North American Morning Briefing: Stock Futures Falling After Tech Selloff, Iran in Focus -2-

Darsana Capital Partners first invested in SpaceX in 2019 when Elon Musk's rocket maker was valued at around $30 billion, and made several subsequent investments since then. Should SpaceX go public at a valuation of around $1.5 trillion or more next month, as many expect, Darsana's paper gains on their investment could top $10 billion, people familiar with the matter said.

Eurozone Trade Surplus Narrowed in March

The eurozone's seasonally adjusted trade surplus narrowed in March compared with the prior month, likely reflecting an increase in the cost of imported energy as the conflict in the Middle East disrupted supplies.

The seasonally adjusted trade balance was 3.5 billion euros ($4.08 billion) in March, down from 6.5 billion euros in February, statistics agency Eurostat said Tuesday.

To Cash In on Solar Stocks, Look for Trade Barriers

While everyone obsesses over what happens to oil flows in the Strait of Hormuz, a solar-power revolution is under way in some emerging countries.

Unfortunately, investors will struggle to make money from the trend because of China's suffocating dominance. But another side effect of the war could provide some breathing room: rising protectionism.

See How the Global Government Debt Binge Is Rippling Through Markets

Recent strains in the global bond market are demonstrating a key problem confronting G-7 leaders at their meeting in Paris this week: how to manage a growing pile of government debt, accelerated by war and the pandemic.

Tumbling bond prices have pushed yields on government debt higher, lifting borrowing costs for governments, businesses and consumers alike. The main driver has been the war-fueled surge in energy prices, which has lifted inflation and spurred talk of possible interest-rate increases by central banks. But concerns about the fiscal outlook in Japan and the U.K. have also added to the bond-market selloff in recent days.

Xi Jinping Is Now the World Leader He Wanted to Be, but It Has Come at a Cost

The arrival Tuesday of Russian President Vladimir Putin in Beijing will mark a watershed moment for Chinese leader Xi Jinping, one that he has pursued since taking power in 2012-and bet his country's future to achieve.

Welcoming Moscow's ruler just days after President Trump's motorcade swept out of the Chinese capital represents, for Xi, a vindication of 14 years of relentless economic competition with the U.S. and his strategic embrace of the Kremlin through the Ukraine war. No Chinese leader before him has staged back-to-back state visits in the same month from a sitting American president and a sitting Russian president.

Russia's War Is Going Badly-on the Ground and in the Air

KYIV-Ukraine's military has wrestled Russia's much-larger army almost to a halt in recent months, having gained a tactical and technological edge.

This summer will test whether it can turn that slender advantage into a strategic turning point.

Write to clare.kinloch@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators:

0830 Mar Building permits

0830 Apr CPI

0830 Apr New Housing Price Index

Stocks to Watch:

Accord Financial 1Q Loss/Shr CAD 0.13; 1Q Adj Loss/Shr CAD 0.06; 1Q Adj Net Loss CAD 0.51M; 1Q Revenue CAD 7.26M; 1Q Rev C$7.3M; David Beutel Resigned From Board

Clearmind Medicine Signs Agreement to Examine MEAI in Combination and Sequencing With Tirzepatide Against Blockbuster GLP-1 Medication; New Research Agreement With Yissum Research Development Co of Hebrew University of Jerusalem; Agreement Will Fund Comprehensive Preclinical Study Evaluating Metabolic Efficacy of MEAI (CMND-100)

Core AI Holdings Revenue From Continuing Ops Increased 58.6% Yr-over-Yr to $55.2M in 2025

Draganfly Has Entered Into a Definitive Asset Purchase Agreement With Skip Dynamix; Draganfly To Acquire Substantially All of the Assets of Skip Dynamix's Drone Technology Business

ISC 1Q EPS Beats Estimates; 1Q Adj EBITDA CAD 24.3M; 1Q Net Income CAD 9.16M; 1Q Adj EBITDA Margin 39.2%; 1Q Revenue CAD 61.8M; FactSet Est. CAD 63.4M; 1Q EPS CAD 0.49; FactSet Est. CAD 0.29 (2 Est.); 1Q Adj Net Income CAD 13.7M; FY Outlook Revenue CAD 273M - 283M; FactSet Est. CAD 276.1M; FY Outlook Adj EBITDA CAD 100M - 107M

Lululemon Urges Shareholders to Reject Chip Wilson's Proxy Fight

In response, Lululemon Founder Chip Wilson Says He Stands Ready to Reach Agreement on Principal Terms Provided by Company; "No Reason Why We Cannot Reach a Resolution to This Fight Quickly"; As of Friday, We Seemed to Be in Full Agreement on Principal Terms; I Remain Undeterred and Willing to Be Constructive

Modern Group of Companies: Vinci Buys Modern Group; Modern Group Made Revenue of Around 50 Mln Euros Last Year; Acquisition of New Brunswick-Based Group Stregthens Presence in Eastern Canada; Vinci Doesn't Set Out Financial Details of Deal

NervGen Pharma 1Q Loss/Shr 2c

Ovintiv: Fitch Upgrades Ovintiv to 'BBB'; Outlook Stable

POET Technologies Announces Closing of $400M Investment

RB Global Completes Acquisition Of BigIron

Restaurant Brands International: S&PGR Upgrades Restaurant Brands To 'BB+' From 'BB'; Otlk Stbl

Sunshine Biopharma Inc. (SBFM) Resumed Trading

SSR Mining Announces the Sale of Its 20% Equity Interest in Hod Maden

Thor Explorations 1Q Revenue $74.3M; 1Q Net Income $46.7M; 1Q EBITDA $55.8M; Reports 1Q Revenue of $74.3 Million

Tree Island Steel 1Q Loss C$1.17M; 1Q Loss/Shr C$0.05; 1Q Rev C$43M

Expected Major Events for Tuesday

04:30/JPN: Mar Revised Industrial Production

04:30/JPN: Mar Tertiary Industry Index

06:00/UK: Apr UK monthly unemployment figures

06:45/FRA: 1Q New home sales

08:30/UK: Feb Card Spending statistics

08:30/UK: Apr Monthly Insolvency statistics

12:30/CAN: Mar Building permits

12:30/CAN: Apr CPI

12:30/CAN: Apr New Housing Price Index

12:55/US: 05/16 Johnson Redbook Retail Sales Index

14:00/US: Mar Metropolitan Area Employment and Unemployment

14:00/US: Apr Pending Home Sales Index

20:30/US: API Weekly Statistical Bulletin

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Expected Earnings for Tuesday

8X8 Inc (EGHT) is expected to report $-0.01 for 4Q.

AI Financial Corp (AIFC) is expected to report for 1Q.

Anavex Life Sciences Corp (AVXL) is expected to report $-0.07 for 2Q.

CAVA Group Inc (CAVA) is expected to report $0.18 for 1Q.

Driven Brands Holdings Inc (DRVN) is expected to report $0.18 for 4Q.

Dye & Durham Ltd (DND.T) is expected to report for 3Q.

Eagle Materials Inc (EXP) is expected to report $1.57 for 4Q.

Educational Development Corp (EDUC) is expected to report for 4Q.

Ellington Credit Co (EARN) is expected to report $0.26 for 1Q.

FP Newspapers Inc (FP.V) is expected to report for 1Q.

Fathom Holdings Inc (FTHM) is expected to report $-0.10 for 1Q.

GoHealth Inc (GOCO) is expected to report $-1.74 for 1Q.

Home Depot Inc (HD) is expected to report $3.33 for 1Q.

Iridex Corp (IRIX) is expected to report $-0.24 for 1Q.

Keysight Technologies Inc (KEYS) is expected to report $2.01 for 2Q.

Natural Alternatives International Inc (NAII) is expected to report for 3Q.

ProPhase Labs Inc (PRPH) is expected to report for 1Q.

Red Robin Gourmet Burgers Inc (RRGB) is expected to report $-0.07 for 1Q.

Safeguard Scientifics Inc (SFES) is expected to report $0.78 for 1Q.

Scilex Holding Co (SCLX) is expected to report for 1Q.

Scorpius Holdings Inc (SCPX) is expected to report for 4Q.

Scully Royalty Ltd (SRL) is expected to report for Full year.

Sypris Solutions Inc (SYPR) is expected to report for 1Q.

Toll Brothers Inc (TOL) is expected to report $2.57 for 2Q.

ViaSat Inc (VSAT) is expected to report $-0.30 for 4Q.

Waldencast PLC (WALD) is expected to report $-0.15 for 1Q.

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ANALYST RATINGS ACTIONS

American Homes 4 Rent Raised to Outperform From Market Perform by Raymond James

Applied Materials Cut to Equal-Weight From Overweight by Morgan Stanley

Atara Biotherapeutics Raised to Hold From Sell by Freedom Broker

Automatic Data Raised to Equal-Weight From Underweight by Wells Fargo

Ball Corp Raised to Overweight From Neutral by JP Morgan

Circle Internet Group Raised to Buy From Neutral by HC Wainwright & Co.

CoreWeave Cut to Neutral From Buy by DA Davidson

Crown Holdings Raised to Overweight From Neutral by JP Morgan

Deckers Outdoor Raised to Neutral From Underweight by Piper Sandler

Espey Mfg & Elec Cut to Hold From Buy by Freedom Broker

F5 Raised to Outperform From In-Line by Evercore ISI Group

Invitation Homes Raised to Outperform From Market Perform by Raymond James

Lam Research Raised to Overweight From Equal-Weight by Morgan Stanley

LiveRamp Holdings Cut to Neutral From Buy by DA Davidson

Outlook Therapeutics Cut to Neutral From Buy by BTIG

Regeneron Pharma Cut to Market Perform From Outperform by Leerink Partners

Regeneron Pharma Cut to Neutral From Buy by Citigroup

Regeneron Shares Tumble Premarket After Fianlimab Study Failure

Trex Co Raised to Outperform From Neutral by Zelman & Assoc

Westlake Raised to Neutral From Underweight by JP Morgan

Zscaler Raised to Buy From Neutral by B. Riley Securities

zSpace Cut to Market Perform From Outperform by Barrington Research

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

(END) Dow Jones Newswires

May 19, 2026 06:14 ET (10:14 GMT)

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