Media Giants in Motion: Mergers and Turbulences in the Markets

The rumor mill about a potential mega-merger in the media industry is bubbling, boosting the stock price of the involved companies, while a report by a short seller put pressure on the shares of a medical devices manufacturer. U.S. stocks continued their upward trend after interest rates were cut this week and investors observed progress in trade talks between the U.S. and China. The S&P 500 gained 0.5%, reaching a record high for the second consecutive time. The Dow and the Nasdaq also built on the records from the previous session, with gains of 0.4% and 0.7%, respectively. Shares of Paramount Skydance rose by 5.8%, marking the best performance in the S&P 500. Reportedly, the company is considering a takeover offer for Warner Bros. Discovery. If the deal goes through, it would thwart WBD’s already announced plans to separate its streaming and studio operations from its TV business. CNBC reported that the potential offer could be 70% to 80% in cash, supported by Oracle co-founder Larry Ellison, father of Paramount Skydance CEO, David Ellison. WBD shares rose by 3.4%. Meanwhile, shares of the Boston-based utility company Eversource Energy rose by 4.9%. In view of the impending colder temperatures, Eversource asked the Massachusetts Department of Public Utilities for permission to increase prices for natural gas customers by 13%. Governor Maura Healey expressed criticism regarding the price hike request and emphasized that she would demand a thorough review of the proposal by the DPU. Newmont, the world’s largest gold producer, announced the sale of its entire stake in the Canadian company Orla Mining for $439 million. This move is part of Newmont’s plan to reduce its debt, downsize its workforce, and divest non-core assets. Newmont shares rose by 4.3%, while Orla shares fell by more than 7%. Apple reported a 3.2% increase in stock price as the iPhone 17 was launched worldwide. In light of the strong demand for the latest devices, especially the Pro models, analysts from JPMorgan raised their price target for the tech giant’s stock. Shares of medical devices manufacturer DexCom fell by 11% on Friday, the largest decline among S&P 500 stocks. The price drop followed a report by short seller Hunterbrook Capital, which highlighted issues with DexCom’s continuous glucose monitors G7 and raised questions about the company’s accounting. It also mentioned the announced leave of absence by CEO Kevin Sayer. Companies in the IT services sector came under pressure after it became known that U.S. President Trump plans to introduce a registration fee of $100,000 for H-1B visas. Reportedly, the president is also considering changes to wage regulations to further hinder the use of H-1B visas. Shares of the global IT consulting firm Cognizant Technology Solutions fell by 4.7%. Lennar shares lost 4.2% after the construction company reported lower-than-expected revenues and earnings for the third quarter of the fiscal year. The company cited a slump in the real estate market and increased incentives to convince hesitant homebuyers in light of high mortgage rates.