OPENING CALL

Stock futures were pointing to losses early on Monday after the S&P 500 notched its longest winning streak in more than 20 years last week.

Trump on Sunday described the country as being in a transition period and left open the possibility of an economic downturn.

"Anything can happen," he said when asked if a recession could happen.

Oil prices slumped after OPEC+ and its allies agreed to a larger output hike for a second straight month despite weak prices and an uncertain demand outlook.

Investors will be looking toward Powell's remarks on Wednesday, following a two-day meeting of the Fed's rate-setting committee.

Stocks to Watch:

Berkshire Hathaway shares fell 2% premarket after Warren Buffett said he plans to step down at year-end.

Microsoft shares fell 1.1%

MicroStrategy shares fell more than 2%.

Warner Bros. Discovery, Netflix, Walt Disney and Paramount all fell nearly 3% after Trump's plans for 100% tariffs on foreign-made films weighed on shares.

Watch For:

ISM Report on Business Services PMI for April; Earnings from Palantir Technologies, Ford Motor, Vertex Pharmaceuticals, Cummins, Diamondback Energy, BioNTech, Tyson Foods, Clorox, and ON Semiconductor.

Today's Headlines/Must Reads:

-What Big Tech Earnings Taught Us-and Didn't-About Tariffs

-Corporate America Is Leaving More Jobs Unfilled

-How Bad Is China's Economy? The Data Needed to Answer Is Vanishing

MARKET WRAPS

Forex:

The dollar fell.

The Fed is expected to keep rates unchanged, although it could flag the prospect of rate cuts in the coming months if the economy weakens, Swissquote said.

The ISM report on services activity should give hints on how the economy is faring.

Asian currencies were higher versus the dollar amid hopes for China trade talks after Trump signaled he was open to lowering tariffs on imports from China.

Bonds:

Treasurys and eurozone bonds were steady, helped by falling oil prices.

However, yields remain close to Friday's higher levels after stronger-than-expected jobs data damped rate-cut expectations.

Bond markets were likely to consolidate ahead of Wednesday's Fed decision, Commerzbank said.

Energy:

Brent crude could dip below $50 a barrel by the end of the year if OPEC+ continues to accelerate production hikes, DNB Markets said.

It estimated excess supply of around 1.3 million barrels a day in the second half and around 1.7 million barrels a day in 2026.

Metals:

Gold futures rose on a weaker dollar.

Economic data on Friday showed buoyant hiring, suggesting the economy was relatively robust despite trade pressures, ANZ said.

This might keep the Fed wary of cutting interest rates in the short term.

Early signs of a thawing in China trade relations also triggered a rally in the dollar, further curbing appetite for gold from investors, it added.

TODAY'S TOP HEADLINES

Santander to Sell Poland Assets to Austria's Erste Group for $7.9 Billion

Banco Santander agreed to sell most of its Polish assets to Austria's Erste Group Bank for 7 billion euros ($7.91 billion), continuing a wave of dealmaking among European lenders.

Spain's Santander, the biggest bank of the eurozone by market value, has taken steps in recent years to bolster its presence in the U.S. and the Americas, shifting away from Europe.

Audi Says Guidance Remains in Place, But Excludes Tariff Impact

Audi backed its full-year financial forecasts, but said the difficulty in gauging the impact of tariffs means the guidance doesn't include any potential hit from the duties.

The German company joins a growing list of automakers who in recent weeks have inserted similar caveats in their financial outlooks as they struggle to get a grip on U.S. President Trump's dynamic trade policy.

Gold Fields to Buy Australia's Gold Road for Roughly $2.4 Billion

Australia's Gold Road Resources agreed to a sweetened US$2.4 billion takeover by South Africa's Gold Fields, after rejecting an earlier bid amid surging gold prices.

Gold Fields approached its joint-venture partner in the Gruyere gold mine in Western Australia in March with a US$2.1 billion takeover proposal, but Gold Road's directors rejected that offer as highly opportunistic and materially undervaluing the company.

To Win Monopoly Fight, Meta Is Touting a Rival: TikTok

WASHINGTON-Weeks into an antitrust trial that threatens the future of Meta Platforms' social-media empire, the company's best bet for a court victory might lie with one of its rivals: TikTok.

The Federal Trade Commission is seeking to break up Meta, alleging that it wields an illegal monopoly originally built more than a decade ago through Facebook's acquisitions of Instagram and WhatsApp. To prevail, the agency needs to show not only that Meta engaged in unlawful monopolization, but also that its dominance hasn't waned since. That is where TikTok comes in.

Trump's Tariffs Are Lifting Some U.S. Manufacturers

Some small and midsize U.S. manufacturers are seeing an uptick in orders from companies looking to avoid paying new tariffs, stoking hope that the levies might boost their businesses over the longer-term.

Trump's tariffs have disrupted global trade and the American economy. Yet those same new rules are making these manufacturers' goods more price competitive with imports for the first time in years, they say.

What Recession? Stock Investors Expect the Good Times to Continue

Wall Street's best forecasters have been warning that tariffs could spark a recession. Goldman Sachs puts the chances at 45% in the next 12 months. Apollo Global Management's top economist recently pegged it at 90%.

Someone forgot to tell stock traders. The market is roaring ahead, despite those gloomy predictions, as investors put their faith in solid economic data including Friday's jobs report, and bank on a swift de-escalation of President Trump's global trade war.

Kim Jong Un's Latest Gift to Russia Is Migrant Workers

In their deepening alliance, North Korean leader Kim Jong Un has helped Russian President Vladimir Putin withstand the pressure of the Ukraine war by sending him soldiers and arms.

The latest gift from Kim: workers.

Ukrainian Naval Drones Shoot Down Russian Jets in Military First, Kyiv Says

KYIV-Ukraine said it downed two Russian jet fighters using sea drones equipped with modified U.S.-made missiles, in what military officials in Kyiv said is the first such attack in the history of warfare.

Magura-7 sea drones deployed by Ukraine's military-intelligence agency, known as HUR, fired the missiles at two Su-30 jets that were flying near the Russian Black Sea port of Novorossiysk, HUR said.

Yemen's Houthis Strike Israel Near Main Airport

TEL AVIV-Yemen's Houthi rebels launched a ballistic missile that struck near Israel's main airport on Sunday, marking a rare hit of a significant target by the group, which has fired dozens of missiles since Israel's war on Hamas began, hours ahead of a vote by Israel's cabinet that approved plans to expand ground operations in Gaza.

A spokeswoman for Israel's Airports Authority said the missile landed in a parking lot close to Terminal 3, Ben Gurion Airport's main thoroughfare. Earth exploded by the impact could be seen coating roads near the airport in photos released by emergency services. CCTV footage from the airport verified by Storyful, which is owned by News Corp, the parent company of The Wall Street Journal, showed a big plume of black smoke and dust rising from the area struck by the missile.

Write to nina.kienle@wsj.com

TODAY IN CANADA

Earnings:

Ag Growth Intl Inc. 1Q

Dream Impact 1Q

Ero Copper Corp. 1Q

Gibson Energy Inc. 1Q

Parkland Corp 1Q

Timbercreek Fncl. 1Q

TMX Grp Ltd. 1Q

Topaz Energy 1Q

Wajax Corp. 1Q

Economic Indicators $(ET)$:

0815 Apr Official International Reserves

0930 Apr Canada Services PMI

Stocks to Watch:

*Capstone Copper Price Target Cut 3% to A$11.60/Share by Macquarie

*Li-Cycle Extends Waiver With Glencore Related to Convertible Notes to May 5

*Psyence Biomedical Ltd. (PBM) Halted due to pending news

*Westshore Terminals Investment Corp. CEO William Stinson to Retire Effective as of Annual Meeting, Glenn Dudar Will Become CEO, Dallas Ross Will Be Chair, Names Angela Morfitt as Next CFO

Expected Major Events for Monday

06:00/RUS: Apr Russian Manufacturing PMI

12:15/CAN: Apr Official International Reserves

13:00/RUS: Weekly International Reserves

13:30/CAN: Apr Canada Services PMI

13:45/US: Apr US Services PMI

14:00/US: Apr ISM Report On Business Services PMI

14:00/US: Apr Employment Trends Index

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

Expected Earnings for Monday

Alexander's Inc $(ALX)$ is expected to report for 1Q.

Angel Oak Mortgage REIT Inc $(AOMR)$ is expected to report $0.31 for 1Q.

Ares Management Corp $(ARES)$ is expected to report $0.97 for 1Q.

Axsome Therapeutics Inc $(AXSM)$ is expected to report $-1.31 for 1Q.

BioCryst Pharmaceuticals Inc $(BCRX)$ is expected to report $-0.07 for 1Q.

CF Bankshares Inc $(CFBK)$ is expected to report for 1Q.

CNA Financial Corp $(CNA)$ is expected to report $1.03 for 1Q.

Cummins Inc $(CMI)$ is expected to report $4.85 for 1Q.

Enservco Corp (ENSV) is expected to report $0.04 for 4Q.

Entrada Therapeutics Inc $(TRDA)$ is expected to report $-0.79 for 1Q.

Escalade Inc $(ESCA)$ is expected to report for 1Q.

Exagen Inc (XGN) is expected to report $-0.21 for 1Q.

Foghorn Therapeutics Inc $(FHTX)$ is expected to report $-0.32 for 1Q.

Freshpet Inc (FRPT) is expected to report $0.05 for 1Q.

Henry Schein Inc $(HSIC)$ is expected to report $0.86 for 1Q.

Hycroft Mining Holding Corp $(HYMC)$ is expected to report for 1Q.

Integra LifeSciences Holdings Corp $(IART)$ is expected to report $0.02 for 1Q.

J&J Snack Foods Corp $(JJSF)$ is expected to report $0.55 for 2Q.

JBT Marel Corp $(JBTM)$ is expected to report $-3.40 for 1Q.

KVH Industries Inc $(KVHI)$ is expected to report $-0.04 for 1Q.

LiveOne Inc (LVO) is expected to report $-0.04 for 4Q.

Loews Corp (L) is expected to report $0.72 for 1Q.

Lyell Immunopharma Inc $(LYEL)$ is expected to report $-0.20 for 1Q.

NAPCO Security Technologies Inc (NSSC) is expected to report $0.27 for 3Q.

ON Semiconductor Corp $(ON)$ is expected to report $0.45 for 1Q.

Ocular Therapeutix Inc (OCUL) is expected to report $-0.29 for 1Q.

Park Hotels & Resorts Inc $(PK)$ is expected to report $0.03 for 1Q.

RLJ Lodging Trust (RLJ) is expected to report $-0.05 for 1Q.

Recursion Pharmaceuticals Inc $(RXRX)$ is expected to report $-0.39 for 1Q.

Spirit Airlines Inc (SAVEQ) is expected to report $-1.35 for 1Q.

Stoke Therapeutics Inc $(STOK)$ is expected to report $0.46 for 1Q.

TG Therapeutics Inc $(TGTX)$ is expected to report $0.17 for 1Q.

TVI Pacific Inc (TVI.V,TVIPF) is expected to report for 4Q.

TX Rail Products Inc $(TXRP)$ is expected to report for 2Q.

Trevena Inc $(TRVN)$ is expected to report for 4Q.

Twist Bioscience Corp (TWST) is expected to report $-0.58 for 2Q.

Tyson Foods Inc - A Share $(TSN.AU)$ is expected to report $0.78 for 2Q.

Vigil Neuroscience Inc $(VIGL)$ is expected to report $-0.52 for 1Q.

Zimmer Biomet Holdings Inc $(ZBH)$ is expected to report $0.87 for 1Q.

iRadimed Corp $(IRMD)$ is expected to report $0.38 for 1Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Airbnb Cut to Neutral From Outperform by Wedbush

Apple Cut to Neutral From Buy by Rosenblatt

Apple Cut to Underperform From Hold by Jefferies

Arvinas Cut to Hold From Buy by Jefferies

Becton Dickinson Cut to Neutral From Overweight by Piper Sandler

Block Cut to Equal-Weight From Overweight by Wells Fargo

Block Cut to Hold From Buy by Benchmark

Block Cut to Neutral From Buy by Seaport Global

Block Cut to Neutral From Overweight by Piper Sandler

Cable One Cut to Sector Weight From Overweight by Keybanc

FTAI Aviation Raised to Buy From Hold by Stifel

iRhythm Technologies Raised to Overweight From Equal-Weight by Wells Fargo

Northfield Bancorp Raised to Overweight From Neutral by Piper Sandler

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

(END) Dow Jones Newswires

May 05, 2025 06:26 ET (10:26 GMT)

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