OPENING CALL

Stock futures pointed to a rebound and traders seemed to be counting on a market recovery Friday with hopes Senate Democrats will now support a funding bill helping lift shares.

"While the C.R. bill is very bad, the potential for a shutdown has consequences for America that are much, much worse," said Sen. Minority Leader Chuck Schumer on Thursday.

That will bring attention back to the state of the broader economy and the uncertainty from the on-and-off again tariff policy.

According to Danske Bank Thursday's selloff was mainly driven by uncertainty around valuations , rather than growth concerns.

The magnificent seven led declines in the session, together with defensive real estate stocks, and in contrast, cyclical materials and financials were relative outperformers.

"We interpret this as markets making it clear that it is not economic growth that is yet driving the selloff but uncertainty with valuation in focus rather than earnings.

As global trade tensions continue to rise, AMP said a big risk for the U.S. is that other countries get to a point where they have had enough and refuse to negotiate .

Just as people have turned off Tesla, the same could happen more broadly for U.S. companies.

Stocks to Watch:

Applied Optoelectronics inked a deal with Amazon.com. and shares rose 59% out of hours.

DocuSign's new AI-enabled offerings boosted its results. Shares climbed 10%.

Rubrik reported a narrower-than-expected loss as revenue beat analysts' expectations and the stock rose 21%.

Semtech swung to a profit and revenue increased, beating analyst views. Shares gained 12%.

ServiceTitan's adjusted earnings topped analysts' estimates on revenue up 29% from a year earlier. The stock was up 3.6%.

Ulta Beauty posted better-than-expected results. Shares rose 6.9%.

Watch For:

University of Michigan Preliminary Consumer Survey for March; Canada Wholesale Trade for January; Canada Manufacturing Survey for January

Today's Headlines/Must Reads:

-Democrats Clear Way for GOP Funding Bill, Ending Threat of Government Shutdown

- Chinese Shares Surge on Hopes for RRR Cut, Consumption Boosting Policies

- How Wall Street and Business Got Trump Wrong

MARKET WRAPS

Forex:

The dollar rose as it recovered from oversold conditions following a selloff since January, Swissquote Bank said.

Its recent depreciation reflects rising worries of a economic slowdown and mounting bets for a possible recession later this year, it said.

Treasury Secretary Scott Bessent downplayed the dollar's fall this year but his comments were unlikely to mean much for policy on the currency, ING said.

Bessent said in an interview that the dollar's depreciation was a natural adjustment after last year's appreciation.

"We doubt that means much/anything for the U.S. Treasury's dollar policy and he's just acknowledging the noise/disturbance this 'transition' period is having on the U.S. economy."

Ultimately the Trump administration would prefer a weaker dollar but a global trade war is positive for the currency, it added.

The euro rose above $1.09 earlier this week but failed to extend to the $1.10 psychological mark, held back by overbought conditions, Swissquote Bank said.

The outlook for the euro against the dollar remained positive on converging U.S.-eurozone growth expectations, however, investors will likely monitor German fiscal policy developments before taking it to and above $1.10, it added.

Sterling fell after data showed the U.K. economy unexpectedly contracted in January.

Bonds:

The 10-year Treasury yield edged higher as markets await next week's Fed policy meeting.

"The Federal Reserve's rate decision next week is expected to play a critical role in the bond market," DHF Capital said.

A dovish stance would likely push yields lower while a hawkish outlook could provide support for the dollar and yields.

SEB Research now expects the 10-year Treasury yield to trade in a 4.00%-4.50% range in the coming three to six months versus its previous forecast range of 4.20%-5.00%.

"This revision reflects our view that markets are now less likely to fade Federal Reserve rate cut expectations as concerns about negative tariff effects are factored into outlooks."

Bond market volatility was calming , although Treasury and Bund moves remained somewhat out of sync following spectacular transatlantic decoupling from both ends over recent weeks, Commerzbank said.

Energy:

Oil prices rose as hopes of an imminent end to the war in Ukraine faded after Russia rejected an immediate cease-fire.

However, recession fears continued to cloud the demand outlook.

"The ongoing trade war is expected to weigh on prices in the coming months, potentially complicating the Federal Reserve's ability to cut interest rates if economic conditions worsen," Sucden Financial said.

Meanwhile, concerns over an oversupplied market linger as OPEC+ prepares to raise output next month and the IEA warns that global supplies could exceed demand by around 600,000 barrels a day.

Metals:

Gold futures rose to new highs on U.S. inflation data and safe-haven demand.

Modest U.S. inflation numbers have boosted hopes the Fed will ease monetary policy, ING said, as the market has priced in another 25 basis point reduction in June, with around 70bps of easing expected for the full year.

Gold's rally has also been fuelled by concerns that tariffs will boost inflation and slow economic growth, prompting investors to search for safe-haven assets, it added.

TODAY'S TOP HEADLINES

Li Auto Profit Drops Despite Record Revenue

Chinese plug-in hybrid specialist Li Auto reported lower net profit for the fourth quarter despite record revenue as a brutal price war hurt its bottom line.

The Beijing-based carmaker said Friday that its net profit fell 38% to 3.52 billion yuan, equivalent to $485.9 million. That beat the 3.22 billion yuan estimate of analysts in a Visible Alpha poll.

UniCredit Gets ECB Green Light to Raise Commerzbank Stake

UniCredit said it received authorization from the European Central Bank to increase its stake in potential takeover target Commerzbank to up to 29.9% but that it will wait until next year before deciding whether to make a move.

The Italian bank said it still needs the approval from Germany's competition regulator and others before its around 18.5% stake held through derivatives can be converted into physical shares.

Foxconn Forecasts Strong 2025 Growth on AI Server Demand

Foxconn Technology Group reported weaker-than-expected quarterly results but forecast a strong 2025 as the world's largest contract electronics maker continues diversifying its business, moving into growth areas such as artificial intelligence and electric vehicles.

The Taiwanese company, formally known as Hon Hai Precision Industry, said Friday that it expects revenue to grow strongly in this year, supported by its cloud and networking business.

Here's Where to Look for Early Signs of a Recession

Tariffs, government layoffs, funding cuts, immigration restrictions-recession talk is in the air.

Any one of these things would at least temporarily exert some drag on the economy. Put them together, and they have an everything-everywhere-all-at-once dynamic that could hurt it badly.

Big Pharma Walked Away From Mental Health. Why Some Are Coming Back.

Modern society's relationship with mental health has evolved in recent decades. Once taboo, conditions such as depression and bipolar disorder are now openly discussed by high-profile figures like Simone Biles and Mariah Carey. Governments and employers worldwide have expanded access to care.

Yet pharmaceutical innovation hasn't kept pace. Since the blockbuster success of drugs such as Prozac and Zoloft in the 1990s and early 2000s, many of the industry's largest companies have scaled back their investments in the field.

Trump's Ukraine Peace Strategy Put to Test After Putin Balks at Cease-Fire

WASHINGTON-President Trump finds himself a "yes" away from brokering a cease-fire between Russia and Ukraine. But it is Russian President Vladimir Putin who has to say it, and he is leaning in the other direction.

That has put Trump, the self-professed master dealmaker, in a bind of his own making. After promising Putin wants peace and pressuring Kyiv to back the 30-day fighting pause, Trump will face a decision on imposing new sanctions on Moscow, as he had vowed to do if the Kremlin balked at the U.S.-brokered plan.

Trump to Invoke a Seldom-Used Wartime Law From 1798 to Speed Up Deportations

WASHINGTON-The Trump administration is planning to invoke a sweeping wartime authority known as the Alien Enemies Act in an effort to speed up deportations, according to an official familiar with the discussions.

Here's what to know:

Dr. Oz Is About to Take Over Medicare. Expect a Show.

The expected next leader of the federal Medicare agency recently reposted a social-media photo of himself standing next to his future boss, the secretary of Health and Human Services. Mehmet Oz, 64 years old, was shirtless in swim trunks, while Robert F. Kennedy Jr. cradled a small lizard. British provocateur Russell Brand lounged on Kennedy's other side.

The celebrity physician known as Dr. Oz, who is scheduled to face a Senate hearing Friday on his bid to run the Centers for Medicare and Medicaid Services, would bring a different look to a job usually filled by low-key policy wonks.

Write to clare.kinloch@wsj.com

TODAY IN CANADA

Earnings:

Enterprise Group Inc. 4Q

illumin Holdings 4Q

Lithium Americas 4Q

Economic Indicators $(ET)$:

0830 Jan Wholesale Trade

0830 Jan Monthly Survey of Manufacturing

Stocks to Watch:

Adentra FY Sales $2.18B; 4Q Sales $530.8M, Up 3.1% ;4Q EPS $0.33 Vs. EPS $0.40; FY EPS $1.92 Vs. EPS $1.59; Results Affected by Market Headwinds Like Affordability Constraints, Slower Pace of Mortgage Rate Reductions in U.S.

Adentra: Market Headwinds Expected to Persist in 2025; Business Positioned for Stability Thanks to Product, Mkt Diversification; Potential Tariff Exposure Could Be Limited, With 90% of Ops Based in US; 92% of Purchases Not Affect by Tariffs Declared in March, or Those Expected in April; Expects to Be Able to Adjust in the Event of Tariff-Led Renewal in Inflationary Pressure; Confident in Ability to Navigate Conditions Despite Unpredictable Economic Outlook; Broader Impact of Tariffs Adds Uncertainty to Near-Term Outlook 21:24:15

Adentra: Organic Sales Down 6% on Year in First Two Months of 1Q 2025; Company's Long-Term Fundamentals Remain Intact; U.S. Housing Activity, Already Facing Affordability Challenges, May Experience Further Headwinds

Capstone Copper Price Target Raised 8% to A$12.50/Share by Macquarie

Champion Iron Price Target Cut 7% to A$6.20/Share by Macquarie

Magellan Aerospace 4Q Rev C$240.7M; 4Q EPS C$0.28

Melcor Developments 4Q Rev C$170.5M; Melcor Developments 4Q EPS C$1.05

Patriot Battery Metals Price Target Cut 7% to A$0.52/Share by Macquarie

Sagicor Financial Raises Dividend to 6.75c; 4Q Core Earnings $28.0M, Up 28% on Year; 4Q Net $52.4M; 4Q Rev $723.1M; Targets Core ROE of 13%+ Over Medium Term; Targets Core Dividend Payout Ratio of 30%-40%; 2026 Core Earnings Growth Over 10%

Tree Island Steel 4Q Loss C$3.3M; Steel 4Q Rev C$47.9M; 4Q Loss/Shr C$0.13; Cuts Quarterly Dividend to C$0.015 Vs. C$0.03; Cites Economic Uncertainty

Wheaton Precious Metals Raises Dividend to $0.165, 6.5% Increase From the 4Q Div of $0.155

Other News:

Canada Officials Expect PM-Designate Carney, Trump to Speak in Coming Days

Ontario Premier Says U.S.-Canada Tensions Have Cooled After Lutnick Meeting

Expected Major Events for Friday

00:01/UK: Feb Scottish Retail Sales Monitor

07:00/GER: Feb CPI

07:00/UK: Jan Index of Production

07:00/UK: Jan Index of services

07:00/UK: Jan Monthly GDP estimates

07:00/GER: Feb WPI

07:45/FRA: Feb CPI

09:00/ITA: Jan Industrial Production

09:30/UK: Feb Bank of England/Ipsos Inflation Attitudes Survey

12:30/UK: Feb NIESR Monthly GDP Tracker

12:30/CAN: Jan Monthly Survey of Manufacturing

12:30/CAN: Jan Wholesale trade

14:00/US: Mar University of Michigan Survey of Consumers - preliminary

16:59/GER: Jan Balance of Payments

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Friday

Adverum Biotechnologies Inc $(ADVM)$ is expected to report for 4Q.

Airsculpt Technologies Inc (AIRS) is expected to report $-0.05 for 4Q.

American Vanguard Corp $(AVD)$ is expected to report $0.20 for 4Q.

Avenue Therapeutics Inc $(ATXI)$ is expected to report for 4Q.

Bio-Path Holdings Inc (BPTH) is expected to report for 4Q.

Bit Digital Inc $(BTBT)$ is expected to report for 4Q.

Boundless Bio Inc $(BOLD)$ is expected to report for 4Q.

Buckle Inc $(BKE)$ is expected to report $1.39 for 4Q.

CareMax Inc $(CMAXQ)$ is expected to report for 4Q.

Caribou Biosciences Inc $(CRBU.UK)$ is expected to report $-0.41 for 4Q.

Desktop Metal Inc $(DM)$ is expected to report for 4Q.

Dixie Group Inc (DXYN) is expected to report for 4Q.

DouYu International Holdings Ltd - ADR $(DOYU)$ is expected to report for 4Q.

Edgio Inc $(EGIOQ)$ is expected to report for 4Q.

Emerald Holding Inc $(EEX)$ is expected to report $0.04 for 4Q.

FutureFuel Corp (FF) is expected to report for 4Q.

Gogo Inc $(GOGO)$ is expected to report $0.03 for 4Q.

Golden Matrix Group Inc $(GMGI)$ is expected to report $-0.03 for 4Q.

Hudson Global Inc (HSON) is expected to report $-0.16 for 4Q.

Immuneering Corp (IMRX) is expected to report $-0.30 for 4Q.

Immunome Inc $(IMNM)$ is expected to report $-0.69 for 4Q.

International Tower Hill Mines Ltd (ITH.T,THM) is expected to report for 4Q.

Ivanhoe Electric Inc (IE.T) is expected to report $-0.25 for 4Q.

Lazydays Holdings Inc (GORV) is expected to report for 4Q.

Lithium Americas Corp (LAC,LAC.T) is expected to report $-0.02 for 4Q.

MRC Global Inc $(MRC.UK)$ is expected to report $0.06 for 4Q.

Magellan Aerospace Corp (MAL.T) is expected to report $0.14 for 4Q.

McEwen Mining Inc (MUX,MUX.T) is expected to report for 4Q.

Olema Pharmaceuticals Inc $(OLMA)$ is expected to report $-0.65 for 4Q.

Opus Genetics Inc $(IRD)$ is expected to report $-0.15 for 4Q.

ProPhase Labs Inc (PRPH) is expected to report for 4Q.

RLX Technology Inc - ADR (RLX) is expected to report $0.20 for 4Q.

SigmaTron International Inc $(SGMA)$ is expected to report for 3Q.

Steel Connect Inc (STCN) is expected to report for 2Q.

Steel Partners Holdings LP $(SPLP)$ is expected to report for 4Q.

USD Partners LP (USDP) is expected to report $0.16 for 4Q.

Uranium Energy Corp (UEC) is expected to report for 2Q.

WideOpenWest Inc $(WOW)$ is expected to report $-0.13 for 4Q.

XOMA Royalty Corp $(XOMA)$ is expected to report $-0.29 for 4Q.

Zenas BioPharma Inc $(ZBIO)$ is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Alkami Technology Raised to Overweight From Equal-Weight by Stephens & Co.

American Eagle Outfitters Cut to Underweight From Equal-Weight by Barclays

American Eagle Shares Decline Amid 1Q Slowness, Larger Economic Uncertainty

CervoMed Raised to Buy From Hold by Jones Trading

CervoMed Raised to Buy From Neutral by Chardan Capital

Cipher Mining Cut to Neutral From Overweight by JP Morgan

Complete Solaria Cut to Neutral From Buy by Janney Montgomery Scott

Dentsply Sirona Cut to Hold From Buy by Needham

Federal Realty Cut to Hold From Buy by Truist Securities

Houlihan Lokey Raised to Overweight From Underweight by Morgan Stanley

Invitation Homes Raised to Outperform From Neutral by Mizuho

LanzaTech Global Cut to Neutral From Buy by Janney Montgomery Scott

Mercury Systems Raised to Buy From Hold by Truist Securities

Microsoft Raised to Buy From Neutral by DA Davidson

Moelis & Co. Cut to Underweight From Overweight by Morgan Stanley

Molson Coors Beverage Raised to Equal-Weight From Underweight by Barclays

Oscar Health Cut to Equal-Weight From Overweight by Wells Fargo

Range Resources Raised to Neutral From Underweight by JP Morgan

Solo Brands Cut to Hold From Buy by Canaccord Genuity

UiPath Cut to Underperform From Neutral by B of A Securities

Vivid Seats Cut to Underperform From Buy by B of A Securities

Wells Fargo Raised to Outperform From Sector Perform by RBC Capital

ZimVie Cut to Hold From Buy by Needham

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

(END) Dow Jones Newswires

March 14, 2025 06:02 ET (10:02 GMT)

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