Midday Fly By: Novartis to buy Avidity, Keurig Dr Pepper beats expectations

The major averages were sharply higher near noon as the market appears to exude new optimism amid fresh signs of progress in the China‐U.S. trade dialogue and expectations of more central-bank easing. That said, commodity price swings, delayed U.S. data flows due to the government shutdown and the upcoming heavy earnings calendar continue as a counterbalance.

Reports that the U.S. and China have outlined a framework deal to ease tariffs and Chinese rare-earth export controls ahead of a meeting between Donald Trump and Xi Jinping later this week has been a key driver. Inflation and central-bank watchers are also encouraged. A slightly softer inflation print, combined with the trade optimism, boosted the odds that the Federal Reserve will cut rates at its next meeting.

Looking to commodities, gold continues its sharp pullback, with the so-called “safe haven” commodity pulling below $4,000 for the first time in several weeks. Oil edged higher as the commodity continues to largely hover above the $60 mark.

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

1. STOCK NEWS:

• Novartis (NVS) agreed to acquire Avidity (RNA) for $72 per share in cash
• American Water (AWK) and Essential Utilities (WTRG) agreed to combine in an all-stock merger
• Huntington Bancshares (HBAN) will acquire Cadence Bank (CADE) for $7.4B
• Keurig Dr Pepper (KDP) reported upbeat Q3 results, raised its FY25 revenue outlook, and announced $7B in new strategic investments
• Trian offered to acquire Janus Henderson (JHG) for $46 in cash per share

2. WALL STREET CALLS:

• Microsoft (MSFT) upgraded to Buy at Guggenheim
• Five Below (FIVE) upgraded to Overweight at JPMorgan
• Harley-Davidson (HOG) downgraded to Underweight at Morgan Stanley
• Berkshire Hathaway (BRK.A) downgraded to Underperform at Keefe Bruyette
• Analysts rolled out coverage of recent IPOs Neptune Insurance (NP) and Fermi (FRMI)

3. AROUND THE WEB:

• Mike Lamb, who is currently chair of global insurance within Citigroup’s (C) financial institutions group, is departing the bank after four years, Financial News says
• After exiting the market 11 years ago, Barclays (BCS) is re-entering Saudi Arabia, Bloomberg reports
• Apple (AAPL) is working on a vapor chamber to help improve cooling and performance for the next iPad Pro in 2027 and plans to start selling ads in its Maps app as early as next year, Bloomberg says
• Taylor Sheridan, a movie and television producer known for “Yellowstone” and “Tulsa King,” will join NBCUniversal (CMCSA) after his Paramount (PSKY) contract expires, WSJ reports
• According to CEO Oliver Blume, Volkswagen (VWAGY) has secured a sufficient supply of chips, Reuters reports

4. MOVERS:

• Qualcomm (QCOM) surged higher after unveiling AI solutions to challenge Nvidia (NVDA) and AMD (AMD)
• Zenas BioPharma (ZBIO) gains after announcing its Phase 2 MoonStone trial of obexelimab met its primary endpoint
• BridgeBio (BBIO) increases after reporting results from its FORTIFY Phase 3 study of BBP-418
• Intella Therapeutics (NTLA) declines after temporarily pausing patient dosing and screening for its MAGNITUDE trials of nex-z
• Organon (OGN) lower after CEO Ali resigned following an internal investigation

5. EARNINGS/GUIDANCE:

• Revvity (RVTY) reported Q3 results and raised its guidance for FY25
• Carter’s (CRI) reported Q3 results, with CEO Douglas Palladini commenting, “Our third quarter performance reflected continued improvement in U.S. Retail business demand”
• Easterly Government (DEA) reported Q3 results, with EPS in-line with consensus
• Bank of Hawaii (BOH) reported Q3 results, with EPS beating consensus
• LOBO EV (LOBO) provided guidance for FY25

INDEXES:

Near midday, the Dow was up 0.53%, or 249.38, to 47,456.50, the Nasdaq was up 1.61%, or 374.08, to 23,578.95, and the S&P 500 was up 0.99%, or 67.09, to 6,858.78.