North American Morning Briefing: Investors Await -2-

A new government report will give details on April consumer spending and inflation as the Federal Reserve debates whether to raise interest rates again or take a pause and as negotiators race to meet a debt-ceiling deadline.

The Commerce Department report, to be released Friday at 8:30 a.m. Eastern time, offers a broad measure of consumer spending, including on services such as travel, healthcare and entertainment. The report also includes the Fed's preferred inflation gauge and household income and saving figures.

U.S. Regulator Vows Tough Line on Problem Banks

Large U.S. banks found to have consistently poor risk management and other failings will face more heavy-handed government intervention, including demands to shore up capital or exit lines of business.

A policy unveiled Thursday creates a new set of guardrails targeting complex banks that fail to fix "persistent weaknesses," said Michael Hsu, head of one of the nation's top banking regulators, the Office of the Comptroller of the Currency.

Russian Airstrikes Set Homes Ablaze in Ukraine

Russia launched a broad salvo of missile and drone strikes across Ukraine ahead of a widely anticipated Ukrainian offensive, setting fire to civilian homes and testing the country's air defenses which have been bolstered by a recent influx of Western-supplied weapons systems.

The Ukrainian air force said it shot down 17 missiles and 31 drones fired across the country overnight, including at cities in southern and eastern Ukraine and the capital, Kyiv.

North Dakota Gov. Doug Burgum Poised to Enter GOP Presidential Race

North Dakota Gov. Doug Burgum is poised to enter the Republican presidential nomination race and is planning a June 7 event in Fargo, N.D., to make a major announcement, sources familiar with his plans told The Wall Street Journal.

The wealthy former software entrepreneur from a heavily Republican state is expected to join a rapidly expanding GOP field that added two entrants, Sen. Tim Scott of South Carolina and Florida Gov. Ron DeSantis, this week.

DeSantis Presidential Campaign Looks to Rebound After Botched Twitter Announcement

Ron DeSantis is already looking for a reboot.

After a disastrous launch event on Twitter Spaces Wednesday night, the Florida governor's 2024 presidential campaign got a quick start Thursday in trying to move on by announcing an aggressive travel schedule to early primary voting states while the candidate did interviews with conservative radio hosts and appeared before a large group of fundraisers in Miami.

Kansas City Fed Presidential Search, Facing Setbacks, Enters Second Year

The search for a new president of the Federal Reserve Bank of Kansas City is moving into its second year after the bank directors ran into difficulties recruiting candidates, forcing them to retool the search earlier this year, according to people familiar with the search process.

The bank announced on May 25, 2022, that it had formed a search committee to select a new president ahead of the retirement this past January of Esther George, who retired after turning 65, as required by Fed rules.

Pressure Mounts for U.S. Response After China's Micron Ban

Commerce Secretary Gina Raimondo and her Chinese counterpart held a pivotal meeting on U.S.-China ties as pressure was building on the Biden administration to respond to Beijing's blacklisting of the U.S. semiconductor maker Micron Technology.

Any retaliation by the U.S. over Micron carries the risk of setting back a fragile rapprochement after months of bruising acrimony. Raimondo's dinnertime meeting Thursday with Chinese Commerce Minister Wang Wentao was the latest in a series of high-level talks intended to restart dialogue and the first one to take place in Washington.

Write to ina.kreutz@wsj.com TODAY IN CANADA

Earnings:

Canadian Western Bank 2Q

Economic Calendar (ET):

Nothing major scheduled

Stocks to Watch:

Teck Resources Names Ian Anderson Chief Commercial Officer; Réal Foley, Who Has Been Senior VP, Marketing and Logistics, Will Support Transition and Retire in November

Expected Major Events for Friday

05:00/JPN: Mar Indexes of Business Conditions - Revision

06:00/UK: Apr UK monthly retail sales figures

06:45/FRA: May Consumer confidence survey

08:00/ITA: May Consumer Confidence Survey

08:00/ITA: May Business Confidence Survey

12:30/US: Apr Advance Report on Durable Goods

12:30/US: Apr Advance Economic Indicators Report

12:30/US: Apr Personal Income and Outlays

14:00/US: May University of Michigan Survey of Consumers - final

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

Expected Earnings for Friday

ALJ Regional Holdings Inc (ALJJ) is expected to report for 2Q.

Abraxas Petroleum (AXAS) is expected to report for 1Q.

Andrea Electronics Corp (ANDR) is expected to report for 1Q.

Big Lots (BIG) is expected to report $-1.63 for 1Q.

Booz Allen Hamilton Holding Corp (BAH) is expected to report $0.84 for 4Q.

Canadian Western Bank (CWB.T) is expected to report $0.73 for 2Q.

Environmental Tectonics Corp (ETCC) is expected to report for 4Q.

Exicure Inc (XCUR) is expected to report for 1Q.

Hibbett Inc (HIBB) is expected to report $3.24 for 1Q.

Odonate Inc (ODTC) is expected to report $-1.17 for 1Q.

Spanish Broadcasting System Inc (SBSAA) is expected to report for 1Q.

Three Valley Copper Corp (TVC.H.V) is expected to report for 4Q.

Webco Industries Inc (WEBC) is expected to report for 3Q.

Wins Finance Holdings Inc (WINSF) is expected to report for Interim.

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ANALYST RATINGS ACTIONS

Annexon Cut to Neutral From Overweight by JP Morgan

Caesars Entertainment Raised to Neutral From Negative by Susquehanna

Caleres Cut to Neutral From Overweight by Piper Sandler

Carnival Raised to Buy From Neutral by Citigroup

CVB Financial Raised to Buy From Neutral by Janney Montgomery Scott

Digital Turbine Cut to Neutral From Buy by Roth MKM

DISH Network Cut to Neutral From Buy by Citigroup

Dorian LPG Raised to Outperform From In-Line by Evercore ISI Group

Dycom Raised to Overweight From Equal-Weight by Wells Fargo

Ford Motor Raised to Neutral From Underperform by Daiwa Capital

Leidos Holdings Raised to Overweight From Equal-Weight by Wells Fargo

Nvidia Raised to Buy From Hold by Craig-Hallum

Nvidia Raised to Outperform From Neutral by Baird

Nvidia Raised to Outperform From Neutral by Wedbush

Snowflake Cut to Neutral From Buy by Rosenblatt

Toll Brothers Raised to Outperform From Sector Perform by RBC Capital

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

(END) Dow Jones Newswires

May 26, 2023 06:03 ET (10:03 GMT)

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