The newest vaccine, from Pfizer for a deadly respiratory virus known by the acronym RSV, was approved in the U.S. on Wednesday. Its green light follows clearance of the first RSV shot from GSK earlier this month and a pneumonia shot from Merck & Co. last year. Meantime, new vaccines for HIV, Lyme disease and other pathogens are in the works.
Eurozone Inflation Fell More than Expected as Core Rate Falls
Eurozone inflation fell more than expected in May on easing food and declining energy prices, as the core rate also dropped, a signal that the European Central Bank could be nearing the end of its tightening cycle.
The consumer price index increased 6.1% in May on year, tumbling from a 7.0% rise in April, preliminary data from the European Union's statistics agency Eurostat showed Thursday, the lowest level since February 2022. It also came in below the 6.4% consensus forecast from economists in a poll by The Wall Street Journal.
China Caixin Manufacturing PMI Returns to Expansion in May
A private gauge of China's factory activity bounced back to expansion in May, the first improvement in the manufacturing sector's health since February.
The China Caixin manufacturing purchasing managers index rose to 50.9 in May from 49.5 in April, according to data released Thursday by Caixin Media and S&P Global. The 50 mark separates expansion from contraction.
Oil Traders Are Unfazed by Potential OPEC+ Production Cuts
Oil traders are betting prices will continue to drop despite the best efforts of producing countries to boost them.
Prices have slid since the Organization of the Petroleum Exporting Countries and its allies, the coalition known as OPEC+, jolted markets in October by cutting production by 2 million barrels a day. A February vow from Moscow to curtail another half-million barrels and a voluntary April move by eight OPEC+ members to cut 1.2 million barrels more haven't stopped the slide.
Debt Ceiling: House Approves Deal Struck by Biden and McCarthy
WASHINGTON-The House passed a sweeping bill that suspends the federal government's $31.4 trillion debt ceiling in exchange for spending cuts, as Republican Speaker Kevin McCarthy muscled through a deal struck with President Biden to avert a looming government default.
The 314-117 vote relied on support from both Republicans and Democrats. Passage of the deal sends the measure to the Senate, where leaders have promised quick action, and Biden has said he is eager to sign the measure into law. Treasury Secretary Janet Yellen has said the government could run out of the cash it needs on June 5 to pay its bills on time and warned of severe economic damage and market disruptions unless Congress acts.
Fed Prepares to Skip June Rate Rise but Hike Later
Federal Reserve officials signaled they are increasingly likely to hold interest rates steady at their June meeting before preparing to raise them again later this summer.
Investors in recent days had expected the Fed would lift rates at its meeting June 13-14, prompting two policy makers Wednesday to publicly underscore their preference to forgo a hike, barring a sizzling jobs report on Friday.
Profit Numbers Get Spruced Up as Business Slows
Business slowed last year for Google's parent, Alphabet. The tech giant still beat earnings expectations in this year's first quarter, in part because it said that its computer servers would last longer than expected.
The shift reduced its depreciation expense by nearly $1 billion and helped push per-share earnings ahead of analysts' estimates.
A big short in Treasurys? Traders are building up bets around a debt ceiling resolution
Speculators have been building up a "historically massive" short position in U.S. Treasury futures ahead of what could be $1 trillion of new debt issuance on the heels of a debt-ceiling resolution, according to Macquarie's sales and trading global macro strategy desk.
Bond speculators have been taking up a large number of short positions in 2-year, 5-year and 10-year Treasury futures TY00 (see chart), according to the Macquarie team, which pinpointed the combined tally of contracts at nearly 3 million as of late May, or the most since 2000.
Drones Hit Russian Oil Refineries as Moscow Shores Up Front Line
KYIV, Ukraine-Drones struck two oil refineries in southern Russia on Wednesday as Western officials said Moscow was moving to shore up defenses in border areas and along the 900-mile front with Ukraine ahead of a planned counteroffensive by Kyiv.
Authorities in Russia's Krasnodar region said the Ilyinsky oil refinery was largely unaffected by a suspected drone attack, but a blaze at the Afipsky refinery engulfed over 1,000 square feet of territory likely as a result of a drone, according to regional governor Veniamin Kondratyev, who said no one had been injured.
Republicans Probing Bidens Step Up Threats Against FBI Chief Christopher Wray
WASHINGTON-Top Republican lawmakers on Wednesday escalated threats to hold FBI Director Christopher Wray in contempt over what they view as his stonewalling of a congressional investigation into the business dealings of President Biden and his family.
Following a phone call with Wray, Rep. James Comer of Kentucky and Sen. Chuck Grassley of Iowa assailed the Federal Bureau of Investigation director for not turning over a document that the House Oversight Committee subpoenaed as part of its investigation into the Biden family's business dealings. Comer, chairman of the House Oversight Committee, and other Republicans have said the FBI record contains allegations that President Biden engaged in a bribery scheme with a foreign national during his vice presidency.
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Earnings:
BRP 1Q
Laurentian Bank of Canada 2Q
Economic Calendar (ET):
0930 May Canada Manufacturing PMI
Stocks to Watch:
D-Box Technologies 4Q Rev C$34.1M; 4Q Loss C$100,000
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Filo Mining: Largest Shareholders Have Indicated Intention to Participate in Private Placement; Proceeds to Be Used for Exploration, Development of Filo del Sol Project, Working Capital
Expected Major Events for Thursday
00:30/JPN: May Japan Manufacturing PMI
05:00/JPN: May Auto sales
06:00/RUS: May Russian Manufacturing PMI
06:00/GER: Apr Retail Trade
06:00/UK: May Nationwide House Price Index
07:45/ITA: May Italy Manufacturing PMI
07:50/FRA: May France Manufacturing PMI
07:55/GER: May Germany Manufacturing PMI
08:00/ITA: Apr Unemployment
08:30/UK: Apr Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit
08:30/UK: Apr Bank of England effective interest rates
08:30/UK: Apr Monetary & Financial Statistics
08:30/UK: May S&P Global / CIPS UK Manufacturing PMI
11:30/US: May Challenger Job-Cut Report
12:15/US: May ADP National Employment Report
12:30/US: 05/27 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: 1Q Revised Productivity and Costs
13:00/RUS: Weekly International Reserves
13:30/CAN: May Canada Manufacturing PMI
13:45/US: May US Manufacturing PMI
14:00/US: May ISM Report On Business Manufacturing PMI
14:00/US: Apr Construction Spending - Construction Put in Place
14:30/US: 05/26 EIA Weekly Natural Gas Storage Report
15:00/US: May Global Manufacturing PMI
15:00/US: 05/26 EIA Weekly Petroleum Status Report
16:00/US: May Monthly U.S. Retail Chain Store Sales Index
20:00/US: May Domestic Auto Industry Sales
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: May POSTPONED: BRC-Sensormatic IQ Footfall Monitor
23:50/JPN: May Monetary Base
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
ACELYRIN Inc (SLRN) is expected to report for 1Q.
ASA Gold & Precious Metals Ltd (ASA) is expected to report for 1Q.
Asana Inc (ASAN) is expected to report for 1Q.
Aurora Cannabis Inc (ACB,ACB.T) is expected to report for 3Q.
BARK Inc (BARK) is expected to report for 4Q.
BRP Inc (DOO.T,DOOO) is expected to report $2.38 for 1Q.
Broadcom Inc (AVGO) is expected to report $7.85 for 2Q.
Buckle Inc (BKE) is expected to report.
Caleres Inc (CAL) is expected to report $0.94 for 1Q.
Canaccord Genuity Group (CF.T) is expected to report $0.15 for 4Q.
ChargePoint Holdings Inc (CHPT) is expected to report for 1Q.
Conn's (CONN) is expected to report $-1.28 for 1Q.
Cooper Companies Inc (COO) is expected to report $2.23 for 2Q.
Costco Wholesale Corp (COST) is expected to report.
DATATRAK International Inc (DTRK) is expected to report for 1Q.
Dell Technologies Inc - Class C (DELL) is expected to report $0.42 for 1Q.
Dollar General (DG) is expected to report $2.42 for 1Q.
Duluth Holdings Inc (DLTH) is expected to report $-0.03 for 1Q.
Five Below (FIVE) is expected to report $0.63 for 1Q.
Guidewire Software Inc (GWRE) is expected to report $-0.60 for 3Q.
Hormel Foods Corp (HRL) is expected to report $0.40 for 2Q.
IMPAC Mortgage Holdings Inc (IMPM) is expected to report for 1Q.
Iteris Inc (ITI) is expected to report $0.04 for 4Q.
Lands' End Inc (LE) is expected to report for 1Q.
Laurentian Bank of Canada (LB.T,LRCDF) is expected to report $1.07 for 2Q.
Lululemon Athletica Inc (LULU) is expected to report $1.98 for 1Q.
Macy's Inc (M) is expected to report $0.45 for 1Q.
MongoDB Inc (MDB) is expected to report $-1.16 for 1Q.
PagerDuty Inc (PD) is expected to report for 1Q.
Quanex Building Products Corp (NX) is expected to report $0.41 for 2Q.
Reeds (REED) is expected to report for 1Q.
Samsara Inc (IOT) is expected to report for 1Q.
SentinelOne Inc (S) is expected to report for 1Q.
SpartanNash Co (SPTN) is expected to report $0.50 for 1Q.
Statera Biopharma Inc (STAB) is expected to report for 4Q.
System1 Inc (SST) is expected to report for 1Q.
Tilly's (TLYS) is expected to report $-0.36 for 1Q.
(MORE TO FOLLOW) Dow Jones Newswires
06-01-23 0611ET
