Midday Fly By: OpenAI signs new Microsoft deal, PayPal reports Q3 beat

The major averages were broadly higher near noon, adding to recent gains as optimism remains that President Donald Trump and Xi Jinping will soon reach a trade framework, even as the U.S. government shutdown approaches the one-month mark. The tech sector is leading the charge again, with chips and growth names gaining. Traders await a number of “Magnificent Seven” names to report results later this week as well, including Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), and Microsoft (MSFT).

On the commodity side, gold prices continue to slide, with the typical “safe-haven” asset sinking to below $4,000 after eclipsing $4,3000 just last week. Oil prices were also plunging, though still hovering around $60, ahead of the API crude numbers set for release after the close.

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

1. STOCK NEWS:

• OpenAI signed a new definitive agreement with Microsoft (MSFT), under which the software and technology giant will hold a roughly 27% stake in the ChatGPT maker on an as-converted diluted basis
• PayPal (PYPL) reported upbeat Q3 results, initiated a 14c per share dividend, and announced a partnership with ChatGPT to power instant checkout and agentic commerce
• UPS (UPS) reported better-than-expected Q3 earnings and revenue and reiterated its capital expenditure view for FY25
• UnitedHealth (UNH) provided a “beat and raise” report for Q3
• Skyworks (SWKS) and Qorvo (QRVO) agreed to combine in a cash and stock deal to create a roughly $22B enterprise

2. WALL STREET CALLS:

• Upwork (UPWK) upgraded to Buy at UBS
• Virtu Financial (VIRT) upgraded to Buy at BofA
• Core Scientific upgraded to Buy at H.C. Wainwright and Clear Street
• Boot Barn (BOOT) downgraded to Neutral at Seaport Research
• F5 (FFIV) cut to Hold at Needham amid challenges stemming from recent security breach

3. AROUND THE WEB:

• Uber (UBER) is planning to invest in the Hong Kong listings of Pony AI (PONY) and WeRide (WRD), Bloomberg reports
• British American Tobacco (BTI) has paused a plan to launch an unlicensed disposable vape in the U.S. as the FDA moves to crack down on unregulated products, Reuters says
• Glasshouse Research is short Ducommun (DCO), calling it a “growth story built on aggressive accounting and a culture of hitting numbers at all costs.”
• Starbucks (SBUX) sees Boyu Capital as the frontrunner in its search for a partner for its China business, Bloomberg says
• Paramount Skydance (PSKY) will cut 1,000 jobs on Wednesday, with a second round of cuts expected at a later date, Bloomberg reports

4. MOVERS:

• Arcutis Biotherapeutics (ARQT) and Wayfair (W) gain after reporting quarterly results
• Cameco (CCJ) higher in New York after entering a nuclear power pact with Brookfield Asset Management (BAM) and the U.S. government
• TerraWulf (WULF) increases after reporting preliminary Q3 results
• Alexandria Real Estate (ARE) and Olin (OLN) fall after reporting quarterly results
• Amkor Technology (AMKR) lower after reporting quarterly results and announcing CEO Rutten will retire

5. EARNINGS/GUIDANCE:

• Royal Caribbean (RCL) reported Q3 results, with CEO Jason Liberty commenting, “We continue to see strong momentum across our business”
• F5 (FFIV) reported Q4 results and provided guidance for Q1 and FY26
• Regeneron (REGN) reported Q3 results, with EPS and revenue beating consensus
• Donaldson (DCI) reported Q4 results and provided guidance for FY26
• Ecolab (ECL) reported Q3 results, with EPS in-line with consensus

INDEXES:

Near midday, the Dow was up 0.37%, or 177.53, to 47,722.12, the Nasdaq was up 0.41%, or 96.25, to 23,733.70, and the S&P 500 was up 0.07%, or 4.46, to 6,879.62.