On Thursday, the U.S. stock market saw a remarkable day, particularly for certain S&P 500 companies that experienced significant shifts in their share prices.
Among the notable advances, shares of Warner Bros. Discovery (WBD) soared by 29%, becoming the top gainer within the index. This surge followed a report from The Wall Street Journal that fellow media giant Paramount Skydance (PSKY) was considering a takeover bid for Warner Bros. The potential deal, backed by David Ellison, son of billionaire Larry Ellison, also propelled Paramount Skydance’s stock up by 16%. This development could reshape the competitive landscape of the media industry, especially if the acquisition proceeds.
Another standout was Synopsys (SNPS), whose shares jumped 13%. This rise was a partial recovery from the previous session’s dramatic 36% drop, triggered by disappointing earnings results that missed sales and profit projections. Analysts from Mizuho suggested that the severe post-earnings decline might have been an overreaction, prompting investors to buy back in.
Centene (CNC) also saw its shares increase by 9% after the health insurer reaffirmed its annual profit guidance. The company reported positive changes in ratings for its Medicare Advantage plans, helping to bolster investor confidence and contributing to a lifting of related health insurance stocks, such as Molina Healthcare (MOH), which climbed 5.2%.
On the flip side, declining stocks included Oracle (ORCL), which fell by 6.2%, marking the weakest performance of the day for the S&P 500. This downturn slightly reversed the previous day’s dramatic 36% gain following the company’s strong earnings report, which had fueled optimism about its future in the AI sector.
Netflix (NFLX) shares dropped 3.5% after news broke that Chief Product Officer Eunice Kim would be stepping down after five years. Her tenure included various initiatives aimed at combating password sharing and expanding the company into live events.
Boeing (BA) also faced challenges, with shares declining 3.3%. CEO Kelly Ortberg addressed inflationary pressures affecting the company’s supply chain during an investor conference and announced plans to increase the production of 737 MAX planes by year-end. Additionally, a tentative agreement with striking workers was reportedly reached, with a vote scheduled for Friday.
In other notable financial news, Wall Street analysts are raising their outlooks for the S&P 500, with Deutsche Bank increasing its year-end target from 6,550 to 7,000, citing strong earnings, anticipated interest rate cuts, and resilient demand from the AI boom. Barclays also raised its target but took a more cautious approach, highlighting potential risks in the labor market.
Meanwhile, Bank of America downgraded both FedEx and UPS due to increasing pressures on volume and costs, tied to recent tariff changes affecting low-value items.
As inflation affects household budgets, the Consumer Price Index (CPI) reported a rise of 2.9% over the past year, indicating escalating consumer costs largely driven by tariffs. This came at a time when economic forecasts suggest a need for interest rate adjustments by the Federal Reserve, which is set to convene shortly.
Overall, it was a day marked by significant volatility where stock movements were heavily influenced by broader economic signals and individual company news.
