The stock market saw a notable uptick as Paramount Global (PARA, Financial) shares rose 2.3% following news that Apollo Global (APO, Financial) might bid for National Amusements, a company with significant control over Paramount. This development comes as various investors, including David Ellison of Skydance Media, show interest in acquiring stakes from the Redstone family. The potential bid by Apollo, which also has investments in Legendary Entertainment, adds to the recent discussions of a merger between Paramount and Warner Bros. Discovery (WBD).
In the technology sector, OpenAI, backed by Microsoft (MSFT, Financial), is facing an impending antitrust investigation. The Justice Department and the Federal Trade Commission are currently deciding which agency will spearhead the probe. This scrutiny arises from concerns over Microsoft's financial support of OpenAI and its influence over the AI firm, especially after the recent controversy involving OpenAI CEO Sam Altman's brief dismissal and reinstatement.
Looking at the airline industry, Spirit Airlines (SAVE, Financial) is experiencing high options trading volume after the Department of Justice blocked its merger with JetBlue Airways (JBLU, Financial). The regulatory landscape is also affecting Hawaiian Holdings (HA, Financial) and Alaska Airlines (ALK, Financial), with both companies engaged in merger discussions. Additionally, Virgin Galactic (SPCE, Financial) and EVgo (EVGO, Financial) are facing significant short interest ahead of the earnings season.
Apple's (AAPL, Financial) new Vision Pro headset has opened for preorders, indicating strong demand despite the absence of major media apps like YouTube (GOOG, Financial) (GOOGL, Financial) and Netflix (NFLX, Financial). Spotify (SPOT, Financial) is also not planning a dedicated app for the device. The Vision Pro's launch without these key entertainment services could impact its positioning as an advanced mixed-reality entertainment system.
In the healthcare sector, Johnson & Johnson (JNJ, Financial) received full FDA approval for its bladder cancer therapy, erdafitinib (Balversa), as a treatment for adults with urothelial carcinoma harboring specific genetic alterations. This follows the drug's accelerated approval in 2019 and is based on positive data from the Phase 3 THOR trial.
Super Micro Computer (SMCI, Financial) shares hit a record high after the company raised its quarterly guidance significantly, citing robust demand for its AI servers. The updated forecast for net sales and adjusted earnings per share far exceeds the company's previous expectations, reflecting strong customer demand for its server products.
Spirit Airlines (SAVE, Financial) is urging JetBlue Airways (JBLU, Financial) to appeal a federal judge's decision blocking their planned sale. Spirit argues that the contract requires JetBlue to exhaust all legal remedies to complete the transaction. The outcome of this appeal could significantly impact both airlines' futures.
Chinese stocks and ETFs saw a surge despite the broader Chinese stock market hitting a four-year low. This uptick comes amid efforts by Citic Securities Co. to prevent a market decline by suspending short selling for certain clients and tightening requirements for institutional clients.
The Arena Group (AREN, Financial) faced a sharp decline in its stock price following reports of potential layoffs at Sports Illustrated due to a missed licensing payment to Authentic Brands Group. This news has raised concerns about the company's financial stability and its ability to maintain its publishing rights.
Celsius Holdings (CELH, Financial) experienced a dip in its stock price after Bank of America downgraded the company to Neutral from Buy. The downgrade is attributed to the completion of U.S. distribution through the Pepsi partnership and the need for growth against increasing competition in the beverage sector.
January's underperforming stocks are expected to outperform for the rest of the year, according to BMO Capital Markets. The analysis suggests that investors should consider opportunities within these stocks, particularly at this point in the year.
AGNC Investment (AGNC, Financial) is set to report Q4 earnings with expectations of continued pressure due to high Federal Reserve rates. The mortgage REIT's net spread and dollar roll income are anticipated to decline from the previous quarter and year-over-year.
Spirit Airlines (SAVE, Financial) provided a positive business update for Q4, with total revenue expected at the high end of the guidance range and operating expenses better than anticipated, primarily due to lower fuel costs and strong operational performance during the holiday travel period.
Citi Research made changes to its semiconductor coverage, promoting Marvell Technology (MRVL, Financial) to its top pick and downgrading Universal Display (OLED, Financial) to Neutral. The firm also adjusted its position on Nvidia (NVDA, Financial), moving it to the second spot after a significant stock run.
Rivian Automotive (RIVN, Financial) shares continued to decline, marking the eighth consecutive session of losses. The electric vehicle maker's stock performance contrasts with the broader market gains, with short interest remaining high.
Piper Sandler highlighted six top-decile rated stocks, including Boston Scientific (BSX, Financial), Expedia Group (EXPE, Financial), and Progressive Corporation (PGR, Financial), as attractive investment opportunities based on macro, technical, and fundamental analyses.
Mirati Therapeutics (MRTX, Financial) saw a slight increase in its stock price as it approaches the expected closure of its sale to Bristol-Myers Squibb (BMY). The transaction is set to finalize on January 23, pending regulatory approval.
SLB (SLB, Financial), formerly known as Schlumberger, reported a rise in Q4 net income and revenues, with significant growth in its international business. The company also announced plans to return more than $2.5 billion to shareholders through dividend increases and stock buybacks.
