North American Morning Briefing: Stock Futures Higher After Rate-Hike Fears Ebb

Stock futures were higher on Friday after Federal Reserve Chairman Kevin

Warsh avoided signaling on an October rate move.

"I don't believe in saying now what I might do at the meetings we have in the balance of this year," he said.

Deutsche Banks said, "the most important thing was what [Warsh] didn't say. Markets took the lack of hawkishness as good news."

Meanwhile, artificial-intelligence stocks remained fragile as chip makers slipped in premarket trade. CoreWeave, whose soaring borrowing costs were one force behind investors' latest flight out of AI, traded down 4% premarket.

Oil prices fell as markets continue to assess inventory data released yesterday.

Later today the market is expecting data from the Industrial Production and Capacity Utilization for September, as well as Canada Housing Starts, also for September.

Stocks to Watch

Alcoa shares rose more than 2% premarket after the aluminum producer reported higher profit and revenue in its latest quarter.

CoreWeave's shares fell 4% premarket as yesterday's rebound proved short-lived.

J.B. Hunt shares fell 1.3% premarket. The logistics company reported profit and revenue that topped Wall Street's expectations in the latest quarter, but warned higher fuel prices and other costs are weighing on the business.

Tesla shares climbed nearly 5% premarket. Tesla yesterday revealed its long-awaited second-generation Roadster, which it describes as the world's first flying car.

Watch For:

Industrial Production and Capacity Utilization for September; Canada Housing Starts for September

Today's Top Headlines/Must Reads:

- High Rates Have Upturned How Moody's Looks at Credit Risk, Chief Credit Officer Says

- Bond Investors See Inflation Cooling. Consumers See Anything But.

- Five Takeaways From Maine's Senate Debates

MARKET WRAPS Forex:

The dollar fell along with Treasury yields as concerns about the sustainability of debt-funded AI investments weighed.

Bitcoin stabilized after reaching a four-week low on Thursday driven by U.S. data boosting expectations for further interest-rate rises by the Federal Reserve.

The sterling rose slightly. U.K. fiscal risks continue to pose a potential headwind to the currency even as encouraging data boosts expectations for the BOE to raise interest rates, Commerzbank said.

Bonds:

Treasury yields stabilized, as investors increasingly focused on the economic impact of high borrowing costs and away from inflation.

Energy:

Oil prices fell but remained on track for weekly gains, while traders weighed supply risks.

Metals:

Gold prices rose on a softer U.S. dollar, while comex gold futures were likely consolidating, the daily chart suggests, RHB Retail Research said.

TODAY'S TOP HEADLINES

Netflix Replaces Content Chief as It Struggles to Engage Viewers

Netflix's Chief Content Officer Bela Bajaria is leaving the company, as it struggles with slowing growth and falling customer engagement.

Bajaria, who had been at Netflix for a decade, will be succeeded by Peter Rice, a former executive at 21st Century Fox and Disney, Netflix said Thursday.

Proofpoint to Acquire Varonis in $6.3 Billion Cybersecurity Deal

Proofpoint has agreed to acquire data-security company Varonis Systems for about $6.3 billion, as artificial-intelligence security continues to drive deals and investment across the cybersecurity industry.

Proofpoint will pay $49.75 a share in cash for Varonis, a 52% premium over the stock's June 22 closing price, the final trading day before reports of a potential sale first surfaced. The transaction is expected to close in the first half of 2027, subject to approval from Varonis shareholders and regulatory bodies.

The Riskiest Corner of the AI Trade Is Crashing Into Higher Rates

Investors staring down a world of higher borrowing costs have kept piling into AI with the belief that companies behind the globe-spanning data-center build-out would be immune. But there are exceptions-none more prominent than CoreWeave.

The Nvidia-backed compute provider has become a weather vane for one of the riskiest-and most highly leveraged-corners of the AI trade. This week, it endured a tornado.

Ukraine Strikes Russian Refinery After Moscow Breaks Trump's Energy Ceasefire

KYIV, Ukraine-Ukraine resumed strikes on Russian refineries Thursday, after accusing Moscow of violating President Trump's ceasefire on energy targets, and as its military regained full access to Starlink following a mysterious disruption the day before.

Long-range drones, which don't require Starlink connections, attacked the Ryazan oil refinery, located southeast of Moscow, sparking a fire, Russian officials said. The strike ended a dayslong pause in Ukrainian attacks on Russian energy infrastructure, during which Moscow repeatedly violated the Trump-ordered truce.

Five Takeaways From Maine's Senate Debates

Sen. Susan Collins and Troy Jackson wrapped up their fourth and final Senate debate in Maine on Thursday, tangling over President Trump, the high cost of fuel and the Supreme Court. The Senate campaign is among the most competitive in the nation and the outcome could play a major role in determining which party controls the chamber next year.

Collins, a Republican, is seeking her sixth term and is the lone Republican senator running in a state carried by former Vice President Kamala Harris in the 2024 presidential election. Jackson, a Democrat, is a former state Senate president who became the party's nominee in an unusual state Democratic convention during the summer following the implosion of Graham Platner's candidacy.

Lutnick Throws the Future of U.S.-Mexico Trade Talks Into Further Doubt

Progress toward a U.S.-Mexico tariff deal has stalled after opposition from Commerce Secretary Howard Lutnick, people familiar with the talks said, the second time that he has had a hand in upending advanced negotiations with a North American partner.

The U.S. and Mexico had been zeroing in on a deal that would reduce U.S. levies on steel, aluminum and automobiles in exchange for a series of concessions from Mexico, these people said, paving the way for further talks on renewing the U.S.-Mexico-Canada Agreement. Mexican officials and many corporate executives expressed optimism that a deal was close, they said.

The Defector: A Russian Officer Turned Against His Country and Helped Ukraine Kill Hundreds

Lt. Lev Stupnikov pulled his truck up to the edge of a field in eastern Ukraine on a frigid February morning, followed by a convoy of senior Russian army officials coming to observe a training exercise near the front line.

For several consecutive days, Russian infantrymen, medics and officers had been drilling on the frozen mud, preparing for an offensive on the nearby city of Vuhledar. The only cover was a line of bare trees.

Write to nina.kienle@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled.

Economic Indicators (ET): 0815 Sep Housing Starts 0830 Aug International transactions in securities

Stocks to Watch:

FingerMotion Expands Alberta Power Pipeline Through Participation in Planned Up-to-500 MW Behind-the-Meter Energy Park; Brooks Campus #1 Draws Multiple Non-Binding Expressions of Interest From Prospective High-Performance Computing Customers; Park Is Intended to Be Held by Alberta-based, Canadian-Controlled Landowner and Designed Around Alberta's 'Bring Your Own Power' Framework; On-Site Natural Gas-Fired Generation and Battery Storage Would Add New Supply Rather Than Draw on the Provincial Grid

Lundin Mining 3Q Rev Expected to Be Positively Impacted by About $51M From Unaudited Provisional Pricing Adjustments; Unaudited Amount of About $66M Has Been Classified as Mine Standby Costs in 3Q; 3Q Items of Significant Impact Expected to Include Unaudited Realized Losses on Gold Collar Contracts of About $9M

Expected Major Events for Friday 08:30/UK: Jul Card Spending statistics

09:00/ITA: Sep CPI

10:00/ITA: Aug Foreign Trade EU

12:15/CAN: Sep Housing Starts

12:30/US: Sep Import & Export Price Indexes

12:30/CAN: Aug International transactions in securities

12:30/US: U.S. Weekly Export Sales

13:15/US: Sep Industrial Production and Capacity Utilization

18:00/US: Sep Monthly Treasury Statement of Receipts and Outlays of the U.S. Government

20:00/US: Aug Treasury International Capital Data

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Expected Earnings for Friday Chino Commercial Bancorp (CCBC) is expected to report for 3Q.

Citizens Financial Group Inc (CFG) is expected to report $1.39 for 3Q.

Columbia Financial Inc (CLBK) is expected to report $0.03 for 3Q.

First United Corp (FUNC) is expected to report $1.14 for 3Q.

Investar Holding Corp (ISTR) is expected to report $0.78 for 3Q.

Ladder Capital Corp (LADR) is expected to report $0.33 for 3Q.

M&T Bank Corp (MTB) is expected to report $4.93 for 3Q.

MetroCity Bankshares Inc (MCBS) is expected to report $0.84 for 3Q.

Regions Financial Corp (RF) is expected to report $0.66 for 3Q.

Republic Bancorp Inc (Kentucky) - Class A (RBCAA) is expected to report $1.65 for 3Q.

The Travelers Cos Inc (TRV) is expected to report $7.23 for 3Q.

Truist Financial Corp (TFC) is expected to report $1.14 for 3Q.

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ANALYST RATINGS ACTIONS Albertsons Cut to Neutral From Overweight by JP Morgan

Align Technology Cut to Neutral From Outperform by Baird

Array Technologies Raised to Outperform From Neutral by Mizuho

Bank of America Raised to Outperform From Neutral by Baird

BorgWarner Raised to Buy From Neutral by B of A Securities

Brighthouse Financial Raised to Neutral From Underweight by JP Morgan

CarMax Raised to Buy From Underperform by B of A Securities

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October 16, 2026 06:17 ET (10:17 GMT)

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