MARKET WRAPS
Watch For:
PPI for July; University of Michigan Preliminary Consumer Survey for August
Today's Top Headlines/Must Reads:
- Chinese Banks' Loan Issuance Shrinks, Signaling Weak Credit Demand
- A Freight Glut Is Coming. Shippers Are in for a Long Haul.
- AI Mania Triggers Dot-Com Bubble Flashbacks
Follow WSJ market coverage here
Opening Call:
Stock futures on Friday wavered ahead of data on producer prices, after consumer price statistics did little to move the markets in either direction.
"The current rate of disinflation seems congruent with the scenario of a September pause from the FOMC, though markets will probably remain a little anxious knowing that the August CPI print is still to come between now and the next policy meeting," KCM Trade said.
Overseas stocks were mostly lower. Benchmarks in Europe declined while the Shanghai Composite fell 2%. Hong Kong's Hang Seng Index lost 0.9%. Japanese markets were closed for a holiday.
London's FTSE 100 fell 1.0% as traders exercised caution after stronger-than-expected U.K. GDP data raised concerns about the need for more Bank of England interest-rate rises.
Read UK Economy Unexpectedly Grew in 2Q
Chinese shares closed lower amid persistent concerns over China's economic recovery and property-sector woes. Investors were concerned after developer Country Garden failed to make bond interest payments earlier this week, which could trigger default.
Read Country Garden's Tightening Liquidity Could Lead to Default
Pre-Market Movers
Archer Aviation shares rose more than 23% in premarket trading on reaching an agreement with Boeing to settle litigation. Archer also said Boeing had joined a $215-million investment round in the firm.
Cano Health was falling 50% after it said there was "substantial doubt" about its ability to continue operating within one year.
Flowers Foods reported second-quarter adjusted earnings of 33 cents a share, beating analysts' estimates, as revenue rose 8.8% to $1.23 billion. Shares were rising 1.9%.
IonQ rose 6.4% after the company again raised its bookings outlook for the year to a range of between $49 million to $56 million.
Maxeon Solar reduced full-year guidance citing a "near-term softening of residential demand and the challenging market conditions" that it expects to persist through the fourth quarter. The stock fell 24%.
UBS's stock rose about 5% in Zurich, and its U.S. shares gained premarket, after it said it no longer needed a $10 billion government backstop for its emergency takeover of Credit Suisse.
Energy:
Oil prices inched up as weak demand, particularly in China, offset optimism from OPEC that demand is likely to rise this year globally, with supply set to be constrained by the cartel in the near term.
OPEC's projection of rising demand in the third and fourth quarters should mean inventories will be drawn down in the wake of Saudi-led supply cuts, ING said.
"The significant cuts that we are currently seeing from OPEC+ continue to be supportive for medium sour crudes."
Read IEA Raises Oil Supply Forecasts as U.S. Producers Counter OPEC+ Cuts
Metals:
Base metals prices were falling, while gold was flat in early London trading, as a stronger dollar and weak demand in China kept pressure on prices.
"For base metals, we expect prices to remain under pressure due to lackluster Mainland Chinese demand," BMI, a subsidiary of Fitch Solutions said.
However, stimulus hopes will likely provide a floor to prices in the near term, as will falling warehouse stocks, it added.
TODAY'S TOP HEADLINES
UBS Sheds Swiss Government Aid for Credit Suisse Takeover
UBS said it would no longer rely on Swiss government assistance tied to its emergency takeover of Credit Suisse in March, marking an important step in the complex and politically fraught absorption of its smaller rival.
The Swiss bank said it terminated a roughly $10 billion government backstop that had limited its potential losses on some Credit Suisse assets. UBS also exited emergency liquidity lines the country's central bank had provided to keep Credit Suisse afloat.
Amazon Wants to Deliver Your Order Without a Box, But Neighbors May See Your Snore Strips
Millions of Amazon orders are arriving on doorsteps across the U.S. without any extra packaging. A new television may sit in the manufacturer's box at the door. A blender appears as if it were picked off a store shelf. The same for a box of baby wipes or trash bags.
The change represents the next frontier in the tech giant's overhaul of its delivery processes, one Chief Executive Andy Jassy hopes will appeal to customers who are put off by the volume of Amazon-branded boxes they receive and discard every week.
Cruise, Waymo Get Approval to Expand Driverless Vehicles in San Francisco
Self-driving car companies Cruise and Waymo can expand in San Francisco.
The California Public Utilities Commission, which regulates passenger transportation, voted on Thursday to allow Cruise, majority owned by General Motors, and Waymo, part of Google parent Alphabet, to deploy more vehicles in the city and to start charging for rides at all times.
Former U.S. Cyber Director Inglis Joins Advisory Firm Hakluyt
Chris Inglis, the former U.S. national cyber director who left the White House in February, has joined London-based corporate advisory firm Hakluyt & Co.
Inglis, a veteran of the U.S. Air Force and the National Security Agency, was the first person to serve as national cyber director. The role and the office, designed to coordinate cyber policy across the federal government, were created following a series of cyberattacks that drew intense public scrutiny and compromised federal agencies.
American VCs Still Have a Lot at Stake in China
President Biden's executive order restricting investments by U.S. firms in some Chinese technology sectors over national security concerns threatens to cause problems for investors with existing deals in China.
U.S. venture firms have been pulling back from China amid rising tensions between the countries, but many had gone all in on China, and the order may restrict reinvesting in existing portfolio companies and potentially hurt returns.
Wildfires Leave at Least 55 Dead on Hawaii's Maui
MAUI, Hawaii-Travis Miller was pulling into a grocery store in the town of Lahaina on Tuesday when a gust knocked over power lines and toppled trees onto parked cars. Soon he saw smoke and people running down the street, including a woman with burns on her feet, begging for help.
After dropping her off at an aid center, he rushed to his nearby home, where he heard propane tanks exploding and saw a fast-moving blaze approaching.
Ukraine's Sea Drones Alter Balance of Power in Black Sea
ISTANBUL-Ukraine has altered the military balance of power in the Black Sea in recent months, using sea drones to strike back at Russia's more powerful navy and threaten Russian military supply lines and shipping lanes.
Small, inexpensive and difficult to defend against, the homemade drones have allowed Ukraine to open up a new front in the war, attacking strategic military targets and symbols of Russia's dominance in the Black Sea-including the headquarters of Moscow's fleet in occupied Crimea and a bridge connecting the peninsula to Russia. Ukraine says the drones are developed and produced domestically, but has been secretive about the details of the program.
Biden Seeks Billions in New Ukraine Funding
WASHINGTON-President Biden requested an additional $24 billion in defense, energy and humanitarian funding for Ukraine and other countries as part of a new $40 billion request to Congress to pay for items the administration termed critical.
The request comes as Congress is still wrangling over funding the federal government for the next fiscal year, with a government shutdown possible in October if no agreement is reached. While Democrats and Republicans reached a deal on spending caps during debt-ceiling talks earlier this year, some conservatives are pushing for further cuts.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings:
Air Canada 2Q
Anaergia 2Q
Argonaut Gold 2Q
Aya Gold & Silver 2Q
Constellation Sftwr 2Q
Emera Incorp 2Q
MDA 2Q
Neo Performnc Mtrls 2Q
Saputo 1Q
Skeena Resources 2Q
Softchoice 2Q
Victoria Gold 2Q
Economic Calendar (ET):
Nothing major scheduled
Stocks to Watch:
ADENTRA 2Q EPS 42C; 2Q Sales $585.9M; Declares Dividend of C$0.13
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Cathedral Energy Services 2Q EPS C$0.01; 2Q Rev C$115.1M
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Epsilon Energy 2Q Rev $6.5M; 2Q EPS 2C
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Exro 2Q Rev Rose From C$142,078 Year Earlier; 6-Mos Rev C$2.77M Vs. C$246,338; 6-Mos Loss/Shr C$0.14 Vs. Loss C$0.14; 6-Mos Loss/Shr C$0.14 Vs. Loss C$0.14; Making Progress Toward Commercialization of EV, Stationary Energy Storage Tech; To Start Production Before End of 3Q
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Extendicare 2Q EPS C$0.02; 2Q Rev C$307.5M
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Frontera 2Q Net Sales $208.8M Vs. $275.8M; 2Q EPS $0.92 Vs. EPS $0.14
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Glacier Media 2Q Rev C$37.3M; 2Q Loss/Shr C$0.06; Taking Action to Reduce Print Ops Where Print Products Are No Longer Economically Feasible
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Global Atomic 2Q Rev C$202,273; 2Q Loss/Shr C$0.03
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Mountain Province 2Q EPS C$0.08; 2Q Sales C$59.9M
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Northland Power 2Q EPS C$0.01; 2Q Sales C$472M
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VitalHub 2Q Rev C$13.1M Vs. C$9.5M; 6-Mos Rev C$25.7M Vs. C$18.9M; Organic Growth, Accretive Revenue From Acquisitions Boosted 2Q Rev; Has Liquidity Needed to Expand Operations, Keep Making Acquisitions
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Wajax 2Q Rev C$586.2M; 2Q Basic EPS C$1.35; 2Q Adjusted Basic EPS C$1.26
Expected Major Events for Friday
05:30/FRA: 2Q ILO Unemployment and Labour Market-related indicators
06:00/UK: 2Q Business investment in the UK: provisional results
06:00/UK: Jun Index of Production
06:00/UK: Jun UK trade
06:00/UK: Jun Index of services
06:00/UK: 2Q First quarterly estimate of GDP
(MORE TO FOLLOW) Dow Jones Newswires
08-11-23 0621ET
