Shares Rise to Document Excessive as CPI Report Retains Fee Minimize Hopes Alive; Oracle Inventory Retreats

Warners Bros. Discovery, Paramount Skydance Shares Pop on Takeover Reviews

46 minutes in the past

Shares of Warner Bros. Discovery (WBD) soared on Thursday following studies competitor Paramount Skydance (PSKY) was getting ready a takeover supply. 

The Wall Road Journal on Thursday reported Paramount Skydance was getting ready a majority money bid for the whole thing of the media firm. Warner Bros. Discovery shares soared 27% following the studies, whereas Paramount Skydance inventory gained 12%. 

Warner Bros. Discovery late final yr introduced plans to restructure into two working divisions, one centered on its legacy cable networks, together with CNN, TNT, and HGTV, and one other centered on its manufacturing studio and streaming service, HBO Max. CEO David Zaslav stated the restructuring “enhances our flexibility with potential future strategic alternatives throughout an evolving media panorama.”

Paramount Skydance was shaped simply weeks in the past by the merger of Skydance Media, the manufacturing firm run by David Ellison, the son of Oracle (ORCL) co-founder and world’s second-richest man Larry Ellison, and Paramount International.

Buying Warner Bros. Discovery would give Skydance one other of Hollywood’s most storied studios, bringing the Harry Potter, Lord of the Rings, DC Comics, Mission: Unimaginable, and Star Trek IPs underneath one roof. It will additionally mix the house owners of streaming platforms HBO Max, residence to “The White Lotus” and “The Final of Us,” and Paramount+, residence to “South Park” and “Yellowstone.”

Two Large Banks Simply Raised Their S&P 500 Targets. Right here’s Why.

1 hr 47 min in the past

Robust earnings, rate of interest cuts and a resilient AI growth might imply shares maintain rising within the subsequent yr, in accordance with two massive Wall Road Banks.

Deutsche Financial institution on Wednesday raised its year-end goal for the S&P 500 (SPX) to 7,000 from 6,550 as analysts led by Binky Chadha boosted their 2025 earnings per share estimate for firms within the benchmark index.

That stage can be 7% above the index’s file shut Wednesday, which it reached with the assistance of continued euphoria across the AI commerce, powered by Oracle’s (ORCL) blowout steerage, and rising expectations of interest-rate cuts by the Federal Reserve.

Firms aren’t struggling the ache from President Donald Trump’s tariffs that many buyers and economists predicted, Deutsche Financial institution wrote. “Firms see the hit from tariffs as far as modest and more likely to stay manageable,” the analysts wrote.

They stated that inventory valuations will proceed to remain excessive as firms keep excessive payout ratios and earnings keep resilient. Deutsche analysts are projecting earnings progress of greater than 9.5% this yr and virtually 14% subsequent yr, above the common it cited for typical non-recession years.

The Deutsche analysts stated they proceed to love giant progress shares and tech shares, in addition to monetary shares, however stay underweight in “defensive bond-like sectors” like client staples, utilities, actual property, healthcare and eating places.

Deutsche Financial institution wasn’t the one Wall Road participant that upped its goal for the S&P 500 this week. Barclays raised it year-end goal to six,450 from 6,050. Whereas that was beneath Wednesday’s shut, Barclays additionally elevated its 2026 worth goal for the S&P 500 to 7,000 from 6,700.

Like Deutsche, the Barclays analysts cited buoyant company incomes projections and the prospect of fee cuts as driving inventory worth motion.

Nonetheless, they had been extra cautious than Deutsche, seeing “rising labor market dangers” that would offset sturdy firm earnings and “AI-centric progress.”

On stability, nonetheless, the Barclays analysts led by Venu Krishna stated that whereas “macro is underneath strain” they count on three Fed fee cuts this yr to assist information the economic system “towards a manageable deceleration.”

–Nisha Gopalan

BofA Downgrades FedEx, UPS on Finish of De Minimis Tariff Exemption

2 hr 56 min in the past

A giant Wall Road financial institution bought extra cautious about two U.S. delivery giants’ shares at this time. 

Financial institution of America analysts on Thursday downgraded each FedEx (FDX) and UPS (UPS), setting worth targets on shares that had been among the many lowest on Wall Road.

The analysts lower their ranking on FedEx to “impartial” from “purchase,” trimming their goal by $5 to $240, one of many decrease scores compiled by Seen Alpha and beneath the common above $269, although above current costs. Their transfer on UPS was extra dramatic, swapping a impartial ranking for an “underperform” and setting an $83 goal that’s the lowest tracked by Seen Alpha and effectively beneath the imply close to $107. Its shares had been not too long ago round $84.

In each circumstances, the downbeat modifications include the shares within the purple for the yr, badly lagging the S&P 500, which has risen. 

Financial institution of America cited “elevated strain on quantity and prices” at each firms, noting the current transfer by the Trump administration to shut a tariff exemption for sure low-value gadgets. Some firms have already reported ache in consequence, although others have cheered the transfer. 

UPS in late July reported second-quarter income that got here in increased than anticipated, however disappointing income and a choice to not present revenue or income forecasts pulled shares down towards present ranges. FedEx suspended its outlook in June; its shares are across the worth seen after that transfer. 

Each firms’ shares had been increased in current buying and selling as optimism about interest-rate cuts lifted shares broadly.

–David Marino-Nachison

Why Wall Road Analysts Say the Document Run for Oracle Inventory is Simply Getting Began

3 hr 36 min in the past

Oracle’s (ORCL) blistering inventory acquire amid sturdy AI demand has Wall Road analysts racing to boost their worth targets—with most anticipating its file run isn’t over but. 

The shares soared 36% on Wednesday to a file excessive of about $328, a day after the computing large reported what Deutsche Financial institution analysts known as “actually superior outcomes” that “underscored its place because the chief in AI infrastructure.” The inventory gave up a few of these positive aspects on Thursday, however remains to be up about 90% because the begin of this yr.

“In our close to 20 years protecting Oracle and for that matter the whole Software program business, there are few quarterly outcomes that match F1Q each when it comes to magnitude of revision and readability of the second,” the Deutsche Financial institution analysts stated, pointing to Oracle’s $455 billion backlog, which greater than quadrupled from a yr in the past. 

That blowout backlog got here as Oracle stated it added 4 multibillion-dollar contracts in its fiscal first quarter, with CEO Safra Catz telling buyers that the corporate expects to realize a number of extra within the subsequent few months. 

A type of prospects might be OpenAI, in accordance with the Wall Road Journal, which reported Wednesday that the ChatGPT maker struck a deal to spend a whopping $300 billion for computing energy over 5 years, beginning in 2027. Oracle declined to comment and OpenAI didn’t instantly reply to a request for remark.

Deutsche Financial institution stated that Oracle’s efficiency Tuesday underscored how the strengths of the computing large’s underlying infrastructure and vary of choices might assist it maintain a aggressive benefit within the AI period, and boosted their worth goal for the inventory to $335 from $240, a stage it might high quickly if it might probably maintain simply a few of Wednesday’s momentum.

Different analysts had been much more bullish, with Jefferies elevating its goal to $360 from $270. Financial institution of America boosted its to $368, calling Oracle a “key AI enabler,” whereas Citi moved its goal as much as a brand new Road excessive of $410.

Citi analysts stated they now view Oracle as a “distinctive megacap AI winner,” after “one of many strongest quarterly contract signings we’ve come throughout in all of software program.” They added they will be watching carefully for extra particulars from the corporate subsequent month at its AI occasion, the place the corporate plans to unveil a brand new AI service, co-founder and CTO Larry Ellison stated.

–Kara Greenberg

CPI Inflation Hit Its Highest Degree Since January Final Month

4 hr 26 min in the past

Inflation continued to crunch family budgets in August as tariffs pushed client costs.

Costs as measured by the Shopper Value Index rose 2.9% over 12 months ending in August, the Bureau of Labor Statistics stated Thursday. Inflation was up from a 2.7% annual improve in July and reached the very best since January.

“Core” inflation, which excludes risky costs for meals and vitality, rose 3.1%, the identical annual improve as in July. In keeping with a survey of economists by Dow Jones Newswires and The Wall Road Journal, each will increase had been in step with forecasters’ expectations.

Inflation has steadily risen this yr as retailers have handed on the prices of President Donald Trump’s sweeping import taxes. The affect has been sluggish to reach as companies had stocked up on stock prematurely of the tariff marketing campaign, however these stockpiles are working out.

“With buffer inventories that had been constructed forward of tariffs being depleted, companies at the moment are compelled to replenish inventory at elevated costs,” Katy Stoves, funding supervisor at Mattioli Woods, wrote in a commentary. “With the tariffs trying to be extra everlasting, firms now have cowl to go these rising prices onto shoppers, moderately than compressing margins.”

–Diccon Hyatt

Micron Inventory Jumps on Value Goal Improve From Citi

5 hr 14 min in the past

Shares of Micron Know-how (MU) surged roughly 8% Thursday when Citi analysts boosted their worth goal, pointing to a rise in demand for dynamic random-access reminiscence (DRAM) chips and the corporate’s synthetic intelligence publicity.

The analysts raised Micron’s worth goal to $175 from the earlier $150 and affirmed their “purchase” ranking on the inventory. 

In a word to buyers, the analysts wrote they imagine that the “continued reminiscence upturn is being pushed by restricted manufacturing and higher than anticipated demand, notably from the info middle finish market.”

Micron releases its fiscal 2025 fourth-quarter report on Sept. 23, and Citi anticipates adjusted earnings per share of $2.62 and income of $11.20 billion, in step with general analysts’ estimates. Nonetheless, Citi anticipates the corporate’s steerage will probably be effectively above expectations, “pushed by increased DRAM and NAND gross sales and pricing.”

Micron Know-how shares have risen practically 80% year-to-date. 

–Invoice McColl

Meme Inventory Opendoor Skyrockets as Agency Names New CEO, Brings Again Co-Founders to Board

6 hr 3 min in the past

Opendoor Applied sciences (OPEN) shares soared 50% Thursday, a day after the web real-estate platform named a brand new CEO, introduced again its founders to be on the board, and bought a brand new infusion of money.

The corporate introduced that former Shopify (SHOP) COO Kaz Nejatian can be taking up as CEO, changing Carrie Wheeler, who stepped down final month after dealing with strain from shareholders as the corporate struggled in its turnaround efforts.

As well as, Opendoor stated co-founders Keith Rabois and Eric Wu had been returning to the Board of Administrators, with Rabois turning into Chairman. Lead Unbiased Director Eric Feder defined that the pair “will inject the ‘founder DNA’ and vitality at a pivotal second for Opendoor.” 

Together with their new positions, Rabois’ enterprise capital agency, Khosla Ventures, and Wu have struck securities buy agreements with Opendoor to take a position $40 million within the agency. Opendoor famous that it deliberate to make use of the cash “to fund continued funding within the enterprise.”

Opendoor Applied sciences shares have surged since July as retail buyers have piled into the meme inventory. They ended June buying and selling at $0.53 every however now are approaching $9 with at this time’s positive aspects.

–Invoice McColl

Inventory Futures Tick Greater After August CPI Knowledge

6 hr 53 min in the past

Futures contracts linked to the Dow Jones Industrial Common had been up 0.2% in premarket buying and selling on Thursday.

S&P 500 futures had been additionally up 0.2%.

Nasdaq 100 futures superior 0.3%.