Equity Indexes Wrap: ღParamount Soars on Buyout Talks; AI Stocks Rebound From Tuesday Sell-Off

The Dow

Industrials led the index, with Caterpillar (CAT) rising 3% and Dow (DOW) gaining 1.2%.

Amazon (AMZN) rose 1% after it said it would lay off hundreds of emඣployees in its Amazon Web S⭕ervices unit. 

Intel (INTC) tumbled 8.2% as analysts and investors mulled yesterday’s announcement that its foundry business recorded a 澳洲幸运5官方开奖结果体彩网:$7 billion operating loss in 2023. 

Disney (DIS) slipped 3.1% after shareholders 澳洲幸运5官方开奖结果体彩网:reelected all 12 of its existi🧸ng directors, ending a months-long proxy fight between CEO Bob Iger and activist investor Nelson Peltz.

The S&P 500

Paramount Global (PARA) stock surged 15% amid reports its board had agreed to 澳洲幸运5官方开奖结果体彩网:enter exclusive merger talks with Skydance Media. 

GE Aerospace (GE) climbed 6.7% on its second day of trading as a pure-play aerospace company following yesterday’s 澳洲幸运5官方开奖结果体彩网:spin-off of its energy business as GE Vernova (GEV).

Ford (F) gained 3% after reporting sales increased 7% in the 𝓰first quarter amid🍨 strong demand for hybrid vehicles.

Energy stocks continued to gain as 澳洲幸运5官方开奖结果体彩网:the price of oil climbed to year-to-date highs. Marathon Petroleum (MPC) gained 1.7% and Phillips 66 (PSX) advanced 1.5%.

Ulta Beaty (ULTA) tumbled 15.3% after its CEO said at a retail conference that the company had seen 澳洲幸运5官方开奖结果体彩网:a broad slowdown in sales so far this year. Cosmetics and beauty peers Estée Lauder (EL) and Bath & Body Works (BBWI) fell 4.2% and 3.7%, respectively. 

Food stocks slipped, led by J.M. Smucker (SJM) and Hershey (HSY), both down 2.9%.

The Nasdaq 100

The AI trade made a comeback after yesterday’s sell-off. Micron (MU) climbed 4.3%, while Meta (META) and Broadcom (AVGO) advanced 1.9% and 1.8%, respectively. 

Moderna (MRNA) slumped 2.3% after a U.S. district judge issued🐓 a judgment that could strengthen the case of Arbut♕us, the biotech currently in a patent dispute with Moderna over its blockbuster Covid-19 vaccine. 

Disney Shareholders Back Iger, Rebuff Peltz

Shareholders on Wednesday voted to elect all 12 board members nominated by Disney, including CEO Bob Iger, bringing an end to a months-long proxy battle between the company and 澳洲幸运5官方开奖结果体彩网:activist investors.

The Disney-recommended board was elected by "a substantial margin," while 澳洲幸运5官方开奖结果体彩网:Nelson Peltz and Jay Rasulo nominated by the Trian Group and the three candidates nominated by Blackwells Group 🔴were not elected.

"Now that this distracting proxy contest is behind us, we're here to focus 100% on our most important priorities, growth and value creation for our shareholders, and creative excellence for our consumers," Iger said.

澳洲幸运5官方开奖结果体彩网:Read more about Disney🎀'💝s shareholder meeting, including Iger's estimate of when streaming will turn a profit and what the company's 🌌doing with its amusement parks.

-澳洲幸运5官方开奖结果体彩网:Naomi Buchanan

Ulta Beauty Warns of a Busin🍎ess Slowdo𒀰wn, and Stock Tanks

Ulta Beauty (ULTA) share🦄s sank in intraday trading Wednesday after the beauty producไts retailer warned of a significant decline in business.

澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) Dave Kimbell told a retail conference that in the first two months of its fiscal year the company has seen "a slowdown in the total category across price points and segments." He said the broad-based decline came earlier and was somewhat bigger than anticipated.

If the slowdown continues, Ulta expects current-quarter 澳洲幸运5官方开奖结果体彩网:comparable store sales to be at the low end of its previous guidance of a low-sin𓂃gle-digit percentage gain, he said.ও

With Wednesday’s 14.8% tumble, Ulta shares fell into negative territory for 2024. The comments also dragged down shares of others in the sector, including Estee Lauder (EL) and Bath & Body Works (BBWI), which were down 4.2% and 3.3%, respectively.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Spotify Stock Su🐷rges on Report It Plans Price Hikes, Subscription Plan Ch🃏anges 

Spotify Technology (SPOT) shares rose to their highest level since Nov. 2021 on Wednesday following a report that the streaming audio provider will be 澳洲幸运5官方开奖结果体彩网:boosting prices in several key markets and changing its subscription plans.

The company will raise prices by about $1 to $2 per month in five countries, including Australia and the U.K., by the end of the month, and they will go up in the U.S. later this year, Bloomberg reported.

Spotify has lost money every year since it wen🧸t public in 2018 because some 70% of its revenue goes toward royalties it pays for the rights to music, according to the report.

Sh👍ares of Spotify were up 6.5% at $287.21 Wednesday afternoon, and are more than 50% higher this year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Oil Hits 2024 Highs as OPEC Maintains Production Cut⛦s

Oil prices rose to their highest level this year on Wednesday, and odds are they’ll climb even h﷽igher this summer, according to Bank of America analysts. 

Brent crude futures contracts traded just cents shy of $90 a barrel𓆏 on Wednesday morning. The price of Brent’s American counterpart, West Texas Intermediate, crossed $86 for the first time since October. 

On the supply side, prices have been buoyed this year by production cuts totaling 2.2 million barrels per day by the 澳洲幸运5官方开奖结果体彩♕网:Organization of the Peღtroleum Exporting Countries (OPEC), which decided on Wednesday to maintain those cuts.

On top of that, geopolitical tensions have both curbed supply and increased demand. Attacks on merchant ships in the Red Sea have disrupted supply and, by lengthening global trade routes, boosted oil demand by an estimated 150,000 barrels per day. And Ukrainian attacks on Russia's refining infrastructure are threatening to reduce the supply of fuel.

At the sa☂me ꧒time, robust U.S. economic data point to stronger-than-expected demand throughout the summer. 

All of these factors could cause an oil deficit of up to 450 thousand barrels per day in the second and third quarters, Bank of America analysts predict. “Thus, we increase our average Brent and WTI price forecast for 2024 to $86 and $81/bbl, respectively and see prices peaking at around $95/bbl this summer,” the analysts wrote.

BofA’s warning echoes that of the International Energy Agency, which surprised markets last month when it predicted global supply would 澳洲幸运5官方开奖结果体彩网:fall short of demand by an average of 300,000 barrels 🌌per day this year. 

Dave & Buster's Stock Surges on Profit Metric Beat, Buyback

Shares of Dave & Buster’s Entertainment (PLAY) jumped Wednesday after the game-themed restaurant chain posted a 澳洲幸运5官方开奖结果体彩网:better-than-expected key profit 𝕴metric and announced an increase in its 澳洲幸运5官方开奖结果体彩网:stock buyback program.

Dave & Buster's reported fourth-quarter earnings before interest, taxes, depreciation, and amortization (E♔BITDA) of $151.8 million, an increase of 9.7% from the year before and above analysts’ estimates. CEO Chris Morris said the company's turnaround plan is working.

In addition, the company said it was boosting its current share repurchase plan by $100 million, b𒊎ringing the total value of shares it is author🃏ized to buy back to $200 million.

The upbeat EBITDA number offset Dave & Buster’s lackluster fourth-quarter financial results. Earnings per share (EPS) came in at $1.03, with revenue up 6.3% to $599.1 million. Both missed forecasts. 澳洲幸运5官方开奖结果体彩网:Same-store sales dropped 7%. Executives blamed bad weather in January for reducing restaura𝔉nt traffic.

Dave 𝔍& Busꦓter’s shares were trading up 11% at $68.72 each midday Wednesday and are up more than 25% this year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Paramount Reportedl🐓y Consideri🦩ng Exclusive Sale Talks With Skydance

Paramount Global (PARA) is considering 澳洲幸运5官方开奖结果体彩网:making ღit🔯s sale negotiations exclusive with Skydance Media, according to a New York Times report.

The Times reported Tuesday that Skydance founder David Ellison, son of tech billionaire 澳洲幸运5官方开奖结果体彩网:Larry Ellison, had met with the Paramount board in the last month to discuss his vision for a potential deal. A deal would reportedly involve Skydance acquiring National Amusements, the holding company that owns Shari Redstone's controlling shares in Paramount, and then merging with Paramount.

Making the negotiations exclusive would suggest the sides are closer to a deal than previously thought. It would also cut out previous possible investors Paramount had negotiated with, including 澳洲幸运5官方开奖结果体彩网:media entrepreneur Byron Allen, 澳洲幸运5官方开奖结果体彩网:Warner Bros. Discovery, and several 澳洲幸运5官方开奖结果体彩网:private equity firms like 澳洲幸运5官方开奖结果体彩网:Apollo Global Management and 澳洲幸运5官方开奖结果体彩网:RedBird Capital Partners.

Pa🌱ramount and Skydance did not immediately resp✨ond to requests for comment on the negotiations.

Paramount stock, down about 20% this year, in𓃲itially rose on the news, but gave up those gains and was little changed late in the morning Wednesday.

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

Intel Stock Drops as Loss Widens and Sales Decline in Chipmaker's Foundry Business

Shares in 澳洲幸运5官方开奖结果体彩网:legacy chipmaker Intel (INTC) slumped in early trading Wednesday after the company 澳洲幸运5官方开奖结果体彩网:disclosed a widening loss and declining sales in its 澳洲幸运5官方开奖结果体彩网:semiconductor manufacturing business, also known by investors as its foundry business.

Intel's foundry division generated an 澳洲幸运5官方开奖结果体彩网:operating loss of $7 billion on sales of $18.9 billion last year, the company said in a filing late Tuesday. By comparison, in 2022, the unit recorded a loss of $5.2 billion on sales of $27.5 billion.

The chipmaker, which named Lorenzo Flores as 澳洲幸运5官方开奖结果体彩网:chief financial officer (CFO) of Intel Foundry, expects losses in the foundry business to peak this year before breaking even midway between now and the end of 2030. “Intel Foundry is going to drive considerable earnings growth for Intel over time. 2024 is the trough for foundry operating losses,” Gelsinger said Tuesday, CNBC reported.

Intel shares were down 6% at $41.27 early in the session 🍌Wednesday. They have lost about 18% of their value so far this year.

-澳洲幸运5官方开奖结果体彩网:Timothy Smith

Stocks Making the Biggest Moves Premarket

Gains:

• Dave & Busters Entertainment Inc. (PLAY): Shares of the entertainment and dining venue operator jumped 7% after its board authorized an additional $100 million in share repurchases, overshadowing lower-than-expected fiscal fourth-quarter sales and earnings. 
• Cal-Maine Foods Inc. (CALM): Shares of the egg producer rose more than 5% after 澳洲幸运5官方开奖结果体彩网:beating earnings estimates with its quarterly results. 
• Paramount Global (PARA): Shares rose about 2% after the New York Times reported the entertainment company was considering 澳洲幸运5官方开奖结果体彩网:entering exclusive talks with Skydance for a potential deal. 
  

Losses:

• Intel Corp. (INTC): Shares of the chipmaker fell more than 5% after the company reported its foundry business booked 澳洲幸运5官方开奖结果体彩网:a $7 billion operating loss in 2023. 
• Taiwan Semiconductor Manufacturing Co. (TSM): Shares of the chip giant slipped a little more than 1% after a major earthquake in Taiwan forced the company to pause work and evacuate factories. 
• Tesla Inc. (TSLA): The electric vehicle maker’s shares slipped another 1% after tumbling nearly 5% yesterday when it reported its first 澳洲幸运5官方开奖结果体彩网:decline in quarterly deliveries since the early days of the pandemic.

Stock Futures Slump Following ADP Payroll Data

Futuꦰres contr𝓡acts connected to the Dow Jones Industrial Average were down a little more than 0.1% in premarket trading.

S&P 500 futures were off about 0.2%.

Nasdaq 100 futures traded nearl꧟y 0.4% lower an hour before markets opened.