UKX FTSE 100 Index

MARKET WRAPS

Watch For:

Durable Goods for August, EIA Weekly Petroleum Report; Earnings from Micron Technology

Today's Top Headlines/Must Reads:

- The Stock Market Has an Earnings Problem

- Chinese Central Bank Vows to Step Up Policy Support

- This Ford vs. GM Feud Could Shape the Future of EVs in America

Follow WSJ market coverage here

Opening Call:

A dip in Treasury yields early Wednesday coincided with a pick up in stock-index futures as some investors sensed the market's latest retreat is overdone.

"September's end can't come soon enough based on the action we're seeing in stocks this week. It's a bloodbath in small-caps," Bespoke Investment Group said.

However, worries over possibly prolonged Federeal Reserve tightening and U.S. politics may cap gains.

"Investors continue to grapple with the implications of an extended period of elevated interest rates and the potential economic repercussions, and they seem to favor the cut-run maneuver this week," SPI Asset Management said.

"Heightened investor anxiety due to the looming possibility of a partial U.S. government shutdown is not helping matters," it added.

Premarket Movers

https://urldefense.com/v3/__http://Amazon.com__;!!F0Stn7g!BOieoeY87zE-S9vrhwJAc8SE0PgGCLeb3biT4TrOCO_CUbkrV8_y_LH_SH7ScSiY_kiVN3x5eOEImK0KNssgPrJ1fiG-ymEQZyO5Pvx8PE4$ rose 0.3% in premarket trading after slumping 4% on Wednesday after the FTC said it was suing the company.

Costco Wholesale reported fourth-quarter earnings and sales that beat analysts' estimates but the stock fell 2.1% in premarket trading after it failed to provide an update on a potential increase in membership fees, a move that many on Wall Street believe is overdue.

Hayward Holdings rose 9.5%, after S&P Dow Jones Indices said the company would join the S&P SmallCap 600 index.

MillerKnoll raised its fiscal 2024 outlook, saying it expects adjusted earnings $1.85 to $2.15 a share, better than its previous guidance for profit of $1.70 and $2 a share. The stock rose 16%.

Peloton Interactive was rising 1% after naming Nick Caldwell as its next chief product officer.

Tuesday's Post-Close Movers

Cardiff Oncology reported positive data in two trials evaluating the use of onvansertib to treat different types of cancer. Shares rose 20%.

Morphic Holdings said CEO Praveen Tipirneni would take a medical leave of absence after suffering an "emergent medical event." Shares fell 7.2%.

Forex:

The dollar extended gains, hitting another ten-month high against a basket of currencies, helped as investor worries over a potential government shutdown lifted safe-haven assets, Swissquote Bank said.

"Investors continue to dump stocks and buy dollars on looming uncertainty regarding whether the government will be shut in three days."

There is progress regarding a six-week short-term funding deal, but getting an approval from the Senate will be a challenge, Swissquote added.

Read End-of-Month Rebalancing Could Boost Demand for US Dollar

Energy:

Oil prices were rising, as worries over supply, stemming from Saudi-led production cuts, provided support to energy markets.

"The likelihood of $100 a barrel has certainly increased following Saudi Arabia and Russia's decision to extend cuts to oil production and exports earlier this month," Commonwealth Bank of Australia said.

Both OPEC and the IEA forecast of deficits should mean prices are well supported, with the only major caveat being worries over global economic growth, it added.

"We continue to believe though that global growth concerns will weigh more materially on global oil demand when labor markets loosen."

Metals:

Base metals and gold struggled for momentum in early London trading, as worries over demand and higher inflation kept prices capped.

"Tepid demand has led to a significant increase in exchange inventories, " ING said.

"LME copper inventories increased to a fresh one-year high of 164,000 tons with inflows of around 110,000 tons since mid-July," it said, noting that net longs for copper in London have fallen to a three-month low amid weak demand in China.

Read Interest Rates Remaining High Likely to Keep Pressure on Gold

TODAY'S TOP HEADLINES

TikTok Employees Say Executive Moves to U.S. Show China Parent's Influence

TikTok has spent the past three years trying to convince U.S. lawmakers it can operate independently in this country from its China-based parent company, ByteDance. After recent personnel moves, some employees aren't so sure.

Since the start of the year, a string of high-level executives have transferred from ByteDance to TikTok, taking on some of the top jobs in the popular video-sharing app's moneymaking operations. Some moved to the U.S. from ByteDance's Beijing headquarters.

Hollywood's Writers Emerge From Strike as Winners-for Now

Hollywood writers are able to return to work Wednesday after a five-month strike, having secured major wins in the form of staffing guarantees, increased pay and the potential for more upside when streaming shows hit big.

Now comes the test of whether those hard-fought victories actually translate into fatter paychecks and more job opportunities across the union's membership base.

China Has Second Thoughts About Controlling Prices in Its Multi Trillion-Dollar Housing Market

HONG KONG-China's gigantic real estate bubble has popped, but despite the market's prolonged downturn, prices still haven't fallen much.

In part, that is because of price controls which many Chinese cities imposed on housing over the past two years to keep values stable. Now China is starting to loosen the rules-with unpredictable consequences.

Senators Unveil Bipartisan Funding Deal to Avert Government Shutdown

WASHINGTON-The Senate moved ahead Tuesday with its own approach to averting a partial government shutdown, advancing legislation that would extend funding through Nov. 17 while also providing about $6 billion apiece for Ukraine and for disaster relief.

The Senate proposal-the only bipartisan approach currently being pursued by congressional leaders-sets up a showdown with House Speaker Kevin McCarthy. The California Republican wants to extend government funding but on the condition that Congress also enact strict border-security measures and exclude any new support for Kyiv to keep his conference united.

New York Judge Rules Trump Committed Fraud in Valuing Assets

A New York judge on Tuesday found that Donald Trump and his family business committed fraud by making false and misleading valuations on much of his real-estate empire and ordered the cancellation of legal certificates that have allowed the Trumps to do business in the state.

The ruling handed a significant early victory to state Attorney General Letitia James, a Democrat, on part of her civil-fraud case against Trump, which is set to go to trial next week. She sued the former president last year and has accused Trump in court filings of inflating his annual net worth by as much as $3.6 billion between 2011 and 2021 by falsely valuing his properties.

What to Watch in the Second Republican Presidential Debate

Republican presidential candidates are running out of time-and big stages-to take down former President Donald Trump.

They get another chance to make an impression Wednesday night during the second debate for the 2024 GOP field at the Ronald Reagan Presidential Library in California, a forum the front-runner is snubbing.

Write to ina.kreutz@wsj.com

TODAY IN CANADA

Earnings:

AGF Mgmt 3Q

H2O Innovation 4Q

Sangoma Tech 4Q

Economic Calendar (ET):

Nothing major scheduled

Stocks to Watch:

Guardian Capital's Guardian Smart Infrastructure Management Announces First Direct Infrastructure Investment; Joint Venture of Guardian Smart Infrastructure and Rieber & Son to Buy Rieber's 62.8% Stake in Q-Free ASA, Followed by Offer for Remaining Q-Free Shares; Funding for Initial Investment and Proposed Follow-On Investments Was Provided by Guardian and GSIM Management Team for Total Initial Commitment of $100M

Expected Major Events for Wednesday

05:00/JPN: Jul Indexes of Business Conditions - Revision

06:00/JPN: Aug Revised Machine Tool Orders

06:00/GER: Oct GfK consumer climate survey

06:45/FRA: Sep Consumer confidence survey

08:30/UK: Aug Capital issuance statistics

11:00/US: 09/22 MBA Weekly Mortgage Applications Survey

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

12:30/US: 2Q U.S. International Investment Position

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

14:30/US: 09/22 EIA Weekly Petroleum Status Report

17:59/UK: REC JobsOutlook survey

23:01/UK: Sep CBI Growth Indicator and Service Sector Survey

23:01/UK: Aug Zoopla House Price Index

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

23:50/JPN: Sep Provisional Trade Statistics for 1st 10 days of Month

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

Expected Earnings for Wednesday

AGF Management Ltd - Class B (AGF.B.T) is expected to report $0.31 for 3Q.

AppHarvest Inc (APPHQ) is expected to report for 2Q.

Astrotech (ASTC) is expected to report for 4Q.

Aytu BioPharma Inc (AYTU) is expected to report for 4Q.

Bed Bath & Beyond Inc (BBBYQ) is expected to report $0.01 for 1Q.

Concentrix Corp (CNXC) is expected to report for 3Q.

Duckhorn Portfolio Inc (NAPA) is expected to report for 4Q.

Espey Manufacturing & Electronics Corp (ESP) is expected to report for 4Q.

H2O Innovation (HEO.T) is expected to report for Full year.

HB Fuller Co (FUL) is expected to report $1.01 for 3Q.

Jefferies Financial Group Inc (JEF) is expected to report $0.33 for 3Q.

Micron Technology (MU) is expected to report $-1.32 for 4Q.

Paychex Inc (PAYX) is expected to report $1.12 for 1Q.

Pro-Dex Inc (PDEX) is expected to report for 4Q.

S&W Seed (SANW) is expected to report $-0.09 for 4Q.

US Global Investors (GROW) is expected to report for 4Q.

Uranium Energy Corp (UEC) is expected to report for 4Q.

Waldencast PLC (WALD) is expected to report for 2Q.

Worthington Industries (WOR) is expected to report $0.88 for 1Q.

bebe stores (BEBE) is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Carlisle Cos Cut to Hold From Buy by Jefferies

Cleveland-Cliffs Raised to Buy From Neutral by Citigroup

Comerica Cut to Hold From Buy by Odeon Capital

DraftKings Raised to Overweight From Neutral by JP Morgan

Edwards Lifesciences Raised to Outperform From Perform by Oppenheimer

Flowserve Raised to Buy From Hold by Jefferies

Frequency Therapeutics Cut to Neutral From Outperform by Baird

Hudson Pacific Properties Raised to Buy From Neutral by BTIG

Nordson Cut to Hold From Buy by Jefferies

Olin Corp Cut to Equal-Weight From Overweight by Wells Fargo

Opendoor Technologies Raised to Hold From Underperform by Gordon Haskett

PNM Resources Raised to Buy From Neutral by Mizuho

Redfin Raised to Hold From Underperform by Gordon Haskett

SiteOne Landscape Supply Raised to Buy From Neutral by UBS

Steel Dynamics Raised to Buy From Neutral by Citigroup

Teradyne Raised to Outperform From Market Perform by Northland Capital Markets

W. P. Carey Cut to Market Perform From Outperform by BMO Capital

Wingstop Raised to Buy From Hold by Stifel

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

(END) Dow Jones Newswires

September 27, 2023 06:19 ET (10:19 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.