OPENING CALL
Stock futures were leaning toward a lower open Friday as investors weighed further disruption to the Middle East's energy infrastructure against soothing comments from the Trump government regarding oil supply.
The three main indexes, the Dow, the Nasdaq and the S&P fluctuated throughout the morning between incremental gains and losses.
Energy prices and flows will likely continue to dominate investor attention Friday after Thursday's tit-for-tat strikes.
Treasury Secretary Scott Bessent said in an interview with Fox Business on Thursday that the U.S. could remove sanctions from Iranian oil already at sea.
He added that the U.S. was mulling a release of more oil from its strategic reserves and that Japan could do the same.
Meanwhile, Kuwait's Mina Al-Ahmadi oil refinery was struck in drone attacks that caused parts of it to shut down and U.S. war planes and helicopters began strikes to reopen the Hormuz Strait .
A week of central bank decisions shows that the Middle East conflict is intensifying, and no one knows what the right monetary policy response should be. That said, there is agreement that rising oil and energy prices will push inflation higher in the short to medium term, Swissquote said.
Stocks to Watch
FedEx shares jumped 10% after the shipping company raised its outlook for the year.
Firefly Aerospace was up 8.9% after it reported better-than-expected fourth-quarter sales.
Planet Labs shares rose nearly 15% after reporting its fourth-quarter fiscal results.
York Space Systems shares were up 11%, a sign the commercial space business is heating up.
Watch For:
Canadian indicators including January retail trade figures.
Today's Top Headlines/Must Reads:
- Beijing's Big Problem: An Incredible Shrinking Economy
- In Nearly 90 Truth Social Posts, Trump Narrates the War in Iran
- Saudi Arabia Sees a Spike to $180 Oil if Energy Shock Persists Past April
MARKET WRAPS
Forex:
The dollar rose slightly, reversing some of its falls in the previous day. Oil prices stayed lower on Friday but large uncertainties remain surrounding how long the conflict will last and how long energy prices will stay elevated.
"The foreign exchange market will therefore have to brace for continued volatility in exchange rates as long as the conflict persists and brings new twists every day," Commerzbank said.
Bitcoin rose slightly as European equities started the day in positive territory. However, it remained at weaker levels after dropping on Thursday.
Bonds:
Treasury yields mostly fell in Asian trade as oil prices retreated from Thursday's jump which was prompted by escalating attacks on energy infrastructure in the Gulf. The market's focus will remain on geopolitical developments, "with there again being a high likelihood that participants seek to take down risk levels as we move into the weekend," Pepperstone said.
The two-year Treasury yield is gaining appeal if the war in the Middle East ends soon, Societe Generale said.
"With an interest-rate hike unlikely in the U.S. and the potential for a quick reversal in the recent price action if the war ends, the 2-year Treasury yield at 3.80% starts to look attractive," it said, adding that a prolonged conflict and continued rise in oil prices are a risk to this view.
Energy:
Oil prices slipped after leading U.S. allies said they were ready to join efforts to ensure safe passage through the Strait of Hormuz. That adds to comments from Bessent that the U.S. might lift sanctions on Iranian oil already at sea.
"The escalation of the attacks on energy assets implies significant risks for not just near-term oil exports from the region, but longer-term oil production capacity," Goldman Sachs said.
Metals:
New York gold futures rose 1.7% to $4,682.20 a troy ounce in early European trading, but prices were on track for a weekly fall of more than 7% after being pressured by a stronger dollar and dimming hopes for further interest-rate cuts in the near term.
"Upward momentum has faded. Some investors are selling gold to raise cash or rebalance portfolios," ING said.
Gold's recent fall looks meaningful but isn't unprecedented , J.P. Morgan Private Bank said. Spot prices rose.
"If this conflict [doesn't] lead to a sustained risk off environment coupled with additional dollar strength, investors who felt they 'missed the rally' may see this pullback as an opportunity to leg in."
TODAY'S TOP HEADLINES
Super Micro Computer Employees Arrested for Alleged Sales to China
Super Micro Computer placed two employees on leave and fired a contractor after learning of their alleged involvement in a scheme to divert computer servers assembled in the U.S. to China in a violation of export-control laws.
An indictment unsealed on Thursday revealed claims the three individuals conspired to sell billions of dollars' worth of artificial-intelligence-powered servers to China, Super Micro and the Justice Department said.
FedEx Blows Away Earnings Estimates. The Stock Is Rising.
Investors had many questions heading into FedEx's fiscal third-quarter earnings. The company answered most of them, sending the stock higher.
FedEx late Thursday announced fiscal third-quarter earnings per share of $5.25 from sales of $24 billion. Wall Street was looking for earnings per share of $4.15 from sales of $23.5 billion. A year ago, FedEx reported fiscal 2025 third-quarter earnings per share of $4.51 on sales of $22.2 billion.
Unilever in Talks to Separate Food Business and Combine It With McCormick
Unilever, the maker of Dove deodorant and Hellman's mayonnaise, is in talks to separate its food business and combine it with spice maker McCormick.
Both companies confirmed the talks Friday after The Wall Street Journal reported them a day earlier.
Tesla Finally Has Its First Semi-Truck and It's Already a Hit With Truckers
The first time Dakota Shearer drove a Tesla Semi truck he took a wrong turn just outside Sparks, Nev., and got stuck on a bend that was too tight for his 40-foot trailer.
Normally, Shearer would reverse out of a jam by getting out of the truck several times to check his position in the road. But Shearer was seated in the center of the cab, eliminating the right-side blind spot, and he was flanked by screens showing every object around his tractor-trailer.
Saudi Arabia Sees a Spike to $180 Oil if Energy Shock Persists Past April
Saudi Arabia's oil officials are working frantically to project how high oil prices might go if the Iran war and its disruption of energy supplies doesn't end soon-and they don't like what they are seeing.
The base case, several oil officials in the Gulf's biggest producer said, is that prices could soar past $180 a barrel if the disruptions persist until late April.
U.K. Government Borrowing Rose in February
The U.K. government borrowed more in February than a year earlier, but was on track to reduce its budget deficit before the U.S. attack on Iran sent energy prices soaring and upended the economic outlook.
The Office for National Statistics said Friday that the government borrowed 14.3 billion pounds ($19.20 billion) in February, up 2.2 billion pounds from a year earlier as interest payments hit a record high. That brought total borrowing for the first 11 months of the fiscal year to 125.9 billion pounds, 11.9 billion pounds lower than in the same period the previous year.
Beijing's Big Problem: An Incredible Shrinking Economy
By most standards, China's economy has never been stronger. Its exporters have powered the country to a $1.2 trillion surplus with the world. It is the global leader in strategically important industries such as electric vehicles, solar panels, shipbuilding and humanoid robots.
Yet, by one important measure, China's global heft is shrinking. In dollar terms, China's gross domestic product, as a share of the global economy, peaked in 2021 at around 18.5%, when it grew to be around three quarters of the size of the U.S. economy. Many economists predicted China's explosive growth would eventually make its economy bigger than that of the U.S.
China Targets Lawyers Defending Jailed Christian Leaders
BEIJING-Chinese authorities are ramping up pressure on lawyers defending a group of jailed Christian church leaders, whose arrests last year drew condemnation from the U.S. government, as Beijing seeks to silence religious faithful who refuse to submit to state control.
Nearly 20 people associated with Zion Church, a large, long-running Protestant congregation in the Chinese capital, were arrested in October, including founder Ezra Jin, part of one China's largest crackdowns on Christians in years.
Trump's Iran War Frays Ties With Allies as Oil Prices Surge
President Trump's war with Iran has put the U.S. on a collision course with some of its closest allies over one of the most audacious foreign policy moves of his presidency.
Longstanding allies weren't informed of the battle plans until hours before the first attack was launched almost three weeks ago, and they have since been publicly criticized by the president for not providing enough military help. Some offers have been rebuffed, and friendly capitals have been left guessing over the White House's plans to end the war and soothe energy markets.
Write to pierre.bertrand@wsj.com
TODAY IN CANADA
4Q Earnings:
Solaris Resources
Economic Indicators $(ET)$:
0830 Industrial Product and Raw Materials price indexes for February
0830 New Housing Price Index for February
0830 January retail trade figures
Stocks to Watch:
Orla Mining 4Q Rev $378.5M; 4Q EPS 23c; 4Q Adj EPS 42c
K-Bro Linen 4Q EPS C$0.22; 4Q Rev C$146.8M
Condor Energies 2025 Sales C$80.7M; 2025 Loss/Shr C$0.06
Maxim Power 4Q Rev C$18M; 4Q EPS C$0.04
ISC 4Q Basic EPS CAD 0.26; 4Q Adj Net Income CAD 20.1M; 4Q EPS CAD 0.26; FactSet Est. CAD 0.33 (2 Est.); 4Q Net Income CAD 4.87M; 4Q Revenue CAD 65.5M; FactSet Est. CAD 67.1M; 4Q Adj EBITDA CAD 27.1M; Outlook Revenue CAD 273M - 283M; FactSet Est. CAD 272.5M; FY Outlook Adj EBITDA CAD 100M - 107M; 4Q Rev C$65.5M; 4Q EPS C$0.26
Expected Major Events for Friday
07:00/GER: Feb PPI
07:00/UK: Feb Public sector finances
09:00/ITA: Jan Foreign Trade EU
09:30/UK: 4Q Bank of England statistics on UK banks' external claims
10:00/ITA: Jan Balance of Payments
11:00/UK: Feb Aluminium Production report
11:00/UK: Mar CBI Industrial Trends Survey
12:30/CAN: Feb Industrial product and raw materials price indexes
12:30/CAN: Feb New Housing Price Index
12:30/CAN: Jan Retail trade
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Friday
Abundia Global Impact Group Inc $(AGIG)$ is expected to report for 4Q.
Airsculpt Technologies Inc (AIRS) is expected to report $-0.04 for 4Q.
Almaden Minerals Ltd (AAU,AMM.T) is expected to report for 4Q.
Arrive AI Inc (ARAI) is expected to report for 4Q.
Atlantic International Corp $(ATLN)$ is expected to report for 4Q.
Aura Biosciences Inc (AURA) is expected to report $-0.41 for 4Q.
Bit Digital Inc (BTBT) is expected to report for 4Q.
Chaince Digital Holdings Inc $(CD)$ is expected to report for 3Q.
DouYu International Holdings Ltd - ADR $(DOYU)$ is expected to report for 4Q.
Ermenegildo Zegna NV (ZGN) is expected to report for 4Q.
Inhibrx Inc (X-INBX) is expected to report for 4Q.
Neurogene Inc $(NGNE)$ is expected to report $-1.27 for 4Q.
Noble Romans Inc (NROM) is expected to report for 4Q.
Oncolytics Biotech Inc (ONC-T,ONCY) is expected to report $-0.06 for 4Q.
Palisade Bio Inc (PALI) is expected to report for 4Q.
ParkerVision Inc (PRKR) is expected to report for 4Q.
Quince Therapeutics Inc $(QNCX)$ is expected to report $-0.12 for 4Q.
SANUWAVE Health Inc (SNWV) is expected to report for 4Q.
Serina Therapeutics Inc $(SER)$ is expected to report for 4Q.
Trinity Place Holdings Inc (TPHS) is expected to report for 4Q.
VirnetX Holding Corp (VHC) is expected to report for 4Q.
Westwater Resources Inc (WWR) is expected to report for 4Q.
Xpeng Inc - ADR $(XPEV)$ is expected to report $0.01 for 4Q.
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ANALYST RATINGS ACTIONS
Carnival Raised to Overweight From Equal-Weight by Morgan Stanley
Cross Country Healthcare Raised to Outperform From Neutral by Wedbush
CSX Corp Cut to In-Line From Outperform by Evercore ISI Group
Fluence Energy Raised to Neutral From Sell by Guggenheim
Kinsale Capital Group Cut to Underperform From Hold by Jefferies
Life360 Cut to Neutral From Buy by DA Davidson
Tandem Diabetes Care Raised to Buy From Hold by Truist Securities
Union Pacific Raised to Outperform From In-Line by Evercore ISI Group
Xponential Fitness Cut to Market Perform From Strong Buy by Raymond James
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 20, 2026 05:50 ET (09:50 GMT)
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