North American Morning Briefing: Stock Futures Mixed Ahead of Earnings

Stock futures were struggling for direction Monday ahead of large banks

starting off the third-quarter earnings season on Tuesday.

JPMorgan, Goldman Sachs, Wells Fargo and Citigroup are scheduled to release their latest financial results before the opening bell on Tuesday.

"The big banks tend to set the stage for the rest of the earnings season, largely since their performance reveals how the underlying economy is doing," Bellwether Wealth said.

Meanwhile, oil prices were edging up after falling early on Monday. President Trump said his administration reached an agreement for Russia to supply large amounts of diesel to the U.S. and global markets.

Investors are also weighing the latest escalation in the Middle East, where Iran-backed Houthi militants carried out lethal strikes on Saudi Arabia's main airport over the weekend.

Looking ahead, U.S. consumer-price inflation data for September will be released on Wednesday as investors gauge the likely timing of the next interest-rate rise by the Federal Reserve.

Stocks to watch

Amazon is in talks to buy Decart, an AI software startup that helps developers switch between AI chips, the Journal reported. Amazon shares were little changed premarket.

IREN gained premarket on a report by the Information that it has struck a deal with Anthropic.

Stellantis, which has a battery tie-up with China's Leapmotor in Spain, gained modestly after the European Union unveiled an agreement to limit China's car export to Europe.

Valero, Marathon Petroleum: Shares in U.S. oil-refining groups rose modestly premarket as investors weigh the impact of U.S. moves to boost diesel supplies.

Watch For:

Canada financial markets closed for Thanksgiving holiday

Today's Top Headlines/Must Reads:

- FTX's Old Bitcoin-Mining Assets Are Now Part of the AI Boom

- America's EV Downturn Hides a Silver Lining: Charging Is Quietly Getting Better

- A New Type of Mortgage Is Reviving Long Abandoned Neighborhoods

MARKET WRAPS Forex:

The dollar traded steady as investors weighed President Trump's announcement of a Russia-Ukraine energy ceasefire against attacks in Saudi Arabia.

The euro was firm, but the currency remained vulnerable to renewed losses due to ongoing French fiscal risks, ING said. Bonds:

The Treasury market is closed due to Columbus Day. Higher yields create a better starting point for bonds, but yields are higher for legitimate reasons, with potentially further to go, Madison Investments said.

Jefferies said that for long-term investors, a 5% yield on five-year Treasurys is a very attractive level to buy. Capital Economics said Treasury yields were expected to fall further, although the inflation picture and the Federal Reserve may be stiff near-term headwinds. Energy:

In early European trading, December Brent crude futures fell 0.2%, while December West Texas Intermediate futures dropped 0.4%.

However, a more meaningful decline in refined product prices will require normalized conditions in the Middle East, according to ING. "Not just in the amount of oil flowing from the Persian Gulf, but also in the way this oil is coming out."

Goldman Sachs raised its Brent crude forecast for December to $90 a barrel from $85, warning that persistent supply risks could keep oil prices elevated even as producers in the Persian Gulf adapt to disruptions.

Metals:

Gold prices edged lower as investors awaited a series of U.S. economic releases this week for fresh signals on the outlook for interest rates and inflation.

Iron

Iron ore prices were flat as steel mills struggled with low profitability. With 90% of Chinese steel mills operating at a loss, they remain cautious about iron ore procurement and keep inventories low, Tongguan Jinyuan Futures said.

TODAY'S TOP HEADLINES

AI Agents Are a Threat to Travel Businesses. Airbnb Could Still Be a Winner.

AI agents like Muse can already find you the cheapest hotel room in Paris. But they can't locate a cheaper version of that Catskills cabin you've been eyeing, because it might only be available on Airbnb.

Investors should pay attention to that distinction. When Meta Platforms launched its Muse agent last month, travel stocks including Booking Holdings, Expedia and Airbnb all fell sharply.

Volkswagen Vehicle Deliveries Fall on Continued China Weakness

Volkswagen Group vehicle deliveries fell in the third quarter as the German automaker continued to suffer from a deteriorating market in China.

The company, which houses a stable of brands that includes VW, Audi and Porsche, said Monday that group vehicle deliveries fell 14% on year to 1.89 million.

FTX's Old Bitcoin-Mining Assets Are Now Part of the AI Boom

A bitcoin-mining business that appeared left for dead after the collapse of Sam Bankman-Fried's crypto empire is being resuscitated to serve the artificial-intelligence build-out.

The business, previously known as Genesis Digital Assets, had been snarled for years in the FTX bankruptcy process. It was taken over this summer by SWI Group, a digital-infrastructure company that has been buying up data centers in the U.S. and Europe to serve AI companies hungry for computing power.

Amazon in Talks to Buy AI Startup Decart for Around $7 Billion

Amazon.com is in talks to acquire artificial-intelligence startup Decart in a deal that could be valued at around $7 billion, according to people familiar with the matter.

San Francisco-based Decart's software makes it easier for developers to switch between different AI chips, a capability that is becoming increasingly important as companies race to secure more computing power.

Oil Prices Fall as Traders Weigh Russian Diesel Deal, Middle East Supply Risks

Oil prices fell Monday as traders weighed prospects for increased Russian diesel supplies and a potential Russia-Ukraine energy ceasefire against persistent Middle East supply risks.

December Brent crude futures fell 0.2% to $104.53 a barrel, while December West Texas Intermediate futures dropped 0.4% to $90.69 a barrel.

Trump Pushes Russia-Ukraine Energy Ceasefire as Export Deal Draws Criticism

President Trump pushed Russia and Ukraine to agree to halt strikes on each other's energy infrastructure, as the White House continued to face bipartisan criticism over moves in recent days to ease U.S. pressure on Moscow and shift blame for the continued fighting to Kyiv.

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed," Trump posted on Truth Social on Sunday, despite Moscow's rejection of such a deal so far and no sign that there was an agreement in place.

China's Auto Sales Fall Despite Traditional Peak Season

China's monthly auto sales weakened yet again in September, with the traditional peak season failing to bring cheer.

Retail sales of passenger cars fell 28.0% in September from a year earlier to 1.62 million units, the China Passenger Car Association said Monday. Sales rose 5.0% compared with August.

Minnesota Is a Republican Punchline. Amy Klobuchar Says She Can Fix It.

ST. PAUL, Minn.-Republicans see Minnesota as a state where liberal naiveté delivered welfare fraud and general decline. Democrats view it as a blue bastion where a grassroots resistance rose up and turned the tide in a battle against President Trump's aggressive immigration enforcement.

Once known mostly for cold winters and Bob Dylan, Minnesota is now a political Rorschach test after two state flashpoints became nationalized and part of this year's midterm election debate.

Iran-Backed Militants Are Tightening the Screws on Saudi Arabia's Crown Prince

DUBAI-Saudi Crown Prince Mohammed bin Salman started the year on a high note. He had just visited the White House where he was embraced by President Trump. Even after the war with Iran kicked off, Saudi Arabia looked relatively well positioned. It could export oil through a pipeline that bypassed the blocked Strait of Hormuz.

But the Saudis' escalating fight with Iran-backed Houthi militants in neighboring Yemen now poses new challenges to the kingdom's security and the crown prince's ambitious but already struggling plans to transform the country's oil-dependent economy.

Judge Says Pro-Trump Ads Funded by Taxpayers Must Be Taken Off Air

A federal judge ordered the Trump administration to halt any further airing of taxpayer-funded television ads touting the president, ruling they are likely illegal.

U.S. District Judge Jennifer Rochon in New York issued a four-page order late Sunday that barred the administration from using government funds to distribute the ads. The judge, who was appointed by former President Joe Biden, said the administration must cancel "any slot, placement, reservation, or arrangement for the airing or dissemination of the challenged advertisements."

Why China Doesn't Want to Join the Ranks of the World's Developed Countries

BEIJING-China is on the cusp of becoming a high-income country by the World Bank's classification. But Beijing would rather not be grouped with the world's wealthy nations.

As the U.S. and China battle for influence, Beijing has presented itself as a champion of Global South nations in Latin America, Africa and Asia. And it benefits from its current status in international groups as "developing," including by not having to contribute to some global funds to fight climate change.

Write to priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled.

Economic Indicators (ET):

Nothing major scheduled. Stocks to Watch:

Gran Tierra Energy Stockholders Approve Sale of Colombian and Ecuadorian Businesses

Expected Major Events for Monday 23:01/UK: Sep BRC-KPMG Retail Sales Monitor

23:50/JPN: Sep Bank Lending

23:50/JPN: Sep Corporate Goods Price Index

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October 12, 2026 06:14 ET (10:14 GMT)