OPENING CALL

Stock futures slipped on Tuesday after a sharp jump in the previous session after a trade agreement between the U.S. and China.

Investors are awaiting inflation data for April, due at 0830 ET, which is expected to show that priced pressures held steady.

"Markets are now turning their focus to key U.S. inflation data and upcoming earnings, amid lingering uncertainty over what will follow the 90-day reprieve," IG said.

Stocks to Watch

Tech stocks slipped after major gains on Monday. Amazon.com was down 0.8% in premarket trading, Meta Platforms fell 0.7%, Apple declined 0.7%, and Nvidia was down 0.9%.

Boeing rose 0.9% after a Bloomberg report said China removed a ban on the delivery of the company's planes.

Coinbase Global jumped 9.3% after it was announced it would be added to the S&P 500 on May 19.

FedEx was up 0.9% after Amazon.com said it would work with it on last-mile delivery.

Hertz fell 4.7% on a wider-than-expected loss.

Rigetti Computing fell 11% on lower-than-expected earnings.

Tesla fell 1.3% after a bill was published intended to eliminate EV tax credits.

Economic Insight

The probability of a U.S. recession in the next 12 months has fallen, according to Goldman Sachs.

The bank's economists lowered the odds of a recession to 35% from 45%.

Following an agreement with China, the Trump administration looks likely to announce other preliminary trade deals over the next few weeks, it said.

However, while investments into the U.S. could increase as trade tensions ease, the theme of global diversification is more pertinent than ever before, Principal Asset Management said.

"Longer-term, the broader question of the credibility of the U.S. and institutions is unlikely to disappear."

Watch For:

CPI for April

Today's Top Headlines/Must Reads:

- Trump's China Deal Makes Sense. How He Got Here Doesn't.

- Trump's Drug-Price Crackdown, Like His Trade War, Could Be More Bark Than Bite

- German Financial Optimism Gets Boost from Tariff Retreat, Merz Government

MARKET WRAPS

Forex:

The dollar eased after reaching a one-month high in the previous session.

Markets are suffering a "bit of a hangover" after Monday's rally as investors take a moment to question how good the U.S.-China news really is, Swissquote Bank said.

"While recent days have brought major progress to the table, this isn't the end."

The currency could receive some support if data later show U.S. core inflation remained sticky in April, ING said.

The euro rose against the dollar.

Upcoming German economic sentiment data and the U.S. inflation report pose headwinds to the current recovery after Monday's losses, Monex Europe said.

Sterling was little moved after data showed the U.K. unemployment rate rose and wage growth eased in the three months to March, but both were in line with expectations.

The unemployment rate rose to 4.5% from 4.4% in the previous three months, according to the Office for National Statistics. Average earnings, excluding bonuses, increased 5.6% compared to 5.9% previously.

Bonds:

Ten-year Treasury yields were steady.

They are set to rise in the next three to six months as inflation and deficit concerns overtake growth worries, ING said.

TD Securities said investors remain nervous about the Treasury market's safe-haven status , despite the easing of recent market volatility.

Energy:

Oil prices ticked higher, but uncertainty around the future of trade negotiations and concerns about rising OPEC+ supply linger.

Traders await clarity on whether OPEC+ will stick with its accelerated production hikes beyond June.

Metals:

Gold prices regained ground.

The precious metal's long-term positive drivers are still intact after near-term consolidation, UOB said.

Alongside longer-term safe-haven demand, UOB continues to expects strong allocation into gold by global central banks amid diversification needs.

Base-metal prices continued to rise on easing trade tensions and signs of stronger-than-expected demand in China.

The latest data showing total Chinese copper imports rose 13% on-year in April on strong domestic demand.

TODAY'S TOP HEADLINES

SoftBank Group Posts First Annual Profit in Four Years as It Ramps Up AI Investments

SoftBank Group reported its first annual profit in four years as it ramped up investments in artificial intelligence.

The Japanese technology investment company said Tuesday that it booked a net profit of 1.153 trillion yen, equivalent to $7.77 billion, for the year ended March, following three consecutive years of losses. That beat the estimated net profit of Yen703.7 billion in a poll of analysts by data provider Visible Alpha and compared with a net loss of Yen277.65 billion the previous year.

Honda Guides for Lower Profit Amid Auto Tariff Headwind

TOKYO-Honda Motor projected a sharp drop in profit as it expects to be hit by higher U.S. tariffs on foreign-made cars.

The Japanese automaker expects net profit to decline 70% to 250 billion yen, equivalent to $1.68 billion, for the fiscal year ending March 2026. Revenue is forecast to fall 6.4% to Yen20.3 trillion, it said Tuesday.

Amazon Seals New Partnership With FedEx for Delivering Large Packages

Amazon.com has added FedEx as a partner to deliver select large packages to homes for the online retailer, as the two companies find more ways to do business together after a previous split.

"We've reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers," Amazon spokesman Steve Kelly said Monday.

Trade Thaw Sparks Stock Rally, Leaves Wall Street Cautious

Stocks are surging, but Wall Street isn't ready to declare victory in the trade war just yet.

A surprise de-escalation between the U.S. and China drove the Dow Jones Industrial Average up more than 1,100 points and the Nasdaq Composite into a new bull market, a gain of more than 20% from its April low. Big tech stocks climbed, along with shares of shippers and multinational businesses. Amazon.com surged 8.1%. Nike climbed 7.3%.

CEOs Rush to Get Their Shipments From China While Trade Truce Lasts

SharkNinja Chief Executive Mark Barrocas was obsessively checking his news feed Sunday night, looking for any sign that the U.S. and China would reach a tariff deal.

Early Monday morning, the news came: a 90-day reprieve in which the U.S. would lower tariffs to 30% from 145%.

China Is Building Megaports in South America to Feed Its Need for Crops

SANTOS, Brazil-China has reassured its citizens they would have enough to eat without U.S. crops. It will have to unclog Latin America's largest port first.

The decrepit port in this Atlantic coast city is the main gateway for South American exports of soybeans and other agricultural goods that represent China's only viable alternative supply to U.S. exports. Though China has reduced its reliance on U.S. foodstuffs, crops are still among the top U.S. exports to China.

EBRD Sees Tariff Hit to Growth, But Some Hope in German Investment Boost

Higher U.S. tariffs will weaken growth across a number of countries in Europe, Central Asia, the Middle East and North Africa even if they don't export heavily to the world's largest economy, the European Bank for Reconstruction and Development said.

The development bank said Tuesday that announced increases would raise the effective tariff rate on imports to the U.S. from its more than 30 countries of operation to 10.5% from 1.5%. And it said the indirect impact on demand for their goods and services from large European economies such as Germany would likely add to the direct impact.

Trump Is Giving Refugee Status to White South Africans-but Many Don't Want to Come

SETTLERS, South Africa-Afrikaners, white South Africans long reviled as the architects of a racist state, are now being recast by Donald Trump as the victims of one.

The U.S. president has accused South Africa's Black-majority government of plotting to seize white farms and failing to stop "violent attacks on innocent disfavored minority farmers." His top adviser, white South Africa-born billionaire Elon Musk, has accused some of the country's politicians of actively promoting a "white genocide."

Surprise U.S.-China Trade Deal Gives Global Economy Reprieve

A few days ago, it would have seemed almost impossible. But on Monday, to the surprise of global investors and everyday businesses fearing a trade war, the U.S. and China agreed to a truce.

The world's two biggest economies unwound for now most of the tariffs they had imposed on each other since April in a tit-for-tat battle that was threatening to stoke U.S. inflation, crash China's export engine and upend the global economy.

Justice Department to Reward Tipsters Reporting Immigration Violations, Tariff Cheats

The Justice Department wants to reward people who tip authorities about companies involved in immigration crimes or tariff evasion, in a move intended to leverage lucrative federal whistleblower programs for President Trump's policy priorities.

The Justice Department said on Monday that it would also pay for tips related to procurement fraud and violations that result in support for terrorists, drug cartels and other criminal groups. Whistleblowers will be eligible to reap up to 30% of any funds forfeited to the government, as long as the proceeds exceed $1 million.

Write to don.forbes@wsj.com

TODAY IN CANADA

Earnings:

Altius Minerals 2Q

Aya Gold & Silver 1Q

CAE Inc. 4Q

Dye & Durham 3Q

Endeavour Silver 1Q

Galaxy Digital 1Q

HealWELL AI 1Q

NanoXplore Inc. 3Q

Northland Pwr 1Q

Pwr Corp of Cnd 1Q

Rogers Sugar Inc. 2Q

Superior Plus 1Q

VerticalScope 1Q

Wesdm Gld Mns 1Q

Westport Fuel 1Q

Economic Indicators $(ET)$:

Nothing is expected.

Stocks to Watch:

DATA Communications Mgmt 1Q EPS C$0.09; 1Q Rev C$123.7M

DREAM Unlimited 1Q Rev C$68.4M

DRI Healthcare Trust 1Q Loss/Shr 3c

Finning 1Q Rev C$2.8B; 1Q Adj EPS C$0.99; 1Q Net C$104M; Recent Changing Tariff Related Announcements Introduced a Higher Level of Uncertainty

G Mining Ventures to Restate 2024 Results; Due to Non-Cash Foreign Exchange Accounting Adjustments; Adjustments Total About $32M and Relate to Application of IAS 21 -- The Effects of Changes in Foreign Exchange Rates; Restatement Reflects a Technical Correction With No Effect on Financial Health or Performance; Will Now Report 1Q Results After Market Close on Wednesday

Hi-View Resources Acquires Additional Claims Contagious To Lawyers East Block In The Toodoggone District

Ravelin Properties REIT 1Q Loss C$11.2M; 1Q Rev C$46.8M; 1Q Funds From Operations C$0.02/Unit; In Discussions With Lenders to Resolve Current Defaults; Also in Talks to Amend, Renew or Consider Alternate Arrangements on Debt; In Discussions With G2S2 Capital, Other Lenders Regarding Terms of Potential Recapitalization Plan; Obtained Six-Month Forbearance From G2S2 Capital

Saltire Capital 1Q Rev $4.3M; 1Q Net $10.26M

TMC the metals company: 1Q Operating Loss Was About $20.6M

Expected Major Events for Tuesday

06:00/UK: Apr UK monthly unemployment figures

09:05/GER: May ZEW Indicator of Economic Sentiment

10:00/US: Apr NFIB Index of Small Business Optimism

12:30/US: Apr CPI

12:30/US: Apr Real Earnings

12:55/US: 05/10 Johnson Redbook Retail Sales Index

13:00/RUS: Weekly International Reserves

16:59/GER: Mar Balance of Payments

20:30/US: API Weekly Statistical Bulletin

23:50/JPN: Apr Corporate Goods Price Index

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

Expected Earnings for Tuesday

22nd Century Group Inc (XXII) is expected to report for 1Q.

908 Devices Inc $(MASS)$ is expected to report $-0.23 for 1Q.

ACCESS Newswire Inc $(ACCS)$ is expected to report $-0.07 for 1Q.

Achieve Life Sciences Inc $(ACHV)$ is expected to report $-0.33 for 1Q.

Acumen Pharmaceuticals Inc $(ABOS)$ is expected to report $-0.76 for 1Q.

Aimia Inc (AIM.T) is expected to report for 1Q.

Altimmune $(ALT)$ is expected to report $-0.34 for 1Q.

Ampco-Pittsburgh Corp (AP) is expected to report for 1Q.

Anavex Life Sciences Corp $(AVXL)$ is expected to report $-0.15 for 2Q.

Arteris Inc $(AIP)$ is expected to report $-0.20 for 1Q.

Aya Gold & Silver Inc (AYA.T) is expected to report for 1Q.

BK Technologies Corp $(BKTI)$ is expected to report for 1Q.

Broadwind Inc $(BWEN)$ is expected to report $-0.04 for 1Q.

Endeavour Silver Corp (EDR.T,EXK) is expected to report $-0.01 for 1Q.

Exelixis Inc $(EXEL)$ is expected to report $0.36 for 1Q.

Fennec Pharmaceuticals Inc (FENC,FRX.T) is expected to report $-0.13 for 1Q.

Flowco Holdings Inc $(FLOC)$ is expected to report for 1Q.

Gevo Inc $(GEVO)$ is expected to report $-0.10 for 1Q.

GoHealth Inc (GOCO) is expected to report for 1Q.

Hudson Global Inc (HSON) is expected to report $-0.16 for 1Q.

Humacyte Inc $(HUMA)$ is expected to report $-0.19 for 1Q.

Hyliion Holdings Corp $(HYLN)$ is expected to report $-0.08 for 1Q.

Inozyme Pharma Inc (INZY) is expected to report $-0.41 for 1Q.

Intuitive Machines Inc (LUNR) is expected to report $-0.09 for 1Q.

Landstar System Inc $(LSTR)$ is expected to report $0.75 for 1Q.

Legend Biotech Corp - ADR $(LEGN)$ is expected to report $-0.19 for 1Q.

Lifeway Foods Inc $(LWAY)$ is expected to report $0.19 for 1Q.

Loar Holdings Inc (LOAR) is expected to report for 1Q.

NASB Financial Inc (NASB) is expected to report for 2Q.

Nuwellis Inc $(NUWE)$ is expected to report for 1Q.

Regis Corp (RGS) is expected to report for 3Q.

Rogers Sugar Inc (RSGUF,RSI.T) is expected to report for 2Q.

Silicon Laboratories Inc $(SLAB)$ is expected to report $-0.82 for 1Q.

Sotherly Hotels $(SOHO)$ is expected to report for 1Q.

Theriva Biologics Inc (TOVX) is expected to report for 1Q.

Under Armour Inc - A Share (UA,UAA) is expected to report $-0.13 for 4Q.

Urban One Inc - Class A (UONE,UONEK) is expected to report for 1Q.

Venture Global Inc $(VG)$ is expected to report for 1Q.

Y-mAbs Therapeutics Inc $(YMAB)$ is expected to report $-0.21 for 1Q.

Zentalis Pharmaceuticals Inc $(ZNTL)$ is expected to report $-0.64 for 1Q.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

ACI Worldwide Raised to Buy From Neutral by DA Davidson

Amphastar Pharmaceuticals Cut to Neutral From Overweight by JP Morgan

Astera Labs Raised to Overweight From Equal-Weight by Morgan Stanley

Cloudflare Raised to Outperform From Market Perform by CICC

Coinbase Raised to Neutral From Sell by Compass Point

DocGo Cut to Hold From Buy by Canaccord Genuity

Federal Signal Raised to Overweight From Sector Weight by Keybanc

Forge Global Holdings Raised to Overweight From Neutral by Piper Sandler

Hilton Raised to Buy From Hold by Jefferies

Marriott Raised to Buy From Hold by Jefferies

Middlesex Water Raised to Buy From Neutral by Janney Montgomery Scott

ModivCare Cut to Market Perform From Outperform by Barrington Research

Monster Beverage Raised to Outperform From Market Perform by CICC

SLR Investment Raised to Buy From Neutral by Ladenburg Thalmann

TaskUs Cut to Neutral From Outperform by Baird

Warner Music Group Cut to Neutral From Buy by Goldman Sachs

Wayfair Raised to Buy From Hold by Argus Research

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

(END) Dow Jones Newswires

May 13, 2025 05:59 ET (09:59 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.