Microsoft, OpenAI sign MOU for next phase of partnership: Morning Buzz

The major averages were mixed near noon as investors prepare for next week’s Federal Reserve meeting. The recent inflation and labor data have nudged expectations even more firmly toward a rate cut, with most models pricing in a 25 basis point reduction, though a larger 50 basis point move is seen as unlikely.

On the economic front, the labor market continues to show signs of softening. Jobless claims have surged, hitting multi-year highs.

Looking to commodities, gold prices were trading higher near noon, continuing the commodity’s march toward $3,700. Meanwhile, oil prices surged, rebounding from yesterday’s losses.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Microsoft (MSFT) and OpenAI signed a non-binding memorandum of understanding for the next phase of their partnership
• Apple (AAPL) has reportedly delayed the iPhone Air launch in China, with the company saying on its China site that “release information will be updated later”
• Adobe (ADBE) provided a “beat and raise” report for Q3
• RH (RH) reported downbeat Q2 earnings and revenue and lowered its FY25 revenue growth guidance
• U.S. consumer sentiment dropped 2.8 points to 55.4 in the preliminary September print, weaker than forecast

2. WALL STREET CALLS:

• Barclays (TAP) to Underweight, says beer category trends and investor sentiment “are likely to be weighed down for some time.”
• Array Technologies (ARRY) downgraded to Underperform at BofA, here’s why
• Goldman Sachs downgraded Novartis (NVS) to Sell from Neutral
• Alaska Air (ALK) upgraded to Buy from Neutral, with firm believe consensus estimates do not fully reflect the potential contribution from Alaska Air’s initiatives going forward
• Barclays upgraded General Motors (GM) to Overweight from Equal Weight

3. AROUND THE WEB:

• The Federal Trade Commission is investigating Amazon.com (AMZN) and Alphabet’s (GOOGL) Google to see if the companies’ misled advertisers that place ads on their websites, Bloomberg reports
• Novo Nordisk (NVO) CEO Maziar Mike Doustdar is calling workers back to the office as the Ozempic maker struggles to catch up with Eli Lilly (LLY) in the obesity market, Bloomberg says
• Nvidia (NVDA) is scaling back its DGX Cloud business, reducing efforts to compete with Amazon Web Services (AMZN), The Information reports
• The U.S. Justice Department has filed a lawsuit against Uber (UBER) over claims that the company discriminates against people with physical disabilities in violation of federal law, Bloomberg says
• XPeng (XPEV) plans to recall 47,490 P7+ electric sedans from September 15 due to a potential steering assist failure, Reuters reports

4. MOVERS:

• IonQ (IONQ) rises after securing UK Investment Security Unit regulatory clearance for the acquisition of Oxford Ionics
• Bitdeer (BTDR) gains after reporting 375 self-mined Bitcoins in August
• Joby Aviation (JOBY) higher after announcing it will participate in the White House eVTOL Integration Pilot Program
• NextDecade (NEXT) lower after announcing Morgan Stanley downgraded the stock to Equal Weight
• Arista Networks (ANET) falls after providing guidance for FY26

5. EARNINGS/GUIDANCE:

• Prenetics (PRE) reported Q2 results and provided guidance for FY25
• Coffee Holding (JVA) reported Q3 results, with EPS lower year-over-year
• Farmer Bros. (FARM) reported Q4 results, with CEO John Moore commenting, “Fiscal 2025 was a year of significant improvement for Farmer Brothers despite significant market headwinds”
• PodcastOne (PODC) provided guidance for FY26
• Ibex (IBEX) reported Q4 results and provided guidance for Q1 and FY26

INDEXES:

Near midday, the Dow was down 0.44%, or 201.50, to 45,906.50, the Nasdaq was up 0.39%, or 85.19, to 22,128.26, and the S&P 500 was down 0.03% or 1.69, to 6,585.78.