The fourth quarter earnings season is picking up speed. After several big banks reported last week, more financials will deliver results, with reports from Charles Schwab (SCHW) and regional banks like Fifth Third (FITB) on the schedule. But the attention will likely shift to Netflix (NFLX) and Intel (INTC), headlining the earnings calendar. An optimistic consensus is forming: As of Jan. 16, 7% of S&P 500 (^GSPC) companies have reported fourth quarter results, according to FactSet data, and Wall Street ...

Core Viewpoint - Netflix is increasing its bid for Warner Bros. Discovery (WBD) by converting part of its stock offer into an all-cash proposal to counter Paramount's bid, aiming for a quicker shareholder vote and more financial certainty [1][2]. Group 1: Netflix's Strategy - Netflix's revised offer remains at $27.75 per share, but the conversion of $4.50 per share from stock to cash eliminates uncertainty for WBD shareholders [2]. - The company's shares have decreased by 13% since the announcement of the Warner Bros. deal and have fallen 28% since late October [2]. Group 2: Paramount's Position - Paramount's all-cash offer stands at $30 per share for all of WBD, which it claims is superior to Netflix's bid for key assets like the studio and HBO [3][7]. - Paramount has made eight unsuccessful bids for WBD and is currently suing the company while seeking board positions [3]. Group 3: Valuation of WBD's Assets - A significant factor in the bidding war is the perceived value of WBD's cable networks, which Paramount aims to acquire, while Netflix does not [7]. - If WBD's cable channels are valued at less than $2.25 per share (or $5.9 billion), Paramount's offer may seem more attractive initially [8]. - WBD has indicated that it would need to deduct $1.79 per share from Paramount's bid to account for costs associated with changing direction, including a $2.8 billion breakup fee to Netflix [8]. Group 4: Market Analysts' Perspectives - Most media analysts have a more optimistic valuation of WBD's cable business, estimating its channels to be worth between low single digits and $3.51 per share [10]. - Even a conservative estimate based on the valuation of a new cable company suggests WBD's networks could be valued at $1.20 per share [10]. Group 5: Future Implications - Unless WBD shareholders oppose its board, Paramount may feel pressured to increase its bid to remain competitive [11].

Core Viewpoint - The amendment of the acquisition agreement between Netflix and Warner Bros. Discovery (WBD) to an all-cash transaction enhances value certainty for WBD stockholders and expedites the stockholder voting process, reflecting Netflix's financial strength [1][5]. Transaction Structure - The all-cash transaction is valued at $27.75 per WBD share, unchanged from the previous structure, and WBD stockholders will also receive additional value from shares of Discovery Global after its separation from WBD [2][6]. - The transaction will be financed through cash on hand, available credit facilities, and committed financing [2]. Financial Implications - The revised structure enhances execution certainty and aligns with Netflix's disciplined capital allocation framework, supported by strong cash flow generation [3]. - The all-cash transaction provides greater certainty around the value WBD stockholders will receive, eliminating market-based variability [5]. Timeline and Approvals - The revised transaction structure is expected to enable WBD stockholders to vote on the proposed transaction by April 2026, with a preliminary proxy statement filed with the SEC [5][7]. - The closing of the transaction remains subject to the completion of the Discovery Global separation, regulatory approvals, and WBD stockholder approval [7][8]. Strategic Benefits - The merger aims to combine the storytelling strengths of both companies, enhancing audience access to a broader range of entertainment options and significantly expanding U.S. production capacity [4][6]. - The acquisition is expected to drive job creation and long-term industry growth, further fueling Netflix's investment in original programming [4][6].

Core Viewpoint - The earnings season is intensifying with major companies like Netflix, Intel, Johnson & Johnson, Freeport McMoran, and 3M Company set to report, indicating a pivotal week for stock movements [1] Earnings Reports and Implied Volatility - Implied volatility tends to be high before earnings reports due to market uncertainty, leading to increased demand for options and higher option prices [2] - After earnings announcements, implied volatility typically decreases to normal levels [3] Expected Stock Movements - The expected price range for stocks can be estimated by summing the prices of at-the-money put and call options, using the first expiry date after the earnings date [3] - Specific expected price movements for companies reporting this week include: - USB: 3.8% - FAST: 7.3% - MMM: 5.6% - NFLX: 7.7% - KMI: 2.8% - JNJ: 3.2% - SCHW: 4.8% - TFC: 6.2% - INTC: 8.7% - FCX: 5.3% - COF: 4.8% - PG: 3.8% - GE: 5.5% - SLB: 4.1% [4][5] Trading Strategies - Traders can utilize expected moves to structure their trades, with bearish traders potentially selling bear call spreads outside the expected range, while bullish traders may consider selling bull put spreads or naked puts [5] - Neutral traders might opt for iron condors, ensuring that short strikes remain outside the expected range [5] - It is advisable for traders to employ risk-defined strategies and maintain small position sizes to mitigate potential losses [6] High Implied Volatility Stocks - A stock screener can be used to identify stocks with high implied volatility, with filters set for total call volume greater than 5,000, market cap over 40 billion, and IV rank above 50% [7]

Market Overview - US stocks are expected to face significant losses due to renewed trade tensions between the US and Europe, particularly regarding Greenland, with Dow Jones futures indicating a drop of over 700 points [1] - The S&P 500 futures fell by 1.6% and Nasdaq 100 futures dropped by 1.9%, following a losing week for Wall Street [1] Trade Tensions - President Trump threatened a 200% import tariff on French wines after France's President Macron declined an invitation to join Trump's "Board of Peace" [2] - Trump also stated that eight NATO countries would face additional import duties of 10% unless a deal regarding Greenland was reached, while the EU is considering $108 billion in retaliatory tariffs [3] Economic Impact - Treasury yields have risen to their highest levels in four months, with the 30-year yield reaching 4.93%, influenced by a sell-off in Japanese bonds and trade war risks [5] - The dollar has fallen to a two-week low, while gold and silver prices have reached record highs due to increased demand for safe-haven assets [5] Corporate Earnings - Investors are preparing for a busy earnings season, with Netflix, Intel, and Johnson & Johnson set to report results, and S&P 500 earnings growth expected to be around 12% to 15% this year [7] - The sentiment of "Sell America" could lead to potential downside for corporate earnings if trade tensions persist [7] Acquisition News - GSK has agreed to acquire RAP Therapeutics for $2.2 billion, which is expected to enhance its food allergy treatment portfolio [7] - Shares of RAP Therapeutics surged over 60% following the announcement of the acquisition [8]

US stocks were poised for hefty losses on Tuesday after President Trump reignited trade-war tensions with Europe over Greenland, as a Japan-led global bond sell-off reverberated through markets. Dow Jones Industrial Average futures (YM=F) tumbled 1.4%, pointing to a drop of over 700 points when markets reopen from Monday's holiday shutdown. S&P 500 futures (ES=F) sank 1.6%, while Nasdaq 100 futures (NQ=F) plunged 1.9% on the heels of a losing week for Wall Street stocks. Investors are facing a rocky ret ...

US stock futures tumbled on Tuesday, signaling a rocky return to trading as President Trump escalated trade tensions with Europe over Greenland, reviving tariff fears just as earnings season picks up pace. Dow Jones Industrial Average futures (YM=F) pulled back 1.3%, pointing to a drop of over 600 points when markets reopen from Monday's holiday shutdown. S&P 500 futures (ES=F) fell 1.4%, while Nasdaq 100 futures (NQ=F) sank 1.7% on the heels of a losing week for Wall Street stocks. .Markets are grappli ...

In the current session, Trade Desk Inc. (NASDAQ:TTD) is trading at $35.48, after a 2.07% decrease. Over the past month, the stock fell by 5.24%, and in the past year, by 71.50%. With performance like this, long-term shareholders are more likely to start looking into the company's price-to-earnings ratio. Evaluating Trade Desk P/E in Comparison to Its PeersThe P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance agains ...

Dow Jones Index futures pulled back on Monday, continuing a weakness that started on Friday. It retreated by over 300 points and moved below the key support level at $49,000. It has now dropped by nearly 2% from its highest point this year. This article looks at some of the top catalysts for the index this week. Dow Jones Index to react to new US-Europe trade conflict Copy link to section The Dow Jones Index futures pulled back on Monday as investors reacted to the new tariff war between the United States o ...

Corporate Developments - The U.S. earnings season is gaining momentum, with major companies in technology, healthcare, and manufacturing set to report results, including Netflix, Johnson & Johnson, and Intel, which are expected to influence market sentiment and provide insights on demand trends and profit margins [6]. - Bank earnings have shown a mixed start to the season, making forward-looking commentary from corporate leaders crucial for maintaining optimism regarding stronger earnings growth anticipated in 2026 [6]. Economic Indicators - China is expected to release its fourth-quarter and full-year gross domestic product data, with expectations that it has met its growth target, supported by resilient exports despite ongoing trade frictions with the United States [2][6]. - China recorded a trade surplus in 2025, highlighting the importance of overseas demand in driving growth, although investors remain cautious due to challenges from a prolonged property downturn and weak domestic consumption [2][6]. - Additional data on house prices and retail sales in China will be closely monitored for indications of the need for further policy support [3][6]. Market Reactions - Japanese equities have surged to record highs as investors react positively to the potential for a snap election called by Prime Minister Sanae Takaichi, which is seen as a high-stakes gamble that could lead to significant fiscal stimulus [6]. - The yen and longer-dated government bonds in Japan have weakened amid the political developments, while the Bank of Japan's policy meeting is expected to maintain interest rates following a recent hike [6].