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By Shariq Khan

BENGALURU (Reuters) – Oil prices hit a 10-month high on Friday and posted a third weekly gain as supply tightness spearheaded by Saudi Arabian production cuts combined with optimism around Chinese demand to lift crude.

Brent crude futures rose 23 cents, or 0.3%, to settle at $93.93 a barrel, while U.S. West Texas Intermediate futures was up 61 cents, or 0.7%, to close at $90.77 a barrel. Both contracts traded at 10-month highs on Tuesday for the fifth consecutive session, and gained about 4% on a weekly basis.

Oil prices are also on track for their biggest quarterly increase since Russia’s invasion of Ukraine in the first quarter of 2022.

Supply concerns continue to be a driving force for prices since Saudi Arabia and Russia this month announced an extension of their combined supply cuts of 1.3 million barrels per day to the end of this year, said Fiona Cincotta, an analyst at City Index.

Better-than-expected industrial output and retail sales data in China have also boosted oil prices this week, with the country’s economic conditions considered crucial to oil demand for the rest of this year, Cincotta added.

Data on Friday showed Chinese oil refinery processing rose by nearly 20% from a year earlier as processors kept run rates high to capitalise on high global demand for oil products.

Expectations of moderating U.S. oil output have also boosted prices in recent weeks, Third Bridge analyst Peter McNally said.

“Supply growth from the U.S. appears to be limited as producers there have taken drilling activity down nearly 20% from last year’s peak,” McNally noted.

The U.S. oil rig count rose by two this week to 515, the most since April, data from oilfield services firm Baker Hughes showed on Friday. Compared to a year ago, however, the oil rig count is down by 84 units, the data showed.

(Reporting by Shariq Khan; Additional reporting by Natalie Grover and Sudarshan Varadhan; Editing by David Goodman, Nick Zieminski, Chris Reese and Paul Simao)

5 Surprising Stocks to Own Now

There’s been a good deal of market uncertainty over the last year.

All thanks to inflation, interest rate hikes, fears of recession, Russia, and the collapse of Silicon Valley Bank, which triggered a sell-off in bank stocks, forcing regulators to backstop the industry. And while markets are still unpredictable even now, there are plenty of safe investment opportunities to jump into. In fact, we found five in some of the hottest, fastest-growing industries to buy now.

Piedmont Lithium (PLL)

Let’s start out with the red-hot lithium story.

With accelerating demand for electric vehicles, and all things green, there’s significant demand for lithium with little supply. Sure, Goldman Sachs and Bank of America want you to believe we’ll see a lithium surplus this year.  

“There could be a surplus of lithium in 2023 as higher supply volumes are set to supersede slowing demand for the metal,” said Bank of America Securities’ head of Asia Pacific basic materials, Matty Zhao. “We see a lot of supply coming out from lithium mines … We are expecting 38% lithium supply growth this year. That’s why 2023 is likely to turn into a surplus year for lithium.”

The prediction is honestly laughable.

According to Stellantis CEO Carlos Tavares, there may not even be enough lithium for EVs. 

“We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engine powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium. Not only the lithium may not be enough, but the concentration of the mining of lithium may create other geopolitical issues,” he told Detroit News.

Even major automakers—like Ford Motor and General Motors – are racing to secure supply with deals with Albemarle and Lithium Americas, for example. 

One of the companies benefiting from the lithium story is Piedmont Lithium, a $1.1 billion lithium company based out of North Carolina.

For one, Roth MKM analysts just raised their price target on PLL to $190 from $150 a share, with a buy rating. All thanks to its Definitive Feasibility Study for its Tennessee Lithium Project demonstrating strong economic viability. 

Two, North Carolina regulators just asked the company for additional information to approve the company’s mine permit application.  If all goes according to plan, Piedmont’s North Carolina mine could become one of “America’s largest sources of lithium for electric vehicle batteries for Tesla Inc. and other automakers,” as noted by Reuters.

Three, in early 2023, the company amended its supply contract with Tesla. Under the new contract, Piedmont Lithium will supply approximately 125,000 tonnes of spodumene concentrate to Tesla between the second half of 2023 and the end of 2025.

SoundHound AI (SOUN)

By now, you’re familiar with the artificial intelligence story. 

Grand View Research says the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. All as it transforms just about everything, about well, everything, including healthcare, governments, transportation, manufacturing, education, the media, even customer service. 

While we can always look at AI heavyweights like Alphabet, Microsoft, Nvidia, C3.AI, and Palantir, for example, the big payoff could come from the lesser known AI companies, which could eventually find themselves an M&A target.

Look at SoundHound (AI), a leader in conversational intelligence, offering voice AI solutions that let businesses offer incredible conversational experiences to their customers, for example.

Granted, that may not sound exciting.  But consider this.

The company is working to integrate voice assistants into vehicles and restaurants, both of which could bring in more than $500 million a year in revenue for the company. Even better, according to Automotive World, about 90% of new vehicles are expected to have embedded voice assistants by 2028. Another big plus for SOUN.

Also, not only is the company already seeing an “incredible surge in demand for conversational AI,” it just reported a 56% jump in revenue year over year. Gross margins jumped to 71% from 59%. And, according to CFO Nitesh Sharan, “Our top-line grew by 56% and every cost category improved sequentially, fueling steady progress towards profitability.”

Analysts over at Cantor Fitzgerald doubled his price target on SOUN to $6.20 from $2.80, with a buy rating.  SoundHound is one of the few companies that can take advantage of the AI frenzy currently occurring at every business across the globe,” he noted.

Viking Therapeutics (VKTX)

Obesity is a massive problem in the U.S.

In fact, you could say it’s bursting at the seams. According to the World Health Organization, global obesity has tripled since 1975.  In 2016, more than 1.9 billion adults were overweight. About 650 million were obese. About 39 million children under five were overweight or obese in 2020. Then more than 340 million children, ages five to 19 were considered overweight or obese in 2016. Unfortunately, when these numbers are updated they could be worse.

While regular diet and exercise could help prevent obesity, we may have the next best thing with medication.  That’s where Viking Therapeutics (VKTX) may benefit. At the moment, its VK2735 treatment is supposed to stimulate incretin hormones, which trigger a feeling of fullness, which can lead to possible weight loss.

Phase 1 trials with the treatment showed that patients lost 6% of their mean body weight, as compared to a placebo. Phase 2 trials are expected to start soon.

Even better, the company is in Phase 2 trials for a treatment of NASH, or non-alcoholic steatohepatitis, which is already showing positive results.  

In May, for example, the company “announced positive top-line results from its Phase 2b clinical trial of VK2809, the company’s novel liver-selective thyroid hormone receptor beta agonist, in patients with biopsy-confirmed non-alcoholic steatohepatitis (NASH).  The study successfully achieved its primary endpoint, with patients receiving VK2809 experiencing statistically significant reductions in liver fat content from baseline to Week 12 as compared with placebo,” as noted in a company press release.

Better, analysts at Roth MKM initiated a buy rating on the stock, with a $32 price target. They believe VKTX could have a blockbuster opportunity in a $26 billion NASH market. They’re also exciting about the company’s obesity drug, and see peak potential sales of $6.1 billion by 2035.

Roblox Corp. (RBLX)

Apparently, the demise of the metaverse has been greatly over exaggerated. That’s according to Lego and Epic Games, which partnered to launch new experiences in the digital world and the real world. Apple just launched its Vision Pro product, which gives it access to the metaverse. Even Nike is jumping into the metaverse with Fortnite to build a presence.  

While we can always buy Apple or Nike stock to take advantage, another hot metaverse stock to consider is Roblox (RBLX).  Starting out as a gaming platform for kids, it’s now one of the top destinations for immersive gaming for other age groups, too. 

Even better, the company just announced positive sales numbers. Bookings, for example, were up 23% year over year through April. Revenue jumped 22% year over year to $655 million. Daily average user growth was also up 22% year over year to 66 million. Plus, users spent about 14.5 billion hours interacting with RBLX content – up 23% year over year.

Analysts seem to like RBLX, too. Benchmark analysts just upgraded the RBLX stock to a buy rating. Roth MKM upgraded RBLX to a buy. Barclays raised its price target to $32 from $28, with BTIG raising its price target to $60 from $55. 

Canaccord also initiated coverage with a buy rating and a price target of $48 a share, and noted: “Bookings growth is anticipated to outpace expense growth moving through 2023 and into next year, which should contribute to margin expansion. The company is also targeting free cash flow at 25%+ of bookings over the long term,” per Seeking Alpha.

Enbridge (ENB)

Or, if you’re looking for safety with a high-yielding opportunity, there’s Enbridge (ENB). 

With a yield of 7.1% (which is higher than the broader market), the company offers safety in the energy infrastructure space, operating the second-longest natural gas pipeline in the U.S., North America’s longest crude oil pipeline, and a high-growth renewable power generation business. With regards to its renewable energy business, “projects in operation or under construction (and their 2,173 MW net generation capacity) are enough to meet the electricity needs of about 966,000 homes,” says the company.

The company also has about $12.9 billion worth of commercially secured capital projects that are under construction. Expected to come online through 2028, those projects include natural gas pipeline expansions, an LNG export terminal project, and offshore wind project in Europe.

Even better, Enbridge has a strong history of dividend payouts. The company has paid dividends for over 68 years.  Most recently, it declared a quarterly dividend of $0.8875 per common share, which was payable on June 1, 2023 to shareholders of record on May 15, 2023. 

By Noel Randewich and Ankika Biswas

(Reuters) – U.S. stocks tumbled on Friday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Chip equipment makers Applied Materials, Lam Research and KLA Corp fell more than 4% after Reuters reported TSMC had asked its major vendors to delay deliveries.

Nvidia, Advanced Micro Devices, Broadcom and Micron Technology dropped between 2.4% and 4.3%, pulling the Philadelphia Semiconductor index down to a three-week low.

Stoking worries over chip demand from automakers, the United Auto Workers’ union launched simultaneous strikes at factories of General Motors, Ford and Chrysler parent Stellantis.

China’s industrial output grew more than expected in August, data showed, suggesting that a recent flurry of support measures may be starting to slowly stabilize a stumbling economic recovery.

Data on Thursday showed U.S. retail sales rose more than expected in August, easing worries about a recession.

Treasury yields edged higher ahead of the Federal Reserve policy meeting next week, with the central bank facing a strong U.S. economy with inflation that remains above target.

“We really continue to see that growth resilience story, and I think that’s difficult for the market simply because there’s concern about what that could mean both for rates and inflation,” said Lisa Erickson, head of public markets at U.S. Bank Wealth Management in Minneapolis.

Traders’ bets on the Fed holding rates steady in its Sept. 20 policy meeting remained at 97%, while their odds for a pause in November stood at 67%, according to the CME FedWatch Tool.

Among growth stocks sensitive to higher interest rates, Amazon dropped 2.8%, Microsoft fell 2.2% and Meta Platforms declined 3.5%.

Adobe dropped 4.8% to a more than two-week low after the Photoshop software maker disclosed a commercial paper program of up to $3 billion on Sept. 8 following its third-quarter results.

The expiry of quarterly derivatives contracts tied to stocks, index options and futures, also known as triple witching, later in the day is expected to keep markets volatile.

The S&P 500 was down 1.19% at 4,451.44 points.

The Nasdaq declined 1.62% to 13,700.53 points, while the Dow Jones Industrial Average was down 0.81% at 34,623.61 points.

All 11 S&P 500 sector indexes, led lower by information technology, down 2.09%, followed by a 1.85% loss in consumer discretionary.

SoftBank’s Arm Holdings was near unchanged after a stellar Nasdaq debut on Thursday that rekindled expectations of a turnaround in the initial public offering (IPO) market.

Arm’s strong debut prompted grocery delivery app Instacart to raise the proposed price range for its IPO to target a fully diluted valuation of up to $10 billion.

Neumora Therapeutics, backed by Amgen and Japan’s SoftBank, made a tepid debut at $16.50 per share, lower than its IPO price of $17 per share.

Declining stocks outnumbered rising ones within the S&P 500 by a 3.2-to-one ratio.

Across the U.S. stock market, declining stocks outnumbered rising ones by a 2.6-to-one ratio.

(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Vinay Dwivedi and Richard Chang)

By Saqib Iqbal Ahmed

NEW YORK (Reuters) -Options contracts on SoftBank’s Arm Holdings, will debut on Nasdaq’s exchanges on Monday, offering investors a new way to bet on the fortunes of the year’s biggest initial public offering.

Nasdaq plans to list options on Arm Holdings across all six of its exchanges, a spokesperson for the exchange said on Friday.

Other options exchange operators, Cboe Global Markets and Intercontinental Exchange’s New York Stock Exchange, did not immediately respond to a Reuters request for comment on their own plans to list ARM options. However, exchanges typically tend to list options around the same time.

Nasdaq recently reduced the time required to list and trade options on certain securities following an IPO to as early as on or after the second business day following the offering.

Analysts expect robust demand.

“I have every reason to believe that when ARM options are listed they will be very popular,” Steve Sosnick, chief strategist at Interactive Brokers, said.

The 2012 listing of options on Facebook Inc, now known as Meta Platforms, holds the record for the most active options market debut with some 360,000 contracts changing hands on the first day of trading.

While Arm Holdings, some of whose chips have artificial intelligence (AI) applications, is not a household name like Facebook, retail traders are likely to flock to the options due to the buzz generated around the IPO and general investor enthusiasm related to the theme of AI, Sosnick said.

If the stock continues to experience big moves, it bodes well for options demand. The shares hovered around $63.55 on Friday afternoon, after closing up almost 25% from its IPO price on Thursday.

Arm Holdings is of significant interest to retail investors, Dan Raju, chief executive at online brokerage firm Tradier, said.

“Most retail investors are closely watching the initial surge and the tapering of volumes of shares after the IPO. I expect the listing of options to also see an initial surge in options activity followed by a tapering,” he said.

(Reporting by Saqib Iqbal Ahmed; Editing by Richard Chang)

By Kevin Krolicki and Steve Holland

DETROIT (Reuters) -The United Auto Workers union launched simultaneous strikes at three factories owned by General Motors, Ford Motor and Chrysler parent Stellantis on Friday, kicking off the most ambitious U.S. industrial labor action in decades.

The walkouts at the Detroit Three will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup truck, along with other popular models, though the action was smaller than some expected, with roughly 12,700 workers striking at the outset.

The action caps weeks of clashes between the union and Detroit Three executives over union demands for a bigger share of profits generated by combustion trucks, and stronger job security as automakers shift to electric vehicles.

The automakers’ previous contract expired at 11:59 p.m. EDT on Thursday, and there will be no negotiations on Friday, the UAW said. Union President Shawn Fain said the union will hold off more costly company-wide strikes for now, but all options are open if new contracts are not agreed.

President Joe Biden, who faces re-election next year, called for the auto companies to reward workers just as executives’ salaries have risen. “No one wants a strike, but I respect workers’ right to use their options,” Biden said, echoing statements from union leaders. He said that until now, these profits “have not been shared fairly” with workers.

Dozens of workers picketed the main entrance at Ford’s Michigan assembly plant in Wayne on Friday. Many passing drivers blew their horns in solidarity, including a police car and a car marked Ford Security.

Workers said they have been hurt by a series of changes to their contract and work rules over the past 15 years which have shifted risks to “tier two” workers. Those employees can make only half the hourly wages of senior UAW workers and face a longer climb to reach the highest pay under the expired contract.

None of the Detroit Three has proposed eliminating those tiered wage systems – a key UAW demand.

“There are times when I look in my pantry, I look in my fridge and I don’t know how I’m going to feed my family,” said Gerry Gunn, 38, who started at Ford six years ago and was on the picket line on Friday in Wayne.

Executives say the union’s asks would make the automakers uncompetitive against other nonunion rivals. “We still have a ways to go with the offer they put on the table last night,” said GM CEO Mary Barra on “CBS This Morning” on Friday.

In addition to Ford’s Wayne plant, the strikes are taking place at assembly plants operated by GM in Wentzville, Missouri, and by Stellantis’ Jeep brand in Toledo, Ohio. Those plants produce some of the automakers’ most profitable vehicles.

Friday’s walkout was smaller than some analysts expected, but workers in Michigan supported the plan. “Keep the other plants open,” said Sofus Nielsen, a 29-year Ford veteran, outside the Wayne plant. “This way we can be out here longer and hurt them more.”

Targeted walkouts could limit the cost of strike pay to the UAW, which has an $825 million strike fund. The automakers have built up billions thanks to robust profits from the trucks and SUVs UAW members build.

Stellantis has more than 90 days’ worth of Jeeps in stock, and has been building SUVs and trucks on overtime, according to Cox Automotive data. But a week-long shutdown at the Toledo Jeep plant could cut revenue by more than $380 million, based on Stellantis financial reports.

Biden on Friday said acting Labor Secretary Julie Su and adviser Gene Sperling will travel to Detroit to offer support for talks.

Ford stock was up 0.2% in New York on Friday, while GM shares gained 1.2%. Stellantis shares closed up 1.9% in Milan.

COST HIKE FEARS

The UAW has said it wants a 40% raise, while the automakers have offered up to 20%, but without key benefits demanded by the union. The automakers have said the union’s demands would create an unsustainable financial situation and leave them exposed to losses in coming years.

Fain has rejected the automakers’ assertions, saying the companies have spent billions on share buybacks and executive salaries.

Ford said the UAW’s latest proposals would double its U.S. labor costs and make it uncompetitive against Tesla and other nonunion rivals. A walkout could mean that UAW profit-sharing checks for this year would be “decimated,” it said.

Stellantis said it had immediately gone into “contingency mode” and would take structural decisions to protect the company and its North American operations, without elaborating. Fain said earlier this week that Stellantis had proposed shutting as many as 18 U.S. facilities.

GM said on Thursday that the UAW wage and benefits proposals would cost the automaker $100 billion, but did not detail how the union proposals would result in that cost, or over what time frame.

While Biden is pouring billions in federal subsidies into expanding electric vehicle sales, this shift could threaten combustion powertrain jobs. The UAW has not endorsed his re-election.

Biden’s likely opponent, former president Donald Trump, on Friday criticized the shift to EVs as a job-killer for the UAW.

(Reporting by Joseph White and Kevin Krolicki in Detroit, David Shepardson and Steve Holland in Washington, Peter Henderson in San Francisco and Mehr Bedi in BengaluruEditing by David Gaffen, Alexander Smith and Matthew Lewis)

By Brad Brooks

(Reuters) -The Texas Senate began deliberations in the impeachment trial of Texas Attorney General Ken Paxton on Friday following eight days of testimony from whistle blowers alleging corruption and defenders saying he did nothing wrong.

Paxton, a conservative Republican firebrand who is strongly aligned with former U.S. President Donald Trump, returned to the Senate chamber on Friday for the first time since the trial opened on Sept. 5. He faces 16 articles of impeachment in the trial, in which the Republican-dominated Texas Senate serves as the jury.

Paxton has called the trial a political witch hunt.

Paxton, who has been suspended from office pending the outcome of the trial, faces permanent ouster if at least two-thirds of the Texas Senate — which includes 19 Republicans, among them his wife, who is not allowed to vote, and 12 Democrats — agree to convict on any count. It is the first impeachment proceeding against a statewide office holder in Texas in over a century.

“We discovered unprecedented abuse in the Texas attorney general’s office by Mr. Paxton,” said Republican state Representative Andrew Murr, who opened the prosecution’s closing arguments. “As the state’s top cop, his conduct is and was inexcusable.”

Murr urged senators not to leave Paxton in office.

“He’s betrayed us and the people of Texas,” Murr said. “If he’s given the opportunity, he will continue to abuse the power given to him.”

In Paxton’s defense, lawyer Tony Buzbee ridiculed prosecution witnesses, dismissed evidence as “supposition and guesses and mights and maybes,” and said that the trial was being carried out purely for political reasons.

“There is shame here. And the shame sits right there, that they would bring this case in this chamber with no evidence,” he said. “I am proud to represent Attorney General Ken Paxton. If this can happen to him, it can happen to anyone.”

Following the closing arguments, senators began deliberating in private, and they can take as long as they wish. Their votes will be made public following their closed-door meeting, which will continue over the weekend if no decisions are made on Friday.

Paxton is accused by several former top aides of corruption and abuse of power, mostly in relation to official actions allegedly carried out to protect a wealthy political donor who was under a federal investigation and to cover up an extramarital affair.

The trial has exposed rifts in the Texas Republican Party between the social conservatives, who have held sway for the past decade and back Paxton, and the traditional conservatives, who say his actions have brought shame on the party and the state. Paxton was overwhelmingly impeached by the Republican-dominated Texas House in May.

Paxton, who faces a separate state securities fraud trial and is also under investigation by the FBI, has been dogged by corruption allegations since his first election in 2014. Still, he easily defeated traditional conservative candidate George P. Bush in a primary then Democrat Rochelle Garza in his re-election bid in November.

Paxton’s legal team has painted the former top aides who accused him of corruption as mutinous political centrists. The prosecution put a parade of the aides who became whistle blowers on the stand, each of whom detailed their conservative bona fides before testifying about what they witnessed in the attorney general’s office that led them to take their accusations to the FBI in 2020.

Paxton’s lawyers countered with current state officials who testified that the activities that raised suspicions among the whistle blowers were within his powers as attorney general.

As attorney general, Paxton backed powerful oil and gas interests and pursued restrictions on abortion and transgender rights. He has led Republican state opposition to the policies of Democratic presidents, and filed an unsuccessful lawsuit seeking to overturn Trump’s 2020 election defeat.

Paxton’s impeachment was triggered by his request that House lawmakers approve a $3.3 million settlement he reached with former staff members who were fired after accusing him of abuse of office. State lawmakers did not fund the settlement.

(Reporting by Brad Brooks in Longmont, Colorado; Editing by Donna Bryson, Leslie Adler and Mark Porter)

MEXICO CITY (Reuters) – General Motors’ Mexican plants will continue operating as normal despite strike action by U.S. union workers, the company said in a statement on Friday.

The United Auto Workers union launched strikes at three factories owned by General Motors, Ford Motor and Chrysler parent Stellantis NV, kicking off the most ambitious U.S. industrial labor action in decades.

(Writing by Dave Graham)

By Ankika Biswas and Shristi Achar A

(Reuters) -The Nasdaq fell more than 1% on Friday to lead declines in Wall Street’s main indexes as chipmakers fell on concerns over consumer demand, while rising Treasury yields pressured major growth stocks.

Chip equipment makers Applied Materials, Lam Research and KLA Corp fell around 4% each after Reuters reported TSMC had asked its major vendors to delay deliveries.

Other chipmakers including Nvidia, Advanced Micro Devices, Broadcom and Micron Technology lost between 1.6% and 3.7%, dragging the Philadelphia Semiconductor index to a three-week low.

Also stoking worries over chip demand from automakers, the United Auto Workers’ union launched simultaneous strikes at factories of General Motors, Ford and Chrysler parent Stellantis.

Shares of the three automakers, however, rose around 1% each.

Denting sentiment further, U.S. Treasury yields climbed, dragging down growth stocks Amazon, Meta Platforms and Microsoft between 1.8% and 2.7%.

“The Federal Reserve has raised rates very quickly and now they have time to take a look at that and see what impact their policy is having on the economy,” said Brian Klimke, chief market strategist at Cetera Investment Management.

“I don’t think they’re going to give markets what they want next week, they’re not going to talk about rate cuts.”

Traders’ bets on the Fed holding rates steady in its Sept. 20 policy meeting remained intact at 97%, while their odds for a pause in November stood at 67%, according to the CME FedWatch Tool.

Adobe dropped 4.1% to a more than two-week low after the Photoshop software maker disclosed a commercial paper program of up to $3 billion on Sept. 8 following its third-quarter results.

The information technology and consumer discretionary stocks were among the top S&P 500 sectoral losers, down more than 1%.

SoftBank’s Arm Holdings gained 1.7% after a stellar Nasdaq debut on Thursday that rekindled hopes of a turnaround in the initial public offering (IPO) market.

Arm’s strong debut prompted grocery delivery app Instacart to raise the proposed price range for its IPO to target a fully diluted valuation of up to $10 billion.

Neumora Therapeutics, backed by Amgen and Japan’s SoftBank, made a tepid debut at $16.50 per share, lower than its IPO price of $17 per share.

The expiry of quarterly derivatives contracts tied to stocks, index options and futures, also known as “triple witching”, later in the day is expected to keep markets volatile.

At 12:25 p.m. ET, the Dow Jones Industrial Average was down 174.87 points, or 0.50%, at 34,732.24, the S&P 500 was down 35.87 points, or 0.80%, at 4,469.23, and the Nasdaq Composite was down 172.92 points, or 1.24%, at 13,753.14.

Paramount Global and Warner Bros Discovery gained 2.4% and 1.7%, respectively, following entrepreneur Byron Allen’s $10-billion bid for Walt Disney’s ABC TV network. Disney shares were up 1%.

Declining issues outnumbered advancers by a 1.97-to-1 ratio on the NYSE and by a 2.03-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and as many new lows, while the Nasdaq recorded 35 new highs and 143 new lows.

(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Vinay Dwivedi)

By Jonathan Stempel

(Reuters) – Google agreed to pay $155 million to settle claims by California and private plaintiffs that the search engine company misled consumers about how it tracks their locations, and used their data without consent.

Both settlements resolve claims that the Alphabet Inc unit deceived people into believing they maintained control over how Google collected and used their personal data.

The company was accused of being able to “profile” people and target them with advertising even if they turned off their “Location History” setting, and deceive people about their ability to block ads they did not want.

“Google was telling its users one thing–that it would no longer track their location once they opted out–but doing the opposite and continuing to track its users’ movements for its own commercial gain,” California Attorney General Rob Bonta said in a statement. “That’s unacceptable.”

The California settlement requires Google to pay $93 million, and disclose more about how it tracks people’s whereabouts and uses data it collects.

Money from Google’s $62 million settlement with private plaintiffs would, after deducting legal fees, go to court-approved nonprofit groups that track internet privacy concerns.

Lawyers for the plaintiffs said this made sense because it was “infeasible” to distribute money to the approximately 247.7 million U.S. adults with mobile devices.

Some critics say this type of settlement, known as “cy pres,” offers little benefit to class members.

Google denied liability, and both settlements require court approval.

Last November, Google agreed to pay $391.5 million to resolve similar allegations by 40 U.S. states.

The Mountain View, California-based company has also reached $124.9 million of settlements with Arizona and Washington.

A spokesperson for Google on Friday referred to a blog post discussing the multistate settlement, and said it related to “outdated product policies that we changed years ago.”

Lawyers for the private plaintiffs did not immediately respond to requests for comment.

Google generated $110.9 billion of advertising revenue in the first half of 2023, accounting for 81% of its total $137.7 billion of revenue.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler and Daniel Wallis)

(Reuters) -Shares of Neumora Therapeutics, which is backed by Amgen and Japan’s SoftBank, fell in their market debut on Friday, giving the company a market capitalization of $2.51 billion.

The Watertown, Massachusetts-based company’s stock debuted at $16.50 per share on Nasdaq, below the offer price of $17 apiece.

The ongoing surge in listings points to a nascent recovery in the U.S. IPO market amid growing expectations of a pause in interest rate hikes by the Federal Reserve.

Neumora, which is developing drugs for brain diseases, raised $250 million by selling 14.7 million shares priced at the mid-point of its previously disclosed range. That gave the IPO a valuation of $2.58 billion.

Neumora’s debut comes a day after Arm Holdings’ strong debut valued the chip designer at more than $60 billion.

Several companies are scheduled to go public in the coming weeks, including grocery delivery service Instacart, German footwear maker Birkenstock and marketing automation platform Klaviyo.

Neumora said in July it was planning to start the first of its three late-stage U.S. clinical trials for its lead experimental drug to treat clinical depression in the third quarter.

Neumora was founded in 2019 with the backing of venture capital firm Arch Venture Partners, and in 2021 saw Amgen making a $100 million equity investment, giving it the right to develop and sell several of Amgen’s experimental drugs for neurodegenerative illnesses on a global scale.

(Reporting by Jaiveer Shekhawat and Pritam Biswas in Bengaluru; Editing by Shounak Dasgupta)