MARKET WRAPS
STOCKS: Stocks rallied after a Federal Reserve governor laid out the case for keeping rates steady.
TREASURYS: Treasury yields fell after comments from Fed governor Christopher Waller.
FOREX: The U.S. dollar slid against rivals as traders reset rate expectations.
COMMODITIES: Oil futures rose slightly amid further clashes around the Strait of Hormuz.
HEADLINES
Nvidia Agrees to Buy AI Platform Hugging Face for $13 Billion
Nvidia has agreed to buy New York-based AI startup Hugging Face in a
deal worth roughly $13 billion, the latest acquisition by the chip giant
at the center of the artificial-intelligence boom.
The deal accelerates Nvidia's push to promote open-weight AI models
and services that challenge both proprietary models from big U.S. AI
companies and open models developed in China.
Unlike proprietary models developed by companies such as OpenAI and
Anthropic, open-weight models are public, enabling users to download,
customize and run them on their own or third-party hardware.
U.S. Failed to Give Assurances on Tariff Levels, Canada's Carney Says
OTTAWA-Any trade pact Canada strikes with the U.S. must ensure that
agreed-upon tariff levels on certain goods would not be subject to
change, Prime Minister Mark Carney said.
Those assurances weren't provided in talks last month, Carney said,
which then collapsed and triggered new U.S. tariffs on Canadian goods,
and proposed retaliatory tariffs from Ottawa set to take effect on
Tuesday.
"There needs to be some stability and credibility" in any future trade
pact, Carney told reporters at a press event in Thunder Bay, Ontario. He
said Canada sought assurances that agreed-upon tariffs on steel, aluminum
and automobiles wouldn't be subject to change. The U.S. and Canada had
tentatively agreed upon sharp reductions on existing tariffs covering
specific sectors, The Wall Street Journal reported.
Volkswagen Shakes Up U.S. Leadership Again After Steep Sales Declines
Volkswagen wants to make a fresh start in the U.S.-again.
The German automaker is shaking up its North American leadership for
the second time in less than two years after President Trump's tariff and
electric-vehicle policies collided with the company's plans for the
large, lucrative U.S. market.
Volkswagen said Wednesday that veteran company executive Marco
Schubert would take responsibility for its business in North America
starting in October. Current boss Kjell Gruner, who joined Volkswagen in
December 2024 after a stint at electric-vehicle startup Rivian, is
leaving the company, it said.
Fed's Waller Hints at September Rate Pause-If August Inflation Plays
Along
Federal Reserve Gov. Christopher Waller said Thursday that August
inflation data will heavily guide his decision on whether to raise or
keep interest rates steady at the upcoming September meeting. But he laid
out a compelling case for why cooling inflation could keep him on hold.
In prepared remarks for an event in Washington, D.C. on Thursday,
Waller said that while inflation is still "meaningfully" above the Fed's
2% target, he's seeing signs of cooling in recent data. That could push
him to vote to keep rates steady at the Federal Open Market Committee
meeting that takes place Sept. 15-16.
"If this [disinflation] continues in the data due over the next two
weeks, I would be inclined to support holding the target for the federal
funds rate at its current setting," Waller said, adding that his decision
hinges on what the August inflation data show.
Campbell's Cuts 13% of Workforce in Effort to Turn Around Struggling
Operations
Campbell's said it has cut more than 550 jobs, or roughly 13% of its
salaried workforce, as part of a cost-savings program that aims to turn
around the company's struggling operations.
The cuts came as the soup-and-snack maker swung to a loss in the
latest quarter, as higher costs pressured profitability and soft demand
hurt sales. The company said it expects both trends to persist over the
coming year.
"Our performance is not where it needs to be, and we are taking
decisive action to improve it," Chief Executive Mick Beekhuizen said on a
call with analysts.
U.S. Trade Deficit Widened in July
The U.S. trade deficit widened in July, according to data published by
the Commerce Department Thursday.
U.S. imports were higher than exports by $88.6 billion, versus $71.2
billion in June. Analysts polled by The Wall Street Journal were
expecting a $90 billion deficit.
The gap is the result of imports increasing 2.8% in July from the
previous month, to $399.3 billion, while exports decreased 2.1% to $310.7
billion.
Boeing's $8.4 Billion Deal Is Bleeding Red Ink
Boeing is reporting losses again, and some are less obvious than
others.
The aircraft maker posted a pretax loss of $339 million for the first
half of 2026, after briefly turning profitable last year thanks to asset
sales. That official figure, however, didn't fully capture Boeing's red
ink.
Last December, Boeing completed its biggest acquisition in years, when
it paid $8.4 billion to buy its longtime-and then visibly
struggling-fuselage supplier, Spirit AeroSystems. Since then, Boeing has
uncovered hundreds of millions of dollars in additional liabilities at
Spirit beyond what it initially recognized after the deal closed.
Ford's $30,000 EV Truck Sets Ambitious Goal: 100,000 Sales in Year One
Ford Motor is setting an ambitious sales target for its new electric
truck that has only been met by Tesla in the U.S.
The automaker aims to sell more than 100,000 of the trucks in its
first year of production, according to people familiar with the matter.
The truck, called the Ford Fathom, starts around $30,000 and will go on
sale next year. Ford is seeking mainstream sales not seen by its earlier,
more expensive electric vehicles.
The Fathom will be made on a built-from-scratch assembly line in
Louisville, Ky. Executives have said the truck will feature technology
designed to compete with Tesla and upstart Chinese automakers, with a
price tag similar to mainstream sedans and SUVs. Ford will begin taking
customer orders early next year.
TALKING POINT Why the Fear Gauge Still Isn't Flashing Red Despite the Market's Bond Woes
Elevated oil prices, a flare-up in inflation, and war in the Middle East ought to be a nasty combination for stocks. But Wall Street's go-to fear gauge suggests investors are still feeling Zen.
The Cboe Volatility Index, or VIX, was sitting at just over 15 early Thursday, implying traders expect daily swings of less than 1% for the S& P 500. Readings of below 20 tends to signal relatively low volatility.
That doesn't make sense. Soaring bond yields have put the market in panic mode lately, with the 10-year Treasury hitting its highest level since the start of President Donald Trump's second term in office.
So the VIX should be flashing red-but it isn't.
Part of the disconnect is down to the surge in popularity of exchange-traded funds that sell options. These keep a lid on the VIX, which measures uncertainty by tracking S&P 500 call and put contracts.
The fear index's subdued level may also reflect a sense of complacency after large-cap companies posted another batch of strong quarterly earnings, in part thanks to the boom in artificial-intelligence demand.
--George Glover, Barron's
Expected Major Events for Friday 02:00/JPN: Aug Imported Vehicle Sales
06:00/GER: Jul Manufacturing orders
06:00/GER: Jul Manufacturing turnover
08:00/UK: Aug UK monthly car registrations figures
08:00/ITA: Jul Retail Sales
08:30/UK: Aug S&P Global UK Construction PMI
08:30/UK: 2Q Bank of England external business statistics
12:30/US: Aug U.S. Employment Report
12:30/CAN: Aug Labour Force Survey
14:00/CAN: Aug Ivey Purchasing Managers Index
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday Bloomia Holdings Inc (TULP) is expected to report for 4Q.
Children's Place Inc $(PLCE)$ is expected to report $-0.90 for 2Q.
Fastenal Co (FAST) is expected to report.
Hurco Cos $(HURC)$ is expected to report for 3Q.
Southern Banc Co Inc (SRNN) is expected to report for 4Q.