MARKET WRAPS

Watch For:

Personal Income & Outlays, Employment Cost Index, University of Michigan Survey of Consumers, Pending Home Sales Index; earnings from Chevron, Exxon Mobil, AbbVie, Colgate-Palmolive

Opening Call:

Today's Headlines:

- Musk Buys Twitter, Immediately Fires CEO and CFO

- Amazon Shares Skid After Earnings

- Apple Reports Record Revenue

Follow WSJ markets coverage here.

U.S. stock futures declined, with contracts on the tech-heavy Nasdaq-100 leading losses after a disappointing sales forecast from Amazon highlighted the challenges facing even the largest firms.

Exxon Mobil and Chevron are among the big-name companies posting earnings before Wall Street opens Friday.

"The wider concerns from last night's results point to a weakening economy, which although we've been warned about, still have the ability to spook the market when we see the tangible effects," said Sophie Lund-Yates, an analyst at broker Hargreaves Lansdown.

Big Tech earnings are closely watched because they are a bellwether of economic growth and consumer strength-in addition to the fact that shares in these companies are heavily weighted in the S&P 500 and Nasdaq indexes. Amazon shares were down 14% in premarket trading, dragging down the indexes.

Forex:

The dollar could rise further if third-quarter U.S. employment cost index data due later Friday exceed expectations, ING said.

This is an influential number for the Federal Reserve and the ECI's 1.4% quarter-on-quarter rise in the first quarter certainly contributed to Fed's restrictive policy stance this year, ING said.

"Any upside surprise could push the pricing of the Fed terminal [peak] rate (now 4.75% and off a recent high at 5.00%) higher," said ING. "This would be dollar positive."

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The European Central Bank's stance will unlikely support the euro unless fiscal policy shields the economy without stoking inflation, Monex Europe said.

"The euro's prospects of trading above parity is dependent instead on the Federal Reseve's next steps and the impact it will have on broader risk conditions in markets," Monex said.

The ECB raised interest rates 75 basis points on Thursday but signaled it could slow future rises by saying it's already made "substantial progress" in normalizing policy.

The ECB said it expects to raise rates further but dropped its reference for rises over the "next several meetings."

Energy:

Oil prices fell as major cities across China returned to lockdowns as Beijing continues with its zero-tolerance approach to Covid-19, which is undermining expectations for crude demand.

Cities including Wuhan, the original epicenter of the virus, and manufacturing hub Guangzhou have seen fresh restrictions introduced as infections have risen across China, though cases remain low by global standards.

China's strict adherence to its zero-Covid policies is weakening expectations for oil demand in the world's biggest crude importer.

Metals:

Metals prices declined, with most on course to end the week lower amid concerns about fresh lockdowns in China.

The strict approach is weakening expectations for metals demand in one of the world's biggest consumers of raw materials. "We have seen Covid-zero policies drowning out positivity from the onshore equities market," Marex said.

"Systematic selling has emerged as Covid outbreaks have expanded areas under lockdown."


TODAY'S TOP HEADLINES


Elon Musk Twitter Deal Completed, CEO and CFO Immediately Fired

Elon Musk fired several Twitter Inc. executives after completing his takeover of the company, according to people familiar with the matter, capping an unusual corporate battle and setting up one of the world's most influential social-media platforms for potentially broad change.

Mr. Musk fired Chief Executive Parag Agrawal and Chief Financial Officer Ned Segal after the deal closed, the people said. Mr. Musk also fired Vijaya Gadde, Twitter's top legal and policy executive, and Sean Edgett, general counsel. Spokespeople for Twitter didn't comment.


Intel to Cut Jobs in Cost-Savings Drive as PC Slump Weighs on Earnings

Intel Corp. has embarked on an aggressive cost-cutting push and is considering divestitures as the chip maker tries to navigate a sharp plunge in demand for PCs that has weighed on the company's earnings.

Intel posted a 20% drop in third-quarter sales, issued a forecast for even weaker revenue in the current quarter and lowered its full-year outlook.


Amazon's Holiday Blues Come Early-and Hard

Even the One Ring seems to have its limits.

Amazon became the latest tech giant to disappoint Wall Street on Thursday-and to pay a heavy price for doing so. The company's third-quarter results included revenue that was slightly below analysts' estimates and another sharp drop in operating income-the latter down 48% year-over-year. Adding insult to injury, growth in the company's subscription service revenue fell into single-digit territory for the first time ever, despite the debut of its costly "Lord of the Rings" series for subscribers of its Prime streaming service.


Apple Reports Record Revenue, Continuing Pandemic Streak

Apple Inc. reported record revenue in the September quarter, continuing a pandemic-fueled streak that investors have watched closely as demand for certain consumer goods has been sluggish.

The Cupertino, Calif., company announced its full-year earnings on Thursday after markets closed. To date, Apple's business has largely proved resilient as broader smartphone-sales slowdowns and global economic challenges have dragged down peers.


BOJ Raises Inflation Expectations, Maintains Ultralow Interest Rates

TOKYO-The Bank of Japan on Friday raised its inflation forecast by 0.6 percentage point amid increases in energy prices and a weak yen, but it left its ultralow interest rates unchanged and said it expects inflation to fall below its 2% target next fiscal year.

The BOJ's policy board expects core consumer prices excluding volatile fresh food prices to increase 2.9% in the current year ending March 2023, compared with the previous forecast for a 2.3% rise, the bank's quarterly outlook showed Friday.


German Economy Unexpectedly Expands in Third Quarter, Defying Energy Crisis

The German economy grew in the third quarter, beating all the forecasts for a contraction, defying record-high inflation and the energy crisis.

Germany's gross domestic product expanded by 0.3%, according to a first estimate published Friday by the country's statistics office. Economists polled by The Wall Street Journal had forecast a 0.2% drop.


France's Economy Grew 0.2% in Third Quarter, Beating Forecasts

The French economy expanded in the third quarter, beating economists' forecasts amid strong domestic demand.

The eurozone's second-largest economy grew 0.2% in the third quarter, French statistics agency Insee said Friday in a first estimate for the period. Economists polled by The Wall Street Journal had forecast the economy would grow by 0.1% on quarter.


Japan Considers Buying U.S. Tomahawk Missiles to Deter North Korea and China

TOKYO-Japan is in talks with the U.S. about buying Tomahawk cruise missiles so that it can more quickly gain the ability to attack North Korean and Chinese military bases, people familiar with the matter said.

The long-range missiles would represent a big step up in Tokyo's ability to strike regional rivals, a power that it traditionally held back from obtaining. Prime Minister Fumio Kishida has said he wants to improve deterrence, particularly after North Korea fired a missile that flew over Japan earlier this month and China's military stepped up activity near Japan and Taiwan.


North Korea Fires Ballistic Missiles as Seoul Concludes Military Exercises

SEOUL-North Korea fired two short-range ballistic missiles on Friday, Seoul officials said, as South Korea wraps up its annual military exercises.

The missiles were fired between 11:59 a.m. and 12:18 p.m. local time from Tongchon, a county on North Korea's east coast, according to Seoul's military. They hit estimated altitudes of roughly 15 miles, traveling about 143 miles before splashing into the waters between the Korean Peninsula and Japan.


Covid-19 'Most Likely' Leaked From Lab in China, Senate GOP Report Says

WASHINGTON-The Covid-19 pandemic that has killed millions worldwide "was most likely the result of a research-related incident" in China, and not natural transmission of a virus from animal to human, a new report by Republicans on the Senate health committee concludes.

The study cites details about the early spread of the SARS-COV-2 virus, which causes Covid; the fact that no animal host has been identified nearly three years into the pandemic; and troubled biosafety procedures at labs in the Chinese city of Wuhan to buttress its conclusion.


Write to hoishan.chan@dowjones.com TODAY IN CANADA

Earnings:

Air Canada 3Q

AltaGas 3Q

Fortis 3Q

HEXO 4Q

Imperial Oil 3Q

Economic Indicators (ET):

0830 August GDP

Stocks to Watch:

Yamana Gold 3Q EPS 2c; Net $19.8M; Rev $422.4M; Adj EPS 5c

Yamana Gold: 3Q Strong Production at Canadian Malartic and Jacobina Highlights Growing Sustainable Production Platform and Exceptional Execution Across Asset Portfolio

Quebecor, Rogers Communications and Shaw Communications 'Disappointed' as Mediation With Commissioner of Competition Didn't Yield a Settlement; Bureau's 'Unwillingness to Meaningfully Engage' Delays Lower Prices for Consumers; Remain Committed to Completing Transactions; Held Mediation Session, Did Not Yield a Negotiated Settlement

Cogeco 4Q EPS C$2.31; Rev C$746.9M; Raises Dividend to C$0.731 Vs. C$0.625


Expected Major Events for Friday

00:30/JPN: Sep Detailed Import & Export Statistics

05:30/FRA: Sep Household consumption expenditure in manufactured goods

05:30/FRA: 3Q GDP - first estimate

06:45/FRA: Sep PPI

06:45/FRA: Sep Housing starts

06:45/FRA: Oct Provisional CPI

(MORE TO FOLLOW) Dow Jones Newswires

10-28-22 0524ET