OPENING CALL

Stock futures rose on Wednesday on optimism around trade talks with China.

Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are slated to meet with Chinese officials for the first time since a trade war began.

And at the Federal Reserve's meeting today investors will focus on Powell's language on inflation risks , especialy as new projections for economic activity and policy won't be released, according to Lazard.

Stocks to Watch:

Advanced Micro Devices reported better-than-expected earnings and guided for higher revenue. Shares rose 2.5%.

Electronic Arts logged higher profit and revenue, while guiding for the upcoming launch of a new game in its Battlefield franchise to drive results in the current fiscal year. Shares climbed 5.4%.

Sarepta Therapeutics cut its full-year outlook, citing significant pressures hurting the broader biotech market. Shares fell 21%.

Super Micro Computer cut its sales outlook for fiscal 2025, citing short-term impacts of heightened economic uncertainty and tariffs that prompted some customers to delay orders. Shares fell 5.6%.

WW International filed for bankruptcy to adjust to the increasing use of drugs like Ozempic for weight loss. Shares tumbled 51%

Watch For:

Fed Interest Rate Decision, EIA Weekly Petroleum Status Report, Earnings from Walt Disney Co.

Today's Headlines/Must Reads:

-China Lowers Rates and Makes Bank Lending Easier in Response to Tariffs

-Beware, Investors: The Recent Stock Rally is Based on an Unknown Outcome After Trump's 90-Day Tariff Pause

-Global Shipping Is Grinding to a Standstill. It's a Matter of Time Until Americans Feel It.

MARKET WRAPS

Forex:

The dollar edged higher.

"The trade war was supposed to boost demand for the safe-haven dollar, but that didn't happen," Swissquote Bank said.

The Fed was likely to wait and see how trade negotiations unfold and the impact of tariffs on growth and inflation before cutting rates, it said.

Commerzbank said skepticism was appropriate over Merz's fiscal stimulus plans and therefore with regard to the euro.

Sterling could strengthen on optimism over U.K. trade deals and improving U.K.-EU relations, ING said.

The U.K. and India announced a trade deal on Tuesday and speculation is rising that a U.S.-U.K. agreement could be reached this week.

The May 19 U.K.-EU summit could also result in warming post-Brexit relations, it added.

Bonds:

Treasury and eurozone government bond yields were little changed as investors stayed sidelined ahead of the Fed's policy meeting.

"The U.S. central bank is expected to keep rates steady and signal no intent to break the deadlock any time soon," KBC Bank said.

Morgan Stanley said longer-dated Treasurys were worth buying after their falls last month which took yields sharply higher.

Treasurys were still a safe-haven investment.

"If the U.S. economy is slowing due to tariffs, and recession risks are rising, we then believe longer duration U.S. Treasurys have both outright and hedging value to investors."

Energy:

Oil prices rose.

"News that the US and China will start trade talks this weekend has Brent crude trading higher, extending a relief rally in oil yesterday," ING said.

"Yet while negotiations would help improve sentiment in the oil market, we'll need to see significant progress on lowering tariffs to improve the demand outlook."

Metals:

Gold futures slipped on rising optimism a China trade deal.

Gold's safe-haven status is still well-supported amid lingering geopolitical instability, an uncertain trade environment and expectations for rate cuts later this year, XS.com said.

As such, a pullback in gold prices following a sharp rally was natural and necessary, allowing prices to consolidate near-term before resuming a clearer trend, it added.

TODAY'S TOP HEADLINES

Novo Nordisk Cuts Guidance as Copycat Versions of Ozempic Hit Sales

Novo Nordisk lowered its full-year guidance as copycat versions of its blockbuster weight-loss and diabetes drugs in the U.S. hold back sales of its branded treatments.

The Danish company's sales have been hit by alternative compounded versions of its Ozempic and Wegovy drugs, particularly in the U.S., a practice the U.S. Food & Drug Administration has allowed while supplies of Novo Nordisk's treatments have been in short supply.

TikTok Assures Advertisers It's 'Confident in the Future'

TikTok tried to persuade advertisers of its confidence in the platform's future in the U.S. during its sales presentation to marketers in New York City on Tuesday.

"If there's one thing I want you to take away, it is that we are absolutely confident in our platform and confident in the future of this platform, so we're going to continue to invest in it," Khartoon Weiss, vice president of global business solutions at TikTok, said during the event, where the company wooed the crowd with cucumber canapés, cocktails and jokes from MC Hasan Minhaj.

IonQ and D-Wave Quantum Report Earnings Soon. What to Expect.

A string of earnings reports from quantum computing companies this week should help investors who are still waiting to see whether they are financing a technological revolution or hedging their bets on a mirage.

Kicking off the earnings period is IonQ on Wednesday, followed by D-Wave Quantum on Thursday and Rigetti Computing on May 12.

Proxy Firms Split on Harley-Davidson Board Shake-Up

Influential proxy advisory firms recommended divergent paths for Harley-Davidson investors ahead of a shareholder vote that could shape the motorcycle maker's future.

ISS said in a report this week that an activist investor, H Partners, hasn't made a compelling case to remove three members of Harley's board, each of whom has served for at least 17 years. They are Chairman Jochen Zeitz, who is also the company's chief executive, and directors Thomas Linebarger and Sara Levinson.

Trump Is Threatening Big Pharma With Tariffs. Tax Changes Might Work Better.

No matter how high President Trump cranks up tariffs, many industries are never coming back to the U.S. For industries that require cheap labor such as apparel and toys, bringing that production to Pennsylvania or Ohio just doesn't make sense.

For pharma, an industry in which gross margins are among the highest in the S&P 500, labor was never really the reason for moving offshore to places like Ireland-it was always about playing the global tax game.

As U.S. Turns Its Back on Free Trade, Other Countries Double Down

The U.S. is backing away from free trade under President Trump, but much of the rest of the world is not.

Since Trump's election there has been a flurry of activity as countries across the globe attempt to deepen trade ties, hoping to offset some of the pain from U.S. tariffs by trading more with one another.

Who Pays For Tariffs? 'It's a Very Complicated Question,' Treasury Secretary Scott Bessent Says.

Treasury Secretary Scott Bessent appeared before the House Financial Services and General Government Subcommittee in Washington, D.C., on Tuesday to defend the Trump administration's economic policies, including his broad trade tariffs and extending his 2017 tax cuts.

At one point, Rep. Mark Pocan (D., Wisc.) tried unsuccessfully to get Bessent to answer the question: "Who pays tariffs?"

India Launches Military Strikes Against Pakistan

India said it conducted military strikes on nine sites in Pakistan in retaliation for a deadly militant attack on tourists in Kashmir, intensifying a confrontation between the nuclear-armed neighbors.

Pakistan's army spokesman, Ahmed Sharif Chaudhry, said 26 people were killed and 46 injured.

Tax Bill Imperiled by Trump's Loud Republican Critic

WASHINGTON-Rep. Don Bacon has become known as a rare House Republican who regularly criticizes President Trump's actions. Now his vote could be crucial to Trump's tax plans.

The Nebraska centrist is warning that House GOP leaders are putting battleground members like him in a particularly precarious political position-and imperiling the GOP majority in the next elections-if they opt to make deep cuts to Medicaid to help pay for the president's "big, beautiful" bill that extends 2017 tax cuts and add new breaks.

Disgraced Ex-Goldman Partner Sought by Malaysia for Extradition in 1MDB Scandal

Malaysia is seeking to extradite former Goldman Sachs partner Tim Leissner, a sign that the fallout from the more-than 10-year-old 1MDB scandal isn't over for the Wall Street giant.

Malaysia's government submitted an extradition request for Leissner to the U.S. Justice Department last August, according to people familiar with the matter and a document reviewed by The Wall Street Journal.

Write to nina.kienle@wsj.com

TODAY IN CANADA

Earnings:

N Plus Inc. 1Q

irBoss of Amer 1Q

llied Gold 1Q

ris Mining Corp 1Q

ATCO Ltd. 1Q

ATCO Ltd. 1Q

B2Gold Corp. 1Q

Barrick Gold 1Q

Calibre Mining 1Q

Canadian Utilities 1Q

CCL Indus 1Q

CCL Indus 1Q

Dayforce Inc. 1Q

Equinox Gold 1Q

Exro Tech. 4Q

First Maj Silver 1Q

Fortis Inc. 1Q

Fortuna Mining 1Q

goeasy Ltd. 1Q

Great-West Lifc 1Q

iA Fincl Corp 1Q

Kinaxis Inc. 1Q

Kits Eyecare 1Q

kneat.com Inc. 1Q

Labrador Iron Ore 1Q

Linamar Corp 1Q

Lundin Mining 1Q

Manulife Fincl 1Q

OceanaGold 1Q

Osisko Gold Rylts 1Q

Pan Amer Silver 1Q

Premium Brands 1Q

RB Global Inc. 1Q

Sandstorm Gold 2Q

Stella-Jones Inc. 1Q

SunOpta Inc. 1Q

Tantalus Sys 1Q

TerraVest Ind. 2Q

Torex Gold Rscrs 1Q

Tourmaline Oil 1Q

TransAlta Corp 1Q

WELL Health 1Q

WSP Global Inc 1Q

Economic Indicators $(ET)$:

None

Stocks to Watch:

Akita Drilling 1Q Rev C$65.1M, 1Q EPS C$0.22

Apotex to Expand Licensing Agreement With Formosa Pharmaceuticals to Mexico for Clobetasol Propionate Ophthalmic Suspension for Treatment of Inflammation and Pain After Ocular Surgery

(MORE TO FOLLOW) Dow Jones Newswires

May 07, 2025 09:08 ET (13:08 GMT)

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