Morning Brief

US stock futures point modestly higher, with the Nasdaq leading early gains, as markets digest another round of AI build-out headlines and a major IPO debut. Amazon (AMZN) is reportedly in talks to invest more than $10 billion in OpenAI in a deal that could value the company north of $500 billion and include OpenAI using Amazon’s chips. At the same time, the AI infrastructure trade is showing stress points. Oracle’s (ORCL) Michigan data center project is reportedly in limbo after Blue Owl funding talks stalled, raising fresh questions about how quickly “neo-cloud” players can finance massive capex plans tied to OpenAI’s revenue ramp. Investors will get another read on AI demand after the bell with Micron (MU) earnings, as the market debates whether the next phase of AI leadership broadens beyond the biggest chip names. In media M&A, Warner Bros. Discovery (WBD) urged shareholders to reject Paramount’s (PARA) $108 billion bid as “inferior,” keeping the spotlight on the multi-front fight that also involves Netflix’s (NFLX) competing approach. In today’s top trending tickers, Tesla (TSLA) is under pressure after California’s DMV alleged the company misled consumers about its driver-assistance marketing and warned its sales license could be suspended if it doesn’t come into compliance. Medline began trading in the year’s largest IPO, priced at $29 and valued around $39 billion, under ticker (MDLN). Takeaways: Amazon and OpenAI reportedly discuss a $10B+ investment tied to Amazon chip usage Oracle’s Michigan data center funding talks stall, spotlighting AI capex and financing risk Micron earnings after the bell offer another checkpoint on AI-driven memory demand Warner Bros pushes back on Paramount’s $108B bid as the media deal fight escalates Tesla faces a California DMV challenge; Medline debuts under (MDLN) in the year’s biggest IPO Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves. Thoughts? Questions? Fan mail? Email us at [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

US markets are quiet ahead of the Federal Reserve’s final decision of the year, with traders widely expecting a quarter-point “hawkish cut” and a fresh dot plot showing only one more cut penciled in for 2026. Chair Jerome Powell’s press conference and the scope of any dissents will be key as officials juggle inflation, which remains roughly a whole point above target, a softening labor market, and a post-shutdown GDP rebound. The White House has also begun interviewing candidates for the next Fed chair, including former Governor Kevin Warsh, while NEC Director Kevin Hassett remains the perceived frontrunner. The AI trade faces its next test with Oracle (ORCL) and Adobe (ADBE) reporting after the bell. Oracle must convince Wall Street that massive OpenAI-linked data-center spending and negative free cash flow are justified by future revenue and remaining performance obligations. At the same time, Adobe navigates investor questions about AI competition from tools like Google’s Gemini and how effectively it can weave generative AI into Creative Cloud. At the same time, bond yields on the 10-year and 30-year remain elevated even as markets bet on more easing next year, reflecting concerns over debt, inflation, and policy uncertainty. In media and tech, Netflix (NFLX) has agreed to buy the studio and streaming assets of Warner Bros. Discovery (WBD) in a $72 billion cash-and-stock deal, picking up HBO, Max and franchises like Harry Potter, Game of Thrones, DC, Friends, and The Sopranos while keeping that IP out of Paramount (PARA) and Comcast’s (CMCSA) hands. Analysts say the acquisition widens the gap between Netflix and its smaller rivals, but raises regulatory and integration questions. Apple (AAPL) is under fresh scrutiny after a wave of senior departures in operations, design, AI, and legal, even as iPhone and services demand keep the stock near record highs. Trending tickers include SpaceX, which is reportedly eyeing a 2026 IPO valuing the company near $1.5 trillion, GE Vernova (GEV) after an upbeat AI-driven power outlook, and Chewy (CHWY) on stronger customer spend and improving active users. Takeaways: Fed expected to deliver a 25 bp “hawkish cut” and update its dot plot at the final meeting of 2025 Internal dissents and the next Fed chair race add uncertainty to the 2026 rate path Oracle and Adobe earnings serve as a fresh stress test for the AI infrastructure and software trade Netflix to acquire Warner Bros' studio and streaming assets for $72B, tightening its grip on top Hollywood IP Apple faces a high-profile management reshuffle even as iPhone and services strength keep investors onside Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves. Thoughts? Questions? Fan mail? Please email us at [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

US markets open slightly lower as investors brace for the Fed’s final 2025 meeting and a wave of high-stakes corporate news. Nvidia (NVDA) scored a major win after the U.S. approved sales of its H200 AI chip to China, allowing Nvidia to reclaim billions in lost business while sending 25% of proceeds back to the U.S. government. President Trump told reporters that Intel (INTC) and AMD (AMD) will also be eligible for similar modified chip sales. Meanwhile, the battle for Warner Bros. Discovery (WBD) has escalated. Paramount–Skydance submitted a $108 billion hostile takeover bid, backed by banks, Gulf sovereign wealth funds, and Jared Kushner — just days after WBD accepted Netflix’s (NFLX) $72 billion offer. Investors now await CEO David Zaslav’s response as Hollywood faces its most aggressive M&A fight in decades. The Federal Reserve kicks off its two-day meeting with Wall Street expecting a 25 bp “hawkish cut.” Officials are likely to cut rates but signal fewer moves ahead in 2026, citing a softer labor market and rising internal division on inflation vs. jobs. A Supreme Court hearing on presidential authority over independent agencies could also reshape next year’s Fed committee by giving the White House power to remove Governor Lisa Cook — potentially shifting the board more dovish. In trending tickers, Campbell Soup (CPB) reported weaker revenue and profit as consumers remain selective, but highlighted momentum from at-home cooking and announced a 49% stake purchase in pasta-sauce supplier Laina. CVS (CVS) raised its profit forecast, Home Depot (HD) issued cautious guidance ahead of its investor day, and AutoZone (AZO) missed profit expectations despite solid sales growth. Takeaways: Nvidia regains access to China with H200 sales; Intel and AMD may follow Paramount launches a $108B hostile bid for WBD after Netflix’s $72B agreement Fed expected to deliver a “hawkish cut” and signal fewer 2026 moves Supreme Court case could reshape Fed independence and future policymaking Campbell Soup posts softer results; CVS raises guidance; Home Depot and AutoZone under pressure Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves. Thoughts? Questions? Fan mail? Email us at [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

US stocks are little changed to start the week as investors wait on the Federal Reserve’s rate decision and a fresh read on the AI boom from Oracle and Broadcom. Futures point to a modestly higher open, with the Russell 2000 attempting to break out, while bond volatility and the VIX remain near year lows. Markets are pricing a roughly 90% chance that the Fed will cut rates by 25 basis points this week, even as inflation remains roughly a whole point above target and officials remain sharply divided on how quickly to ease. Several regional presidents may dissent over sticky prices, while Governor Steven Myron is likely to push again for a deeper 50 bp move. The AI trade undergoes a key report from ORCL and Broadcom (AVGO). Stress test when Oracle (ORCL) and Broadcom (AVGO Oracle has slumped about 24% in two months as Wall Street worries about massive AI capital expenditures needs for a company without the cash machine of hyperscalers like Alphabet (GOOG) and Microsoft (MSFT), making it a “canary in the coal mine” for AI valuations. Broadcom, up nearly 70% year to date, continues to outpace the broader chip sector and is now being discussed as parNVDA).t of a “Mag 8” alongside Nvidia (NVDA Netflix’s (NFLX) $72 billion bid for Warner Bros. Discovery (WBD) faces new regulatory and political scrutiny after President Trump said the deal could be a problem, just as Paramount Global (PARA) raised its competing all-cash offer to $30 per share. Berkshire Hathaway (BRK-B) is also in transition as longtime investment chief and GEICO CEO Todd Combs departs for JPMorgan (JPM), underscoring how incoming CEO Greg Abel is already reshaping the conglomerate’s leadership and structure ahead of Warren Buffett’s year-end exit. IBM (IBM) is acquiring Confluent (⁠CFLT⁠) for $9.3 billion to enhance its data-streaming and AI capabilities, while Tesla (⁠TSLA⁠) slides after a Morgan Stanley downgrade highlights growing dispersion within the once-unified "Magnificent Seven" trade. Takeaways: Fed expected to deliver a third 25 bp cut of the year amid unusually public division over inflation and growth Oracle and Broadcom earnings seen as key tests of whether AI spending still justifies premium valuations Netflix’s $72B Warner Bros. deal faces political pushback as Paramount lifts its rival's all-cash bid Berkshire Hathaway loses top stock picker Todd Combs to JPMorgan as Greg Abel starts to put his stamp on the firm IBM buys Confluent for $9.3B to bolster AI data streaming; Tesla downgraded as Mag 7 leadership begins to fragment Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves. Thoughts? Questions? Fan mail? Please email us at [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

US markets open little changed as investors digest a blockbuster media deal and brace for delayed inflation data. Netflix (NFLX) has agreed to buy the studio and streaming assets of Warner Bros. Discovery (WBD) in a $72 billion cash-and-stock deal, scooping up HBO, Max, and iconic franchises like Harry Potter, Game of Thrones, DC, Friends, The Sopranos, and more. The acquisition caps a fierce bidding war that included Paramount Global (PARA) and Comcast (CMCSA) and marks Netflix’s biggest-ever swing into legacy Hollywood. Analysts say the move cements Netflix’s lead in streaming but raises questions about integration costs, labor, and regulatory risk, especially with Paramount still signaling it may keep fighting for a role in the process. At the macro level, Wall Street is watching the September PCE report, the Fed’s preferred inflation gauge, after its release was delayed by the 43-day government shutdown. Economists expect core PCE to rise 0.2% month over month and 2.8% year over year — slightly below the Fed’s prior 3.1% year-end projection — but the data is stale and unlikely to shift expectations for a rate cut next week. Fed officials remain split, with some policymakers worried about sticky inflation and others focused on labor-market softness. Apple (AAPL) is also in focus after a wave of senior departures, including longtime COO Jeff Williams, the company’s general counsel, its AI chief, and design lead Alan Dye, who is heading to Meta (META). While the exits raise fresh questions about Tim Cook’s eventual succession and Apple’s AI strategy, analysts note iPhone 17 Pro demand and services revenue remain strong, and the stock is still up double digits year to date. In trending tickers, Southwest Airlines (LUV) cut its 2025 profit outlook on shutdown-related flight disruptions and higher fuel costs, Hewlett Packard Enterprise (HPE) slid after AI server deals were pushed into 2026, and Victoria’s Secret (VSCO) rallied on its strongest quarterly sales growth in four years and a raised full-year outlook. Takeaways: Netflix to acquire Warner Bros. studio and streaming assets for $72B, grabbing HBO/Max and top global franchises PCE inflation print finally arrives after shutdown delay but is unlikely to change next week’s Fed decision Apple faces a high-profile management shake-up as key execs in ops, design, and AI depart Southwest trims guidance on shutdown-related disruptions; HPE pushes some AI server deals into 2026 Victoria’s Secret posts its best sales growth in four years and raises its full-year outlook Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves. Thoughts? Questions? Fan mail? Email us at [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices