Stock futures were up Friday while bond yields were little changed

following massive selloffs earlier this week.

The Treasury's unexpected decision Wednesday to double the buyback volume of long-end nominal securities helped push bond yields lower, though only temporarily.

Next week, focus could switch back to the outlook for interest rates as investors analyze policymakers' rhetoric closely at the Federal Reserve's annual Jackson Hole symposium.

The event "gives Warsh the opportunity to talk to markets, which are in need of more clarity on the central bank's plans," Arca said. "It seems as though Warsh wants the market to do the tightening for the Fed, and that's really what is happening with the recent surge in bond yields."

Meanwhile, oil prices slipped but were still headed for a weekly gain of around 5% after President Trump vowed to launch sweeping measures aimed at further isolating Iran's economy.

"With the Middle East crisis showing few signs of easing, the risk of further disruption to regional energy flows continues to support crude and refined product prices," Saxo Bank said.

Investors are now awaiting August's flash manufacturing purchasing managers' index, due to be released today.

Stocks to watch

BJ's Wholesale Club is set to report its earnings ahead of the opening bell.

Ross Stores raised its full-year outlook on higher demand from new and existing customers. Shares jumped more than 8% in pre-market trading.

Strategy, Coinbase, American Bitcoin: Shares in the crypto-related companies continued their climb premarket after Trump met with digital currency leaders earlier this week.

Today's Top Headlines/Must Reads:

- Bessent's 'Big Toolkit' Leaves Investors Guessing About Next Treasury Surprise

- The Brains Who Powered China's Surprising AI Leap

- GM Ruled U.S. Auto Sales for 100 Years. Now Toyota Is Closing In.

MARKET WRAPS Forex:

The dollar weakened against a basket of currencies amid uncertainty about whether the Federal Reserve will raise interest rates despite a solid U.S. economic backdrop.

The DXY Index remained around 98.8 points during the Asian session, but its outlook remained weak amid concerns about U.S. debt, said CBA.

The euro rose.

Sterling stayed weak against the euro, not far from Thursday's three-week low after data revealed U.K. public finances deteriorated more than expected while retail sales were weak.

Bonds:

Treasury yields were slightly higher in early trade as investors remained cautious despite the Treasury's announcement Wednesday of an increase in securities buybacks. "Concerns about large budget deficits and extensive borrowing from tech companies seem to be back in focus," SEB said.

Energy:

In early European trading, Brent crude was down 0.3%, while WTI futures slipped 0.5%.

Metals:

Gold prices rose above $4,600 a troy ounce and are headed for a weekly gain of 4%, buoyed by concerns over the U.S. government debt and borrowing costs. Gold chart

Comex gold futures' bullish momentum was getting stronger, said RHB Retail Research. The latest price movements on the daily chart, together with rising relative strength index, show that bullish momentum is in play.

Iron ore

Iron ore edged lower in early trading. Prices are under pressure on expectations of ample supply in the second half of the year, Nanhua Futures said.

TODAY'S TOP HEADLINES

Italy's Monte dei Paschi Makes $40 Billion Move to Buy Rival Banks

Banca Monte dei Paschi di Siena is launching all-share bids for its Italian peers Banco BPM and Banca Generali as it fights off a takeover offer from Intesa Sanpaolo.

The Italian lender-widely considered the world's oldest bank still in operation-said Friday that it is seeking to buy up to 1.52 billion shares of Banco BPM and offering 1.567 of its shares for each Banco BPM share. The bank is offering 6.958 of its shares for each Banca Generali share.

Hyundai's Union Launches First Full-Day Strike in Decade

Hyundai Motor's unionized workers staged a full-day strike for the first time in a decade, bringing production to a complete halt as they pressed demands for better wages and job protections.

The daylong strike at the South Korean automaker, the first since 2016, followed months of failed wage negotiations and a series of partial walkouts, adding to the challenges facing the company as it grapples with sluggish global vehicle sales.

SpaceX Is Racking Up Wins in Washington

SpaceX has had a bumpy ride on Wall Street, but in Washington, Elon Musk's space-and-artificial intelligence company has been racking up big wins.

This year SpaceX has secured billions of dollars' worth of government business to build and launch military satellites, even after lawmakers made an extra push to give other contractors a shot. The Trump administration is allowing SpaceX to sidestep some wireless network requirements, while pushing to cut environmental reviews related to rocket launches.

Layoffs at JPMorgan Hit Highest Level Since 2015

On JPMorgan Chase's quarterly earnings call last month, CEO Jamie Dimon said the banking environment is "getting close to as good as it gets."

With consumers in solid shape, investors piling into stock market bets, companies calling on investment bankers, and spenders paying up for credit card perks, the firm notched record revenue in its three major divisions last quarter. The market is thrilled: JPMorgan's stock has hit 17 new all-time highs this year.

Europe, Asia See Pickup in Activity Despite Headwinds

Business activity in Europe and parts of Asia has continued to grow in the face of an extended period of high energy prices, uncertainty about the course of the war between the U.S. and Iran, and rising borrowing costs, according to a series of surveys released Friday.

A lack of progress on reopening the Strait of Hormuz or reaching a deal to end the nearly six-month war has kept energy prices high, while a rise in yields on government bonds is pushing up borrowing costs for households and businesses.

Japan Inflation Picks Up as Rate-Boost Bets Firm

TOKYO-Japan's consumer inflation picked up last month as the energy shock caused by the Middle East conflict rippled out across goods, firming expectations that the next interest-rate hike is around the corner.

Excluding fresh food, consumer prices climbed 1.8% in July from a year earlier, compared with June's 1.6% increase, government data showed Friday. That was in line with the consensus forecast of economists polled by data provider Quick.

Bessent's 'Big Toolkit' Leaves Investors Guessing About Next Treasury Surprise

Treasury Secretary Scott Bessent has surprised Treasury investors a couple of times over the past month with aggressive moves to try to keep Treasury yields from rising. Now, a $32 trillion bond market used to stability is bracing for more changes.

Since 1982, the Treasury has embraced the core principle of being regular and predictable, a strategy that has allowed the world's largest issuer of government bonds to issue trillions of debt at the least possible cost to the taxpayer. Officials back then figured that being straight up with investors about their plans kept bonds yields steady and reduced the interest rate they must offer at auctions; sudden changes did the exact opposite.

Plane Crash Near Remote Military Radar Site in Alaska Kills 8

A civilian-contracted plane flying from Anchorage crashed near a remote radar site in western Alaska on Thursday, killing all eight people on board, aviation and military authorities said.

The Cessna 441 crashed near the Cape Newenham Long Range Radar Site Airport, some 450 miles west-southwest of Anchorage, the Federal Aviation Administration said.

Trump Administration Attacks Bar Association's Power to Accredit Law Schools

The Trump administration is opening a new front in its campaign to remake higher education: threatening the American Bar Association's power to accredit law schools.

On Friday, the Education Department is taking the first step toward removing the ABA's authority to accredit law schools, said David Barker, assistant secretary of education.

Hong Kong Court Convicts Activists Who Organized Tiananmen Vigils

HONG KONG-A Hong Kong court on Friday convicted two activists who organized large-scale annual memorials for those killed in the 1989 crackdown on pro-democracy protesters in China.

The convictions of barrister Chow Hang-tung and labor organizer Lee Cheuk-yan for inciting subversion conclude one of the last major trials in a yearslong crackdown that followed mass antigovernment protests in Hong Kong in 2019. They were charged under Hong Kong's national security law, which Beijing imposed on the territory in 2020.

Russian Missile Drills Stoke Tensions With Japan

TOKYO-Russia held live missile drills near islands claimed by Japan, further straining relations with Tokyo after a visit to the disputed archipelago by Russian President Vladimir Putin.

The Russian Pacific Fleet said a submarine, warship and coastal defense system fired missiles at mock enemy vessels in the waters off the southern Kuril Islands in Russia's far east, according to Russian state news agency Interfax. The report didn't say when the exercise took place.

Write to priscila.barrera@wsj.com

TODAY IN CANADA Earnings:

Nothing major scheduled

Economic Indicators $(ET)$:

0830 Jun Retail trade Stocks to Watch:

Brookfield Renewable to Issue C$750M of Green Bonds

Diamond Estates Wines & Spirits 1Q EBITDA CAD 1.6M; 1Q Adj EBITDA CAD 0.9M; 1Q Gross Margin 61.1%; 1Q Net Income CAD 0.6M; 1Q Revenue CAD 7M; FactSet Est. CAD 8.9M (1 Est.); 1Q Revenue Misses Estimates

Endeavour Silver Provides Update on Blockade at Its Terronera Mine in Mexico; In Negotiations With Representatives of Ejido Community; Focused on Reaching Constructive Resolution That Supports Orderly Resumption of Full Operations at Terronera

Roots Agreed to Go Private in Transaction Led by Marquee Brands; Agreed to Be Acquired for C$4.10 Per Shr in Cash; Transaction Is Unanimously Recommended by Bd of Directors

Stracon Group Withdraws Filing for Stock Offering

WestBond 1Q Sales CAD 2.9M; 1Q Net Income CAD 0.3M; Reports 1Q Sales of CAD 2.9 Milliona

Expected Major Events for Friday 00:30/JPN: Aug Japan Flash Manufacturing PMI

05:00/JPN: Jul Steel Production

06:00/UK: Jul Public sector finances

06:00/UK: Jul Retail sales

06:45/FRA: Aug Monthly business survey (goods-producing industries)

07:15/FRA: Aug France Flash PMI

07:30/GER: Aug Germany Flash PMI

08:30/UK: Aug Flash UK PMI

12:30/CAN: Jun Retail trade

13:45/US: Aug US Flash Manufacturing PMI

13:45/US: Aug US Flash Services PMI

14:00/US: Jul State Employment and Unemployment

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

Expected Earnings for Friday BJ's Wholesale Club Holding Inc (BJ) is expected to report $1.16 for 2Q.

Bloomia Holdings Inc (TULP) is expected to report for 4Q.

Buckle Inc $(BKE)$ is expected to report $0.81 for 2Q.

Cambium Networks Corp $(CMBMF)$ is expected to report for 2Q.

Encision Inc $(ECIA)$ is expected to report for 1Q.

Southern Banc Co Inc (SRNN) is expected to report for 4Q.

TPI Composites Inc (TPICQ.XX) is expected to report $-1.52 for 2Q.

Trinity Place Holdings Inc (TPHS) is expected to report for 2Q.

Ubiquiti Inc $(UI)$ is expected to report $4.19 for 4Q.

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ANALYST RATINGS ACTIONS Allstate Cut to Underperform From Market Perform by Keefe, Bruyette & Woods

American Tower REIT Raised to Overweight From Equal-Weight by Barclays

Analog Devices Raised to Buy From Neutral by Seaport Global

Analog Devices Raised to Outperform From Market Perform by Bernstein

Cactus Cut to Neutral From Buy by Citigroup

Crown Castle Raised to Overweight From Equal-Weight by Barclays

Crypto Stocks Continue Surge Premarket After Upbeat White House Meeting

EPR Properties Raised to Overweight From Sector Weight by Keybanc

Etsy Raised to Buy From Neutral by B of A Securities

Fluence Energy Cut to Hold From Buy by GLJ Research

John B Sanfilippo & Son Raised to Buy From Hold by Freedom Broker

Merck Cut to Sector Perform From Outperform by RBC Capital

Merck Raised to Overweight From Equal-Weight by Morgan Stanley

Progressive Raised to Outperform From Market Perform by Keefe, Bruyette & Woods

TJX Cos Cut to Accumulate From Buy by Gordon Haskett

TJX Cos Cut to Neutral From Buy by Citigroup

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