell. Yields are expected to remain rangebound in the near term, with the 10-year yield trading mostly near 5% in the coming weeks, SEB said.
"Concerns over AI-related stocks and rising energy prices have driven a rotation into bonds, lowering long-end yields and flattening the curve." The potential softening of expectations for Fed rate hikes over the next year was also supporting bonds.
Energy:
Oil rose, driven by persistent threats to shipping in the Hormuz Strait and fears that the U.S. could resume military strikes against Iran.
"Oil prices will continue to see an upside skew until there is clarity on the geopolitical conditions in the Middle East, with the period following next week's U.S. midterms in focus for a potential deterioration in regional security," MUFG said.
Ukraine struck an oil refinery in Russia early Friday, ending a two-week pause in refinery attacks that came amid heavy pressure from Trump to halt such operations.
Metals:
Gold slid below $4,000 as higher oil prices and sticky inflation fueled expectations that the Fed would raise interest rates again later this year and a tech-stock selloff raised the risk of investors offloading the metal to cover losses.
"Heading into the weekend, traders will watch whether the U.S. technology sector selloff extends into today's session, potentially triggering broader deleveraging and liquidity-driven selling across markets, including precious metals," Saxo said.
Copper
Jefferies said that we would start to see further premiums paid for lower-risk mining methods after a pause in operations at Rio Tinto's Oyu Tolgoi copper mine.
While Jefferies said it was unlikely to have a long-term impact on production there, the event raised questions about the long-term sustainable rate of cave propagation.
Lithium
Lithium carbonate was down more than 20% since early September and spodumene concentrate was down by nearly 40%. Benchmarked said that outside of China there was a feeling that this was a short-term, sentiment-led dip, unsupported by fundamentals.
TODAY'S TOP HEADLINES
BP Slashes Net Debt as Earnings Soar
BP's third-quarter profit soared and cash flow jumped, enabling the British energy major to cut net debt faster than expected.
The company reported an underlying replacement-cost profit-a similar metric to the net income that U.S. oil companies report-of $8.46 billion for the third quarter of the year. This compares with the $2.21 billion it reported in the same period last year and the $7.33 billion analysts expected, according to a company-compiled consensus.
AstraZeneca Launches $1.5 Billion Savings Plan to Fund Drug Pipeline
AstraZeneca said it is launching a $1.5 billion cost-savings program, as the U.K. drugmaker seeks to free up resources to invest in its drug pipeline.
The company disclosed the plan on Friday alongside its third-quarter results, which showed increases in revenue and profit after strong sales of cancer drugs offset the effect of patent expirations to lift the group's top line.
Bayer Wins First U.S. Trial Over Roundup Since Supreme Court Ruling
A Missouri Circuit Court sided with Bayer's Monsanto business in a case over its Roundup weedkiller, handing the company a win in the first trial since the U.S. Supreme Court ruled in its favor in June.
Bayer said late Thursday that the court jury ruled for Monsanto on the design defect, fraud, and negligence claims that each of the three plaintiffs pursued.
Bank of Japan Declares Inflation Win, Clearing Way for Rate Hikes
TOKYO-The Bank of Japan declared a major victory in its decadeslong battle against deflation, paving the way for more interest-rate hikes.
Underlying inflation has reached roughly 2%, the central bank said Friday. That's the first time it achieved that goal since 2013, when it signed an accord with the government to defeat deflation.
French Economy Unexpectedly Contracts as Debt Worries Mount
France's economy shrank in the third quarter, deepening concerns over the government's debt load amid enduring political paralysis.
Gross domestic product, a measure of the goods and services produced in an economy, fell back 0.1% in the three months through September, after stagnating in the second quarter, France's statistics agency Insee said Friday.
Inside the U.S. Military's Open-Ended Mission to Keep Gulf Oil Flowing
ABOARD THE USS GEORGE WASHINGTON IN THE ARABIAN SEA-Under the cover of darkness, American jet fighters loaded with air-to-air missiles catapult off the deck of the aircraft carrier USS George Washington and make their way toward the Strait of Hormuz to shoot down Iranian cruise missiles and drones aimed at commercial ships.
With Smucker's Uncrustable sandwiches, gum and bathroom bags to get through the night, F-35C and F/A-18 pilots sync up with electronic-warfare planes, flying radar systems and submarine-hunting helicopters to create an umbrella of protection over tankers transiting the waterway. Hours later, the pilots slam back onto the carrier traveling more than 100 miles an hour, a cable catching their tailhooks to bring the night's work to an end in less than two seconds.
How Alaska Became the Most Chaotic Senate Battleground in America
ANCHORAGE-As winter set in and Election Day neared in Alaska, high prices for diesel and home heating oil drove voter anger at President Trump and incumbent Republican Sen. Dan S. Sullivan, making the Senate race in this red state one of the most competitive in the country.
Now, with just days to go, allegations that Democrat Mary Peltola's campaign secretly worked to recruit a spoiler candidate to help her party win the pivotal Alaska seat-and potentially retake control of the Senate-has become this midterm election's biggest October surprise.
Machado's Return Offers a Preview of Venezuela's Next Election-Whenever It Comes
CARACAS-Interim President Delcy Rodríguez and opposition leader María Corina Machado laid out competing visions for Venezuela on Thursday, sounding the opening gun of a power struggle between the White House-backed leader and the country's most popular political figure.
"The transition toward democracy is irreversible," Machado said in her first news conference since her surprise return from exile Sunday, as she pushed for elections. Outside the university auditorium, where Machado fielded questions, hundreds of cheering students sang the national anthem and shouted "freedom."
Write to clare.kinochc@wsj.com
TODAY IN CANADA Earnings:
Cameco Corp Canadian National Railway Energy Fuels Imperial Oil Ltd Magna Intl Inc. Sprott Inc.
Economic Indicators (ET):
0830 Aug GDP
EU-Canada summit concludes
Stocks to Watch:
Air Canada Expects High Fuel Costs to Eat Further Into Profit
Black Diamond Group 3Q Revenue Beats Estimates; 3Q Gross Profit CAD 65.6M; 3Q Adj EBIT CAD 23.6M; 3Q Adj EBITDA CAD 42.3M; 3Q Basic EPS CAD 0.16; 3Q FFO CAD 43.6M; 3Q Revenue CAD 159.9M; FactSet Est. CAD 144.8M; 3Q Capex CAD 26.8M; 3Q Pretax Profit CAD 13.8M; 3Q Adj Basic EPS CAD 0.19
Canadian National Railway Announces Retirement of CFO Ghislain Houle and Appointment of Successor Jamie Lockwood; Lockwood Will Succeed Ghislain Effective Feb 1, 2027; Houle Will Serve as Strategic Adviser to Pres and CEO From Feb 1 Through Retirement on March 31
Hammond Power Solutions 3Q Sales CAD 446M; FactSet Est. CAD 396.2M; 3Q Net Income CAD 27,696; 3Q Gross Margin 34.4%; 3Q EPS CAD 2.33; FactSet Est. CAD 2.36; 3Q Adj EPS CAD 3.13; FactSet Est. CAD 2.90; 3Q Adj EPS Beats Estimates Methanex 3Q EPS $3.42; 3Q Adj EPS $3.69; 3Q Rev $1.388B
Bank of Montreal: Stonepeak Completes Acquisition of BMO's Transportation and Vendor Finance Businesses; BMO Transfers About C11BofEstimatedC14.5B Combined Loan and Lease Portfolio to Stonepeak, With the Remaining Balances Expected to Transfer in 1Q of FY27; Stonepeak Launches Longview Capital Solutions
TMX Group 3Q Adj EPS CAD 0.63; FactSet Est. CAD 0.57; 3Q Revenue CAD 491.1M; FactSet Est. CAD 474.7M; 3Q Operating Income CAD 185.4M; 3Q Operating Expenses CAD 305.7M; 3Q EPS CAD 0.38; FactSet Est. CAD 0.47; 3Q Adj EPS Beats Estimates
Expected Major Events for Friday 01:00/JPN: Sep Steel Imports & Exports Statistics
04:30/JPN: Sep Preliminary Report on Petroleum Statistics
05:00/JPN: Sep Housing Starts
05:00/JPN: Sep Construction Orders
06:30/FRA: Sep Household consumption expenditure in manufactured goods
06:30/FRA: 3Q GDP - first estimate
07:00/GER: Sep Foreign trade price indices
07:00/UK: Oct Nationwide House Price Index
07:45/FRA: Sep PPI
07:45/FRA: Oct Provisional CPI
08:55/GER: Oct Labour market statistics (incl unemployment)
08:59/JPN: Japan Monetary Policy Meeting decision
09:00/GER: Oct Bavaria CPI
09:00/GER: Oct North Rhine Westphalia CPI
09:00/GER: Oct Saxony CPI
09:00/GER: Oct Hesse CPI
09:00/GER: Oct Baden-Wuerttemberg CPI
09:00/GER: 3Q GDP - 1st release
09:00/ITA: 3Q GDP preliminary estimate
09:00/GER: Oct Brandenburg CPI
09:30/UK: Nov Agents' Summary of Business Conditions
10:00/ITA: Oct Provisional CPI
10:00/ITA: Oct Cities CPI
12:30/CAN: Aug GDP
12:30/US: 3Q Employment Cost Index
13:00/GER: Oct Provisional CPI
13:45/US: Oct Chicago Business Barometer - ISM-Chicago Business Survey Chicago PMI
19:00/US: Sep Agricultural Prices
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Expected Earnings for Friday AbbVie Inc $(ABBV)$ is expected to report $2.55 for 3Q.
Aegis Brands Inc (AEG.T) is expected to report for 3Q.
AquaBounty Technologies Inc $(AQB)$ is expected to report for 3Q.
Arbor Realty Trust Inc (ABR) is expected to report $-0.08 for 3Q.
AutoNation Inc (AN) is expected to report $4.99 for 3Q.
BrightSpring Health Services Inc $(BTSG)$ is expected to report $0.41 for 3Q.
CW Bancorp (CWBK) is expected to report for 3Q.
Canadian National Railway Co (CNI,CNR.T) is expected to report $2.07 for 3Q.
Capital Clean Energy Carriers Corp $(CCEC)$ is expected to report for 3Q.
Carter's Inc $(CRI)$ is expected to report $0.89 for 3Q.
Cboe Global Markets Inc (CBOE) is expected to report $3.38 for 3Q.
Chevron Corp $(CVX)$ is expected to report $4.76 for 3Q.
Church & Dwight Co $(CHD)$ is expected to report $0.90 for 3Q.
Colgate-Palmolive Co (CL) is expected to report $0.91 for 3Q.
Dominion Energy Inc (D) is expected to report $1.21 for 3Q.
ExxonMobil Holdings Corp (XOM) is expected to report for 3Q.
Federal Realty Investment Trust (FRT) is expected to report $0.71 for 3Q.
Forum Energy Technologies Inc (FET) is expected to report $1.16 for 3Q.
Gates Industrial Corp Ltd (GTES) is expected to report for 3Q.
General Dynamics Corp (GD) is expected to report $4.14 for 3Q.
Hess Midstream LP $(HESM)$ is expected to report $0.72 for 3Q.
Imperial Oil Ltd (IMO,IMO.T) is expected to report $4.68 for 3Q.
Kite Realty Group Trust $(KRG)$ is expected to report $0.06 for 3Q.
Lear Corp (LEA) is expected to report $3.00 for 3Q.
Magna International Inc (MG.T,MGA) is expected to report $2.17 for 3Q.
Mammoth Energy Services Inc $(TUSK)$ is expected to report $-0.03 for 3Q.
Newell Brands Inc $(NWL)$ is expected to report $0.17 for 3Q.
Oil States International Inc (OIS) is expected to report $0.09 for 3Q.
OneMain Holdings Inc $(OMF)$ is expected to report $1.57 for 3Q.
Oppenheimer Holdings Inc (OPY) is expected to report for 3Q.
Piper Sandler Cos $(PIPR)$ is expected to report for 3Q.
RBC Bearings Inc (RBC) is expected to report $2.89 for 2Q.
Regeneron Pharmaceuticals Inc $(REGN)$ is expected to report $14.40 for 3Q.
Sensient Technologies Corp (SXT) is expected to report $1.07 for 3Q.
Silvercrest Asset Management Group Inc $(SAMG)$ is expected to report $0.28 for 3Q.
Solitario Resources Corp (SLR.T,XPL) is expected to report for 3Q.
Standard Motor Products Inc (SMP) is expected to report $0.53 for 3Q.
TXNM Energy Inc (TXNM) is expected to report $0.19 for 3Q.
WisdomTree Inc (WT) is expected to report $0.30 for 3Q.
iRadimed Corp $(IRMD)$ is expected to report $0.50 for 3Q.
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ANALYST RATINGS ACTIONS Alkami Technology Cut to Market Perform From Market Outperform by Citizens
Alkami Technology Cut to Sector Weight From Overweight by Keybanc
Alphabet Cut to Market Perform From Market Outperform by Citizens
Ares Capital Raised to Buy From Neutral by UBS
Artiva Biotherapeutics Cut to Hold From Buy by Jefferies
Biogen Raised to Buy From Hold by Argus Research
Boston Scientific Cut to Hold From Buy by Jefferies
Calif Water Svc Grp Raised to Buy From Hold by Freedom Broker
eBay Raised to Equal-Weight From Underweight by Wells Fargo
Hilton Raised to Outperform From Neutral by Mizuho
Lennox Cut to Perform From Outperform by Oppenheimer
PayPal Holdings Cut to Underweight From Equal-Weight by Barclays
Peapack Gladstone Cut to Market Perform From Strong Buy by Raymond James
Prosperity Bancshares Raised to Buy From Hold by StoneX
Renasant Cut to Outperform From Strong Buy by Raymond James
Sprouts Farmers Market Cut to Sector Perform From Outperform by RBC Capital
VF Corp Raised to Neutral From Underperform by BNP Paribas
Wendy's Cut to Sell From Buy by Argus Research
Wintrust Raised to Buy From Neutral by UBS
Xylem Cut to Equal-Weight From Overweight by Barclays
This article is a text version of a Wall Street Journal newsletter published earlier today.
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