OPENING CALL

Stock futures were struggling for direction early on, with weary investors seemingly taking the latest tariff news in their stride ahead of inflation data later.

Trade talks with China were a bit stalled, but the legal tumult in around tariffs wasn't impacting global trade negotiations, Treasury Secretary Scott Bessent said late Thursday.

"There are a couple of very large deals that are close, a couple of them are more complicated," he told Fox News.

Meanwhile the Court of Appeals for the Federal Circuit said it was pausing Wednesday's decision from the Court of International Trade until it can hear further legal arguments.

Data from a study published Thursday-but conducted before the ruling blocking Trump's levies-found 83% of chief executives expected a recession in the next 12 to 18 months.

Overseas, Japan saw a mixed picture of rising inflation and sluggish industrial activity.

Stocks to Watch:

American Eagle Outfitters's shares fell after the retailer swung to a quarterly loss and withdrew its annual outlook.

Dell Technologies raised its profit outlook after logging higher sales. Shares rose by as much as 5.4% in after-hours trading but have since retreated, recently rising 2.3%.

Gap estimates that tariffs could total up to $300 million in added costs this year. Shares fell 15%.

Marvell Technology swung to a quarterly profit and logged a jump in sales, fueled by demand for artificial intelligence. Shares fell more than 3%.

Red Robin Gourmet Burgers posted a first-quarter profit after a string of quarterly losses. Shares jumped 51%.

Regeneron and Sanofi said their experimental lung-disease treatment delivered mixed results in late-stage trials. Regeneron's stock fell more than 12%.

Ulta Beauty raised its annual outlook and posted higher-than-expected quarterly sales. Shares rose roughly 8%.

Zeo Energy received a deficiency notice from Nasdaq for failing to file its Form 10-Q for the recent quarter by the required date. Shares fell 14%.

ZScaler reported higher quarterly revenue and nudged its full-year guidance. Shares rose off-hours.

Watch For:

Personal Income and Outlays, Canada GDP, Chicago Business Barometer - ISM Chicago Business Survey, University of Michigan Final Consumer Survey

Today's Headlines/Must Reads:

-Trump's Team Plots Plan B for Imposing Tariffs

-Trump Tells Powell He Is Making a Mistake by Not Cutting Interest Rates

-Bank of America CEO Brian Moynihan on What Makes the U.S. 'Fundamentally Strong'

MARKET WRAPS

Forex:

The dollar rose slightly but remained at weaker levels with the DXY dollar index trading below the key 100 level amid heightened uncertainty over tariffs.

ING said the dollar could fall if personal consumption expenditures data is weaker than expected.

Investors will also look at the PCE core price index, expected to rise just 0.1% month-on-month in April, it added.

Upcoming data is expected to show German inflation eased in May but the euro's moves are more likely to remain dictated by the dollar's performance, ING said.

The market is already fully pricing in a 25bp rate cut by the ECB on June 5.

The personal consumption expenditures data "may be the biggest driver of the euro today and may keep it supported in the confines of a $1.1300-$1.1400 short-term range."

Bonds:

Treasurys have been a busy economic barometer as of late.

The net effect of all the tumult was that the average yield on the index is about 20 basis points higher than before Trump's tariff announcements on April 2, Federated Hermes said.

Budget deliberations are not yet finished and the Senate could end up cutting more spending from the bill.

Treasury yields were little changed in early European trading.

However, some market watchers still see room for short-term gains for Treasurys.

With rising uncertainties, Societe Generale continued to view risks to short-end Treasury yields to be skewed to the downside.

Although the Fed will likely keep policy on hold for as long as they can, the markets will be quick to price in more cuts if employment weakens.

"In this context, the bond market is likely to shrug off a strong jobs report but the front-end has room to rally if the data disappoints," it said.

Energy:

Crude oil eked out some gains on rising gasoline demand hopes, despite concerns of increased OPEC+ supply.

OPEC+ is expected to announce production hikes for July over the weekend.

The exact size of the cartel's hike will be declared at the meeting but is expected to be larger than currently scheduled, ANZ wrote.

Metals:

Gold futures slid on a stronger dollar.

The precious metal is on track for an overall weekly loss, though it remained up more than 22% in the year to date.

TODAY'S TOP HEADLINES

Out of DOGE, Elon Musk Returns to His Bruised Business Empire

Elon Musk is ready to get obsessed with his companies again. He has a lot to contend with.

Tesla is about to launch its first robotaxis, SpaceX is trying to launch a spacecraft to Mars, and xAI is racing to develop human-level artificial intelligence before the competition does it first.

Ray-Ban Maker EssilorLuxottica to Buy Optegra in Medical AI Push

Ray-Ban maker EssilorLuxottica said it would buy AI-focused ophthalmology platform Optegra from MidEuropa, as part of the group's medical technology strategy.

The Franco-Italian eyewear group said Friday that the deal builds on the company's offering, which spans beyond frames and lenses to include AI-powered technologies, wearables, medical instruments and science-backed eyecare solutions.

Nippon Steel to Invest $6 Billion to Cut Carbon Emissions

Nippon Steel plans to invest $6 billion to increase production of steel using electric arc furnaces in a bid to reduce carbon emissions.

The Japanese steelmaker said Friday that it would invest 868.7 billion yen, equivalent to $6.02 billion, to establish three electric furnaces in Japan and that it expects the Japanese government to provide up to Yen251.4 billion in support.

Costco to Rely on Advancing Orders, Production Shifts to Offset Tariffs

Costco Wholesale is taking steps to reduce its exposure to tariffs by pulling orders forward and moving the sourcing of its private-label products to the regions where they are sold.

These actions have helped lower costs for the warehouse-club chain, while also enabling it to avoid sharp price increases for consumers, Chief Executive Ron Vachris said on a call with analysts Thursday.

Federal Authorities Probe Effort to Impersonate White House Chief of Staff

WASHINGTON-Federal authorities are investigating a clandestine effort to impersonate White House chief of staff Susie Wiles, according to people familiar with the matter, after an unknown individual reached out to prominent Republicans and business executives pretending to be her.

In recent weeks, senators, governors, top U.S. business executives and other well-known figures have received text messages and phone calls from a person who claimed to be the chief of staff, the people familiar with the messages said.

Israel Fears Being Boxed In by Trump's Iran Talks

Seven weeks into negotiations between the U.S. and Iran, Israeli officials are concerned the Trump administration could agree to a deal that doesn't block Tehran's ability to produce a nuclear bomb but curtails the option of Israeli military action.

That puts Israel in a bind with its most important ally on its most pressing national security question: the risk of a nuclear-armed Iran. Israel's efforts to stiffen the U.S. negotiating position and preserve the option for a military strike at Iran's facilities have led to frustration at the White House.

Trump Administration Publishes List of Sanctuary Cities and Counties to Target

The Trump administration on Thursday named counties and cities in more than 30 states, including New York City, Los Angeles, Chicago and Seattle, as sanctuary jurisdictions it could go after for not complying with federal immigration laws.

President Trump has threatened to pull federal funding and pursue lawsuits against places that don't change their practices.

Write to nina.kienle@wsj.com

TODAY IN CANADA

Earnings:

Canopy Growth Corp. 4Q

Laurentian Bank of Canada 2Q

Economic Indicators $(ET)$:

0830 Mar GDP

0830 Q1 Quarterly GDP

Stocks to Watch:

Dynacor: ISS Positively Recommends All Director Nominees, Meeting Resolutions

Fitch Assigns Fortis Inc. First Time 'BBB+' IDR; Outlook Stable

Expected Major Events for Friday

01:00/JPN: Apr Steel Imports & Exports Statistics

04:30/JPN: Apr Preliminary Report on Petroleum Statistics

05:00/JPN: Apr Housing Starts

05:00/JPN: Apr Construction Orders

06:00/GER: Apr Retail Trade

08:00/GER: May Bavaria CPI

08:00/GER: May North Rhine Westphalia CPI

08:00/GER: May Saxony CPI

08:00/GER: May Hesse CPI

08:00/GER: May Brandenburg CPI

08:00/GER: May Baden-Wuerttemberg CPI

08:00/ITA: 1Q GDP

09:00/ITA: May Provisional CPI

09:00/ITA: May Cities CPI

10:00/ITA: Apr PPI

12:00/GER: May Provisional CPI

12:30/US: Apr Advance Economic Indicators Report

12:30/US: Apr Personal Income and Outlays

12:30/CAN: Mar GDP

12:30/CAN: 1Q Quarterly GDP

12:30/US: U.S. Weekly Export Sales

13:45/US: May Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI

14:00/US: May University of Michigan Survey of Consumers - final

19:00/US: Apr Agricultural Prices

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Expected Earnings for Friday

Canopy Growth Corp (CGC,WEED.T) is expected to report for 4Q.

Gencor Industries Inc $(GENC)$ is expected to report for 2Q.

Laurentian Bank of Canada (LB.T,LRCDF) is expected to report $0.67 for 2Q.

Shoe Carnival Inc (SCVL) is expected to report $0.92 for 1Q.

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ANALYST RATINGS ACTIONS

Aspen Aerogels Cut to Equal-Weight From Overweight by Barclays

(MORE TO FOLLOW) Dow Jones Newswires

May 30, 2025 05:56 ET (09:56 GMT)

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