North American Morning Briefing: Futures Largely Rise, Shares Recovering from Wednesday's Close

OPENING CALL

U.S. futures mostly rose Thursday, recovering from Wednesday's lower close after the Trump administration said it was considering restrictions on exports to China of products that contain, or that were made with, U.S. software.

With another heavy day of earnings ahead, jittery investors still wait for Friday's delayed U.S. inflation data and will likely be tuned to today's European Union summit where leaders were expected to further firm their support for Ukraine.

It comes as oil prices jumped after the U.S. announced new sanctions on Russian oil companies and the EU adopted measures which target Russia's so-called shadow fleet of oil tankers and bans imports of liquefied natural gas from the country.

"The key question is whether these sanctions are enough to deter buyers of Russian oil, specifically China and India," ING said.

As the federal government shutdown continued, third-quarter corporate results from Ford Motor Company, Procter & Gamble, Intel, Honeywell International as well as American Airlines were expected today.

Stocks to Watch

D-Wave Quantum increased 15%, IonQ rose 13%, Rigetti Computing gained 11% after The Wall Street Journal reported the Commerce Department was considering equity stakes in quantum-computing companies in exchange for federal funding.

International Business Machines shares fell 6.7% despite better-than-expected results.

Las Vegas Sands jumped 4.9% after reporting its third-quarter adjusted earnings.

Medpace Holdings shares jumped 17% after posting third-quarter earnings.

Moderna fell 3.8% after it said it would stop developing a vaccine to prevent cytomegalovirus birth defects.

Molina Healthcare tumbled 20% after it cut its full-year guidance.

U.S.-listed shares of SAP fell 3% after cloud revenue came in below projections.

Southwest Airlines shares rose 1.5% after third-quarter adjusted profit of 11 cents a share was better than expectations.

Tesla fell 3.1% after reporting a decline in third-quarter net income.

Watch For:

Weekly jobless claims were due; existing home sales for September; Kansas City Fed manufacturing index for October

Today's Top Headlines/Must Reads 16 Bold

- Elon Musk Raises the Stakes for Vote on His Pay

- Popular Leveraged Funds Shock Investors With Huge Losses

- Airbus, Leonardo, Thales to Launch Space Tie-Up to Compete With Musk's SpaceX

MARKET WRAPS

Forex:

The dollar rose against a basket of currencies and also rose to a 9-day high against the yen as oil prices rose due to risks to supply. Higher oil prices benefit the U.S. as a major oil producer.

The euro fell slightly and was likely to remain range-bound against the dollar, tracking broader risk sentiment in the absence of any major economic data, according to Monex Europe.

"Our medium-term bias is still modestly constructive on the euro as U.S. exceptionalism fades and fiscal support in the euro-area begins to gain traction."

Bitcoin edged higher, recovering marginally after recent losses, but trade tensions between the U.S. and China were limiting its recovery.

Bonds:

Treasury yields edged higher in Asian trade, while the 10-year yield continued to hover under 4% as investors continued to expect interest cuts by the Federal Reserve.

Navellier expects the Fed to cut key interest rates at the Oct. 29 and Dec. 10 meetings, adding that it suspects the Fed will also cut key interest rates next year as it is "expecting global interest rates to continue to collapse."

Metals:

Gold futures rose amidst investor caution after this week's selloff and ahead of U.S.-China trade talks.

Earlier in the session, gold fell after the largest single-day outflow in five months from gold-backed exchange-traded funds, MUFG said.

Copper prices rose after reports of another mine disruption renewed fears regarding supply, ANZ said. About 80 miners were trapped when a mine partially collapsed in the Dominican Republic.

Energy:

Oil prices rallied after President Trump announced sanctions on Russian oil producers Rosneft and Lukoil, but a key question is whether the move will deter China and India from buying Russian oil, ING said.

   TODAY'S TOP HEADLINES 

Unilever Underlying Sales Rise as China Returns to Growth

Unilever's underlying sales growth picked up slightly in the third quarter, aided by a recovery in China, as the U.K. consumer-goods giant readies a spinoff of its ice-cream division by the end of the year.

The company behind Dove soap and Ben & Jerry's ice cream is taking steps to sharpen its portfolio to focus on core brands at a time of changing consumer trends. The group aims to prioritize beauty-and-wellbeing and personal-care products, while stepping up investment in the U.S. and India, in a bid to anchor growth and revive its fortunes.

Kering Shares Rise as Gucci Shows Early Signs of Revival

Shares in Gucci-owner Kering gained more ground Thursday after sales at the fashion house beat expectations in the most recent quarter, lifting revenue at the parent group and burnishing hopes of a sustained turnaround.

Paris-listed shares in Kering rose 9.2% to 346.75 euros in early trading. Year to date, the share is up 46%.

Nokia Reports Sharp Rise in Demand From AI and Cloud Customers

Nokia reported a sharp rise in sales of its network infrastructure equipment on surging demand from artificial intelligence and data-center customers in North America.

Shares jumped 11% in early European trade.

Roche Raises Full-Year Earnings Outlook

Roche Holding raised its full-year earnings guidance, citing strong results to date, and reported a rise in third-quarter sales excluding currency movements.

The Swiss pharma group on Thursday forecast full-year core earnings per share to grow in the high-single-digit to low-double-digit percentage range at constant exchange rates. It had previously guided for core EPS to grow by a high-single-digit.

Bank of Korea Holds Rate Steady for Third Straight Time

South Korea's central bank held its policy rate steady for a third straight meeting, reflecting caution over financial-stability risks and uncertainty over tariffs.

The Bank of Korea on Thursday left its benchmark seven-day repurchase rate unchanged at 2.50%, as widely expected, preserving policy space while signaling that it is ready to act if needed.

Canada to Take 'Bold' Risks to Reset Economy, PM Carney Says

OTTAWA-Canadian Prime Minister Mark Carney said the government's budget plan, for release early next month, will take "bold" risks to rekindle growth in an economy struggling under the strain of President Trump's tariffs.

"To confront a more dynamic, competitive, and hostile world, we must chart a new course," Carney said in remarks before students at the University of Ottawa on Wednesday. "We used to take big, bold risks in this country. It is time to swing for the fences again. That's what the upcoming budget will be about."

The AI Bubble Won't Just Take Down the Stock Market. It Will Hammer the U.S. Economy, Too.

Wall Street strategists often warn investors that the "stock market is not the economy." But in 2025, the two feel increasingly intertwined as the surge in artificial intelligence demand has helped buoy both economic growth and stock market gains.

"We believe that AI has kept the economy out of recession," says BNP Paribas chief U.S. economist James Egelhof.

A Parade of Senior U.S. Officials Descends on Israel for 'Bibisitting' Duty

TEL AVIV-Vice President JD Vance is due to fly out of Israel on Thursday, just hours before Secretary of State Marco Rubio flies in. Trump envoys Steve Witkoff and Jared Kushner were on the ground a few days before.

The high-level relay of U.S. officials descending on Israel is aimed at ensuring the cease-fire deal in Gaza that is President Trump's most notable foreign-policy achievement to date doesn't fall apart in its early days.

U.S. Widens Campaign Against Alleged Drug Boats With Eastern Pacific Strikes

The U.S. said Wednesday it had struck two suspected drug boats on the Pacific side of South America, widening its campaign against alleged drug trafficking and transnational crime.

Defense Secretary Pete Hegseth posted videos of the strikes on X and said one took place Tuesday in the eastern Pacific Ocean and another Wednesday. The two attacks killed five people on board the boats, he said, without providing more details about the vessels or their precise locations except to say that the strikes occurred in international waters.

Trump Tells Allies Mamdani Can't Be Beat in New York Mayor's Race

President Trump has privately told allies he believes Democrat Zohran Mamdani is unbeatable in the New York City mayor's race, according to people familiar with the matter.

Trump and his team are convinced the 34-year-old democratic socialist will defeat Republican Curtis Sliwa and independent Andrew Cuomo on Nov. 4, according to those people, including a senior White House official.

Write to pierre.bertrand@wsj.com

TODAY IN CANADA

Earnings(3Q):

Canfor Corporation

FirstService Corporation

Hammond Power

Rogers Communications

Rupert Resources

Economic Indicators (ET):

0830 Employment Insurance for August

0830 Retail Trade Data for August

Stocks to Watch:

West Fraser Timber 3Q Sales $1.307B; 3Q Loss/Shr $2.63

Whitecap Resources Raises 2025 Production Outlook; 3Q EPS C$0.17; 3Q Net C$204.2M; 3Q Rev C$1.66B

EQB Announces Strategic Restructuring Program That Will Impact Q425 Reported Results; Restructuring Costs Include Workforce Reductions, Impairment Charges; Reducing Workforce by About 8%

StorageVault 3Q Rev C$88.5M; 3Q Net C$20.5M

Expected Major Events for Thursday

05:00/JPN: Sep Supermarket sales

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

(MORE TO FOLLOW) Dow Jones Newswires

October 23, 2025 06:23 ET (10:23 GMT)

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