Is the reaction that we're seeing because of this one off from the Brazilian tax authorities. It seems that way, although, again, it's a crazy time in Hollywood. You know, take a step back.There is competition coming from everywhere, YouTube, twitch, air, new air services. But, you know, if you take a breath, you look at the third quarter slate, they had an incredible engagement across the board. You know, they had K-Pop Demon Hunters, the most popular movie in the history of the service, 325 million views. ...

Market Overview - Stocks are near record highs, with the S&P 500 down 0.1% and just below its all-time high set earlier this month [2] - The Dow Jones Industrial Average decreased by 65 points, or 0.1%, while the Nasdaq composite fell by 0.3% [2] - Bank stocks remained stable after positive earnings reports from Capital One Financial and Western Alliance Bancorp, which exceeded analysts' expectations [2] Company Performance - Intuitive Surgical's stock surged by 16.5% following better-than-expected quarterly profits [2] - GE Vernova's stock increased by 0.5% after also reporting stronger profits than anticipated [2] - Netflix's stock dropped by 8.3% after reporting weaker results than expected, despite a year-to-date increase of 39.3% [2] - AT&T's stock fell by 4.5% after matching analysts' profit expectations, while Texas Instruments' stock decreased by 7.7% due to profits falling short of forecasts [2] - Beyond Meat's stock soared by 48.9%, bringing its weekly gain to nearly 735%, partly due to Walmart's announcement to increase product availability [2] Gold Market - Gold prices fell by 0.8% to $4,075 per ounce, following a 5.3% decline the previous day [2] - Despite the drop, gold prices are still up over 50% for the year, driven by expectations of Federal Reserve interest rate cuts and concerns about high inflation and government debt [2] International Markets - European and Asian stock indexes showed mixed results, with London's FTSE 100 rising by 1% due to positive UK inflation data [4] - Korea's Kospi index increased by 1.6%, while indexes in Hong Kong and Paris fell by 0.9% and 0.2%, respectively [4] Bond Market - The yield on the 10-year Treasury bond decreased to 3.96% from 3.98% [4]

Economic Impact - The US government shutdown is in its fourth week, affecting market sentiment and delaying key economic reports, including unemployment claims and the September payroll report [1] - Bloomberg Economics estimates that 640,000 federal workers will be furloughed, potentially increasing jobless claims and raising the unemployment rate to 4.7% [1] Trade Relations - Markets are focused on US-China trade talks, with President Trump threatening to increase tariffs on Chinese goods if no deal is reached by November 1 [2] Mortgage Applications - US MBA mortgage applications decreased by 0.3% for the week ending October 17, with the purchase mortgage sub-index down 5.2% and refinancing up 4.0% [3] Stock Market Performance - Stock indexes are experiencing modest losses, particularly in chipmakers after Texas Instruments forecasted Q4 revenue below expectations [4] - The S&P 500 Index is down 0.02%, the Dow Jones down 0.14%, and the Nasdaq 100 down 0.18% [5] Earnings Season - The Q3 earnings season shows rising corporate earnings expectations, with 85% of S&P 500 companies reporting so far beating forecasts, indicating the best quarter since 2021 [6] - Q3 profits are expected to rise by 7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to 5.9% year-over-year [6] Interest Rates - Markets are pricing in a 97% chance of a 25 basis point rate cut at the next FOMC meeting on October 28-29 [7] - The 10-year T-note yield is up 0.8 basis points to 3.963%, with supply pressures from upcoming Treasury auctions [8] European Market Trends - European government bond yields are mixed, with the 10-year German bund yield up 0.9 basis points and the UK gilt yield dropping to a 6.5-month low [9] Company-Specific Movements - Netflix shares are down over 7% after reporting Q3 EPS of $5.87, below the consensus of $6.94 [11] - Texas Instruments shares are down over 7% after forecasting Q4 revenue of $4.22 billion to $4.58 billion, below consensus [12] - Intuitive Surgical shares are up over 16% after raising its worldwide Da Vinci procedure growth forecast for the year [15] - Capital One Financial shares are up over 3% after reporting Q3 adjusted EPS of $5.95, exceeding expectations [16]

Core Viewpoint - Warner Brothers Discovery is exploring potential sale options, with Paramount previously rejecting a bid close to $24 per share, which was surprising given its previous stock price of $12 [2][3][4]. Bid Details - Paramount received a bid that was 80% cash and 20% stock, with the last offer being very close to $24 per share, but it was rejected for the third time [3][14]. - The board's unanimous decision to reject the bid indicates a strong belief in achieving a higher stock price in the future, possibly through a stock split [3][4]. Market Dynamics - There is speculation about other potential buyers, including Netflix and Comcast, but the likelihood of a successful bid from these companies remains uncertain [5][9]. - David Zaslav, CEO of Warner Brothers Discovery, is reportedly firm on a minimum price of $27 per share, which may be challenging to achieve given the current market conditions [6][14]. Regulatory Considerations - Any merger involving Warner Brothers and Universal would likely face scrutiny from the DOJ, similar to past cases involving AT&T and Warner Brothers [11][12]. - The regulatory environment may favor Paramount due to its close ties with the current administration, potentially easing the approval process for any future deals [14]. Industry Sentiment - The media industry is currently viewed as less attractive for investment compared to other sectors like AI, housing, and energy, with a focus on growth and market share being paramount [15].

Market Overview - US stocks experienced a decline on Wednesday, with the Dow Jones Industrial Average falling by over 400 points, approximately 1%, and the S&P 500 losing around 1.2%. The Nasdaq Composite led the losses, down about 1.8% [1]. Earnings Reports - Wall Street reassessed its position as the first wave of megacap tech earnings was released, with Tesla's quarterly report expected after the market close. Shares of Tesla fell around 2.5% leading up to the results [2]. - Netflix's stock dropped more than 10% after the company missed earnings expectations, partly due to a tax dispute in Brazil. This decline negatively impacted other tech stocks [3]. - Mattel's shares also retreated as the company's North American sales fell short of expectations [3]. Commodity and Trade Developments - Gold prices continued to decline after experiencing the largest one-day drop in over a decade. Market participants remain cautious regarding trade-war developments, particularly with renewed tensions between the US and China. Additionally, reports indicate that the US and India are nearing an agreement to reduce tariffs on Indian exports from 50% to as low as 15% [4]. Economic Indicators - Official economic releases are currently on hold due to the US federal shutdown. The upcoming September Consumer Price Index report is anticipated to be a significant data point for the markets, influencing expectations ahead of the Federal Reserve's meeting next week, where a 25 basis point interest rate cut is widely expected [5].

Group 1 - US stock futures showed mixed performance after a record-setting session for the Dow, with the Dow Jones Industrial Average and S&P 500 remaining little changed, while the Nasdaq Composite declined by approximately 0.2% [1] - Wall Street is optimistic about earnings reports, particularly from Tesla, which is expected to release its quarterly report, marking the beginning of updates from the "Magnificent Seven" companies [2] - Netflix's stock fell over 8% due to earnings that missed expectations, influenced by a tax dispute in Brazil, while Mattel's shares also declined as North American sales did not meet forecasts [3] Group 2 - Gold prices continued to decline after experiencing the largest one-day drop in over a decade, as market concerns over trade tensions appear to be temporarily set aside [4] - The US federal shutdown has delayed official economic releases, with the upcoming Consumer Price Index report expected to influence market expectations ahead of the Federal Reserve's meeting, where a 25-basis-point interest-rate cut is widely anticipated [5]

Core Insights - U.S. stock futures showed slight gains, with Dow futures up approximately 0.1% [1] - Netflix, Inc. reported disappointing third-quarter results, leading to a significant drop in its stock price [1][2] Company Performance - Netflix's third-quarter revenue reached $11.51 billion, reflecting a year-over-year increase of 17.2%, but fell short of the consensus estimate of $11.514 billion [2] - The company's earnings per share (EPS) were reported at $5.87, missing the consensus estimate of $6.97 [2] - Following the earnings report, Netflix shares fell by 6.9% to $1,156.00 in pre-market trading [2] Other Company Movements - Alector, Inc. experienced a drastic decline of 57.6% to $1.36 after announcing the discontinuation of a drug extension and workforce reduction [4] - Newegg Commerce, Inc. saw a drop of 22.6% to $38.70, following a 5% decline the previous day [4] - Terns Pharmaceuticals, Inc. fell 13.3% to $7.00 after disappointing Phase 2 trial results [4] - Aveanna Healthcare Holdings Inc. shares decreased by 11.9% to $9.01 due to a secondary stock offering [4] - Critical Metals Corp. declined 11.3% to $14.44 after announcing a share offering [4] - Bgin Blockchain Limited dropped 9.5% to $4.49, continuing a downward trend [4] - Genprex, Inc. fell 8.7% to $10.50 after a reverse stock split [4] - Texas Instruments Incorporated's stock declined by 7.7% to $167.00 following lower-than-expected fourth-quarter guidance [4] - Almonty Industries Inc. saw a 7.5% decline to $7.75 after a previous drop [4]

Group 1: Women in Sports - Forbes has released its inaugural list of America's Most Powerful Women In Sports, featuring 25 influential figures including NFL franchise owners, athletes, and coaches [2] - Notable individuals on the list include Gayle Benson, Coco Gauff, Dawn Staley, and Billie Jean King, the latter being the first athlete to earn over $100,000 in a year [2] Group 2: Market Reactions and Economic Trends - Shares of Warner Bros. Discovery increased by 11% following news of potential sales interest from multiple parties, as the company plans to split into two publicly traded firms [11] - Investors are retreating from metals like gold and silver, with gold's value dropping over 5% amid a technical correction, as noted by Standard Chartered analyst Suki Cooper [5] - Cathie Wood's Ark Innovation ETF has surged more than 80% in the past year, outperforming most ETFs and mutual funds, despite concerns about an AI bubble [6] Group 3: Technology and Data Privacy - TikTok has altered its data-sharing policies, now allowing sharing with regulatory authorities and law enforcement, raising concerns about user privacy [12][14] - The Trump Administration is negotiating a sale of parts of TikTok's U.S. business, which is subject to approval from both President Trump and Chinese leader Xi Jinping [15] Group 4: Cryptocurrency and Investment - Joe Naggar is launching an independent hedge fund with $300 million under management, focusing on digital asset markets and frontier technologies [7]

Company Developments - DraftKings (NASDAQ: DKNG) has entered the prediction market industry through the acquisition of Railbird Technologies, a CFTC-licensed exchange, marking a strategic expansion beyond sports betting [3] - The company plans to launch a new mobile app, DraftKings Predictions, allowing users to trade on real-world outcomes across multiple exchanges [4] Industry Trends - Netflix (NFLX) is collaborating with Mattel (NASDAQ: MAT) and Hasbro (NASDAQ: HAS) to produce merchandise for the K-Pop Demon Hunters franchise, which includes toys, games, and collectibles [4][5] - The merchandise will be available at retail starting spring 2026, coinciding with the 2026 holiday season [6] Market Reactions - DraftKings shares rose by 5.4% in premarket trading following the announcement of its acquisition [3] - Mattel's shares closed 2.45% higher despite reporting an earnings and revenue miss, while Hasbro's shares experienced a slight decline of 0.5% in premarket trading [7]

Company Developments - DraftKings (NASDAQ: DKNG) has entered the prediction market industry through the acquisition of Railbird Technologies, a CFTC-licensed exchange, marking a strategic expansion beyond sports betting [3] - The company plans to launch a new mobile app, DraftKings Predictions, allowing users to trade on real-world outcomes across multiple exchanges [4] Industry Trends - Netflix (NFLX) is collaborating with Mattel (NASDAQ: MAT) and Hasbro (NASDAQ: HAS) to develop merchandise for the K-Pop Demon Hunters franchise, which includes toys, games, and collectibles [4][5] - The merchandise rollout is set to begin in spring 2026 and will feature products inspired by popular K-Pop groups [6] Market Reactions - DraftKings shares rose by 5.4% in premarket trading following the announcement of its acquisition [3] - Mattel's shares closed 2.45% higher despite reporting an earnings and revenue miss, while Hasbro's shares experienced a slight decline in premarket trading [7]