Nasdaq Surpasses Dow: Warner Bros. Surge Explained (Live)
Mixed Performance in Major Stock Indices
On Friday afternoon, the Dow Jones Industrial Average and other major stock indices showed mixed performance as investors remained uncertain about a key inflation survey. The Dow experienced a slight decline, with blue chips retreating by 0.4%, or approximately 175 points, after closing at a record high on Thursday. The index briefly fell below the 46,000 level during the session but managed to close above it. Meanwhile, the S&P 500 remained relatively flat, holding firmly above 6,500.
In contrast, the tech-heavy Nasdaq Composite saw an increase of 0.5% after reaching a record high on Thursday and surpassing the 22,000 mark. However, small caps on the Russell 2000 were weak, falling by 0.8%. Trading volumes on both the Nasdaq and New York Stock Exchange were lower compared to the previous day. On the Nasdaq, falling issues outnumbered rising ones by nearly 2-to-1, while on the NYSE, losers outpaced winners by around 12-to-5.
The 10-year Treasury yield increased slightly to 4.07%, and oil prices rose to near $62.80 per barrel. Among exchange-traded funds, the Invesco QQQ Trust (QQQ) gained 0.4%, and the SPDR S&P 500 ETF (SPY) climbed 0.1%.
Warner Bros. Discovery Surges Amid Mergers
Warner Bros. Discovery (WBD) continued its upward trend for a second consecutive day, with shares rising more than 16% in heavy volume. This followed a 29% surge on Thursday, driven by news that Paramount Skydance (PSKY) is considering a mostly cash deal to acquire the media and entertainment provider. The transaction is supported by the Ellison family, including David Ellison, CEO of Paramount Skydance and son of billionaire Larry Ellison.
Warner Bros. shares reached a level not seen since May 2022, climbing over 74% this year and becoming the biggest gainer on the S&P 500. Similarly, Paramount Skydance surged 4.1% on the news, hitting a price not seen since May 2023.
Other Notable Market Movements
Oracle (ORCL) continued its downward trend, losing another 5% after dropping 6.2% on Thursday. The stock had previously rallied nearly 36% on Wednesday following an upbeat outlook for its cloud business in the fiscal first quarter.
Century Aluminum (CENX) initially broke out of a deep consolidation pattern with a 25.39 buy point, but later retraced below the level. Despite this, the stock was on track for four consecutive days of gains, fueled by a price target increase from B. Riley.
Adobe (ADBE) gave back some of its gains despite beating earnings and sales forecasts for its fiscal third quarter. However, the stock has underperformed, with a 9 IBD Relative Strength Rating and a 21% loss year to date.
RH (RH) faced a sharp decline, with shares dropping 44% this year after missing fiscal second-quarter profit and sales estimates. The company also lowered its fiscal 2026 revenue outlook.
Tesla's Strong Performance
Tesla (TSLA) continued its winning streak, rising more than 6% on Friday morning. Shares moved further above a 367.71 buy point and are on pace to extend their winning streak to four sessions. The company is set to report third-quarter global vehicle deliveries in early October and Q3 earnings on October 21.
Inflation Survey and Market Sentiment
Just after the market open, the University of Michigan’s consumer sentiment reading fell more than expected to 55.4, down from 58.2 in August. One-year inflation expectations rose to 4.8%, meeting estimates, while five- to 10-year inflation expectations increased to 3.9%, exceeding forecasts.
Nasdaq-100 Performance
Among Nasdaq-100 index stocks, Micron Technology (MU) and Tesla (TSLA) were top performers, gaining 2.4% and 1.5%, respectively. In contrast, Arm (ARM) and MercadoLibre (MELI) declined by 1.2% and 0.9%, respectively.
Dow Jones Movers
Inside the Dow Jones Industrial Average, Boeing (BA), Microsoft (MSFT), and UnitedHealth Group (UNH) were among the top performers. Boeing climbed 0.6%, Microsoft gained 1.2%, and UnitedHealth rose 0.8%. On the downside, Apple (AAPL) and Cisco Systems (CSCO) fell by 0.4% and 3%, respectively.
Gemini IPO Debut
Gemini, a cryptocurrency exchange, raised $425 million in its initial public offering (IPO) on Thursday night. The company sold 15.2 million shares at $28, slightly above its revised price range. Gemini will trade on the Nasdaq under the ticker symbol GEMI, becoming the third public crypto exchange after Coinbase Global (COIN) and Bullish (BLSH).
Adobe's Strong Earnings Report
Adobe (ADBE) saw a 3% premarket rally after reporting strong results for its fiscal third quarter. The company earned $5.31 per share on sales of $5.99 billion, exceeding analyst expectations. Adobe's earnings and sales grew 14% and 11%, respectively, year-over-year.
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