OPENING CALL

Stock futures were lower Thursday as the AI rally lost steam while oil prices fell after three days of gains.

Nasdaq-100 futures were slipping following a fresh bout of artificial intelligence jitters in Asia, with chip makers struggling in premarket trade. TSMC posted its fifth straight quarter of record earnings

earlier today, but investors continue to question how long the AI boom will last.

Meanwhile, Brent crude was lower as the U.S. and Iran face a diplomatic gridlock, with fresh attacks and a naval blockade on Tehran's ports threatening a full-scale conflict.

Investors are now focusing on upcoming earnings from UnitedHealth and Netflix today, as a strong start to earnings season has helped propel stocks higher.

"Earnings should remain the key driver of performance for the remainder of the year... We expect another strong set of results in the coming weeks," UBS Global Wealth Management said.

Investors will also be tracking retail sales data for June to help gauge the strength of the U.S. economy. They are also awaiting some speeches by Fed officials for more cues into the monetary policy outlook following softer-than-expected inflation data

this week.

"Both CPI and PPI remain meaningfully above the Fed's 2% inflation target, facing fresh heat-up due to re-escalation of Middle East tensions, and continue to argue for relatively restrictive monetary policy," Swissquote said. "But the latest data buys time and investors like it."

Stocks to watch

Dell Technologies extended its decline in premarket trading following a double-digit drop yesterday, driven by mounting fears of an industry-wide AI overbuild.

Micron Technology, Marvell Technology, Intel, Advanced Micro Devices: U.S. semiconductor stocks continued to slide in premarket trading after a rough session yesterday.

Netflix: The streaming platform will release its second-quarter report after markets close.

Space Exploration Technologies dipped below their IPO price for the first time during yesterday's session. The stock today is ticking up premarket.

Taiwan Semiconductor Manufacturing's U.S.-listed shares fell ahead of the bell despite it posting its fifth consecutive quarter of record earnings.

UnitedHealth Group is scheduled to post its second-quarter results this morning, along with U.S. Bancorp and GE Aerospace.

Watch For:

U.S. Weekly Jobless Claims; U.S. Advance Monthly Sales for Retail & Food Services for June; Canada Housing Starts for June; GE Aerospace 2Q earnings; Netflix 2Q earnings; UnitedHealth Group 2Q earnings; FRB Dallas President Lorie Logan speaks in Houston

Today's Top Headlines/Must Reads:

- The AI Backlash Has Tech Executives Fearing for Their Lives

- Wall Street Traders Are Having Their Best Year Ever

- Trump's Man in Canada Practices a No-Holds-Barred Diplomacy

MARKET WRAPS

Forex:

The dollar edged higher, reversing some of its previous falls after June U.S. producer price data echoed Tuesday's below-forecast CPI figures.

The euro traded flat. The currency has limited scope to extend recent gains against the dollar unless there are clear signs of a de-escalation in the Middle East conflict, ING said.

Sterling was little moved

after data showed the economy grew 0.1% month-on-month in May as expected, with the focus on U.K. politics.

Bonds:

Treasury yields rose slightly in early trade, driven by the short end of the curve. The current and elevated level of tensions between the U.S. and Iran, alongside uncertainty over passing through the Strait of Hormuz safely, could reignite inflation concerns.

Energy:

In early trading, Brent crude was down 0.3%, while WTI futures were flat.

Metals:

Gold prices fell. "The near-term outlook for gold will hinge on whether higher oil prices feed through into U.S. inflation or remain a temporary geopolitical shock, with markets closely watching the Fed's response," MUFG said.

Iron

Iron ore fell in early trade. Chinese exports were likely to seasonally decline in July, easing iron ore supply pressures, Nanhua Futures said.

   TODAY'S TOP HEADLINES 

UnitedHealth Results Handily Beat Wall Street Expectations

UnitedHealth Group reported results well above analysts' expectations and substantially raised its earnings projection for the year, moves likely to bolster Wall Street's belief in the healthcare company's financial turnaround.

The announcement comes a little more than a year after Chief Executive Officer Stephen Hemsley returned to the top job, promising major changes after a financial meltdown.For the second quarter of 2026, UnitedHealth reported net income of $5.48 billion, or $6.04 a share. That compared with net income of $3.41 billion, or $3.74 a share, a year earlier.On the back of that strength, UnitedHealth raised its guidance for full-year adjusted earnings to a range of $19.50 to $20 a share, from a prior floor of $18.25. The FactSet consensus was $18.49.

Uber Agrees to Buy Delivery Hero in $14.8 Billion Deal

Uber Technologies said it agreed to acquire Delivery Hero in a deal that values the German company at $14.8 billion and brings together two of the world's biggest food-delivery platforms.

The agreement comes after the San Francisco-based company moved to buy into Delivery Hero in recent months, steadily increasing its stake until it became the largest shareholder and entered into takeover talks.

Publicis Raises Guidance, Citing New Business Wins

Publicis Groupe raised its annual guidance, saying new business wins give the company confidence in its ability to keep up momentum after top-line growth accelerated in the second quarter.

The French advertising group now expects net revenue to grow organically by between 4.5% and 5% in 2026, it said Thursday. The company had previously guided for organic growth in net revenue ranging from 4% to 5%.

Cyber M&A Heads for Record Year

Cybersecurity dealmaking is on pace for another banner year as companies race to snap up artificial-intelligence capabilities, a sign the technology is reshaping the industry faster than previous waves of innovation.

The sector recorded 219 mergers and acquisitions in the first half of 2026, putting it on track to surpass last year's 400 transactions, according to data from investment bank Momentum Cyber.

Evicting Wall Street From the Housing Market Will Be Messy

A new law aims to make Wall Street investors feel unwelcome in the market for existing homes, while at the same time urging them to build more supply. It is a tricky balancing act, and failure would push up rents.

Under the 21st Century ROAD to Housing Act, which passed into law last week despite President Trump's refusal to sign it, investors who already own more than 350 family homes can't buy any more from the existing housing stock. There are a couple of exceptions, however. One is to buy homes that need so much renovation that regular buyers don't want them. Another is when the tenant is offered a right to eventually own the house.

U.S. to Impose 25% Tariff on Certain Goods From Brazil

The U.S. is imposing a 25% tariff on certain Brazilian goods, following a yearlong investigation by trade officials into what they described as unfair trade practices.

The measure, which excludes Brazilian beef and coffee, was announced by the Office of the U.S. Trade Representative late Wednesday.

U.K. Economy Grows Slightly as High Energy Costs Continue to Weigh

The U.K. economy returned to growth in May on robust services-sector activity, but faces renewed uncertainty and the prospect of higher energy costs as the U.S. and Iran resumed hostilities around the Strait of Hormuz.

Gross domestic product grew 0.1%, rebounding from a decline of 0.1% in April, the Office for National Statistics said Thursday. Economists polled last week by The Wall Street Journal had also expected a 0.1% pickup.

Trump Leans Toward Expanding U.S. Military Operations in Iran

WASHINGTON-President Trump is leaning toward expanding U.S. military operations in Iran after days of briefings from top aides, U.S. officials said. Options include stepping up airstrikes, sending ground forces to seize Iranian islands near the Strait of Hormuz and bombing a fortified site that could be used for covert nuclear work.

Trump hosted a Situation Room meeting Tuesday evening to discuss the potential seizure of Kharg Island and other territory along the Strait of Hormuz using U.S. troops, as well as the potential bombing of a tunnel complex at Pickaxe Mountain, a nuclear-linked site the U.S. has yet to target. Expanding airstrikes against more targets in Iran, including energy sites, also remains a possibility.

Trump's Man in Canada Practices a No-Holds-Barred Diplomacy

OTTAWA-The July Fourth party at the U.S. ambassador's residence here normally draws a who's who of Canada's diplomatic, business and political circles. This year, Ambassador Pete Hoekstra's invite list stunned some Canadians.

Posing for photos at the Edwardian mansion was Tamara Lich, who is under house arrest for leading the 2022 demonstrations by truck drivers that blockaded Ottawa and several U.S.-Canada border crossings in protest of pandemic restrictions. In a social-media post from the party, Lich said she thanked Hoekstra for supporting the self-described "Freedom Convoy," which galvanized the MAGA right but paralyzed the capital for weeks.

Vance Ramps Up Criticism of Israel

WASHINGTON-Vice President JD Vance has accused elements of the Israeli government of being behind a campaign to shape U.S. public opinion about the war with Iran and undermine negotiations to end the conflict.

"There are some people within their system, we know beyond a shadow of a doubt, who are manipulating and trying to change American public opinion to keep the war going on indefinitely," Vance said in a three-hour conversation with the podcaster Joe Rogan this week. "Not toward any objective, but just indefinitely."

Iran Allows U.S. Citizen It Held for More Than a Year to Leave

DUBAI-Iran allowed an American citizen to go free after preventing her from leaving the country for a year and a half, a move President Trump called a gesture of good will amid a deepening standoff between the two foes.

Dena Karari, a dual citizen and U.S. resident who had been prevented from leaving Iran since visiting the country in December 2024, was safe and traveling back to the U.S., her lawyer Jared Genser said.

Write to priscila.barrera@wsj.com

TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators $(ET)$:

0815 Jun Housing Starts

Stocks to Watch:

Centerra Gold Announces Extension and Increase of Its Corporate Credit Facility

Champion Iron Appoints Michael Marcotte as Chief Financial Officer; Marcotte Most Recently Senior Vice-President of Corporate Development, Capital Markets; Appoints Steve Boucratie as Chief Legal, Strategy Officer; Boucratie Recently Senior Vice-President General Counsel, Corporate Secretary

Cogeco Communications 3Q Adj EBITDA CAD 351.5M; 3Q Free Cash Flow CAD 169.2M; 3Q Revenue CAD 696.7M; FactSet Est. CAD 700.6M; 3Q Net Loss CAD 1.7B; Reports 3Q Revenue of CAD 696.7 Million, Compared With FactSet Consensus of CAD 700.6 Million; 3Q Rev C$696.7M; 3Q Loss/Shr C$32.28; 3Q Adj EPS C$2.35; Raises Dividend to C$0.987 Vs. C$0.922; Backs FY26 Financial Guidelines

Exchange Income Government of Nunavut Has Decided Not to Exercise Their Equity Option for a Minority Interest in Canadian North

Fury Gold Mines Evacuates All Personnel From Its Eau Claire Camp in Northern Quebec, Due to Forest Fire in Vicinity; All Employees and Contractors Safely Evacuated; Does Not Currently Expect This Precautionary Suspension to Have a Material Impact on Previously Disclosed Phase 2 Drill Program at Eau Claire

Expected Major Events for Thursday

06:00/UK: May Index of production

06:00/UK: May UK trade

06:00/UK: May Index of services

06:00/UK: May Monthly GDP estimates

08:00/ITA: Jun CPI

08:30/UK: Apr Card Spending statistics

09:00/ITA: May Foreign Trade EU

11:30/UK: Jun NIESR Monthly GDP Tracker

12:15/CAN: Jun Housing Starts

12:30/US: Jun Advance Monthly Sales for Retail & Food Services

12:30/US: Jul Philadelphia Fed Business Outlook Survey

12:30/US: 07/11 Unemployment Insurance Weekly Claims Report - Initial Claims

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

13:00/RUS: Weekly International Reserves

14:00/US: May Manufacturing & Trade: Inventories & Sales

14:00/US: Jul NAHB Housing Market Index

14:00/US: Jun Pending Home Sales Index

14:30/US: 07/10 EIA Weekly Natural Gas Storage Report

20:30/US: Federal Discount Window Borrowings

20:30/US: Foreign Central Bank Holdings

23:01/UK: Jun Scottish Retail Sales Monitor

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Expected Earnings for Thursday

AMCON Distributing Co (DIT) is expected to report for 3Q.

Abbott Laboratories $(ABT)$ is expected to report $0.94 for 2Q.

Alcoa Corp $(AA)$ is expected to report $2.32 for 2Q.

Ames National Corp $(ATLO)$ is expected to report $0.65 for 2Q.

BancFirst Corp $(BANF)$ is expected to report $1.80 for 2Q.

Bank of South Carolina Corp (BKSC) is expected to report for 2Q.

Bank7 Corp (BSVN,GMAR.XX) is expected to report $1.04 for 2Q.

Cass Information Systems Inc $(CASS)$ is expected to report $0.72 for 2Q.

Citizens Financial Group Inc (CFG) is expected to report $1.24 for 2Q.

Cohen & Steers Inc $(CNS)$ is expected to report $0.88 for 2Q.

FNB Corp $(FNB)$ is expected to report $0.42 for 2Q.

First Financial Bankshares Inc (FFIN) is expected to report $0.51 for 2Q.

GE Aerospace $(GE)$ is expected to report $2.00 for 2Q.

Hingham Institution for Savings $(HIFS)$ is expected to report for 2Q.

Independent Bank Corp $(INDB)$ is expected to report $1.78 for 2Q.

Insteel Industries Inc $(IIIN)$ is expected to report $0.29 for 3Q.

Intuitive Surgical Inc $(ISRG)$ is expected to report $2.27 for 2Q.

ManpowerGroup $(MAN)$ is expected to report $0.86 for 2Q.

Netflix Inc $(NFLX)$ is expected to report $0.79 for 2Q.

Oak Valley Bancorp $(OVLY)$ is expected to report for 2Q.

Platinum Group Metals Ltd (PLG,PTM.T) is expected to report for 3Q.

Prologis Inc $(PLD)$ is expected to report $0.78 for 2Q.

Simmons First National Corp - Class A (SFNC) is expected to report $0.52 for 2Q.

Somero Enterprises Inc (SOM.LN) is expected to report for Interim.

State Street Corp $(STT)$ is expected to report $3.30 for 2Q.

US Bancorp $(USB)$ is expected to report $1.28 for 2Q.

UnitedHealth Group Inc $(UNH)$ is expected to report $4.64 for 2Q.

Vizsla Silver Corp (VZLA.T) is expected to report for 4Q.

WaFd Inc $(WAFD)$ is expected to report $0.82 for 3Q.

Westamerica Bancorp $(WABC)$ is expected to report $1.10 for 2Q.

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ANALYST RATINGS ACTIONS

AIG Cut to Neutral From Overweight by Piper Sandler

Allstate Cut to Neutral From Buy by UBS

Arthur J Gallagher & Co Raised to Overweight From Neutral by Piper Sandler

CAVA Group Raised to Overweight From Equal-Weight by Morgan Stanley

Chefs' Warehouse Cut to Equal-Weight From Overweight by Morgan Stanley

CNX Resources Raised to Hold From Sell by Truist Securities

Digital Realty Raised to Buy From Neutral by Guggenheim

Element Solutions Cut to Neutral From Outperform by Mizuho

GQG Partners Downgraded to Sell from Neutral by Goldman Sachs

Hanover Insurance Cut to Neutral From Overweight by Piper Sandler

Hartford Insurance Cut to Neutral From Overweight by Piper Sandler

Loar Holdings Cut to Equal-Weight From Overweight by Morgan Stanley

Nextracker Raised to Buy From Neutral by Guggenheim

PayPal Shares Surge Premarket on Reports of $53 Billion Takeover Offer

TransDigm Cut to Equal-Weight From Overweight by Morgan Stanley

Travelers Cut to Underweight From Equal-Weight by Morgan Stanley

Universal Insurance Cut to Neutral From Overweight by Piper Sandler

Voyager Technologies Cut to Underweight From Equal-Weight by Morgan Stanley

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

(END) Dow Jones Newswires

July 16, 2026 06:03 ET (10:03 GMT)

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