North American Morning Briefing : Stock Futures Up -2-

U.S. cannabis cultivators and operators are facing an approaching wall of debt maturities at a time of slowing growth and little movement by the federal government in reclassifying cannabis as a less-dangerous drug. As private-equity and venture-capital firms have stepped back from marijuana that is legal at the state level, pot cultivators and retailers have turned to debt financing, which accounted for 92% of the roughly $1.2 billion in capital raised last year, said Frank Colombo, managing director for cannabis investment bank Viridian Capital Advisors.

The Economy Is Still Fine. Americans Are Still Gloomy.

A lot has changed since November's election, but not this: The economy is still pretty solid, and people are still really down on it.

The latest evidence of the disconnect is a Conference Board report Tuesday that consumer confidence plummeted 6.7% in February from January, the largest drop since 2021. The other major confidence survey, by the University of Michigan, also has recorded falling confidence, as have several business surveys.

House Passes GOP Budget Plan as Holdouts Relent

WASHINGTON-Republicans squeaked their budget blueprint through the House late Tuesday after party leaders swayed a handful of wavering members to back the framework for President Trump's tax, border and spending-cut agenda.

The 217-215 vote delivered a victory for House Speaker Mike Johnson (R., La.), who united all but one of his GOP members-Thomas Massie of Kentucky-around an approach that requires significantly reducing Medicaid costs and likely won't accommodate all of Trump's desired tax cuts. The House-passed plan calls for $1.5 trillion to $2 trillion in spending reductions over a decade and $4 trillion to $4.5 trillion in tax cuts.

A Decimated Hamas Prepares for a New Fight With Israel

Hamas is regrouping its military forces for a potential return to fighting with Israel in Gaza, as mediators work to salvage the cease-fire that expires this weekend in the strip.

The militant group's armed wing has appointed new commanders and begun mapping out where to position fighters in the event of a return to war, according to Arab officials who talk with Hamas. The U.S.-designated terrorist group also has started repairing its underground tunnel network and has passed out leaflets to inexperienced new fighters on how to use weapons to mount a guerrilla war against Israel, these officials said.

Dockworkers Approve Labor Deal

Dockworkers voted in favor of a new labor deal that delivers a 62% pay raise and the promise of labor peace at ports from Maine to Texas for the next six years.

The International Longshoremen's Association vote on Tuesday caps one of the most contentious labor negotiations in decades at East Coast and Gulf Coast ports.

European Leaders Seek to Perfect the Art of Trump Whispering

WASHINGTON-When French President Emmanuel Macron visited Washington this week, President Trump invited him earlier than scheduled into the White House, where the two men talked alone for over an hour.

Macron pressed Trump to provide a U.S. military "backstop" for the thousands of troops that the U.K. and France are willing to deploy in Ukraine in the event of a peace deal the U.S. is negotiating with Russia, a senior official said. They didn't get into the details, the official said, but Trump was open to the idea and Macron left Washington believing he had an understanding with Trump.

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TODAY IN CANADA

Earnings:

Andlauer Healthcare 4Q

Capital Power 4Q

Element Flee 4Q

Exchange Income 4Q

Fiera Capital 4Q

George Weston 4Q

Kinaxis 4Q

National Bank of Canada 1Q

Northland Power 4Q

Ovintiv 4Q

SunOpta 4Q

Superior Plus 4Q

WSP Global 4Q

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch:

Aptose Biosciences (APTO) Halted Due to Pending News

Dream Unlimited Reports Strong Fourth Quarter Results & Announces Dividend Increase; 4Q Revenue at C$192.25 Million; 4Q Pre-Tax FFO was C$1.22/Share

EQB Releases Q1 Results With Milestone Adjusted EPS And Total AUM And AUA Reaching $132 Billion, Increases Dividend 21% Y/y; Raises Dividend to C$0.51; 1Q EPS C$2.77; Will Announce the Appointment of a New Chief Financial Officer in Due Course; Chadwick Westlake Will Step Down as Senior Vice President and CFO Effective March 4

PHX Energy Services 4Q Rev C$178.6M; 4Q EPS C$0.30

Timbercreek Financial 4Q Net Investment Income C$27.9M; 4Q EPS C$0.03

5N Plus 4Q Rev $70.9M; 4Q Net $1M

Expected Major Events for Wednesday

05:00/JPN: Dec Indexes of Business Conditions - Revision

07:00/GER: Feb GfK consumer climate survey

07:45/FRA: 4Q New home sales

07:45/FRA: Feb Consumer confidence survey

12:00/US: 02/21 MBA Weekly Mortgage Applications Survey

15:00/US: Jan New Residential Sales

15:30/US: 02/21 EIA Weekly Petroleum Status Report

23:50/JPN: Feb Provisional Trade Statistics for 1st 10 days of Month

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Wednesday

ACM Research Inc (ACMR) is expected to report $0.31 for 4Q.

APi Group Corp (APG) is expected to report $0.36 for 4Q.

Amerigo Resources is expected to report for 4Q.

Atlanta Braves Holdings Inc (BATRA) is expected to report for 4Q.

Avanos Medical Inc (AVNS) is expected to report $-0.01 for 4Q.

AvidXchange Holdings Inc (AVDX) is expected to report $0.01 for 4Q.

Avista Corp (AVA) is expected to report $0.86 for 4Q.

BankFinancial Corp (BFIN) is expected to report $0.05 for 4Q.

Bentley Systems Inc (BSY) is expected to report $0.17 for 4Q.

Blackstone Secured Lending Fund (BXSL) is expected to report $0.86 for 4Q.

Bloomin' Brands Inc (BLMN) is expected to report $0.37 for 4Q.

CBIZ Inc (CBZ) is expected to report $-0.33 for 4Q.

Capital Power is expected to report $0.51 for 4Q.

Chatham Lodging Trust (CLDT) is expected to report $0.05 for 4Q.

Comstock Inc (LODE) is expected to report for 4Q.

DT Midstream Inc (DTM) is expected to report $0.89 for 4Q.

EMCOR Group Inc (EME) is expected to report $5.97 for 4Q.

Enovis Corp (ENOV) is expected to report $0.01 for 4Q.

Federal Signal Corp (FSS) is expected to report $0.87 for 4Q.

Fiera Capital is expected to report $0.26 for 4Q.

Firan Technology Group is expected to report for 4Q.

George Weston Ltd (WN.T,WNGRF) is expected to report for 4Q.

International Money Express Inc (IMXI) is expected to report $0.52 for 4Q.

Lantheus Holdings Inc (LNTH) is expected to report $1.32 for 4Q.

Lowe's Cos (LOW) is expected to report $1.87 for 4Q.

MGP Ingredients inc (MGPI) is expected to report $1.41 for 4Q.

NRG Energy Inc (NRG) is expected to report $1.61 for 4Q.

National Bank of Canada (NA.T,NTIOF) is expected to report $2.67 for 1Q.

National Vision Holdings Inc (EYE) is expected to report $-0.10 for 4Q.

Option Care Health Inc (OPCH) is expected to report $0.33 for 4Q.

Photronics Inc (PLAB) is expected to report $0.47 for 1Q.

Rhythm Pharmaceuticals Inc (RYTM) is expected to report $-0.63 for 4Q.

Sprott Inc (SII,SII.T) is expected to report for 4Q.

Theratechnologies Inc (TH.T,THTX) is expected to report for 4Q.

United Therapeutics Corp (UTHR) is expected to report $6.35 for 4Q.

Verisk Analytics Inc (VRSK) is expected to report $1.51 for 4Q.

Vertex Energy Inc (VTNRQ) is expected to report $-0.03 for 4Q.

XPEL Inc (XPEL,XPEL.U-V) is expected to report $0.41 for 4Q.

Zevia PBC (ZVIA) is expected to report $-0.08 for 4Q.

eHealth Inc (EHTH) is expected to report $2.16 for 4Q.

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ANALYST RATINGS ACTIONS

Civitas Resources Cut to Sector Weight From Overweight by Keybanc

Methode Electronics Raised to Buy From Neutral by Sidoti & Co.

Onsemi Restructuring Aims to Spare Research as Auto Sales Slide

Quanta Services Raised to Outperform From Market Perform by BMO Capital

Tempus AI Cut to Neutral From Overweight by JP Morgan

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

(END) Dow Jones Newswires

02-26-25 0633ET