Midday Fly By: Warner Bros. reopens Paramount talks

The major averages were mixed near noon following the long weekend, reflecting renewed concerns about artificial intelligence-related disruption after last week’s weakness in tech and software stocks. Stocks experiencing weakness amid such concerns include software names like ServiceNow, Autodesk, and Salesforce.

Looking to commodities, gold was sharply lower, reversing some of last week’s gains, while oil was also trading lower.

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

1. STOCK NEWS:

• Warner Bros. Discovery (WBD) will temporarily reopen deal talks with Paramount Skydance (PSKY), though Netflix (NFLX) retains its matching rights
• Danaher (DHR) (MASI) for $180 per share in cash, or a total consideration of $9.9B
• Activist investor Elliott has built a more than 10% stake in Norwegian Cruise Line (NCLH), WSJ reports
• Meanwhile, Jana Partners has built a stake in Fiserv (FISV), WSJ says
• Medtronic (MDT) reported upbeat Q3 results and reiterated its FY26 earnings guidance

2. WALL STREET CALLS:

• Dollar Tree (DLTR) upgraded to Buy at Rothschild & Co Redburn
• Rothschild (DG) to Sell on valuation
• Shopify (SHOP) upgraded to Buy at Truist amid market dislocation
• Rivian (RIVN) cut to Underperform at DA Davidson on R2 ramp risks
• BitGo (BTG) coverage was (GEMI) COO Marshall Beard, CFO Dan Chen, and chief legal officer Tyler Meade have all left the company, Bloomberg says
• Volkswagen (VWAGY) intends to cut costs by 20% across its brands by the end of 2028, Reuters reports
• Eli Lilly (LLY) intends to turn India into a hub for its global supply chain, Reuters says
• Bayer (BAYRY) is preparing a $10.5B settlement plan to address ongoing and future cancer claims tied to Roundup, Bloomberg says

4. MOVERS:

• Compass Pathways (CMPS) increases in New York after announcing its Phase 3 COMP006 trial achieved its primary endpoint
• ZIM Integrated (ZIM) gains in New York after announcing it will be acquired by Hapag-Lloyd (HLAGF) for $35 per share in cash
• eToro (ETOR) higher in New York after reporting Q4 results and approving a $100M increase to its share repurchase program
• Ocular Therapeutix (OCUL) falls after reporting results from the SOL-1 Phase 3 trial of Axpaxli
• NeoGenomics (NEO) lower after reporting Q4 results and providing guidance for FY26

5. EARNINGS/GUIDANCE

• Somnigroup (SGI) reported Q4 results and provided guidance for FY26, with CEO Scott Thompson commenting, “These results mark a continuation of the strength we displayed throughout the year”
• Itron (ITRI) reported Q4 results and provided guidance for Q1 and FY26
• LGI Homes (LGIH) reported Q4 results, with EPS beating consensus
• Valmont (VMI) reported Q4 results, with EPS and revenue missing consensus
• Leidos (LDOS) reported Q4 results, with CEO Tom Bell commenting, “Our performance this quarter and throughout the year underscores the incredible resilience of our team”

INDEXES:

Near midday, the Dow was up 0.13%, or 63.60, to 49,564.53, the Nasdaq was down 0.07%, or 16.05, to 22,530.62, and the S&P 500 was up 0.04%, or 2.41, to 6,838.58.