Upgrades - Goldman Sachs upgraded Viking Holdings (VIK) to Buy from Neutral with a price target of $78, increased from $66, citing the company's differentiated geographic exposure and higher-income demographic offsetting broader cruise trends [1] - RBC Capital upgraded RPM (RPM) to Outperform from Sector Perform with a price target of $132, up from $121, believing the shares have hit a bottom [2] - RBC Capital also upgraded Colgate-Palmolive (CL) to Outperform from Sector Perform with an unchanged price target of $88, noting that estimates and expectations are appropriately low despite a difficult environment in 2026 [2] - Wolfe Research upgraded Eaton (ETN) to Outperform from Peer Perform with a price target of $413, expecting benefits from the company's electrical backlog conversion and easing cyclical tailwinds in 2026 [2] - Rosenblatt upgraded Synopsys (SNPS) to Buy from Neutral with a price target of $560, down from $605, anticipating an in-line quarter following a Q3 miss and guidance cut [3] Downgrades - Seaport Research downgraded Warner Bros. Discovery (WBD) to Neutral from Buy without a price target, following news of a new hostile offer from Paramount Skydance at $30 per share [4] - Goldman Sachs downgraded Norwegian Cruise Line (NCLH) to Neutral from Buy with a price target of $21, down from $23, due to a less favorable risk/reward setup for 2026 in the Caribbean market [4] - RBC Capital downgraded Confluent (CFLT) to Sector Perform from Outperform with a price target of $31, up from $30, after the company agreed to be acquired by IBM for $31 per share in cash [4] - Compass Point double downgraded SLM (SLM) to Sell from Buy with a price target of $23, down from $35, after the company presented an updated medium-term outlook reflecting expected growth from the Grad PLUS opportunity [4] - Wolfe Research downgraded Vertiv (VRT) to Peer Perform from Outperform without a price target, citing valuation concerns as shares have increased 14 times since the December 2022 upgrade [4]

Federal Reserve and Economic Outlook - Markets are anticipating a 25 basis point cut in interest rates at the upcoming Federal Reserve meeting, although there are divisions among Fed officials regarding future policy direction [4][6][15] - The labor market shows signs of softening, with job openings increasing but hiring rates declining, leading to uncertainty about the economic outlook [5][9][22] - Analysts suggest that the Fed may need to adopt a more restrictive monetary policy to manage inflation effectively, which is currently above the 2% target [7][24][29] Chinese Economic Indicators - Chinese consumer prices rose by 0.7% year-on-year, marking the highest increase in nearly two years, driven by higher food prices and government stimulus [38][39] - Despite rising consumer prices, factory gate prices have been in deflation for 38 consecutive months, indicating ongoing challenges in the manufacturing sector [41][42] - The mixed inflation data reflects the complexities of China's economic recovery and the impact of government policies aimed at combating deflation [41][42] Market Reactions and Future Expectations - U.S. markets showed mixed performance ahead of the Fed's decision, with the Dow down by 0.4% and the NASDAQ gaining 0.1% [10][11] - European futures are cautious, reflecting uncertainty surrounding the Fed's upcoming rate decision, with major indices showing slight declines [13][14] - Analysts predict a rotation in market performance towards sectors that have underperformed, suggesting potential investment opportunities in the near future [8][10]

Group 1: Company Highlights - Village Farms International (VFF) has seen a 75% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Seanergy Maritime Holdings (SHIP) has experienced a 72.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Two Harbors Investments Corp (TWO) has had a 10.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - BHP Group Limited (BHP) has seen a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Fox (FOX) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] Group 2: Investment Recommendations - The companies mentioned have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong investment potential [1][2][3][4]

Welcome back to Squawkbox. Five things to know ahead of the opening bell. The price for Warner Brothers Discovery, it could head higher.Bloomberg now reporting that both Netflix and Paramount Sky Dance have signaled they have the ability to raise their bids for the media giant. Separately, longtime media investor Mario Gabell telling Bloomberg he'll likely tender his clients. Warner Brothers Discovery Shares to Paramount in an effort to spark a bidding war for Warner.Meanwhile, computer memory maker Nvidia ...

Core Viewpoint - Tencent Holdings has withdrawn its bid to acquire Warner Bros Discovery to avoid potential national security scrutiny from the U.S. government [1][2]. Group 1: Tencent's Withdrawal - Tencent dropped its $1 billion financing commitment for the acquisition due to concerns that it would be classified as a "non-U.S. equity financing source," which could trigger a review by the Committee on Foreign Investment in the United States (CFIUS) [2]. - The decision to withdraw was made despite the fact that CFIUS approval was not a condition for the bid [2]. Group 2: Paramount's Takeover Bid - Paramount has launched a hostile takeover offer valued at $77.9 billion for Warner Bros Discovery, competing against Netflix for the acquisition of the company that owns HBO, CNN, and a prominent movie studio [3]. - Foreign sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar are providing $24 billion for Paramount's bid and have agreed to relinquish management rights to avoid additional scrutiny [3]. Group 3: National Security Concerns - CFIUS reviews are often applied to significant deals involving foreign companies, assessing potential national security risks [4]. - The U.S. Treasury Department has been strengthening its review powers under both former President Biden and former President Trump due to rising national security concerns regarding foreign investments [5]. Group 4: Tencent's Profile - Tencent is a major player in the gaming and social media sectors, owning Riot Games and having partnerships with various U.S. entertainment brands, including a streaming deal with the NBA [6][7]. - The company is the world's largest equity investor in online games and operates the WeChat messaging and payments service in China and among Chinese expatriates [7]. - Tencent has a market capitalization exceeding $700 billion, as reported by the Hong Kong stock exchange [7].

Core Viewpoint - The discussion emphasizes the importance of stock picking over index funds, highlighting that individual stocks can yield significant returns if chosen wisely, despite media negativity and market skepticism [2][21]. Group 1: Nvidia - Nvidia has been attempting to sell its high-performance chips to China, a market valued at $50 billion, but has faced restrictions from both the US and Chinese governments [4][5]. - The US government recently allowed Nvidia to sell the H200 chip to China, imposing a 25% surcharge, which is not expected to deter sales [7][8]. - Despite the positive development, Wall Street and media remain skeptical about China's interest in these chips, leading to a decline in Nvidia's stock price [8][10]. - The Chinese government is interested in Nvidia's products, despite supporting domestic competitors, indicating a potential future demand for Nvidia's chips [9][10]. - Nvidia is characterized as a retail stock, heavily owned by individual investors who are easily influenced by market sentiment [11]. Group 2: Apple - Apple faces ongoing skepticism from analysts, which has historically caused panic among shareholders, despite being a strong long-term performer [12][13]. - The launch of the iPhone 17 has been met with criticism, but the stock has performed well since its release, contradicting negative media narratives [15]. - The media's focus on negative stories about Apple is seen as a tactic to attract attention, rather than reflecting the company's actual performance [15][21]. Group 3: Warner Brothers Discovery - Warner Brothers Discovery, under CEO David Zaslav, has been working to reduce debt and improve cash flow, positioning the company for potential acquisition interest [17][18]. - The stock, previously trading at low valuations, is now seen as undervalued, with increased interest from acquirers like Paramount and Netflix [18][19]. - The belief in the company's turnaround strategy is emphasized, despite initial skepticism from the media [19][20].

Money manager Mario Gabelli said it’s “highly likely’ he will tender his clients’ Warner Bros. shares to Paramount in an effort to spark a bidding war for Warner Bros. https://t.co/LHeVXecriu ...

Last week Netflix announced an $83bn acquisition of most of Warner Bros Discovery. Then Paramount, a smaller rival, offered $108bn for the whole company.We explain why the Looney-Tunes sums could yet grow even higher https://t.co/r0t4y3Jmuq ...

What's interesting is we've heard from President Trump that it might be an issue of Netflix becoming so significant in size. You own Netflix shares. What do you make of it.Well, I think there's some truth to that. Netflix is sort of the big monster out here in Hollywood. And and there's only so many places to sell your movies.So if you take out Warner Brothers, you're basically going to head even more often to try to sell projects. So. So there is some truth to that.I think when you look at the broader medi ...

Core Viewpoint - Netflix was considering acquiring Warner Bros. Discovery for $82.7 billion but is unlikely to pursue a deal with Disney due to prohibitive costs and Disney's strong market position [1][3][14] Group 1: Acquisition Dynamics - Paramount Skydance has made a hostile bid of $108 billion for Warner Bros. Discovery, which complicates Netflix's acquisition plans [2] - Warner Bros. Discovery's stock has increased by 160% this year, reflecting the competitive bidding environment [5] - Disney's market cap is $192 billion, with an enterprise value of $237 billion, making it a significantly more expensive target than Warner Bros. Discovery [6] Group 2: Financial Considerations - A serious offer for Disney would need to exceed $300 billion to be considered by its board, which is substantially higher than the potential cost for Warner Bros. Discovery [9] - Netflix's current market cap is $410 billion, indicating that a merger with Disney would be akin to a merger of equals, which Netflix is not seeking [9][10] Group 3: Content and Market Position - Netflix would gain valuable intellectual properties from Warner Bros. Discovery, such as DC Comics and Harry Potter, but would prefer Disney's assets like Marvel and Pixar [11] - Disney+ has already surpassed HBO in premium streaming audience size, showcasing Disney's strong position in the streaming market [12] - Disney operates popular theme parks and cruise ships, which would provide Netflix with a significant advantage in consumer-facing markets if a deal were to occur [13]