MARKET WRAPS

Watch For:

U.S. Weekly Jobless Claims; U.S. GDP final estimate for 1Q; U.S. Durable Goods for May; FedEx Corp. 4Q results; Nike Inc. 4Q results.

Opening Call:

Stock futures climbed Thursday ahead of fresh data on jobless claims and durable goods that will offer fresh cues on the pace of economic recovery.

Stocks are grinding higher this week, reflecting investors' easing concerns about higher inflation and tighter monetary policy. Money managers are growing more assured that interest rates won't rise for a while: that has sent technology stocks roaring higher in recent days and pushed the Nasdaq Composite Index to two consecutive all-time closing highs.

"In the context of strong growth, markets can digest slightly less supportive monetary policy," said Sebastian Mackay, a multiasset fund manager at Invesco. "The outlook for earnings is still pretty strong, I think central banks can afford to think about removing some of what's been put in place."

The latest data on jobless claims, a proxy for layoffs, is due at 8:30 a.m. ET. The figures released last week showed an unexpected increase, suggesting that the path to a full recovery still faces uncertainties and potential setbacks. Economists expect that filings for new jobless claims resumed their decline for the week ended June 18.

"The labor market is pivotal, it is clearly one of the targets of the Federal Reserve," said Monica Defend, global head of research at Amundi. "It's what is restraining the Fed from acting more boldly."

Data on orders for durable goods are also due at 8:30 a.m. Economists are expecting a pickup in May. Orders slipped in April, partly because the global computer-chip shortage caused backlogs in the auto industry.

Overseas, the Bank of England will put out its latest policy decision and minutes at 7 a.m. ET.

Forex:

The dollar traded flat as investors digest conflicting messages by Fed officials over the inflation outlook.

Fed Chair Jerome Powell downplayed inflation concerns during his testimony to Congress on Tuesday but Atlanta Fed President Raphael Bostic said on Wednesday that a period of high inflation could last longer than anticipated.

"It is becoming apparent that there are two different views coexisting within the Fed and the tug-of-war is likely to condition the performance of the greenback and other currencies, too, over the coming months," ActivTrades analyst Ricardo Evangelista said.

The euro could weaken as the European Central Bank is likely to fall behind other central banks in withdrawing support, Societe Generale said.

Noting that the ECB posted a paper by German economist Sebastian Schmidt on Thursday arguing that fiscal stimulus could prevent a "low-inflation trap," SocGen forex strategist Kit Juckes said it seems the ECB is stepping up its campaign to prevent premature fiscal easing.

"They really will stay at the back of the queue when it comes to monetary policy normalization, and that does mean that as others raise rates, the euro will be vulnerable."

Bonds:

In bond markets, the yield on the 10-year U.S. Treasury note ticked up to 1.489%, from 1.486% on Wednesday.

Bond markets appear to have found a new balance after the U.S. Fed-induced volatility eruption last week, and in this regard, the macro focus could move back to Europe, said Christoph Rieger, head of rates and credit research at Commerzbank.

Following preliminary June purchasing managers' surveys on Wednesday, German business sentiment Ifo data is expected to rise to a new 10-year high, he said. However, Rieger added, that similarly to PMIs, Bunds are unlikely to be impressed by better data.

Commodities:

Oil prices ticked higher after bullish inventory data. Data from the Department of Energy released Wednesday showed a sharper-than-expected fall in U.S. crude and gasoline stocks.

Crude stocks fell by 7.6 million barrels last week, which was larger than some analysts had been forecasting and even larger than figures from API released a day earlier suggested.

Gasoline stocks also fell by 2.9 million barrels, while both forecasts and figures from API had pointed to gasoline stocks rising.

Gold edged lower as comments from Fed officials raise new concerns about interest rate hikes.

"This debate is likely to keep gold in check for the time being," said Carsten Fritsch, an analyst at Commerzbank.

U.S. PCE price data, the Fed's preferred measure of inflation, set to be released Friday would likely be the key focus for gold, he added. If the figures were to be stronger than expected it could prompt a slide in gold prices, he said.

Base metals slipped after comments from Fed officials reignite concerns about tightening monetary policy. Three-month copper on the LME falls 1.1% to $9,386 a metric ton while aluminum drops 0.6% to $2,420 a ton.

The Atlanta Fed's Bostic said that a much stronger recovering U.S. economy meant that he expects interest rates to rise next year and thinks the central bank should consider paring back its bond-buying program sooner rather than later. Dallas Fed President Kaplan also echoed those remarks.

TODAY'S TOP HEADLINES

FedEx Suspended Service for 1,400 Freight Customers

FedEx Corp. suspended about 1,400 customers of its Freight shipping service earlier this month, a move that surprised customers and was aimed at easing a congested network taxed by relentless package volume.

The shipping and logistics giant dropped the customers without notice, leaving some businesses hunting for a new option to move their products. FedEx resumed service to some customers this week. While a surge in e-commerce spending during the Covid-19 pandemic has strained shipping companies of all sorts, FedEx has lagged behind rivals in keeping deliveries on time this year.

Read More ->

Luminar's CFO Aims to Conserve Cash as Company Begins Commercial Production

Luminar Technologies Inc., which makes sensors for autonomous cars, is looking to boost production while building up a cash cushion on its balance sheet.

The Orlando, Fla.-based company took advantage of the investor frenzy for public listings by merging with a special-purpose acquisition company in December.

Read More ->

Google, Facebook Pressure Falls Short as Antitrust Measures Advance in House Committee

WASHINGTON-A House committee approved far-reaching legislation to curb the market dominance of tech giants, including Alphabet Inc.'s Google and Facebook Inc., but much of the effort faced intensive lobbying by affected firms that slowed the committee's work and foreshadowed a pitched battle in the Senate.

In a package of six bills, the most significant measure to pass by late Wednesday requires that the largest internet platforms make it easier for users to transport their data to other platforms and even communicate with users on other platforms. The bill-known as the Augmenting Compatibility and Competition by Enabling Service Switching, or Access, Act-would give the Federal Trade Commission extensive new powers to set individualized standards for the tech giants. It passed, 25-19.

Read More ->

E-Mart to Buy eBay's South Korean Unit for $3B

E-commerce platform eBay Inc. agreed to sell an 80.01% stake in its South Korean unit to retailer E-mart for about $3.0 billion, the companies said Thursday.

eBay said the deal valued its unit, which runs G-market, IAC and G-9 online markets, at $3.8 billion. The San Jose, Calif.-based company said it would still retain a 19.99% stake in its South Korean unit after the transaction.

Read More ->

BuzzFeed Nears Deal to Go Public Via SPAC, Eyeing Digital-Media Rollup

BuzzFeed Inc. is close to a deal to go public through a merger with a special-purpose acquisition company, according to people familiar with the situation, part of a plan to consolidate with other players in digital media.

BuzzFeed founder and Chief Executive Officer Jonah Peretti could announce a deal with 890 5th Avenue Partners Inc.-a blank-check company named after the headquarters of Marvel's Avengers superheroes and founded by investor Adam Rothstein-as early as this week, the people said.

Read More ->

ViacomCBS Taps Paramount+ Programming Chief in Content Leadership Shift

ViacomCBS Inc. said it tapped MTV executive Tanya Giles as chief programming officer for streaming, part of a broader reorganization as the media company looks to shore up content for its Paramount+ and Pluto TV services.

Ms. Giles, who currently serves as the general manager at the MTV Entertainment Group, will centralize programming decisions for the streaming services globally. Other top content executives will oversee portions of Paramount+ programming relevant to their areas of specialty, from music to reality TV.

Read More ->

CDC Advisory Group Says 'Likely Association' Between mRNA Covid-19 Vaccines and Rare Myocarditis Cases

Centers for Disease Control and Prevention advisers said Wednesday that there is a "likely association" between Pfizer-BioNTech and Moderna's mRNA Covid-19 vaccines and an inflammatory heart condition in some younger individuals, but noted that cases were rare and that most patients quickly felt better.

The CDC and other health authorities still recommend Covid-19 vaccination for those age 12 and above, given the greater risk from Covid-19, which itself can cause myocarditis and other complications.

Read More ->

Jobless Claims Are Projected to Resume Downward Trajectory

Worker filings for jobless benefits last week are predicted to have declined, resuming a mostly downward trend since spring that has been supported by a strengthening economic recovery.

Economists estimate the Labor Department will report Thursday that initial unemployment claims, a proxy for layoffs, moved lower last week to 380,000 from 412,000 the prior week, when claims rose by 37,000.

Read More ->

Hospital Stocks' Rally Points to Post-Covid Growth

Hospital stocks have trounced the market this year, and the steps they took to get through the pandemic could keep the rally going.

Hospitals were hit hard financially by the costs of Covid-19, which crimped their ability to do high-margin elective procedures. Some firms took large government grants to help them make up for losses tied to the pandemic and for treating Covid-19 patients.

Read More ->

Fed's Bostic Says Bond Buying Drawdown Near, Sees Rate Rise in Late 2022

Federal Reserve Bank of Atlanta President Raphael Bostic said Wednesday he has moved forward his expectations for a central bank rate rise to next year and that the time is coming soon for the Fed to pare its bond buying stimulus efforts.

"Given the upside surprises and recent data points, I've pulled forward my projection for our first move to late 2022," Mr. Bostic said in a call with reporters. Mr. Bostic said he also expects two additional increases in the federal-funds rate in 2023. The Fed official had recently said he expected the first increase in 2023.

Read More ->

Yellen Says U.S. Could Breach Debt Limit Deadline in August if Congress Doesn't Act

WASHINGTON-The U.S. could run out of room to keep paying the government's bills some time during Congress's August recess unless lawmakers raise or suspend the federal borrowing limit before then, Treasury Secretary Janet Yellen said Wednesday.

Congress in 2019 suspended the borrowing limit, or debt ceiling, through July 31, 2021. After that, the Treasury Department won't be able to raise additional cash through the sale of government securities and would need to deploy emergency measures to keep paying the government's obligations, as it has in the past.

Read More ->

Infrastructure Negotiators Agree to Framework for Package

WASHINGTON-Members of a bipartisan group negotiating a roughly $1 trillion infrastructure proposal said they had crafted a framework for an agreement, and lawmakers plan to meet with President Biden on Thursday to try to complete a deal.

The Democrats and Republicans emerged from a meeting with top White House officials Wednesday saying work would continue on some unresolved details.

Read More ->

German Business Sentiment Rises to Highest Level in More Than Two Years

German business sentiment improved again in June, reaching a more than two-year high as reopening boosted firms' optimism on current conditions and expectations.

The Ifo business-climate index came in at 101.8 points in June compared with the 99.2 points registered in May, according to data from the Ifo Institute released Thursday. The reading beats the consensus forecast from economists polled by The Wall Street Journal, who expected the index to increase to 100.5.

Read More ->

Talking Markets: Miners Dig In as Shares Fall After Peru Election

Shares in mining companies operating in Peru have fallen since a general election in the country in which a far-left nationalist appears to have won the presidency, reflecting uncertainty over his approach to the industry.

Anglo American stock fell 16% in the two weeks since the second leg of the presidential election took place on June 6. The company and Mitsubishi Corporation have invested $5.3 billion in a copper mine named Quellaveco, in southern Peru, which is set to become one of the world's largest copper pits when it starts operating next year.

Read More ->

New York City to Install First Curbside Electric-Vehicle Charging Station

New York City will install its first curbside electric-vehicle charging stations this year, part of an effort to address the dearth of charging options in the city.

The Department of Transportation said that by October it will install 100 charging ports for public use. Another 20 ports will serve the city's fleet of electric vehicles.

Read More ->

NASA's Perseverance Rover Is Looking for Life on Mars

NASA's latest Mars rover is done with its testing and is ready to embark upon its first scientific mission. After landing on the planet in February, the Perseverance rover has been busy trying out its many instruments-converting atmospheric carbon dioxide into oxygen that would be needed for manned missions, flying a helicopter and taking photos.

Read More ->

Biden to Deter Forced Labor With Ban on China's Solar Panel Materials

WASHINGTON-The Biden administration plans to broaden its campaign against the use of forced labor in China's Xinjiang region by imposing penalties on some companies that produce raw materials used to make solar panels, according to people familiar with the plans.

Under the plans, to be announced Thursday, U.S. Customs and Border Protection would bar imports of metallurgical-grade silicon mined by Hoshine Silicon Industry (Shanshan) Co., as well as products made from it, unless the company can prove the material isn't produced with forced labor, these people said.

Read More ->

Chinese Covid-19 Gene Data That Could Have Aided Pandemic Research Removed From NIH Database

Chinese researchers directed the U.S. National Institutes of Health to delete gene sequences of early Covid-19 cases from a key scientific database, raising concerns that scientists studying the origin of the pandemic may lack access to key pieces of information.

The NIH confirmed that it deleted the sequences after receiving a request from a Chinese researcher who had submitted them three months earlier.

Read More ->

Write to sarka.halas@wsj.com

TODAY IN CANADA

Earnings:

- BlackBerry Limited (BB.T) 1Q

- Neighbourly Pharmacy (NBLY.T) 4Q

Economic Indicators (ET):

0830 Apr Payroll employment, earnings & hours

Stocks to Watch:

Video Software Company JW Player Raises $100 Million

Video technology company JW Player, which got a pandemic-driven boost in demand as people live-streamed everything from fitness classes to happy hours, has raised $100 million in new funding.

Midmarket private-equity firm LLR Partners is financing the deal, which gives the New York-based company capital to support its quest to become for video what online shopping platform Shopify Inc. is for e-commerce and cloud-based technology company Twilio Inc. is for communication.

Video has become a key way in how people -- and businesses -- communicate, a trend that accelerated during the pandemic, said David Reuter, partner at LLR Partners. "And we believe that over the next three to five years that trend is only going to increase," he said.

Mr. Reuter and Jim Flynn, who has led three companies backed by LLR Partners, are joining JW Player's board, with Mr. Flynn becoming the executive chairman.

*Dollarama Announces Private Offering of $750M Senior Unsecured Notes

Other News:

Canadian Stocks Look Cheap, BofA Says. Why They Could Be Cyclical Superstars. -- Barrons.com

The Canadian stock market has been performing well, up an average 22% this year for U.S. investors. It's still looking cheap, and could outperform the U.S. market as a cyclical recovery gains momentum.

While the S&P 500 has gotten pricey at 21 times forward earnings, the S&P/ TSX Composite, a broad index of Canadian stocks, trades at 17 times earnings. That's below the average valuation difference between the two markets, and it's the steepest discount to the U.S. since the tech bubble, according to Bank of America strategists Ohsung Kwon and Savita Subramanian.

When Canadian stocks have been this cheap, they have outperformed the S&P 500 by an average of 8.4 percentage points, beating the U.S. 63% of the time, BofA says.

Canada's equity market tilts heavily to cyclical sectors such as commodities, energy, materials, and financials. Cyclicals account for 70% of the Canadian market, compared with 25% of the S&P 500. Financials comprise about 36% of the Toronto Stock Exchange (TSX), followed by energy stocks at 14%, tech at 13%, and materials at 11%.

The Canadian dollar, known as the loonie, is up about 10% over the past year versus the U.S. dollar. That might be tough on Canadian exporters, but it has lifted returns for U.S. investors in Canadian equities. While the S&P/TSX has gained 30% in the last year, U.S.-listed exchange-traded funds that focus on the Canadian market have jumped about 47%.

A stronger Canadian dollar historically lifts the multiple of its stock market, too. BofA estimates that the Canadian market could rerate 20% higher relative to the U.S., if historical patterns hold.

The Canadian dollar has been rallying with commodity prices, gaining more than 3% against the U.S. dollar this year, making it a top performing currency.

Canada's economy could also perk up as the country catches up on vaccinations and gradually reopens, lifting services and other sectors.

Indigenous Group in Canada Says Hundreds of Unmarked Graves Discovered

An Indigenous community in western Canada said it found hundreds of unmarked graves near a former boarding school less than a month after a similar discovery shocked the country and reignited a nationwide discussion about Canada's treatment of Indigenous people.

The Federation of Sovereign Indigenous Nations, which represents 74 First Nations in the Canadian province of Saskatchewan, issued a statement that said it would provide more details about the discovery during a Thursday press conference alongside the Cowessess First Nation, which is located about a hundred miles east of Regina. It didn't specify how many graves had been found but called the discovery "the most significantly substantial" so far in the country.

The announcement comes several weeks after the Tk'emlps te Secwépemc First Nation near Kamloops, British Columbia, said it had discovered the remains of 215 children in the area of a former government-funded boarding school. The discovery sparked calls to search for more unmarked graves at the sites of some of the roughly 150 former residential schools across Canada.

Market Talk:

No items published

Expected Major Events for Thursday

05:00/JPN: May Supermarket sales

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

08:00/GER: Jun Ifo Business Climate Index

08:59/JPN: Jun Monthly Economic Report

11:00/UK: Agents' Summary of Business Conditions

11:00/UK: UK interest rate decision

12:30/US: May Advance Report on Durable Goods

12:30/US: May Advance Economic Indicators Report

12:30/CAN: Apr Payroll employment, earnings & hours

12:30/US: 1Q Revised Corporate Profits

12:30/US: 1Q 3rd estimate GDP

12:30/US: 06/19 Unemployment Insurance Weekly Claims Report - Initial Claims

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

13:00/RUS: Weekly International Reserves

13:45/US: Bloomberg Consumer Comfort Index

14:30/US: 06/18 EIA Weekly Natural Gas Storage Report

15:00/US: Jun Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing

20:30/US: Foreign Central Bank Holdings

20:30/US: Federal Discount Window Borrowings

23:01/UK: Jun UK Consumer Confidence Survey

23:01/UK: May UK monthly automotive manufacturing figures

23:30/JPN: Jun CPI (Tokyo), CPI ex-Food (Tokyo)

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

Expected Earnings for Thursday

A. M. Castle & Co (CTAM) is expected to report for 1Q.

Accenture PLC (ACN) is expected to report $2.22 for 3Q.

BlackBerry (BB,BB.T) is expected to report $-0.15 for 1Q.

CCUR Holdings Inc (CCUR) is expected to report for 3Q.

CalAmp (CAMP) is expected to report $-0.16 for 1Q.

Carnival Corp (CCL) is expected to report $-1.64 for 2Q.

Darden Restaurants (DRI) is expected to report $1.81 for 4Q.

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

FedEx Corp (FDX) is expected to report $4.91 for 4Q.

GMS Inc (GMS) is expected to report $0.59 for 4Q.

Giga-Tronics Inc (GIGA) is expected to report for 4Q.

Inscape (INQ.T) is expected to report for 4Q.

Methode Electronics (MEI) is expected to report $0.71 for 4Q.

NIKE Inc (NKE) is expected to report $0.51 for 4Q.

Progress Software Corp (PRGS) is expected to report $0.26 for 2Q.

Rite Aid Corp (RAD) is expected to report for 1Q.

Synnex Corp (SNX) is expected to report $1.48 for 2Q.

Worthington Industries (WOR) is expected to report $0.88 for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

BWX Technologies Cut to Neutral From Outperform by Credit Suisse

Carvana Cut to Neutral From Overweight by JP Morgan

County Bancorp Cut to Hold From Buy by Maxim Group

County Bancorp Cut to Neutral From Overweight by Piper Sandler

Helmerich & Payne Raised to Outperform From In-Line by Evercore ISI Group

Hibbett Sports Raised to Buy From Neutral by Monness, Crespi, Hardt

Huntington Bancshares Raised to Strong Buy From Outperform by Raymond James

Patterson-UTI Raised to Outperform From In-Line by Evercore ISI Group

Plug Power Cut to Hold From Buy by Canaccord Genuity

RPM International Cut to Underweight From Neutral by JP Morgan

SharpSpring Cut to Hold From Buy by Canaccord Genuity

SmileDirectClub Cut to Hold From Buy by Loop Capital

Stifel Financial Raised to Outperform From Underperform by Wolfe Research

Target Hospitality Raised to Outperform From Perform by Oppenheimer

UGI Raised to Buy From Neutral by B of A Securities

United Rentals Raised to Buy From Neutral by Citigroup

Welltower Raised to Sector Perform From Underperform by Scotiabank

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

(END) Dow Jones Newswires

June 24, 2021 06:10 ET (10:10 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.