OPENING CALL
Stock futures tilted lower Friday as investors seemed reluctant to buy the dip ahead of a crucial inflation report.
The three major indexes all sank in the previous session, dragged down by yet another wave of AI selling.
Focus turns to the CPI reading at 0830 ET. It is expected to show that price growth in the U.S. slowed to an annual pace of 2.5% last month, compared with December's 2.7% gain.
Markets don't expect the Federal Reserve to cut rates until at least June, according to CME's FedWatch tool. Expectations for a prolonged hold were reinforced by Wednesday's strong jobs data .
A hotter-than-expected inflation reading could further weaken the case for the Fed to slash rates, removing one potential source of comfort amid the AI jitters.
"We typically see inflation heat up in January as the combination of new year price increases and lagged seasonal factors have elevated January prints since 2021," RBC said.
Stocks to Watch
Airbnb posted stronger-than-forecast quarterly results, although investment in new business drove up expenses. Shares advanced about 4% off-hours.
Applied Materials posted better-than-expected quarterly results, boosted by soaring demand for AI computing. The stock gained 12% premarket.
Coinbase Global swung to a loss in a quarter marked by a selloff in digital currencies. The stock rose 5.5% premarket, having fallen sharply this year.
DraftKings's revenue jumped 43%, but its annual sales outlook disappointed. Shares dropped about 14% before the bell.
Expedia posted better-than-projected results, but shares dropped 5% premarket. Travel companies are competing to show up on chatbots, as consumers are increasingly planning trips using ChatGPT or Google Gemini.
Rivian Automotive logged a quarterly loss, but revenue came in higher than analysts modeled. Shares surged one-fifth ahead of the open.
Wynn Resorts had a mixed fourth quarter. Its Macau operations improved, but Las Vegas resorts continued to struggle. Shares slipped roughly 3% offhours.
Watch For:
CPI for January; earnings from Enbridge
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MARKET WRAPS
Forex:
The dollar edged higher as U.S. trade concerns eased and investors await the U.S. inflation data.
The U.S. and Taiwan signed a trade agreement Thursday while Reuters reported the U.S. had shelved key tech restrictions targeting China ahead of an April meeting between the two countries' leaders.
ING said the greenback's recovery was likely to remain limited even if the inflation data added to reduced rate-cut expectations following Wednesday's strong jobs data.
The scaling back of U.S. rate-cut bets highlights the dollar's short-term undervaluation and suggest the currency has scope to rise in coming days, it added.
However, this week's moves also suggest investors are inclined to sell the currency on any rallies, meaning it might struggle to recover substantially.
Bonds:
Treasury yields rose slightly ahead of the inflation data.
The release " could recalibrate expectations for Federal Reserve monetary policy and inject volatility into both forex and bond markets," Kudotrade said.
Energy:
Oil prices were headed for weekly losses on expectations of rising global supply and easing fears of imminent disruptions in the Middle East.
The International Energy Agency lowered its forecast for oil-demand growth this year and said supply is set to rebound following January's losses due to the U.S. winter storm.
Meanwhile, comments from Trump that he would prefer to secure a nuclear agreement with Iran and intends to continue negotiations helped ease fears of possible U.S. military involvement.
Metals:
Gold prices rebounded after Thursday's slide.
"Gold recovered part of its recent losses as dip-buyers returned ahead of key U.S. inflation data , rising as much as 1.4% after 3.2% drop in the previous session, its largest one-day fall in a week," MUFG said.
Silver futures also recovered from the previous session's fall.
Aluminum prices fell following a report that Trump was planning to scale back some tariffs on the metal after imposing a 50% duty last year.
TODAY'S TOP HEADLINES
Applied Materials Profit Rises on Soaring AI Demand
Applied Materials logged higher profit in the fiscal first quarter as artificial-intelligence computing demand soars.
Profit jumped 70% to $2.03 billion, or $2.54 a share, in the quarter ended in January, compared with $1.19 billion, or $1.45 a share, a year earlier.
Goldman Sachs's Top Lawyer to Step Down Following Latest Epstein Documents
Goldman Sachs general counsel Kathryn Ruemmler will step down after the Jeffrey Epstein files showed she had remained a close ally of the convicted sex offender through his 2019 arrest.
Goldman said Ruemmler, 54, would resign as of June 30.
Detroit Automakers Take $50 Billion Hit as EV Bubble Bursts
U.S. automakers have been pumping the brakes on their electric-vehicle businesses for months, and the costs are piling up.
Following years of investments into EV technology, the Detroit Big Three-General Motors, Ford Motor and Jeep-maker Stellantis have announced more than $50 billion in combined write-downs.
Coinbase Swings to a Fourth-Quarter Loss Amid Crypto Meltdown
Coinbase Global swung to a quarterly loss, the latest sign the recent fall in digital currencies is dragging down companies built to bring the crypto revolution into mainstream finance.
Coinbase, the biggest U.S. crypto exchange, reported Thursday afternoon a net loss of $667 million, or $2.49 a share, in the fourth quarter, compared with net income of $1.3 billion, or $4.68 a share, in the year-earlier period. Quarterly net revenue fell 22% to $1.7 billion.
Citigroup CEO Jane Fraser's Pay Jumped to $42 Million in 2025
Citigroup Chief Executive Jane Fraser made $42 million in 2025, roughly $7.5 million more than she earned the year before.
Fraser's base salary of $1.5 million stayed the same as it has been the prior three years, but incentives were higher.
Global Markets, U.S. Futures Fall as Market Watches for Inflation Print to Close out Rocky Week
U.S. equity futures fell slightly as stock markets across the globe looked set to end a turbulent trading week with a day of losses. Artificial-intelligence concerns sparked losses in several sectors over the week, and heavy selling in U.S. stocks bled into Asian equities. A U.S. trade deal with Taiwan and reports of easing trade restrictions with China raised hopes of positive catalysts to come.
Investors look ahead to U.S. inflation data for January due later Friday, with analysts polled by The Wall Street Journal's poll forecasting a fall in both headline and core inflation figures. The print will be closely watched by traders charting the Federal Reserve's likely rate cutting path. The dollar edged higher and U.S. Treasury yields rose ahead of the data.
Europe's Exports to U.S. Rose Despite Tariffs, as Imports From China Jumped
The European Union's exports to the U.S. held up last year despite the higher tariffs imposed by President Trump, but those increased duties pushed Chinese businesses to seek and find new customers in the bloc.
The European Union's statistics agency Friday said exports of goods from the EU to the rest of the world rose 2% in 2025 to 2.6 trillion euros.
CIA Seeks to Recruit Spies Out of China's Military Turmoil
HONG KONG-The Central Intelligence Agency released a new video on Thursday seeking to capitalize on upheaval at the top of China's armed forces to recruit potential spies.
The 95-second Mandarin-language video shows an officer walking through a military installation musing about ruthless power struggles at the top of the armed forces.
U.S. Is Sending Its Largest Warship to the Middle East
The Pentagon is sending the Navy's largest and most advanced aircraft carrier to the Middle East, as the U.S. steps up plans for a potential attack on Iran, two U.S. officials said.
The USS Gerald R. Ford carrier strike group is deploying to the region after spending several months in the Caribbean and Mediterranean. It will be joining the aircraft carrier USS Abraham Lincoln and nine other warships already operating in the Middle East.
America's Cattle Crisis: a Shrinking Herd, Soaring Beef Prices, and Little Relief in Sight
It's late morning in Central Texas Hill Country, and a Black Baldy is prodded into a small auditorium of Western hats and dusty ball caps. Her dark coat and stark white face is typical of this cow breed known for easy calving and attentive mothering. "It's going to go as a packer animal," says Tim Niedecken, who works for the Jordan Cattle Auction. He means that the cow will be sold by the pound for slaughter. Perhaps she no longer breeds well. More likely, the high price of beef is too tempting.
"Dollar bill, dollar bill," hollers the auctioneer. A staccato blur of two-cent increments follows as fast as tractor pistons firing under load. Buyers sit motionless but for a few flickering hands, and 21 seconds later, the price is set at $1.30 a pound. It's half what finer cattle sell for, but double what similar cows fetched five years ago. Now the weight. The Jordan company, with its Thursday auction here in San Saba and on Mondays an hour away in Mason, is one of the biggest cattle sellers in the biggest cattle state. Its bidders, who supply McDonald's and Wendy's as well as posh steakhouses, like weigh-ups, where their experienced eyes must guess what the scale will say. Jordan will sell perhaps 1,100 head of cattle today for over $2 million. This cow comes in at 940 pounds, or $1,222.
Write to gareth.mcpherson@wsj.com
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02-13-26 0616ET
