Market Overview - U.S. stock futures declined following a rally, with major indices showing lower futures [1] - The Dow closed above 46,000 for the first time, despite negative economic indicators such as inflation rising to 2.9% year-over-year and jobless claims reaching 263,000, the highest since October 2021 [2] - The 10-year Treasury bond yielded 4.04%, while the two-year bond was at 3.56%, with markets pricing a 100% likelihood of an interest rate cut by the Federal Reserve [2] Index Performance - Dow Jones futures fell by 0.17%, S&P 500 by 0.14%, Nasdaq 100 by 0.06%, and Russell 2000 by 0.45% [3] - The SPDR S&P 500 ETF Trust (SPY) was down 0.10% at $656.95, while Invesco QQQ Trust ETF (QQQ) rose 0.0068% to $584.12 [3] Sector Performance - Most sectors in the S&P 500 closed positively, with consumer discretionary, healthcare, and materials stocks showing the largest gains, while energy stocks declined slightly [4] - The overall market strength led to significant gains, with the Dow Jones increasing by over 600 points as investors reacted to consumer inflation data [4] Company Earnings - Kroger Co. reported better-than-expected second-quarter earnings, while The Lovesac Co. saw a 15% drop in stock price after cutting its fiscal year 2026 GAAP EPS guidance [5] - Adobe Inc. rose 3.83% after exceeding third-quarter expectations and raising its fiscal 2025 outlook, while RH dropped 7.93% due to weaker-than-expected second-quarter results [16] Analyst Insights - Analysts indicate a slowdown in the U.S. labor market, with negative revisions to previous job gains suggesting a noticeable deceleration [9] - Despite the hiring slowdown, companies are retaining employees, with initial jobless claims remaining stable in the historically low range of 220,000 to 240,000 [11] - Investment strategies are shifting, with recommendations to trim risk and rebalance portfolios, particularly moving funds from Communication Services and Energy sectors to Financials [15] Commodities and Global Markets - Crude oil futures traded lower at $62.31 per barrel, while gold rose to approximately $3,644.80 per ounce [17] - Asian markets closed higher, with notable gains in indices such as Australia's ASX 200 and Japan's Nikkei 225, while European markets showed mixed results [18]

CONCLUDED Stock Market News From Sept. 12, 2025: Dow Slips After Hitting Record High Last Updated: Updated 13 hours ago Stock Futures Fall After Record Highs. Market Eyes Are on Mega Merger. By Adam Clark U.S. stock futures were falling early Friday after surging to new highs the previous day on the back hopes for interest-rate cuts. In corporate news, Warner Bros. Discovery stock will be in focus as Paramount Skydance is preparing a bid for its fellow movie studio and streaming company, according to a Wall ...

Group 1 - Warner Bros. Discovery (WBD.US) shares rose over 4.7% in pre-market trading, reaching $16.94, following a nearly 29% increase on Thursday [1] - Paramount Skydance is preparing to make a cash-based majority stake acquisition proposal for Warner Bros. Discovery, targeting the entire company [1] - Warner Bros. Discovery announced plans to restructure into two independent businesses, one focusing on cable networks and the other on streaming and production [1]

Core Viewpoint - Warner Bros. Discovery Inc. (WBD) stock experienced a significant surge following news of a potential acquisition by Paramount Skydance Corp., marking its largest one-day increase ever [2][3]. Group 1: Stock Performance - WBD stock jumped 28.95% on Thursday and continued to rise by 9.77% after market close, reaching $17.75 [2]. - The market capitalization of WBD increased to $40.03 billion, with a price-to-earnings ratio of 53.63 [5]. - WBD shares have gained 52.98% in 2025 and 133% over the past year, with a trading volume of 296 million shares, significantly above the average of 50.91 million [5]. Group 2: Acquisition Details - Paramount Skydance is preparing an all-cash offer to acquire WBD entirely before its planned business split in April 2026 [3]. - The merger would create a significant player in the entertainment industry, combining assets from both companies, including major broadcasting rights [3]. Group 3: Market Metrics and Analyst Opinions - Paramount Skydance recently completed an $8 billion merger and is working with investment banks on the acquisition offer [4]. - Bank of America analyst Jessica Reif Ehrlich rates Paramount Skydance as "Underperform," citing execution risks [4]. - WBD is currently ranked in the 87th percentile for stock momentum, indicating strong upward trends across all time periods [6].

Group 1 - Paramount Skydance is preparing to bid for Warner Bros. Discovery, with discussions ongoing with an investment bank for a cash offer [1] - Warner Bros. Discovery's stock rose nearly 29% and Paramount Skydance's stock increased over 15% following the news [1] - The acquisition, if successful, would reduce the number of major Hollywood studios from five to four, marking the largest merger since Disney's $71 billion acquisition of Fox's entertainment assets in 2019 [1] Group 2 - The merger would consolidate companies with some of the most recognizable film properties, enhancing Paramount Skydance's production capabilities in Southern California [2] - Paramount Skydance is known for producing franchises like Mission: Impossible and The Godfather, while Warner Bros. Discovery has a library that includes Harry Potter and Batman [2] - Major media companies, including Warner Bros. Discovery and Comcast, are restructuring their film businesses, focusing on paid streaming due to the decline in traditional pay-TV subscribers and advertisers [2]

Core Viewpoint - Paramount is preparing to make a full acquisition offer for Warner Bros. Discovery, primarily in cash, which could reshape the Hollywood landscape. If successful, this would be the largest consolidation in the entertainment industry since Disney's acquisition of Fox in 2019 [1]. Group 1 - Paramount has hired investment banks to prepare for the acquisition offer but has not yet engaged in formal negotiations with Warner Bros. [1] - The merged company would own well-known intellectual properties (IPs) such as "Mission: Impossible," "Harry Potter," and HBO content [1].

Market Performance - The S&P 500, Dow Jones Industrials, and Nasdaq 100 all reached new record highs, with the S&P 500 closing up +0.85%, Dow up +1.36%, and Nasdaq up +0.60% [1][2] - Overseas markets also showed positive performance, with the Euro Stoxx 50 up +0.47%, Shanghai Composite up +1.65%, and Japan's Nikkei Stock 225 up +1.22% [5] Economic Indicators - US weekly initial unemployment claims rose unexpectedly by +27,000 to a 3.75-year high of 263,000, indicating a weaker labor market than anticipated [3] - The August Consumer Price Index (CPI) increased to +2.9% year-over-year, aligning with expectations, while CPI excluding food and energy remained unchanged at +3.1% [3] Federal Reserve Expectations - Markets are pricing in a 100% chance of a -25 basis point rate cut at the upcoming FOMC meeting on September 16-17, with a 9% chance of a -50 basis point cut [4] - An overall -72 basis point reduction in the federal funds rate is anticipated by year-end, bringing it down to 3.61% from the current 4.33% [4][6] Company Movements - Micron Technology rose more than +7% after Citigroup raised its price target to $175 from $150, leading gains in semiconductor stocks [11] - Home builders and suppliers saw gains as the 10-year T-note yield fell to a 5-month low, which is expected to lower mortgage rates and support housing demand [12] - Warner Bros Discovery surged more than +28% on reports of a potential acquisition bid from Paramount Skydance [13] - Avidity Biosciences fell more than -11% after announcing a $500 million public offering of its common stock [16]

Market Overview - The three major U.S. indices reached historical highs, with the Dow Jones up 617.08 points (1.36%) to 46108.00, the Nasdaq up 157.01 points (0.72%) to 22043.07, and the S&P 500 up 55.43 points (0.85%) to 6587.47 [1] - European indices also saw gains, with Germany's DAX30 up 76.53 points (0.32%) to 23703.40, the UK's FTSE 100 up 71.66 points (0.78%) to 9297.05, and France's CAC40 up 62.20 points (0.80%) to 7823.52 [1] Commodities - Crude oil prices fell, with NY light crude down $1.30 (2.04%) to $62.37 per barrel and Brent crude down $1.12 (1.66%) to $66.37 per barrel [2] - Gold futures decreased by 0.24%, settling at $3675.00 per ounce [4] Employment Data - Initial jobless claims in the U.S. surged to 263,000, the highest level in nearly four years, indicating potential increases in layoffs amid a slowdown in hiring [5] - The four-week moving average rose to 240,500, the highest since June [5] Monetary Policy - The European Central Bank maintained its interest rate at 2%, aligning with economists' expectations as they assess the impact of trade agreements [5] Economic Outlook - The IMF noted signs of pressure in the U.S. economy, with domestic demand slowing and employment growth decelerating [6] - Gold prices have surpassed inflation-adjusted peaks from 45 years ago, reflecting market concerns about the U.S. economic outlook [6][7] Corporate Developments - Microsoft and OpenAI signed a non-binding agreement allowing OpenAI to restructure into a for-profit entity [8] - Alibaba launched a more efficient AI model, Qwen3-Next, which boasts significant improvements in training and inference efficiency [9] - Paramount Global is preparing a cash offer to acquire Warner Bros. Discovery, supported by the Ellison family [10] Stock Ratings - Deutsche Bank issued the first "buy" rating for Fannie Mae and Freddie Mac, citing potential for significant stock price increases as they approach capital restructuring [11]

Core Viewpoint - Paramount Skydance Corp. is reportedly preparing a potential all-cash bid for Warner Bros. Discovery, Inc., which could arrive as soon as next week, leading to significant stock price movements for both companies [1][2][4]. Group 1: Potential Bid Details - Warner Bros. Discovery has not yet received a formal proposal, but sources indicate an offer could be imminent [2]. - The bid from Paramount Skydance would require purchasing Warner Bros. Discovery outright before its planned split of global television business from studios and streaming operations, expected by April 2026 [3]. Group 2: Market Reaction - Following the news of the potential takeover, Warner Bros. Discovery's stock surged over 28%, closing at $16.15, marking its largest single-day gain ever [4]. - Paramount Skydance's shares also increased by approximately 15% in response to the news [4]. Group 3: Strategic Implications - A merger would combine significant assets from both companies, with Paramount Skydance owning CBS, Nickelodeon, MTV, BET, and Paramount+, while Warner Bros. Discovery controls CNN, TNT, HBO, HBO Max, and Warner Bros. studios [5]. - Both companies hold major sports rights, including NFL, MLB, and college sports, positioning the combined entity as a major entertainment powerhouse [6]. Group 4: Background on Paramount Skydance - Paramount Skydance was formed through an $8 billion merger finalized in August, backed by RedBird Capital Partners and led by CEO David Ellison [6].

Core Insights - Paramount Skydance is reportedly preparing to make a bid for Warner Bros. Discovery (WBD), driven by the financial backing of Larry Ellison, who has recently seen a significant increase in his net worth [1][5][6] - David Zaslav, CEO of WBD, has been seeking a buyer for the company since the merger of Warner and Discovery, with shares of WBD rising on news of the potential bid [3][10] - The market capitalization of WBD is approximately $38 billion, suggesting that a deal could exceed $40 billion [5] Financial Context - Larry Ellison's net worth surged by $100 billion, bringing it to over $370 billion, positioning him as one of the wealthiest individuals globally [6] - The financial implications of the deal are significant, as David Ellison is expected to spend strategically, balancing the need for investment with the responsibility to public shareholders [12][17] Market Dynamics - Zaslav has been fielding offers for parts of WBD, particularly for CNN, which has faced challenges in ratings [7][10] - There are concerns regarding regulatory approval if WBD were to be acquired by Skydance, especially regarding the ownership of both CBS and CNN [8][10] - The media landscape is challenging, with declining theater attendance and underperformance in streaming revenues [11] Strategic Moves - Skydance is reportedly hiring Bari Weiss for a significant sum, with a compensation structure that includes stock rather than cash, indicating a focus on performance metrics [16][17] - The company is also looking to hire a right-leaning think tank as an ombudsman, reflecting a strategic approach to media bias monitoring [12][16]