Midday Fly By: Walmart names new CEO, Merck acquires Cidara

The major averages were mixed near noon, as the Dow dropped while the S&P 500 and the Nasdaq were higher a day after the major indices posted their worst one-day performance in over a month. Investors continue to grapple with the growing sense that the Federal Reserve may not cut interest rates in December or at least not as soon as previously expected.

The mood is further dampened by fresh commentary from Fed officials cautioning that inflation remains stubborn and that economic data, especially after the recent U.S. federal shutdown, remains patchy, complicating the policy outlook.

Meanwhile, concerns about the AI trade continue to mount, with traders worried about elevated tech valuations, a major surge in debt financing, and AI capital expenditure plans.

Looking to commodities, gold dropped sharply after several days of gains, while oil prices jumped above the $60 threshold.

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

1. STOCK NEWS:

• Walmart (WMT) announced that John Furner will succeed Doug McMillon as president and CEO
• Merck (MRK) agreed to acquire Cidara Therapeutics (CDTX) for $221.505 per share in cash, or $9.2B
• Applied Materials (AMAT) reported upbeat Q4 results and provided Q1 earnings and revenue guidance
• Comcast (CMCSA), Paramount (PSKY), and Netflix (NFLX) are preparing offers for Warner Bros. Discovery (WBD), WSJ reports 
• Under Armour (UA) and NBA star Stephen Curry announced plans to separate the Curry Brand from Under Armour

2. WALL STREET CALLS:

• Stifel downgraded Home Depot (HD) on what it sees as a challenging near-term setup
• Gap (GAP) upgraded to Buy at Jefferies
• Circle Internet (CRCL) upgraded to Outperform at Baird
• Loop upgraded Shake Shack (SHAK) to Buy amid “overblown” growth concerns
• StubHub (STUB) downgraded to Neutral at BofA

3. AROUND THE WEB:

• Samsung (SSNLF) has raised the prices of certain memory chips by up to 60% compared to September due to its short supply caused by the global race to build AI centers, Reuters says
• Google (GOOGL) has been ordered to pay EUR 573M in two antitrust-damages cases brought by price-comparison services, Bloomberg reports
• Netflix (NFLX) is shifting its video game strategy to focus on popular titles like Pictionary, Boggle, and Tetris, which will be playable in its app on TVs using phones as controllers, NYT says
• Apple iPhone (AAPL) sales in China rose 22% from year-earlier levels in the first month after the iPhone 17 series launched, despite the broader market softening, Reuters reports
• Amazon (AMZN) and Microsoft (MSFT) are supporting the Gain AI Act, which would give priority to U.S. demand for chips before exports to China and some other countries, WSJ says

4. MOVERS:

• Oncology Institute (TOI) increases after reporting quarterly results and raising its guidance for FY25
• Scholar Rock (SRRK) gains after reporting Q3 results and announcing it expects third-party facility to be ready for reinspection by the end of the year
• Avadel Pharmaceuticals (AVDL) higher in New York after receiving a $23 per share acquisition proposal from Lundbeck
• Anavex (AVXL) falls after requesting a re-examination of the CHMP opinion on MAAA for blarcamesine
• DeFi Technologies (DEFT) and Sable Offshore (SOC) lower in New York after reporting quarterly results

5. EARNINGS/GUIDANCE:

• Twist Bioscience (TWST) reported Q4 results and provided guidance for both Q1 and FY26
• Legence (LGN) reported Q3 results, with CEO Jeff Sprau commenting, “we are pleased to deliver exceptional results”
• Spire (SR) reported Q4 results, with EPS and revenue missing consensus
• Airo Group (AIRO) reported Q3 results, with EPS lower year-over-year
• Nu Holdings (NU) reported Q3 results, with EPS and revenue beating consensus

INDEXES:

Near midday, the Dow was down 0.27%, or 127.18, to 47,330.04, the Nasdaq was up 0.72%, or 165.07, to 23,035.42, and the S&P 500 was up 0.42%, or 28.38, to 6,765.87.