MARKET WRAPS

STOCKS: U.S. stocks rise behind strength in industrials and technology sectors.

TREASURYS: Treasury yields fell ahead of jobs data.

FOREX: The U.S. dollar fell slightly against rivals amid anticipation of a rate cut later in December.

COMMODITIES: Oil futures fell after U.S. envoys Steven Witkoff and Jared Kushner travelled to Moscow to meet with Russian President Vladimir Putin about ending the war with Ukraine.

HEADLINES

Costco Joins Companies Suing Trump Administration Over Tariffs

Costco became the latest and one of the biggest companies to sue the Trump administration over tariffs in an effort to secure a full refund should the Supreme Court rule the sweeping duties illegal.

In a filing with the U.S. Court of International Trade on Friday, Costco said the lawsuit is necessary to make sure it is eligible for refunds if the Supreme Court rejects the administration's reasons for tariffs collected under the International Emergency Economic Powers Act. Costco executives declined to comment.

Last month, the Supreme Court heard arguments that President Trump's so-called reciprocal tariffs initiated earlier this year aren't lawful. Judges hit a skeptical note with administration lawyers, and a ruling before the end of the year is possible though uncertain. The Trump administration has pleaded with the court to provide legal clarity soon.

Boeing Stock Jumps. What the New CFO Just Said.

Boeing stock jumped Tuesday after new CFO Jay Malave offered an optimistic outlook for next year.

Shares were up 5.3% at $196.28, while the S&P 500 and Dow Jones Industrial Average were up 0.4% and 0.1%, respectively.

Malave, who joined Boeing from Lockheed Martin about three months ago, made positive comments about free cash flow while speaking at an investor conference hosted by UBS on Tuesday.

Ford Electric-Vehicle Sales Sink After Key Tax Credit Ends

Ford Motor's electric vehicle sales continued to sink in November, as the company weighs scrapping the electric version of its F-150 truck following the expiration of a federal tax credit for electric vehicles.

The Dearborn, Mich., carmaker said Tuesday that it sold 164,925 vehicles in the U.S. last month, down 0.9% from the previous year. EV sales tumbled 61% to 4,247, while hybrid vehicle sales gained 14% to 16,301.

Ford executives are in active discussions about scrapping the electric version of its F-150 pickup, The Wall Street Journal reported last month. Sales of the model have fallen far short of expectations as American truck buyers skipped the electric version of the top-selling truck, and the company has racked up about $13 billion in EV losses since 2023.

Amazon's Custom Chips Pose Another Threat to Nvidia

Amazon.com is the latest big tech company to muscle in on Nvidia's turf.

On Tuesday, Amazon Web Services announced the public launch of its Trainium3 custom AI chip, which it says is four times as fast as its previous generation of artificial-intelligence chips. The company said Trainium3, produced by AWS's Annapurna Labs custom-chip design business, can reduce the cost of training and operating AI models by up to 50% compared with systems that use equivalent graphics processing units, or GPUs.

The chips are meant to provide a stronger backbone of computing power for software developers like Dean Leitersdorf, co-founder and chief executive of the AI video startup Decart. He said his company had a breakthrough enabled by the Trainium3 after trying out several other competitor chips, including Nvidia's processors.

Prediction Market Kalshi Hits $11 Billion Valuation in New Funding Round

Investors are betting on the continued popularity of prediction markets.

Kalshi, one of the biggest players in the sector, said Tuesday it has raised $1 billion at an $11 billion valuation, in its third round of capital funding this year.

The round was led by the investment firm Paradigm, an existing backer, and also includes Sequoia Capital, Andreessen Horowitz, Meritech Capital, IVP, ARK Invest, Anthos Capital, CapitalG and Y Combinator.

OpenAI Declares 'Code Red' as Google Threatens AI Lead

OpenAI Chief Executive Sam Altman told employees Monday that the company was declaring a "code red" effort to improve the quality of ChatGPT and delaying other products as a result, according to an internal memo viewed by The Wall Street Journal.

Altman said OpenAI had more work to do on the day-to-day experience of its chatbot, including improving personalization features for users, increasing its speed and reliability, and allowing it to answer a wider range of questions.

The companywide memo is the most decisive indication yet of the pressure OpenAI is facing from competitors that have narrowed the startup's lead in the AI race. Of particular concern to Altman is Google, which released a new version of its Gemini AI model last month that surpassed OpenAI on industry benchmark tests and sent the search giant's stock soaring.

Saudi Fund to Own Almost All of Electronic Arts After Buyout

Saudi Arabia's government investment fund is poised to take almost full ownership of Electronic Arts, a filing shows, representing another big financial bet at a time when the Middle East country's coffers are already strained.

The Public Investment Fund has teamed up with Silver Lake, the technology-focused buyout firm, and Jared Kushner's investment firm Affinity Partners to buy the videogame maker for $55 billion including debt. The deal, unveiled in September, is set to be the largest-ever leveraged buyout.

FAA Ramps Up Probe on Airlines' Flight Reductions During Government Shutdown

The Federal Aviation Administration is ramping up its investigation into whether airlines complied with government-shutdown-related flight cuts.

The FAA on Monday sent letters to airlines seeking information about steps they took to follow an early November order to reduce flying into 40 major airports, according to the agency, industry officials and a document viewed by The Wall Street Journal.

The FAA said it alerted certain airlines that have more than 10 daily flights at the airports subject to the agency's emergency order. Airlines have 30 days to provide evidence or statements showing they complied with the order's limits. Violators risk fines up to $75,000 per flight over the threshold.

Apple to Revamp AI Team After Announcing Top Executive's Departure

Apple is shaking up its AI ranks, poaching a Microsoft executive and reorganizing after announcing the retirement of its top AI leader, whose tenure was defined by the company's artificial-intelligence struggles.

John Giannandrea, the iPhone maker's senior vice president in charge of AI strategy, who had reported directly to Chief Executive Tim Cook, is stepping down, the company announced on Monday, and his duties will be split among other senior vice presidents responsible for software engineering, services and operations. Giannandrea, 60 years old, will remain in an advisory role until his retirement next spring.

Amar Subramanya, who helped oversee Google's Gemini chatbot before decamping to Microsoft earlier this year, will join Apple as vice president of AI, one rung lower than where Giannandrea was in the organization chart. Subramanya will report to the company's head of software, Craig Federighi.

Netflix Makes Majority Cash Bid for Warner Discovery

Netflix has sweetened its offer for Warner Bros. Discovery in a second round of bids as it tries to outdo rival Paramount.

The streamer on Monday made a primarily cash-based second offer for the entertainment and streaming assets of Warner Discovery and is working to secure tens of billions in financing to fund the purchase, people familiar with the matter said.

Paramount also made an improved offer for all of Warner Discovery, including its collection of cable networks like CNN and TNT, some of the people said.

TALKING POINT Vanguard Finally Allows Crypto ETFs and Mutual Funds. You Can Invest Right Now.

Vanguard is allowing customers to invest in cryptocurrency exchange-traded funds and mutual funds, reversing its policy of banning such investments from its massive brokerage platform.

The change is effective today. The company is essentially providing investors access to funds by other companies that track digital assets such as Bitcoin, Ethereum, XRP, and Solana, but not meme coins.

The company, which has $11.9 trillion in assets, changed course now that there's more data available about how crypto funds perform, Vanguard says on its website.

"Just as we do with all investment vehicles and asset classes, Vanguard consistently monitors the cryptocurrency space," the company said.

"This ongoing analysis has informed our decision to allow most third-party cryptocurrency ETFs and mutual funds on our brokerage platform," the firm added. "These products have been tested through periods of market volatility, performing as designed while maintaining liquidity; the administrative processes to service these types of funds have matured; and investor preferences continue to evolve."

The change also comes after investors have poured billions into cryptocurrency ETFs since BlackRock and other asset managers began launching crypto funds in early 2024.

The iShares Bitcoin Trust ETF launched in January 2024 and quickly amassed billions in assets, becoming one of the largest crypto funds. It had more than $66 billion in net assets as of Dec. 1.

--Andrew Welsch, Barron's

Expected Major Events for Wednesday

00:30/JPN: Nov Japan Services PMI

06:00/JPN: Oct Revised Machine Tool Orders

06:00/RUS: Nov Russian Services PMI

08:45/ITA: Nov Italy Services PMI

08:50/FRA: Nov France Services PMI

08:55/GER: Nov Germany Services PMI

09:30/UK: Nov S&P Global UK Services PMI

09:30/UK: Nov UK Official Reserves

09:30/UK: 3Q Household Finance Review

09:30/UK: Nov Narrow money (Notes & Coin) and reserve balances

12:00/US: 11/28 MBA Weekly Mortgage Applications Survey

13:15/CAN: Nov Official International Reserves

13:15/US: Nov ADP National Employment Report

13:30/US: Sep Import & Export Price Indexes

13:30/US: Oct Advance Report on Durable Goods - To Be Rescheduled

13:30/CAN: 3Q Labour productivity, hourly compensation & unit labour cost

14:15/US: Sep Industrial Production and Capacity Utilization

14:30/CAN: Nov Canada Services PMI

14:45/US: Nov US Services PMI

15:00/US: Oct CANCELLED: Metropolitan Area Employment and Unemployment

15:00/US: Nov ISM Report On Business Services PMI

15:30/US: 11/28 EIA Weekly Petroleum Status Report

16:00/US: Nov Global Services PMI

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

ADF Group Inc (DRX.T) is expected to report $0.22 for 3Q.

C3ai Inc (AI) is expected to report $-0.82 for 2Q.

Costco Wholesale Corp $(COST)$ is expected to report.

Culp Inc $(CULP)$ is expected to report $0.23 for 2Q.

Descartes Systems Group Inc (DSG.T,DSGX) is expected to report $0.63 for 3Q.

Dollar Tree Inc $(DLTR)$ is expected to report $1.09 for 3Q.

EQB Inc (EQB.T) is expected to report for 4Q.

Five Below (FIVE) is expected to report $0.24 for 3Q.

Guidewire Software Inc (GWRE) is expected to report $0.16 for 1Q.

Hall of Fame Resort & Entertainment Co $(HOFV)$ is expected to report for 3Q.

Healthequity Inc $(HQY)$ is expected to report $0.48 for 3Q.

Inotiv Inc $(NOTV)$ is expected to report $-0.44 for 4Q.

Macy's Inc (M) is expected to report $-0.18 for 3Q.

Mega Matrix Inc (MPU) is expected to report for 3Q.

National Bank of Canada (NA.T,NTIOF) is expected to report $2.56 for 4Q.

Office Properties Income Trust $(OPITS)$ is expected to report for 3Q.

PVH Corp (PVH) is expected to report $2.50 for 3Q.

Royal Bank of Canada (RY,RY.T) is expected to report $2.44 for 4Q.

Salesforce Inc (CRM) is expected to report $1.65 for 3Q.

Snowflake Inc (SNOW) is expected to report $-0.93 for 3Q.

Sprinklr Inc $(CXM)$ is expected to report $-0.14 for 3Q.

Star Group LP (SGU) is expected to report for 4Q.

TECSYS Inc (TCS.T) is expected to report for 2Q.

Thor Industries Inc $(THO)$ is expected to report $-0.09 for 1Q.

Tilly's Inc $(TLYS)$ is expected to report $0.13 for 3Q.

Torrid Holdings Inc (CURV) is expected to report $-0.02 for 3Q.

UiPath Inc (PATH) is expected to report $-0.02 for 3Q.

nCino Inc $(NCNO)$ is expected to report $-0.02 for 3Q.

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

(END) Dow Jones Newswires

December 02, 2025 16:30 ET (21:30 GMT)

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