Warner Bros. Discovery Stock Soars; Oracle, Netflix Slip

News of a possible takeover bid helped send shares of two media and entertainment powerhouses streaming higher, while a blistering rally ran out of steam for a major enterprise software player.

Stocks rose broadly, lifted by rate-cut optimism. The S&P 500 advanced 0.9% to notch a third consecutive closing record. The Dow was up around 1.4%, surpassing the 46000-point milestone for the fist time. The Nasdaq also secured a record close with a gain of 0.7%. Read Investopedia’s full roundup of today’s trading here.

Shares of Warner Bros. Discovery (WBD) skyrocketed 29%, outpacing all other S&P 500 constituents, following a report that fellow media giant Paramount Skydance (PSKY) was exploring a takeover bid. According to The Wall Street Journal, the deal is backed by the family of Paramount Skydance CEO David Ellison, son of multibillionaire Larry Ellison. Paramount Skydance stock surged 16%.

Shares of Synopsys (SNPS) jumped 13%, clawing back a portion of the previous session’s 36% plunge. The volatility came after the electronic design automation software provider missed sales and profit estimates for its fiscal third quarter and reduced its guidance, citing challenges in its intellectual property business and a negative impact from U.S.-China trade tensions. Mizuho analysts said the sharp post-earnings drop could be an overreaction.

Centene (CNC) shares popped 9% after the health insurer affirmed its annual profit guidance. Centene also provided a positive update on the ratings of its Medicare Advantage ^(MA) plans, with preliminary data showing a higher-than-expected percentage of members in high-quality plans. The Centers for Medicare and Medicaid Services issues annual scores for MA plans that can affect enrollment and government reimbursement rates. Centene’s strong forecast helped lift other health insurance stocks, with Molina Healthcare (MOH) adding 5.2%.

Oracle (ORCL) shares sank 6.2%, posting the weakest daily performance in the S&P 500. The downturn on Thursday reversed just a fraction of Oracle stock’s 36% surge in the previous session, marking the best trading day for shares of the enterprise software maker since 1992. Oracle’s increasing backlog and blowout guidance for cloud revenue contributed to a renewed wave of optimism around AI and helped drive the stock’s sharp post-earnings climb.

Netflix (NFLX) stock fell 3.5%. The video streaming giant on Wednesday said that Eunice Kim would be stepping down from her role as chief product officer and leaving the company. In around five years at Netflix, Kim played a role in efforts to prevent users from sharing their password as well as the platform’s expansion into live events and games.

Boeing (BA) CEO Kelly Ortberg spoke at an investor conference, discussing inflationary pressure affecting the company’s supply chain. Despite the inflationary challenges, he said Boeing is targeting an increase in production of its 737 MAX planes by year-end. Boeing also reportedly reached a tentative agreement with striking workers from the International Association of Machinists and Aerospace Workers Union, with a final vote set for Friday morning. Shares of the aircraft manufacturer descended 3.3%