Reports indicating that a group of investors is preparing for a potential takeover bid have significantly boosted shares of a major video game publisher. Conversely, disappointing same-store sales results in the United States have negatively impacted the stock of a prominent membership warehouse club. On a more positive note, major U.S. equities indexes managed to break their three-day losing streak, as a key inflation gauge remained in line with expectations. This development may pave the way for the Federal Reserve to consider further cuts to interest rates.
The S&P 500 experienced a commendable advance of 0.6%, while the Dow Jones Industrial Average rose by 0.7%, and the Nasdaq Composite ended the day 0.4% higher. For detailed coverage of the day's market news, click here to access more insights from Investopedia.
Shares of Electronic Arts (EA), a leading video game developer, surged nearly 15%, marking the highest performance in the S&P 500. This significant uptick followed a report suggesting that a deal to take the company private could be imminent. According to The Wall Street Journal, a consortium of investors, including Saudi Arabia’s Public Investment Fund and the private equity firm Silver Lake, may be approaching a staggering $50 billion transaction. If completed, this could become the largest leveraged buyout in history, particularly for a company recognized for its popular sports titles.
On Thursday, President Donald Trump unveiled a new series of tariffs affecting imports of pharmaceuticals, specific types of furniture, and heavy-duty trucks. Following this announcement, shares of Paccar (PCAR), the parent company of the renowned Peterbilt and Kenworth truck brands, rose over 5%. Paccar had previously expressed that uncertainty surrounding tariffs was impacting the truck market, particularly for U.S. manufacturers managing the effects of tariffs on vital components such as steel and aluminum.
In other market news, Intel (INTC) shares extended their recent rally, increasing by 4.4% on Friday. Reports from The Wall Street Journal indicated that Intel is not only in discussions with Apple (AAPL) but has also approached TSMC (TSM) regarding potential investment and partnership opportunities. Meanwhile, Nvidia (NVDA), the world's largest company by market capitalization, announced a $5 billion investment and collaboration plan with Intel last week, further solidifying both companies' positions in the technology sector.
Boeing (BA) shares climbed 3.6% after receiving favorable news from the Federal Aviation Administration (FAA), which confirmed that the plane manufacturer would be permitted to issue airworthiness certificates for certain 737 Max and 787 jets. The easing of restrictions allows Boeing to conduct final safety checks on specific aircraft, potentially expediting production and delivery schedules. Furthermore, Turkish Airlines finalized a substantial deal to purchase 225 Boeing planes, coinciding with Turkish President Recep Tayyip Erdoğan's recent visit to the U.S.
In contrast, Costco (COST) shares fell nearly 3% following the release of its fiscal fourth-quarter financial results. Although sales and profits exceeded analysts' expectations, U.S. same-store sales slightly missed estimates. While Costco continues to attract shoppers seeking bargains on essential items amid economic uncertainty and inflation concerns, the company noted that consumers are still cautious about discretionary purchases, facing increasing competition in the retail space.
Lastly, Oracle (ORCL) shares dropped 2.7% on Friday, extending losses from the previous session after Rothschild Redburn initiated coverage of the stock with a sell rating. Analysts have raised concerns that the market may be overly optimistic about the software provider's cloud operations, suggesting potential challenges ahead.
