Paramount Pops on Reports of Skydance Deal

Major U.S. equities indexes were mixed to open the trading week as the latest Purchasing Managers Index (PMI) report showed a decline in U.S. manufacturing activity in May.

More economic data is on tap later in the week. The May jobs report set to be released on Friday will provide a key gauge of the labor market that could influence Federal Reserve officials heading into next week’s policy meeting.

After trading in negative territory for much of the day, the S&P 500 ticked higher in the afternoon to end the session 0.1% higher. The Nasdaq received a boost from Nvidia (NVDA) and the tech sector, posting gains of 0.6%. The Dow was down 0.3%.

Shares of Paramount Global (PARA) notched the top performance among S&P 500 stocks on Monday, jumping 7.5% following reports that the entertainment giant has agreed to an updated buyout offer from production company Skydance Media. Skydance, in coordination with private equity firms RedBird Capital and KKR, will reportedly buy around half of Paramount’s Class B shares at $15 apiece, which would equate to a premium of 26% on the stock’s closing price from last Friday.

Carnival Corp. (CCL) shares added 6.2% following stories published by The Motley Fool and Seeking Alpha highlighting how the cruise line operator appears to have moved past the disruptions caused by the COVID pandemic. Customer deposits, which represent initial payments for future cruises, grew year over year in the first quarter, while Carnival could generate higher revenue through increased capacity, including three new ships set to be launched in 2024.

Nvidia shares were up 4.9% after the semiconductor manufacturer unveiled its next-generation artificial intelligence (AI) system. The company said it will release the new platform, known as Rubin, in 2026. Bank of America analysts boosted their price target on Nvidia stock following the announcement.

Autodesk (ADSK) shares gained 4.6% after the provider of engineering and product design software provided a positive update on an internal investigation into its accounting practices. The firm announced there will be no restatements or adjustments to its previously reported financial statements as a result of the probe.

Shares of Tractor Supply Co. (TSCO), which supplies products for farmers and ranchers, dropped 6.2%, marking the S&P 500’s weakest daily performance. Although Tractor Supply recently opened a high-tech distribution center in Arkansas powered by autonomous mobile robots, its logistics and supply chains remain complex, and the retail sector where the company operates is highly competitive.

Vistra (VST) shares slipped 5.9%, extending heavy losses posted last Friday after the utility announced plans to shore up the Texas power grid with 2 gigawatts (GW) of dispatchable capacity powered by natural gas. According to reports, investors are concerned the additional capacity could lead to oversupply issues.

Crude oil prices tumbled amid concerns about economic growth following the worse-than-expected manufacturing data. The price drop put pressure on a variety of oil and gas stocks. Shares of oilfield service giant Halliburton (HAL) were down 5.3%, while shares of exploration and production company Diamondback Energy (FANG) fell 4.3%.