US Stocks Near Record Highs Amid Strong Earnings and Media Mega-Merger
The US stock market is inching closer to record highs, with the S&P 500 up 0.6% and poised to surpass its August peak. This comes after a strong rebound of 23% since late March, despite lingering concerns over geopolitical tensions, inflation, and bond market volatility. The Dow Jones Industrial Average added 201 points (0.4%), while the Nasdaq Composite, which hit an all-time high the previous day, gained 0.5%. Investor anxiety over rising living costs has slightly eased, though overall sentiment remains cautious.
Corporate earnings continue to provide critical support, with Lamb Weston, known for frozen potato products, reporting stronger-than-expected profits and revenues. Its stock jumped 11.1%, and CEO Mike Smith noted that despite rising operational costs, the company raised its full-year profit forecast. Analysts expect nearly 30% year-over-year earnings growth for the S&P 500, marking the third straight quarter of robust gains.
Other notable moves include Constellation Energy’s 15% surge after striking a long-term electricity deal with Google, and Option Care Health’s 33.1% spike following a $5.8 billion acquisition announcement. Meanwhile, oil prices stabilized, with Brent crude dipping 0.1% to $100.21 per barrel, easing some inflationary pressure. The 10-year Treasury yield also fell slightly to 5.28% from 5.31%.
Internationally, markets showed mixed trends. Europe saw gains amid bond yield fluctuations, while Asia had the Nikkei 225 up 1.1% and the Hang Seng advancing 1%. South Korea’s Kospi, however, dropped 0.9%. In Australia, futures suggest a 0.1% market open gain, with the Australian dollar trading at US69.86 cents.
The media landscape is set for a major shift as Paramount Skydance completed an $110 billion acquisition of Warner Bros. Discovery, creating one of the largest media mergers in history. The deal consolidates two of the oldest US film studios under the new Skydance banner, raising concerns about industry consolidation.