Key Takeaways
- Gold prices edged higher as weak U.S. retail sales data strengthened the case for potential Federal Reserve rate cuts, supporting bullion in a lower-rate outlook.
- Oil prices climbed, with Iran-related Middle East tensions outweighing signs of a sharp U.S. inventory build, as traders focused on potential supply risks.
- Ford Motor Company (F) forecasts a significant profit rebound in 2026, projecting adjusted EBIT of $8 billion to $10 billion, despite a $2 billion tariff hit, driven by cost cuts and strong sales of high-margin SUVs and pickups.
- PayPal Holdings Inc. (PYPL) has ousted CEO Alex Chriss due to underperformance, with Enrique Lores of HP Inc. (HPQ) set to take over on March 1 to lead a turnaround.
- Asian stocks are poised to open higher, buoyed by increased bets on Fed rate cuts following weak U.S. retail sales, despite a slip on Wall Street.
Weak U.S. retail sales data has fueled expectations for Federal Reserve rate cuts, providing a boost to gold prices. The precious metal edged higher as investors anticipated a lower-rate environment, which typically makes non-yielding assets like gold more attractive. This sentiment also influenced Asian stocks, which are set to open higher, capitalizing on the increased probability of Fed rate cuts ahead of crucial jobs and inflation data, even after a slight dip on Wall Street.
Meanwhile, oil markets saw prices climb amidst escalating Iran-related tensions in the Middle East. Geopolitical risks in the region overshadowed indications of a substantial U.S. inventory build, with traders prioritizing potential disruptions to global supply.
In corporate news, Ford Motor Company (F) has issued an optimistic forecast for 2026, predicting an adjusted EBIT of $8 billion to $10 billion. This projected rebound is attributed to aggressive cost-cutting measures and robust sales of its high-margin SUV and pickup truck segments, despite facing a $2 billion tariff impact.
PayPal Holdings Inc. (PYPL) announced a significant leadership change, with its board ousting CEO Alex Chriss following a period of underperformance. Enrique Lores, currently of HP Inc. (HPQ), is slated to assume the CEO role on March 1, tasked with leading a turnaround that includes modernizing operations, refocusing the business, and potentially divesting segments such as its payment-processing division.
Further economic and political developments include Barclays' assessment that the Federal Reserve's balance-sheet shrinkage will span several years, necessitating close coordination with the Treasury to prevent funding stress. The firm suggests that investors will demand a risk premium, and policy rates may need to fall to offset tighter financial conditions.
In government news, Commerce Secretary Howard Lutnick admitted to visiting Jeffrey Epstein’s island in 2012, describing it as a brief family lunch. Lawmakers are questioning his account amid documented contact through 2018, while the White House defends him. Separately, the Pentagon is moving to formalize a Trump-era order targeting defense contractor buybacks and executive pay, drafting contract rules, coordinating with the SEC, and reviewing performance for compliance.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.