North American Morning Briefing: Stock Futures Mixed as Bank Earnings Kick Off Earnings Season

Dow Jones
2 hours ago

Stock futures were mixed Tuesday as a global AI selloff intensified and

ahead of earnings from large banks.

Futures linked to the Nasdaq declined after Asian chip stocks sold off overnight. CXMT, one of China's biggest memory makers, said it made good progress on a new DRAM architecture, sparking fears of Chinese competition. Micron, AMD and Intel were under pressure in premarket trading.

Investors are also watching for results and commentary from JPMorgan, Goldman Sachs, Wells Fargo and Citigroup, which are set to report financial results before the opening bell, in what will be used by many investors to help indicate broader economic health.

Meanwhile, oil prices fell after settling higher in the previous session, as traders weighed supply risks from escalating attacks on Saudi Arabia against the prospect of renewed Russian diesel supplies.

Looking ahead, inflation data due Wednesday will be a key test of how much the surge in energy prices is feeding through into the cost of living and how much pressure the Federal Reserve might feel to raise interest rates further, Wealth Club said.

Watch For:

U.S. Existing Home Sales for September; Citigroup 3Q earnings; Goldman Sachs 3Q earnings; Johnson & Johnson 3Q earnings; JPMorgan Chase 3Q earnings; UnitedHealth Group 3Q earnings; Wells Fargo 3Q earnings

Today's Top Headlines/Must Reads:

- 'Phantom' Data Centers Are Demanding More From the Power Grid Than They Need

- China's Weakening Economy Is Creating a Lost Generation

- The Luxury Beverly Hills Condo Project Borrowing Money From Its Future Residents

MARKET WRAPS Forex:

The dollar remained elevated after reaching an 18-month high on Monday, lifted by softer risk sentiment and comments from Federal Reserve official Beth Hammack arguing for further interest-rate rises, Danske Bank said.

The euro rose.

Sterling could remain firm against the euro for some time after reaching a 16-month high overnight, ING said.

Bonds:

Treasury yields fell on Tuesday, helped by lower oil prices and a pullback in AI stocks.

The potential for the 10-year Treasury yield to rise further appears limited, according to DZ Bank.

Energy:

Brent crude was down 1.1%, while WTI futures slid 1.2%.

Brent crude could fall to $65 a barrel from the second quarter of 2027 if shipping through the Strait of Hormuz normalizes and regional energy infrastructure avoids lasting damage, Citi Research said.

Metals:

Gold edged higher as a pullback in oil prices and a weaker U.S. dollar lent support, with investors awaiting U.S. inflation figures for clues on the Fed's interest-rate outlook.

Gold chart

Comex gold futures may retest support at $4,150 per ounce, RHB Retail Research said. The futures' latest negative price action on the daily chart reaffirms that immediate resistance is still firm at the $4,300-per-ounce level.

TODAY'S TOP HEADLINES

BP's New CEO to Outline Strategy as Balance Sheet Strengthens

BP said it would update its strategy in December, giving new Chief Executive Meg O'Neill her first opportunity to outline her vision for the British energy major to investors.

O'Neill has headed up the company since April this year and inherited a strategy that re-prioritized its traditional oil-and-gas business while paring back spending on renewable energy. Pressure on the company increased when in February last year activist hedge fund Elliott Management took a stake in it.

Melrose Industries Says GKN Aerospace Reaches $125 Million Settlement in Chemicals Case

Melrose Industries said its GKN Aerospace unit reached a $125 million settlement with authorities in California relating to a chemicals case, and that it expects to restart operations at the site this quarter.

The case relates to an incident in May that forced the evacuation of parts of areas surrounding the facility in Garden Grove, California, operated by GKN, as emergency services sought to avoid a chemical leak and vapor explosion. The plant makes equipment for the aviation industry.

Givaudan Shares Climb After Sales Beat Expectations

Givaudan shares jumped after the Swiss supplier of food ingredients and perfume scents reported third-quarter sales that beat analysts' expectations.

Shares in Givaudan were up 6.5% in European morning trading Tuesday, taking the stock's year-to-date gain to more than 18%.

Stellantis Shipments Fall on North America Summer Shutdowns

Jeep maker Stellantis reported an estimated 1% decrease in third-quarter vehicle shipments, as planned summer production shutdowns in North America and a drop in the Turkish market offset growth in European electric-vehicle shipments.

The company said Tuesday that global shipments-vehicle deliveries to dealers, distributors, or directly from the company to retail and fleet customers-fell to an estimated 1.29 million.

Oil Prices Fall as Traders Weigh Middle East Risks, Russian Diesel Supplies

Oil prices fell Tuesday, pulling back after three consecutive sessions of gains as traders weighed persistent Middle East supply risks against prospects for additional Russian diesel exports.

December Brent crude futures fell 0.9% to $105.73 a barrel, while December West Texas Intermediate futures dropped 1.1% to $91.81 a barrel.

Treasury, Eurozone Yields Fall as Markets Look to U.S. Inflation Data

U.S. Treasury and eurozone government bond yields fell in European trade on Tuesday, helped by lower oil prices and a pullback in AI stocks.

The 10-year Treasury yield dropped 5.5 basis points to 5.189%, while the 30-year Treasury yield declined 5.1 basis points to 5.547%, according to Tradeweb. They are now comfortably below the 24-year highs of 5.365% and 5.733% reached last week.

Gulf Hurricane Not Big Enough to Reset Insurance Market

Isaias has been a devastating storm for many on the Gulf Coast. But thankfully, early estimates suggest it is unlikely to join the ranks of the most expensive and destructive U.S. landfalls.

That might be no relief for insurance stocks.

Iran Is Fortifying Nuclear Sites and Rallying Its People for a Return to Fighting

Iran is fortifying its defenses, rallying loyalists and threatening a wider, harsher response against the U.S. and its Gulf allies as it prepares for potential American attacks after the midterms and seeks to deter them.

Iranian officials have warned publicly and in private conversations with regional officials that the Islamic Republic will respond with further escalation across the Middle East if the U.S. launches new strikes.

A $300 Million Windfall for Trust Collecting Funds for Trump Projects

Ten megadonors accounted for more than half of the $300 million that President Trump raised for the new White House ballroom and legacy projects around Washington, according to a new filing from the nonprofit he and his allies are using to take in the money.

The identities of the donors, who contributed between $10 million and $25 million apiece, weren't included in the public filing by the Trust for the National Mall, a long established nonprofit which the White House has also used to manage funds it raised for the triumphal arch and the Rose Garden.

IMF Keeps Global Economy Growth Target Unchanged but Warns Resilience Under Strain

The International Monetary Fund (IMF) kept its 2026 global economic growth outlook unchanged and nudged higher its 2027 forecast while its economists warned the world's economic resilience remains strained.

The picture emerging was that of a global economy hurt by two costly wars and high energy prices while being helped by the hundreds of billions spent on the artificial intelligence buildout.

Russia Pounds Ukrainian Energy Despite Trump's Ceasefire Announcement

KYIV, Ukraine-Ukrainian President Volodymyr Zelensky said Russian strikes had hit energy infrastructure across his country hours after President Trump declared an energy ceasefire between the warring sides.

The Russian attacks-including on gas infrastructure, a power plant and a substation-come as the U.S. heaps pressure on Ukraine to stop striking Russian oil refineries, and after Trump moved to allow Russia to export diesel to the U.S. in a bid to drive down American prices at the pump.

Write to priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch

CSG Buys Largest Stake in Canada's MDA Space to Enter Space Sector

Expected Major Events for Tuesday 06:00/GER: Sep CPI

10:00/US: Sep NFIB Index of Small Business Optimism

12:55/US: 10/10 Johnson Redbook Retail Sales Index

14:00/US: Sep Existing Home Sales

16:59/GER: Aug Balance of Payments

18:00/US: Sep Monthly Treasury Statement of Receipts and Outlays of the U.S. Government

23:01/UK: Sep UK Nations and Regions Growth Tracker

23:50/JPN: Sep Money Stock, Broadly-defined Liquidity

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Tuesday AZZ Inc $(AZZ)$ is expected to report $1.72 for 2Q.

Albertsons Cos Inc (ACI) is expected to report $0.23 for 2Q.

CCA Industries Inc $(CAWW)$ is expected to report for 3Q.

Citigroup Inc $(CUL3)$ is expected to report $2.65 for 3Q.

Domino's Pizza Inc $(DPZ)$ is expected to report $4.38 for 3Q.

Environmental Tectonics Corp (ETCC) is expected to report for 2Q.

FB Financial Corp $(FBK)$ is expected to report $1.21 for 3Q.

Goldman Sachs Group Inc (GS) is expected to report $12.86 for 3Q.

JPMorgan Chase & Co (JPM) is expected to report $5.93 for 3Q.

Johnson & Johnson $(JNJ)$ is expected to report $2.43 for 3Q.

Rocky Mountain Chocolate Factory Inc $(RMCF)$ is expected to report for 2Q.

UnitedHealth Group Inc (UNH) is expected to report $3.84 for 3Q.

Unity Bancorp Inc (UNTY) is expected to report $1.55 for 3Q.

Vicarious Surgical Inc (RBOT) is expected to report for 2Q.

Wells Fargo & Co $(WFC)$ is expected to report $1.85 for 3Q.

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ANALYST RATINGS ACTIONS Adobe Cut to Underweight From Overweight by Wells Fargo

Allison Transmission Raised to Buy From Neutral by Citigroup

Allstate Raised to Equal-Weight From Underweight by Wells Fargo

Ally Financial Inc Cut to Equal-Weight From Overweight by Morgan Stanley

AST SpaceMobile Raised to Buy From Hold by Deutsche Bank

Baldwin Insurance Group Cut to Hold From Buy by TD Cowen

Biogen Raised to Overweight From Neutral by JP Morgan

Blackstone Digital Infra Raised to Buy From Neutral by Citigroup

C3.ai Raised to Outperform From Market Perform by Northland Capital Markets

Enact Holdings Cut to Underweight From Neutral by JP Morgan

First Solar Raised to Buy From Hold by Truist Securities

GoDaddy Cut to Sector Perform From Outperform by RBC Capital

Hexcel Raised to Buy From Neutral by Seaport Global

Hub Group Raised to Outperform From Neutral by Baird

HubSpot Cut to Equal-Weight From Overweight by Barclays

Humana Raised to Outperform From Market Perform by Raymond James

Insmed Cut to Peer Perform From Outperform by Wolfe Research

Manhattan Associates Raised to Overweight From Equal-Weight by Morgan Stanley

Mattel Raised to Buy From Neutral by Seaport Global

Roivant Sciences Cut to Peer Perform From Outperform by Wolfe Research

Salesforce Raised to Buy From Underperform by B of A Securities

Sallie Mae Raised to Overweight From Equal-Weight by Morgan Stanley

T-Mobile US Raised to Outperform From Market Perform by Raymond James

Tyler Technologies Raised to Overweight From Equal-Weight by Wells Fargo

UWM Holdings Cut to Neutral From Buy by BTIG

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

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