Electronic Arts Stock Pops on Buyout Talks; Costco Slips

Reports that a group of investors could be gearing up for a takeover bid helped drive a power-up for a major video game publisher, while soft same-store sales results in the U.S. weighed on the stock of a membership warehouse club.

Major U.S. equities indexes broke their three-day losing streak as a key inflation gauge was in line with expectations, which could keep the Federal Reserve on track to cut interest rates further. The S&P 500 advanced 0.6%, the Dow was up 0.7%, and the Nasdaq ended 0.4% higher. Click here to find more coverage from Investopedia of the day’s market news.

Shares of video game maker Electronic Arts (EA) surged nearly 15%, logging the top performance in the S&P 500, after a report that a deal could be in the works to take the company private. According to The Wall Street Journal, a group of investors that includes Saudi Arabia’s Public Investment Fund and the private equity firm Silver Lake could be nearing a $50 billion transaction—potentially the largest leveraged buyout of all time—to take over the game publisher known for its sports titles.

President Donald Trump announced a new set of tariffs Thursday, including levies on imports of pharmaceuticals, certain types of furniture, and heavy-duty trucks. Shares of Paccar (PCAR), parent company of the Peterbilt and Kenworth truck brands, gaining over 5%. The company had previously indicated that tariff-related uncertainty was weighing on the truck market, with U.S. truck manufacturers also managing the impact of tariffs on key components like steel and aluminum.

Intel (INTC) shares extended their recent rally, adding 4.4% Friday. The Wall Street Journal indicated that, in addition to talks with Apple (AAPL), Intel has approached TSMC (TSM) about potential investment and partnership opportunities. Nvidia (NVDA), the world’s largest company by market capitalization, announced a $5 billion investment and collaboration plan with Intel last week.

Boeing (BA) shares climbed 3.6% after the Federal Aviation Administration said the plane maker will be allowed to issue airworthiness certificates on some of its 737 Max and 787 jets. The eased restrictions, which enable the company to conduct the final safety check on certain aircraft, could help Boeing accelerate production and delivery schedules. In addition, Turkish Airlines finalized a deal to purchase 225 Boeing planes following Turkish President Recep Tayyip Erdoğan’s visit to the U.S. this week.

Costco (COST) stock slid nearly 3% after the members-only warehouse giant reported its fiscal fourth-quarter financial results. Sales and profits topped analysts’ expectations, but U.S. same-store sales fell slightly short of estimates. While shoppers may be drawn to Costco’s bargains on essential items amid economic uncertainty and concerns about inflation, the company said consumers remain cautious about discretionary purchases and pointed to intensifying competition in the space.

Oracle (ORCL) shares fell 2.7% Friday, extending declines posted in the prior session after Rothschild Redburn initiated coverage of the stock with a “sell” rating. Analysts cautioned that markets may be overly optimistic in their lofty expectations for the software provider’s cloud operations.

Shares of online auction platform operator eBay (EBAY) slipped about 2%. The stock had notched strong gains after the e-commerce company posted better-than-expected revenue, adjusted earnings, and gross merchandise volume in its latest earnings report released at the end of July. EBay said this week that it agreed to purchase Norway-based consumer-to-consumer social marketplace Tise.