EA acquired in go-private deal for $55B, Carnival reports Q3 beat: Morning Buzz

The major averages were mixed near noon as the Street attempts to regain its footing after stocks ended last week in the red. Investors continue to weigh the potential impact of a possible U.S. government shutdown, which threatens to delay the release of the monthly employment data. While markets have typically brushed off shutdowns in recent history, the broader economic landscape is leaving some concerned that this time could be different.

In economic data news, pending home sales surged 4.0% to 74.7 in August, beating expectations. Additionally, the Dallas Fed manufacturing index dropped 6.9 points to -8.7 in September, which was weaker than analysts expected.

Looking to commodities, gold prices were sharply higher near noon, with the “safe haven” asset reaching new record highs and inching closer to the $3,900 threshold. Meanwhile, oil prices plunged over 3% following last week’s gains.

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1. STOCK NEWS:

• Electronic Arts (EA) agreed to be acquired for $55B by an investor consortium comprised of Saudi Arabia’s PIF, Silver Lake, and Affinity Partners
• Carnival (CCL) provided a “beat and raise” report for Q3
• CSX (CSX) named Steve Angel CEO 
• GSK (GSK) has named Luke Miels CEO Designate
• Nike (NKE) reports results on Tuesday after several sluggish quarters

2. WALL STREET CALLS:

• Novo Nordisk (NVO) downgraded to Underweight at Morgan Stanley
• General Dynamics (GD) upgraded at Seaport Research to Buy
• Wells Fargo (WFC) downgraded to Equal Weight at Morgan Stanley, here’s why
• CarMax (KMX) downgraded to Neutral at Seaport Research
• Lam Research (LRCX) upgraded to Buy at Deutsche Bank

3. AROUND THE WEB:

• Fuzzy Panda Research is short Rezolve AI (RZLV) as it believes the company is “faking” annual recurring revenue by acquiring failing AI start-ups with declining revenue
• Apple (AAPL) is nearing mass production of M5 MacBook Pros, MacBook Airs, and two monitors for that are slated for release between the end of this year and the first quarter of next year, Bloomberg says
• Irenic Capital Management built a sizable stake in Workiva (WK), arguing the financial reporting software maker needs to improve its operating efficiency, refresh its board and consider a potential sale, Reuters says
• Toyota (TM) workers in Brazil voted to approve a plan for temporarily layoffs following storm damage at one of the company’s factories in Sao Paulo, Reuters says
• Occidental Petroleum (OXY) is in discussions to sell its OxyChem division in a deal that could be worth around $10B, FT says

4. MOVERS:

• Tilray (TLRY) and other cannabis stocks were higher in New York after President Trump posted a video on the medical benefits of CBD for seniors
• BTQ Technologies (BTQ) increases in New York after launching a QSSN proof-of-concept with Danal
• Village Farms (VFF) gains after its board approved a $10M share repurchase program
• MoonLake (MLTX) lower in New York after reporting results for its Phase 3 VELA-1 and VELA-2 trials
• Larimar (LRMR) falls after announcing data from its OL study of nomlabofusp

5. EARNINGS/GUIDANCE:

• NetSol Technologies (NTWK) reported Q4 results, with EPS lower year-over-year
• TMD Energy (TMDE) reported results for 1H, with revenue lower year-over-year
• Nike (NKE) to report Q1 results on September 30
• Paychex (PAYX) to report Q1 results on September 30
• RPM International (RPM) to report Q1 results on October 1

INDEXES:

Near midday, the Dow was down 0.16%, or 72.31, to 46,174.98, the Nasdaq was up 0.46%, or 104.04, to 22,588.11, and the S&P 500 was up 0.18%, or 11.98, to 6,655.68.