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Update: Equities Mixed Intraday as Oil Prices Fluctuate

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Update: Equities Mixed Intraday as Oil Prices Fluctuate

(Updates with latest market prices and developments.)

US benchmark equity indexes were mixed intraday as oil prices fluctuated amid conflicting reports over the prospects of the Strait of Hormuz's reopening.

The Dow Jones Industrial Average was down 0.5% at 51,804.9 after midday Tuesday, while the Nasdaq Composite rose 0.3% to 27,213.2. The S&P 500 was little changed at 7,762.9. The indexes finished the previous trading session higher, with the Nasdaq recording a new closing high.

Among sectors, materials paced the gainers intraday Tuesday, while financials led the laggards.

West Texas Intermediate crude oil was up 0.7% at $96.40 a barrel in Tuesday afternoon trade, reversing its direction after declining earlier in the session. Brent edged down 0.5% to $99.87, trimming the day's losses.

Iran has offered to reopen the crucial Strait of Hormuz within seven days if the US eases its military pressure, Reuters and Japan's Kyodo News reported, citing a senior Iranian government official.

A senior Iranian official told MS Now, CNBC's Versant Media partner, that the Reuters and Kyodo reports were not true.

Saudi Arabia has restarted operations at its East-West pipeline following recent drone attacks, Reuters reported Tuesday, citing sources. The pipeline could resume exports from the Yanbu port later Tuesday.

"The (oil price) moves highlight how much geopolitical risk premium remains embedded in energy prices and how sensitive the market has become to any prospect of a breakthrough," Saxo Bank said in a note. "The question now is whether Washington sees Iran's proposal as an opportunity or concludes that time is increasingly on its side."

Treasury yields were higher intraday, with the 10-year rate up 1.7 basis points at 4.98% and the two-year rate rising 1.1 basis points to 4.76%.

The Federal Reserve's next interest rate increase could come as early as October as higher oil prices threaten to push inflation farther away from the US central bank's 2% goal, Oxford Economics said.

In company news, On Holding's (ONON) US-listed shares were up 9% intraday after the Swiss sportswear company outlined its mid-term financial targets and reiterated its outlook for 2026.

AutoZone (AZO) reported fiscal fourth-quarter revenue and same-store sales growth below market expectations on Tuesday amid a challenging environment, although the auto parts retailer's earnings topped estimates. The stock jumped 6.3% intraday.

Spot old was down 0.4% at $4,327 per troy ounce, while silver added 0.3% to $66.61 per ounce.

What else is happening in US Markets?

Update: Nasdaq Composite Rallies to Record as AI Trade Lifts Chipmakers
US Markets

Update: Nasdaq Composite Rallies to Record as AI Trade Lifts Chipmakers

(Updates with market moves at the end of the day, and other changes, if any.)The Nasdaq Composite reached a new high on Monday, leading a rally on Wall Street as chip-related stocks advanced ahead of President Donald Trump's meeting with Chinese leader Xi Jinping.The technology-heavy Nasdaq jumped 2.3% to a record closing high of 27,122.09. The S&P 500 jumped 1.5% to 7,764.70, while the Dow Jones Industrial Average added 0.7% to settle at 52,048.83. Among sectors, communication services led the gainers, followed by tech, while energy saw the steepest decline.Chipmaking giant Intel (INTC) was the third-best performer on the S&P 500, up 12%. Other semiconductor stocks that gained included Advanced Micro Devices (AMD), which saw its market capitalization hit the $1 trillion mark for the first time, and Qualcomm (QCOM). Nvidia (NVDA) rose 2.3%, the biggest gain on the Dow.On Sunday, US Treasury Secretary Scott Bessent said he had "successful" preliminary talks with Chinese Vice Premier He Lifeng over the weekend, ahead of Xi's expected visit to the US, according to multiple media outlets.The discussions between Bessent and Lifeng centered on artificial intelligence and trade, among other topics, CNBC reported. Talks between Trump and Xi are expected to take place Thursday.The US camp has proposed a new AI safety notification mechanism, Reuters reported.Trump said Monday that the US Department of Justice and other law enforcement agencies "will rein things in if we have to, but I will only encourage AI," in his latest remark following recent warnings on increasing safety risks tied to AI advancement."Expectations are low for any major breakthroughs or announcements (from the Trump-Xi meeting), but trade relations are always a wild card," D.A. Davidson said Monday in a report. "The two countries have a tariff escalation truce in place until November, so an extension or agreement is needed."West Texas Intermediate crude oil was down 4.7% at $95.56 a barrel in Monday late-afternoon trade, while Brent dropped 3.7% to $100.06.Trump reportedly said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to attend the upcoming United Nations General Assembly in New York.US Treasury yields were mixed, with the 10-year yield down 4.1 basis points at 4.96% while the two-year yield rose half a basis point to 4.75%.Policymakers can no longer afford to look through supply shocks that have become a regular feature of the economy, Chicago Fed President Austan Goolsbee said Monday."We need evidence that these shocks are actually fading, or it's hard to see a credible path back to 2% inflation -- and harder still to justify continuing to look through them," Goolsbee said in remarks at an event in London.In other company news, Paramount Skydance (PSKY) has agreed to settle a multistate antitrust lawsuit involving its proposed deal with Warner Bros. Discovery (WBD), multiple attorneys general said Monday in separate statements. Shares of Warner Bros. jumped nearly 11%, among the biggest gains on the S&P 500, while Paramount fell 2.9%.Novo Nordisk's (NVO) US-listed shares slumped 8% as the Danish drugmaker unveiled its long-term growth ambitions ahead of patent expirations for semaglutide, the active ingredient in its weight loss and diabetes drugs.Spot gold moved down 0.8% to $4,345.22 per troy ounce, while silver lost 0.7% to $66.65.

Dow JonesNasdaq CompositeS&P 500$AMD$INTC$NVDA$NVO$PSKY$QCOM$WBD
Paramount Settles Multistate Lawsuit Over Proposed Warner Bros. Deal
US Markets

Paramount Settles Multistate Lawsuit Over Proposed Warner Bros. Deal

Paramount Skydance (PSKY) has agreed to settle a multistate antitrust lawsuit involving its proposed acquisition of Warner Bros. Discovery (WBD), several attorneys general said Monday in separate statements.Earlier this year, a California-led coalition of 12 states sought to block the deal, alleging that the merger would lessen competition by lowering output and raising prices.Paramount announced a deal in February to buy Warner Bros. after streaming giant Netflix (NFLX) withdrew from its proposed purchase of the HBO Max owner.Paramount's proposed settlement with the states includes a five-year commitment to increase film output and a provision to spend at least $1.5 billion on domestic film production, the attorneys general of California, New Jersey, Washington, Oregon, Arizona, Colorado and New York said.A $47.5 million fund for merger-impacted workers and restrictions on cable price negotiations are also part of the deal, which is subject to court approval."Today's settlement protects workers, jobs, and Hollywood," California Attorney General Rob Bonta said in a post on X.New Jersey Attorney General Jennifer Davenport said the settlement should protect consumers from hikes to cable fees and workers from cuts to film and TV production.Washington's Nick Brown, Arizona's Kris Mayes, Oregon's Dan Rayfield, Colorado's Phil Weiser and New York's Letitia James separately endorsed the concessions secured.Paramount and Warner Bros. didn't reply to' requests for comment.Paramount has also reached a settlement with the Writers Guild of America, which had filed a case against the Warner Bros. deal, Reuters reported Monday.Earlier this month, Paramount said that it had satisfied all closing conditions under the merger agreement and that the lawsuits filed by the state attorneys general and the Writers Guild of America were the only remaining barrier to closing the deal.Shares of Warner Bros. gained nearly 11% on Monday, while Paramount's fell 2.9%."The combined company would have greater scale in content asset and production capabilities, across a range of content formats," Barrington Research Associates said in a report in August. "While the combined entity will have a substantial market share in parts of the entertainment ecosystem, it will remain a highly competitive market, particularly in streaming, where the combined company would also gain meaningful scale."

$NFLX$PSKY$WBD
Planet Fitness Growth Could Be Pressured Amid Rising High Volume, Low Price Competition, Deutsche Bank Says
US Markets

Planet Fitness Growth Could Be Pressured Amid Rising High Volume, Low Price Competition, Deutsche Bank Says

Planet Fitness' (PLNT) growth and market share in the high volume, low price fitness space could take a hit in the coming years amid a projected rise in competition from new entrants and smaller, well-established companies, Deutsche Bank said Monday.Although the fitness center operator continues to be the industry leader in terms of "sheer" size and scale, it is facing challenges from new companies, as well as smaller, well-established names in the high volume, low price -- or HVLP -- market, Deutsche Bank analyst Chris Woronka said in a note to clients."We expect this trend to accelerate which, if correct, has key implications for HVLP market share over the next several years," Woronka wrote, adding that Planet Fitness' same-store sales and net unit growth could take a hit from the projected development.The company benefits from a massive footprint and a "generally stable" franchisee operator base, but growth could become much harder if gym-goers start prioritizing better workout experiences over low prices, according to the note.HVLP fitness competitors are trying to lure members away with differentiated perks such as larger clubs, modern ambiance, connected fitness tracking and dynamic pricing models. This indicates budget-conscious gym-goers may be increasingly willing to pay a bit more for a premium experience, Deutsche Bank said.While some investors are worried that Planet Fitness could see reduced net membership growth if thrifty consumers decide to cancel their memberships, "the real risk" is that an increasing number of consumers are seeking a more premium fitness experience, Woronka said."While difficult to prove at this time, we think the early evidence is in how newer entrants to the HVLP space are building their facilities, in terms of size, offerings, and flexibility," the analyst said. "If we are correct, a long-anticipated recovery of the value-seeking customer may not be much of a benefit at all to (Planet Fitness)."The company's shares were down 4.8% in Monday late-afternoon trade, bringing its year-to-date losses to nearly 57%.Last month, Planet Fitness cut its full-year adjusted earnings outlook to reflect higher interest expense. Separately, connected fitness company Peloton (PTON) forecast fiscal 2027 revenue below Wall Street's estimates following last year's subscription price hike.Earlier this month, Morgan Stanley downgraded its rating on the Peloton stock, citing potential "structural" challenges that will likely impact its gross additions. "We believe this is a reflection of structural headwinds as consumers are shifting towards strength training and gyms," the brokerage said in a note to clients at the time.Price: $47.16, Change: $-2.33, Percent Change: -4.71%

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