OPENING CALL
Stock futures pointed modestly higher on Thursday as another inflation gauge was in the spotlight.
Economists expect the producer price index to have risen 0.3% in February, matching the pace of growth in January.
Premarket Movers
Fisker has hired restructuring advisers to assist with a possible bankruptcy filing, WSJ reported. Shares dropped 40%.
Lennar's first-quarter earnings beat analysts' expectations as new home orders rose 28% to 18,176. The stock declined 1%.
Robinhood Markets rose 11% after the company said trading volumes rose in February, up 41% on the year.
SentinelOne said revenue for this year could fall just short of analysts' forecasts. Its shares fell more than 9%.
UiPath fourth-quarter results beat analysts' expectations and its outlook was ahead of views. Shares rose 3.8%.
Under Armour 's founder and former CEO, Kevin Plank, will be returning to the sportswear company. Shares rose 1%.
United States Steel was rising 3.7%. It dropped 13% Wednesday after the Financial Times reported that President Biden intended to intervene in the company's planned takeover by Japan's Nippon Steel.
Watch For:
Retail Sales for February; PPI for February; Weekly Jobless Claims; Business Inventories for January; Canada Manufacturing Survey for January; Earnings from Adobe, Dollar General, Ulta Beauty, Dick's Sporting Goods
Today's Top Headlines/Must Reads:
- Biden Jump-Starts Electric-Vehicle Push With Massive Lithium Loan
- Inside the Steel Deal That Has Biden on Edge
- Big Profits and High Prices: There Is a Connection
- Duo Behind TikTok Bill Casts a Spotlight on China Fears
MARKET WRAPS
Forex:
The dollar could regain some steam if the Fed looks likely to cut interest rates by less than the ECB will, Societe Generale Research said.
"The dollar has run out of momentum due to more mixed economic data."
Stronger growth is only dollar-friendly if it encourages the Fed to ease by less than the ECB does.
Sterling has been the strongest G10 currency so far this year thanks to markets pricing of a slow pace of interest-rate cuts by the Bank of England and is "clearly vulnerable" to a possible reversal in this trend, Societe Generale Research said.
"With weak economic growth and headline inflation falling, expectations about the pace of rate cuts may change."
The yen is the one major currency that is likely to rise significantly against the dollar this year, as the Bank of Japan finally exits negative interest rates and yield-curve control policies, SocGen said.
Retail sales data could act as a guide for the dollar's move against other currencies, such as sterling and euro, Brown Brothers Harriman said.
Bonds:
The bearish outright momentum in fixed income markets--which drives bond yields higher--continues as long-end supply is taking its toll across curves, Commerzbank Research said.
"Bunds continue to trade heavy with gilts and Treasurys leading the way lower in global sovereign bond markets."
Long-end supply seems partly to blame as the 30-year U.K. syndication and anticipation of the 30-year Treasury tap Wednesday took their toll, Commerzbank added.
Societe Generale Research said Treasury yields properly reflect market expectations of interest-rate cuts by the Fed.
"The market is now fully aligned with the Fed in expecting just three cuts this year."
The threshold for pushing back on the median dot remains relatively high, "as there is plenty in the data for both the hawks and the doves," it added.
SocGen nevertheless stuck to its bias towards lower yields because the longer the Fed keeps interest rates on hold the greater the impact on the economy.
Energy:
Oil prices rose after data showed U.S. crude stockpiles shrunk, and Ukraine hit Russian refineries.
Positive pressure for prices were building after data confirmed a fall in U.S. oil inventories last week, and after Ukraine attacked major Russian oil refineries with drones, damaging around 12% of its oil-processing capacity, Swissquote Bank said.
It's possible prices will rise beyond the current range, though any increase is unlikely to be sustained when the geopolitical worries disappear from the headlines, it added.
Metals:
Metal prices were mixed, with gold and copper slipping back from prior highs but aluminum gaining ground.
Gold has struggled for direction after Tuesday's CPI data, fluctuating between gains and losses in a narrow band on Tuesday and Wednesday.
At the same time, copper prices were slightly lower, settling into a new range after rallying more than 3% on Wednesday to $8,920.
The metal's gains were fuelled by news that Chinese smelters are considering cutting capacity in the face of declining processing fees, Sucden Financial said.
TODAY'S TOP HEADLINES
WuXi Shares Fall as Washington Lobbying Group Cuts Ties
WuXi AppTec and its affiliates are taking another beating.
This time, the cause is the loss of support from the biotechnology industry's top lobbying group in Washington as two bills targeting Chinese biotech companies wind their way through Congress.
Foxconn Posts Profit Rise, Sees Better Year Ahead
Foxconn Technology Group sees a better outlook for its business this year, it said after reporting a rise in fourth-quarter profit as margins improved despite a fall in revenue.
The Taiwan-based electronics maker known for assembling Apple's iPhones said Thursday that net profit rose 33% from a year earlier to 53.145 billion New Taiwan dollars (US$1.69 billion) for the final three months of 2023. That beat the estimate of NT$44.89 billion in a poll of analysts by S&P Global Market Intelligence.
Shell to Slow Pace of Carbon-Emission Cuts
Shell plans to loosen its target for carbon-emission cuts from its operations, following the footsteps of rival BP, as Chief Executive Officer Wael Sawan focuses on last year's pledge to prioritize value.
The Anglo-Dutch energy heavyweight said Thursday that it now targets a 15%-20% reduction by 2030 in the net carbon intensity of the energy products it sells, compared with the 2016 base, while introducing a goal for customers' emissions.
IEA Slightly Raises Oil-Demand Growth View But Cuts Supply Forecast
The International Energy Agency lifted its forecast for oil-demand growth this year on an improved outlook in the U.S. and increased bunkering, while it cut estimates for global supply on lower output expectations from OPEC+.
Oil-demand growth is now seen at 1.3 million barrels a day from a previous forecast of 1.2 million barrels a day, the Paris-based organization said. Total demand is expected to average 103.2 million barrels a day from previously 103 million barrels a day.
Hot New Bitcoin Funds Are Still Waiting for Buy-In from Financial Advisers
Bitcoin exchange-traded funds have drawn billions of dollars from investors since they launched in January, but their target market-financial advisers who oversee trillions in client assets-has remained largely out of reach.
Fans of the world's largest cryptocurrency had hoped that the bitcoin funds would open the floodgates to a wave of new buyers, specifically U.S. financial advisers who collectively oversee $30 trillion in client assets.
U.S. and China Extend Landmark Bilateral Deal, Very Quietly
SINGAPORE-When a landmark science and technology agreement between the U.S. and China reached its expiration in late February without an extension, it plunged the academic community in both countries into uncertainty. Neither country confirmed an extension for nine days.
Had it lapsed?
U.S. Probes Hamas's Use of Crypto Before Oct. 7
The U.S. Treasury Department is investigating $165 million in cryptocurrency-linked transactions that may have helped finance Hamas before the militant group's Oct. 7 attack against Israel, the agency said in a report to Congress.
Treasury officials say the U.S.-designated terror group's increasing use of digital financing underscores the need for Congress to approve new powers to oversee cryptocurrency as Hamas's access to traditional sources of funding is hit by Western sanctions.
Write to ina.kreutz@wsj.com
TODAY IN CANADA
Earnings [4Q Unless Stated Otherwise]:
Alaris Eqty Ptrns
Blackline Safety 1Q
Calfrac Well
Chesswood
Empire 3Q
Evertz Tech 3Q
Haivision 1Q
Largo
North West Co
Sylogist
TerrAscend
Tidwtr Mdstrm & Infr
Tidewater Renewbls
Transat A.T. 1Q
Wheaton Precs Mtls
Economic Indicators (ET):
0830 Jan Manufacturing Survey
0830 Jan New Motor Vehicle Sales
Stocks to Watch:
Anaergia: Marny Investissement Says Final Payment of C$28.3M of Previously Announced Equity Investment Will Be Delayed Past Its Due Date of March 15; Marny Expects the Foregoing Payment to Be Received by Anaergia on or About March 31
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Exro Announces Filing And Mailing Of Management Information Circular In Relation To The Proposed Merger With SEA Electric
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Mattr 4Q Rev C$210.8M Vs. C$225.75M; 4Q Loss/Shr C$0.34 Vs. Loss C$0.94; 2023 Rev C$925.3M Vs. C$861.8M; 2023 EPS C$1.25 Vs. Loss C$0.43; CEO: 1Q Adj. Ebitda Expected to Be Modestly Below 4Q, Expect Significant Upwards Shift in 2Q
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Melcor Developments 4Q EPS C$0.34; 4Q Rev C125.1M; Declares Dividend of C$0.11
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Neighbourly Receives Final Court Approval Of Plan Of Arrangement To Be Acquired By Persistence Capital Partners
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Source Energy Services Announces Acquisition of Sand Trucking Assets
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Swiss Water 4Q EPS C$0.10 Vs. Loss C$0.03; 4Q Rev C$41.2M Vs. C$44M
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VerticalScope Holdings 4Q EPS 10c; 4Q Rev $17.9M; 108M Monthly Active Users in 4Q, Up 7% From 3Q
Expected Major Events for Thursday
00:01/UK: Feb RICS Residential Market Survey
09:00/FRA: Mar IEA Oil Market Report
11:00/FRA: Jan OECD Harmonised Unemployment Rates
12:30/CAN: Jan Monthly Survey of Manufacturing
12:30/US: Feb PPI
12:30/US: Feb Advance Monthly Sales for Retail & Food Services
(MORE TO FOLLOW) Dow Jones Newswires
03-14-24 0621ET
