North American Morning Briefing: Stock Futures, Bitcoin Rise Ahead of Trump Inauguration

OPENING CALLStock futures rose on Friday and both the Dow industrials and S&P 500 looked set for their largest weekly gain since the presidential election, when Donald Trump's victory sent stocks soaring.Among the gainers were chip makers and cryptocurrency stocks, with the latter helped by bitcoin 's resurgence above $100,000.Overseas, indexes in China edged higher after the country said its economy expanded 5% last year , following a barrage of stimulus.In Europe, the U.K. pound and bond yields weakened after disappointing retail-sales data .Premarket MoversApple was up 0.6% after dropping 4% on Thursday. The company fell to third place in terms of market share in China, according to data from research firm Canalys, as domestic manufacturers took advantage of Apple's lack of artificial-intelligence features available on phones purchased in the country.Cloudflare rose 3.4% after Citi analysts upgraded shares of the cloud computing company to Buy from Neutral and raised their price target on the stock to $145 from $95.MoonLake Immunotherapeutics was rising 4.9% after Goldman Sachs upgraded the stock to Buy from Neutral with a price target of $82.Plug Power gained 2.9% after it closed a $1.66 billion loan guarantee from the Energy Department, which the company said would be used to construct up to six U.S. projects to produce and liquify zero- or low-carbon hydrogen.Rivian Automotive said it closed a loan agreement with the U.S. Department of Energy for up to $6.6 billion to support construction of a new manufacturing facility in Georgia. Shares rose more than 3% premarket.Activist investor Starboard Value has built a 7.7% stake in chip maker Qorvo, WSJ reported. Qorvo's shares rose in off-hours trading. Other chip makers also gained, with Nvidia and Broadcom each rising more than 1%.Postmarket MoversJ.B. Hunt Transport Services defied a weak U.S. freight market to post a higher profit in the fourth quarter, although overall revenue fell as lower revenue per load more than offset volume gains. Shares fell 9.3%.Nukkleus said it regained Nasdaq compliance and will continue to be listed and traded on the exchange. Shares rose 48%.Versus Systems said it plans to expand its operations to Brazil. Shares rose 31%.Watch For:Housing Starts for December; Industrial Production and Capacity Utilization for December; Earnings from State Street, Regions Financial, Citizens FinancialToday's Top Headlines/Must Reads:- Trump's Own Plans Stand in the Way of Repeating His Economic Success- Trump Could Kick Off the Trade War Next Week. Why Markets Might Not Be Ready.- Meta Going Down Twitter's Path Won't End the Same Way- Inside the Early Days of DOGEMARKET WRAPSForex:The dollar rose, rebounding slightly after recent falls. Investors are looking ahead to Trump's inauguration on Monday and the prospect of tariffs and growth-boosting measures such as tax cuts.These are expected to be inflationary and should boost the dollar. "For now, the dollar may stay in a holding pattern, retaining its overvaluation against some tariff-sensitive currencies," ING said."Despite stretched positioning and short-term overvaluation, the dollar continues to dodge true catalysts for a correction." Trump could spark volatility in currencies next week, ING said.Sterling weakened against the dollar and euro after data showed U.K. retail sales unexpectedly fell.December is typically a good month for retailers due to the Christmas period and these figures could increase the likelihood of an interest-rate cut by the Bank of England next month."Despite the festive season, consumers tightened their belts, with ongoing financial pressures and caution around the cost of living weighing heavily on spending," Ebury said.Meanwhile, falling bond yields, prospects of more interest-rate cuts by the ECB and concerns about high debt levels in many eurozone countries are likely to keep the euro under pressure, Swissquote Bank said.Traders are looking to sell the euro at levels above $1.0300, it added.Bonds:Reactions to the latest jobs and inflation reports show how sensitive the Treasury market is to macro data, SEB Research said."With the Fed likely on hold for some time, volatility looks set to continue for months to come."SEB Research sticks to its end-2025 forecast of 4.75% for the 10-year Treasury yield.Additionally, SEB Research said that as federal debt is projected to increase significantly relative to GDP in the coming years, there could be structural pressure for a continued rise in the term premium."Over time this will result in bond yields, especially longer tenors, rising by more than would be justified by short rate expectations alone."That said, SEB Research forecasts short-rate expectations, rather than the risk premium, to remain the primary driver of long yields through 2025.Energy:Oil prices were on track for weekly gains of more than 2%, boosted by supply disruption concerns following the latest round of U.S. sanctions against Russia."From a technicals point of view, the market is in overbought territory and so overdue a correction," ING said."However, mounting supply risks continue to provide broad support to oil prices." The market now awaits the return of Trump to the White House for more clarity on trade tariffs and potential sanctions on Iran and Venezuela.Trump's Treasury Secretary pick Scott Bessent said he would support tightening sanctions against Russia, especially on oil majors, in an effort to end the war in Ukraine.Metals:Gold futures slipped, but remained up on week. Despite the downward correction early in the session, the precious metal looked set to end the week up 0.8%.This reflects a combination of safe-haven demand ahead of Trump's inauguration and U.S. economic data sparking some renewed optimism for monetary policy easing, market watchers said.That said, gold's potential gains have been capped by continued dollar strength over the past week, BMI said.In the near term, BMI is bearish toward bullion, and expects spot gold to average $2,500 in 2025 amid a stronger dollar and a more hawkish Federal Reserve.TODAY'S TOP HEADLINESGoogle Search Is Doing Fine. Alphabet May Still Be in Trouble.Alphabet has become something of a battleground stock. The skeptics maintain that Google Search will inevitably lose market share to artificial intelligence, with some seeing the search disruption already playing out in the form of AI search engines like Perplexity.In a November Barron's cover story, my colleague Al Root made a compelling argument pushing back against those bears, providing multiple reasons why Google was unlikely to lose its dominant share of the search market anytime soon, thereby protecting the most important part of its $258 billion in annual ad sales.SpaceX Starship Spacecraft Explodes During Test FlightAn uncrewed vehicle operated by SpaceX exploded during a test flight on Thursday, temporarily disrupting air travel as pieces of it streaked across the sky.SpaceX launched its Starship rocket from a company site in Texas a little after 5:30 p.m. ET, the company's seventh mission of a powerful-but-still-experimental vehicle that consists of a booster that propels a spacecraft stacked on top.Nintendo Shares Slump as Switch 2 Announcement UnderwhelmsNintendo shares fell sharply after the company said the much anticipated successor to its Switch console will go on sale later this year, disappointing investors with a lack of specifics and a design that feels more like an update than a reinvention.Shares had closed at a new record on Thursday ahead of the Switch 2 announcement, building on the 26% gain last year amid growing expectations for the new hardware. On Friday, the stock fell as much as 7.2% before paring losses to close 4.3% lower at 9,181 yen, equivalent to $59.15. That was its biggest one-day percentage drop since end-September.Trump May Privatize Fannie Mae and Freddie Mac. What It Means for Shareholders and Homeowners.Wall Street has a pitch for Donald Trump: Cement your place in history as the "Art of the Deal" president with your biggest deal ever.Hedge fund managers like Bill Ackman have built huge stakes in Fannie Mae and Freddie Mac, betting the government-sponsored entities will be privatized by the president-elect at some point in his second term. Trump has said he wants to do it. Now that he's taking office, some investors are betting it's just a matter of time and ironing out the details.Israel Says Gaza Deal Reached, Putting Cease-Fire Back on TrackIsraeli Prime Minister Benjamin Netanyahu said negotiators have reached an agreement on a cease-fire in the Gaza Strip that would free Israeli hostages, ending two days of debate that had underscored the pact's fragility.The prime minister, who had accused Hamas of reneging on parts of an agreement originally announced Wednesday, said the country's security cabinet would meet to approve the deal Friday and that the full cabinet would be convened later to vote on it.Biden Issues Flurry of Executive Orders in Final Days. Trump Might Roll Them Back.WASHINGTON-In his final days in office, President Biden issued a flurry of orders to rein in offshore drilling for fossil fuels, accelerate the build-out of data centers for artificial intelligence and promote cybersecurity against hackers.The moves enacted sweeping changes across major industries, affecting billions of dollars of corporate projects. Some are sure to face challenges in the first days of the Trump administration as the new president seeks to roll back regulations he has said stifle economic growth.Trump Ready to Bypass Congress on Border and Tariffs WASHINGTON-Days before his inauguration, President-elect Donald Trump made clear in a two-hour private meeting with Senate Republicans that he wouldn't wait on them to start implementing his biggest policy priorities: overhauling the immigration system and dramatically reshaping the country's relationship with its economic allies and adversaries.With the experience of governing and a better knowledge of the levers of power, Trump has drafted expansive plans for tariffs and border restrictions, the centerpieces of his 2024 campaign. He has already prepared roughly 100 executive orders, Trump told lawmakers in the meeting, and said he would press the limits of his presidential authority at times to go it alone on those issues, according to people who attended.Write to [email protected] TODAY IN CANADAEarnings:Nothing scheduledEconomic Indicators (ET):0830 Nov International Securities TransactionsStocks to Watch:Cameco Supports Resolution Reached by Westinghouse Electric in Intellectual Property Dispute With KEPCO and KHNP; Implementation of Agreement Establishes Framework for More Deployments That Benefit of Westinghouse, KEPCO and KHNP---Canadian Spirit Resources: CFO Greg Florence Has Resigned; Is Undertaking Search for New CFO---I-80 Gold Sets Pricing of Prospectus Offering at C$0.80; Expects to Use Proceeds for Development of Nevada Projects, Working Capital, General Corporate Purposes---Titanium Transportation Expands North American Footprint to Texas; Irving, Texas, Office Creates 12th Logistics OfficeExpected Major Events for Friday07:00/UK: Dec UK monthly retail sales figures09:30/UK: Oct Card Spending statistics10:00/ITA: Nov Balance of Payments13:30/CAN: Nov International transactions in securities13:30/US: Dec New Residential Construction - Housing Starts and Building Permits14:15/US: Dec Industrial Production and Capacity Utilization21:00/US: Nov Treasury International Capital DataAll times in GMT. Powered by Kantar Media and Dow Jones.Expected Earnings for FridayBOK Financial Corp (BOKF) is expected to report $1.99 for 4Q.Broadway Financial Corp (BYFC) is expected to report for 4Q.Capital Bancorp Inc (CBNK) is expected to report $0.24 for 4Q.Chino Commercial Bancorp (CCBC) is expected to report for 4Q.Citizens Financial Group (CFG) is expected to report $0.82 for 4Q.DiDi Global Inc - ADR (DIDIY) is expected to report for Interim.Environmental Tectonics Corp (ETCC) is expected to report for 3Q.Evolv Technologies Holdings Inc (EVLV) is expected to report $-0.11 for 3Q.Fastenal Co (FAST) is expected to report $0.48 for 4Q.Fastenal Co (FAST) is expected to report.First Quantum Minerals Ltd (FM.T,FQVLF) is expected to report for Full year.Huntington Bancshares Inc (HBAN) is expected to report $0.31 for 4Q.National American University Holdings Inc (NAUH) is expected to report for 2Q.NexImmune Inc (NEXI) is expected to report for 3Q.Regions Financial Corp (RF) is expected to report $0.55 for 4Q.Schlumberger Ltd (SLB) is expected to report $0.88 for 4Q.State Street Corp (STT) is expected to report $2.43 for 4Q.Timberland Bancorp Inc (TSBK) is expected to report for 1Q.Truist Financial Corp (TFC) is expected to report $0.88 for 4Q.VOXX International Corp - Class A (VOXX) is expected to report for 3Q.Video Display Corp (VIDE) is expected to report for 3Q.Webster Financial Corp (WBS) is expected to report $1.35 for 4Q.World Acceptance Corp (WRLD) is expected to report $1.96 for 3Q.Powered by Kantar Media and Dow Jones.ANALYST RATINGS ACTIONSAdvanced Micro Devices Cut to Peer Perform From Outperform by Wolfe ResearchAT&T Raised to Buy From Hold by Argus ResearchBall Corp Cut to Underweight From Equal-Weight by Wells FargoBlackLine Raised to Buy From Neutral by CitigroupBlue Owl Capital Raised to Buy From Hold by TD CowenCACI International Raised to Buy From Hold by JefferiesConfluent Cut to Equal-Weight From Overweight by Morgan StanleyDana Raised to Buy From Neutral by UBSDatadog Cut to Equal-Weight From Overweight by Morgan StanleyDexCom Raised to Outperform From Neutral by BairdDigitalOcean Raised to Overweight From Equal-Weight by Morgan StanleyEdwards Lifesciences Cut to Underperform From Peer Perform by Wolfe ResearchEnphase Energy Cut to Hold From Buy by Truist SecuritiesFirst Solar Raised to Buy From Neutral by Seaport GlobalFreshworks Raised to Outperform From Perform by OppenheimerIngram Micro Holding Raised to Overweight From Equal-Weight by Morgan StanleyIntapp Cut to Neutral From Buy by CitigroupNetflix Raised to Buy From Neutral by Seaport GlobalOneStream Raised to Overweight From Equal-Weight by Morgan StanleyPaycor HCM Cut to Hold From Buy by Truist SecuritiesPaylocity Holding Raised to Buy From Neutral by CitigroupRegeneron Pharma Cut to Neutral From Buy by UBSRockwell Automation Raised to Overweight From Equal-Weight by Stephens & Co.Southwest Airlines Cut to Sell From Neutral by CitigroupUnder Armour Cut to Hold From Buy by Argus ResearchUnited Parcel Service Raised to Buy From Neutral by B of A SecuritiesThis article is a text version of a Wall Street Journal newsletter published earlier today.