MARKET WRAPS
STOCKS: U.S. stocks recovered from a couple of down sessions as oil prices fell on hopes for progress toward an agreement between the U.S. and Iran to open the Strait of Hormuz.
TREASURYS: The bonds selloff cooled down as the oil rally paused, but yields still ended the week at multi-year highs.
FOREX: The U.S. dollar pulled back following four straight sessions of gains.
COMMODITIES: Oil prices fell as investors assessed prospects for U.S.-Iran diplomacy aimed at reopening the Strait of Hormuz while keeping a measure of caution given continued Houthi threats to Saudi energy infrastructure.
HEADLINES
Trump Calls Xi Meeting 'Very Productive.' What Investors Might Not Like.
President Donald Trump said Friday he had a "very productive" meeting
with Chinese leader Xi Jinping and that he thought farmers would be
"really happy," but offered few details.
Trade Representative Jamieson Greer said in a television interview
Friday that details of what the two sides reached on trade would come
Monday.
Investors likely will be pleased to see signs of a fragile peace
between the two economic superpowers-and indications that the leaders
could meet at least twice more this year. But the lack of deals and a
shorter-than-expected extension of the rivals' latest truce leaves plenty
of uncertainty for markets in the months ahead.
Consumer Sentiment Ticked Lower in September
Consumer sentiment declined in September, according to the University
of Michigan's monthly survey, but the mood improved from the survey's
preliminary reading.
The survey's headline index landed at 48.1, versus 47.8 in its initial
September reading published earlier this month. That was still a decline
from August, when the reading was 51.7.
"Overall, interviews reveal broad agreement across the political
spectrum that the outlook for the economy has weakened since the
beginning of the year," the survey's director, Joanne Hsu, said. "After
particularly large declines in sentiment this month, Republican sentiment
is now 20% lower than January 2026; Democrats are down 13% over the same
period," Hsu said.
Durable Goods Orders Were Unchanged in August
Demand for U.S. durable goods was unchanged in August, according to
data published by the Commerce Department.
Total orders for durable goods-which comprise goods meant to last
three years or more-decreased $0.1 billion in August to $338.6 billion,
following a 0.9% July increase.
Economists polled by The Wall Street Journal had expected a decrease
of 0.3%.
Blackstone's Top Private-Equity Executive Is Preparing to Leave Firm
Blackstone's top private-equity executive, Joseph Baratta, is
preparing to leave the firm, according to people familiar with the
matter, the latest in a series of departures by senior leaders from the
private-investment giant.
Baratta, who has been with Blackstone for nearly three decades, has
been the firm's global head of private equity since 2012 and is one of
its most senior executives. He is also a Blackstone board member and part
of the firm's management committee. The exact timing of his departure
hasn't been determined, but it is likely to come around the end of this
year, the people said.
A spokeswoman for Blackstone confirmed Baratta's pending departure.
U.S. Appeals Court Upholds Pentagon Labeling Anthropic a Security Risk
WASHINGTON-A federal appeals court upheld the Defense Department's
decision to designate Anthropic a security risk, giving the Trump
administration a win in its complicated feud with one of the nation's top
artificial-intelligence developers.
The federal appeals court in Washington said in a 2-1 decision Friday
that the law giving the Pentagon the authority to deem a company a
supply-chain risk gave Defense Secretary Pete Hegseth the latitude to
take the action against Anthropic because the company's refusal to have
its AI tools used in mass surveillance or autonomous weapons could
undermine military operations.
"The Department had ample support for its conclusion that the
continued integration of Claude into the Department's information
systems, by the Department or its contractors, presented a statutorily
covered national-security risk," the court wrote.
Cracks in Oracle's AI Data-Center Build-Out Appear in Massive New Mexico
Project
Oracle set out last year to lease a massive AI data-center campus
being built in New Mexico's Doña Ana County, part of a blitz of deals to
create computing power for OpenAI.
The company made aggressive financial commitments for the facility in
contracts that allow it little wiggle room. Now, "Project Jupiter" is
mired in challenges over power supply and permitting and is fast becoming
a prime example of the risks in the tech giant's sprawling and expensive
artificial-intelligence gambit.
Oracle signed a lease for the New Mexico facility with so-called
hell-or-high-water terms, meaning the deal can't be terminated and Oracle
is obligated to make rent payments regardless of whether it has secured
the power to operate the data centers, according to people with knowledge
of the deal.
TALKING POINT AllianceBernstein Names Private Wealth Leader as Next CEO AllianceBernstein President Onur Erzan will succeed longtime CEO Seth Bernstein as chief executive on April 1, the investment management firm said on Friday morning. Bernstein will continue to serve on the company's board of directors.
In picking Erzan, AllianceBernstein is turning to an executive with experience in the wealth and asset management business. Erzan has overseen the company's Bernstein Private Wealth Management unit and striven to expand its offerings for ultrawealthy clients. He also played a key role in helping AllianceBernstein launch actively managed exchange-traded funds, according to the company.
Erzan joined AllianceBernstein in 2021 and assumed the role of president in January 2026, overseeing AllianceBernstein's private wealth management, global private alternatives and global asset management distribution businesses. Before joining AllianceBernstein, he spent 20 years at consulting firm McKinsey & Company, where he was a senior partner and co-leader of its wealth and asset management practice.
AllianceBernstein is a subsidiary of Equitable Holdings and had $919 billion in assets under management as of Aug. 31. Equitable Holdings CEO Mark Pearson cited Erzan's experience as a reason he is the right person for the job. "Since joining AB, he has helped shape the firm's strategy, expand its capabilities and position the business for continued growth," Pearson says.
TD Cowen analyst Bill Katz says the CEO transition appears "orderly." Katz expects greater focus on growing the company's private wealth management business and less chance of a sale to another company. He gives shares of AllianceBernstein a Hold rating.
Shares of AllianceBernstein were down 0.23% late Friday morning. The benchmark S&P 500 index was flat. AllianceBernstein's stock is down 8.19% this year compared with a 13% gain for the S&P 500.
Seth Bernstein will retire as CEO on March 31 after nearly a decade in the role. During his tenure, the company expanded beyond its traditional active public market asset management roots into alternative investments, private wealth, insurance asset management and retirement solutions. He also oversaw the company moving its headquarters to Nashville, Tenn., from New York.
--Andrew Welsch, Barron's
Expected Major Events for Monday 08:00/ITA: Aug Foreign Trade non-EU
14:30/US: Sep Texas Manufacturing Outlook Survey
23:01/UK: Sep Shop Price Monitor
23:50/JPN: Sep Provisional Trade Statistics for 1st 10 days of Month
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Expected Earnings for Monday ASA Gold & Precious Metals Ltd $(ASA)$ is expected to report for 3Q.
Eco (Atlantic) Oil & Gas Ltd (EOG.V) is expected to report for 1Q.
IDT Corp - Class B (IDT) is expected to report for 4Q.
Jefferies Financial Group Inc $(JEF)$ is expected to report $1.00 for 3Q.
Natural Alternatives International Inc $(NAII)$ is expected to report for 4Q.
NetSol Technologies Inc $(NTWK)$ is expected to report for 4Q.
Palatin Technologies Inc (PTN) is expected to report for 4Q.
ReposiTrak Inc (TRAK) is expected to report $0.09 for 4Q.
Trilogy Metals Inc (TMQ,TMQ.T) is expected to report $-0.02 for 3Q.
Vail Resorts Inc (MTN) is expected to report $-5.27 for 4Q.
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