North American Morning Briefing: Stock Futures Flat; U.S.-China Relations in Focus

OPENING CALL

Stock futures posted small moves and Treasury yields were rising again Friday as attention shifts to U.S.-China relations.

Trump and Xi Jinping are expected to speak on the phone today to confirm a TikTok deal outlined earlier this week. The conversation is seen as a precursor to a broader trade deal .

A busy week of central bank action that brought U.S. indexes to record highs could end on a muted note with little in the way of economic data or corporate updates due.

Meantime, Pepperstone said it expected Stephen Miran at some stage to explain his dissent at Wednesday's rates decision now the Fed's "blackout" period had ended.

Stocks to Watch

FedEx said it expected a $1 billion hit to annual earnings due to U.S. tariffs but still posted better-than-expected adjusted earnings and revenue. Shares gained 5%.

Intel fell 3% after rallying 23% Thursday on its deal with Nvidia.

Lennar's profit fell for a fourth consecutive quarter and its sales missed expectations. Shares slipped 3%.

Pony AI said it should hit a key profitability target by early 2026. American depositary receipts rose 1.5%.

Scholastic recorded a wider loss last quarter as schools delayed or pulled back on purchases due to uncertain federal and state funding.

United Parcel Service terminated plans to buy Estafeta. Shares advanced 2.5%

Watch For:

Mary Daly, president of the Federal Reserve Bank of San Francisco, delivers a speech at the AI Implications for Workforce Development and Economic Mobility event; Canada Retail Sales for July

Today's Top Headlines/Must Reads:

- Why the Fed Rate Cut Won't Ease the Government's Debt Problem

- Jensen Huang Walks an AI Tightrope Between the U.S. and China

- Why Asia's Gen Z Is Angry With Its Leaders

MARKET WRAPS

Forex:

The dollar edged higher against a basket of currencies after stronger U.S. data eased fears about a weak economic outlook, particularly in the labor market, Deutsche Bank said.

The euro fell against the greenback. ING said France's political turmoil had yet to have much impact on the euro and that should remain the case for now.

Sterling dropped versus the dollar after data showed the U.K. government borrowed more than expected in August.

Bonds:

Treasury yields rose , adding to Thursday's increase of global yields.

Energy:

Oil prices were on track for a modest weekly gain as a firmer dollar weighed on sentiment and markets awaited more clarity on Western sanctions against Russia.

"Despite modest weekly gains, crude remains stuck in a narrow range since early August, weighed down by bearish fundamentals including OPEC+'s accelerated output return," MUFG said.

Metals:

Gold prices rose in early trade after settling lower in the previous session, pushed down by a stronger dollar and cautious optimism surrounding the Fed's policy outlook.

Comex gold futures had likely shifted into a phase of consolidation, based on the daily chart, RHB Retail Research said.

   TODAY'S TOP HEADLINES 

Jefferies Deepens Ties With Japan's Sumitomo Mitsui

Wall Street's Jefferies Financial Group and Japan's Sumitomo Mitsui Financial Group are bolstering their ties in a push to court more companies and private-equity firms globally with their services on mergers and acquisitions, borrowing and investing money, and other work.

Tesla Stock Is Rising. Why Goldman Sachs Raised Its Target Price For Shares.

Tesla stock was rising in premarket trading Friday after Goldman Sachs raised its price target, but not its rating, for shares of the electric-vehicle maker.

Goldman analyst Mark Delaney raised his price target for Tesla stock to $395 from $300 on Thursday, but kept his Hold rating on shares.

Victoria's Secret CEO Is Pushing 'a New Era of Sexy'

A month before Hillary Super started her job as chief executive of Victoria's Secret last year, she joined a town hall meeting by video to introduce herself. "I'm an introvert," she told employees. "I am a little bit reserved and quiet by nature, and I don't want anyone to interpret that as me being aloof or unapproachable."

An introvert feels like a surprising choice to lead a brand known for its ultrasexy image that was on the wrong side in the cultural upheaval of the #MeToo movement and was tainted by its former leader Les Wexner, who was a friend and business associate of Jeffrey Epstein.

Is Nvidia Intel's Savior? Not Quite

If Intel is to rekindle its lost glory, it needs more than a $5 billion investment and chip-development deal from Nvidia: It needs to split itself up.

The Nvidia deal, announced Thursday, was certainly good news for Intel. The investment brought in much-needed cash, and the chip deal brings Intel closer to the white-hot center of the AI boom-a position Nvidia has reserved almost exclusively for itself. Intel's stock rose 23% following the moves.

Netflix's 'KPop Demon Hunters' Is Taking Over the Globe. Watch Out, Disney.

Look out, Walt Disney. Netflix's KPop Demon Hunters are coming for your fans.

The streaming giant's surprise summer hit, KPop Demon Hunters, has become Netflix's most-watched English language film of all time, racking up 314.2 million views worldwide through Sept. 14.

All the Reasons Trump Would Be Wrong to Ditch Quarterly Earnings

Donald Trump is no fan of checks on executive power in government. Now, he's going after one of the checks on corporate executive power: the requirement to report every quarter.

His arguments, in a social-media post, were it costs too much and American managers focus too much on the short term because they have to report every quarter. He wants them to report every six months instead, something the Securities and Exchange Commission said it would give priority to. His contrast was with China, which, he claimed, has a multidecade view on how to manage a company.

Trump's Trade War Split Canada and Mexico. Now They Want a United Front.

MEXICO CITY-President Trump's trade war almost broke Mexico and Canada's relationship. Now they are trying to repair the damage ahead of tough negotiations with the U.S.

Canadian Prime Minister Mark Carney met Thursday with Mexican President Claudia Sheinbaum at the ornate National Palace in Mexico City, where the two leaders agreed to develop a strategic alliance to bolster security and trade.

Trump's Team Explores Government-Backed Manufacturing Boost

WASHINGTON-President Trump's team is weighing a plan to spur the construction of factories and other infrastructure in a bid to jump-start the American manufacturing sector, according to documents and people familiar with the discussions.

Under the plan, the administration would use money from a $550 billion investment fund established as part of trade negotiations with Japan to invest in the development of semiconductors, pharmaceuticals, critical minerals, energy, ships and quantum computing.

RFK Jr.-Backed Panel Advises Against MMRV Combo Vaccine for Young Children

Health Secretary Robert F. Kennedy Jr.'s handpicked slate of vaccine advisers voted to no longer recommend a combined shot for measles, mumps, rubella and varicella for children under age 4. The move came as some states, insurers, public health leaders and a U.S. senator called into question whether Americans should rely on the committee's decisions.

Here's what to know:

Israel's Attack Blew Up Qatar's Bet on Being Friends With Everyone

DOHA-Five days before Israel launched missiles across the Arabian Peninsula at a gathering of Hamas leaders here, some of those same targets were sitting down with Iranian officials in a conference room at the Qatari capital's Ritz-Carlton hotel.

It was the sort of scene that fairly or unfairly has long inflamed the country's critics: A U.S.-designated terrorist group meeting openly with a foe of the U.S. and Israel in an opulent setting not far from the most important American air base in the Middle East.

Judge Stops Trump Administration From Deporting Guatemalan Children

A federal judge in Washington on Thursday blocked the Trump administration from deporting unaccompanied Guatemalan minors, in a strongly-worded opinion that criticized the administration's actions.

The order from U.S. District Judge Timothy Kelly temporarily bars the government from removing Guatemalan children who have not received final deportation orders or been granted approval to voluntarily depart the country.

Write to gareth.mcpherson@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators (ET):

0830 Retail trade for July

Stocks to Watch:

Adf Group Inc. Announces Closing of Acquisition of Groupe Lar Inc.

Algoma Steel: Asset-Based Revolver Increases to $375M From $300M

Fitch Rates Great-West Lifeco's Preferred Shares 'BBB+'

Madison Pacific Properties: Mark Elliott to Step Down From Board Sept. 30; Jonathan Rees to Step Down From Board Sept. 30; Names Alistair Duncan Jr., Robert Wiens to Board

NGEx Gets Court Approval for Spin-Out of Royalties

RioCan Real Estate Investment Trust Announces Offering of C$200M of Series AP Senior Unsecured Debentures

Expected Major Events for Friday

06:00/GER: Aug PPI

06:00/UK: Aug Public sector finances

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

06:45/FRA: Sep Monthly business survey (goods-producing industries)

08:30/UK: 2Q Bank of England statistics on UK banks' external claims

08:30/UK: Aug Monthly Insolvency statistics

08:59/JPN: Sep Monthly Economic Report

08:59/JPN: Japan Monetary Policy Meeting decision

12:30/CAN: Jul Retail trade

14:00/US: Aug State Employment and Unemployment

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

Expected Earnings for Friday

InnSuites Hospitality Trust (IHT) is expected to report for 2Q.

(MORE TO FOLLOW) Dow Jones Newswires

September 19, 2025 06:17 ET (10:17 GMT)

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