MARKET WRAPS

STOCKS: Stocks rose slightly, recouping early losses as fears about conflict in Iran and artificial-intelligence disruption subsided.

TREASURYS: Treasury yields finished mixed as traders digested recent economic data.

FOREX: The U.S. dollar rose against peers as geopolitical tensions diminished somewhat.

COMMODITIES: Oil prices fell on signs of progress in negotiations between the U.S. and Iran.

HEADLINES

Warner Reopens Talks With Paramount After Sweetened Offer

Warner Bros. Discovery said Tuesday it will restart deal talks with Paramount, setting the stage for a potential bidding war with its preferred suitor Netflix.

The move comes after Paramount last week sweetened its all-cash $77.9 billion hostile offer for all of Warner Discovery, including its cable channels CNN and TNT.

Warner said Paramount has indicated it would be willing to up its offer to $31 per Warner share from $30 if Warner would agree to engage in negotiations. The price increase wasn't part of Paramount's latest amended tender offer for the company.

Fed's Goolsbee Says Future Rate Cuts Depend on Inflation Progress

Chicago Fed President Austan Goolsbee continued to express his view that policymakers could make several more rate cuts if inflation shows it is headed back to the Fed's 2% target.

Consumer prices rose 2.4% in January from a year earlier, cooler than December's 2.7% increase. Meanwhile, the U.S. economy added a surprising 130,000 jobs in January, while the unemployment rate ticked down slightly to 4.3%.

"We saw some progress, but we saw some warning, I want to get some more information," he said in an interview on CNBC Tuesday.

Fed's Barr Wants Proof Goods Inflation Is Retreating Before Additional Rate Cuts

Federal Reserve governor Michael Barr said he wants to see evidence that goods price inflation is sustainably retreating before considering additional rate cuts.

Speaking at the New York Association for Business Economics on the labor market and artificial intelligence on Tuesday, Barr said the job market might be "especially vulnerable to negative shocks," given low levels of job creation and a low firing rate. For now, there seems to be a tentative balance in labor supply and demand, but it is a delicate balance, Barr said.

"I would like to see evidence that goods price inflation is sustainably retreating before considering reducing the policy rate further, provided labor market conditions remain stable," he said.

Japan Plans $36 Billion in U.S. Investments Under Trump Administration Deal

WASHINGTON-Japan is planning roughly $36 billion in U.S. investments spanning critical minerals, oil and gas infrastructure and power generation as part of a $550 billion strategic trade and investment agreement, according to Commerce Department officials.

"Our MASSIVE Trade Deal with Japan has just launched!" President Trump posted on social media on Tuesday.

The projects represent the "FIRST set of investments" under the U.S.-Japan agreement announced last year, Trump said in his post, "part of our Historic Trade Deal to REVITALIZE the American Industrial Base, create HUNDREDS OF THOUSANDS of GREAT American Jobs, and strengthen our National and Economic Security like never before."

Bayer Proposes New $7 Billion Plan to Settle Roundup Litigation

Bayer is making a new multibillion-dollar push to resolve a yearslong legal nightmare over Roundup weedkiller.

The German pharmaceutical and agriculture conglomerate on Tuesday said it proposed to settle a nationwide class-action lawsuit to resolve claims that its flagship herbicide causes cancer. The settlement plan includes setting aside more than $7 billion to fund payments over 21 years.

Law firms representing tens of thousands of plaintiffs filed a motion Tuesday seeking approval of the settlement. The proposal requires court approval in Missouri, where the bulk of Roundup cases are outstanding.

Robinhood Says Its Private-Markets Fund Will Go Public in Coming Weeks

Robinhood plans to offer a fund that would provide individual investors with exposure to a portfolio of private companies.

The retail-trading platform said Tuesday it expected its Robinhood Ventures Fund I to go public in the coming weeks on the New York Stock Exchange under the symbol RVI.

Customers can request initial-public-offering shares of RVI through Robinhood at an expected price of $25 per share, the company said. Following the IPO, investors would also be able to buy and sell RVI through other brokerages.

General Mills Cuts Outlook Due to Weak Consumer Sentiment

General Mills lowered its sales and profit outlook for the fiscal year, as stressed consumers are buying fewer snacks and looking for more promotions.

"Weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and impacted consumer purchase patterns, resulting in a slower pace and higher cost of volume recovery than initially expected," the maker of Cheerios and Pillsbury said.

Chief Executive Jeff Harmening said at the Consumer Analyst Group of New York conference that inflation, SNAP benefits reductions and geopolitical uncertainty "have led to significant consumer stress, especially for the middle and lower income groups."

Danaher Strikes $10 Billion Deal for Masimo

Danaher has struck a deal to acquire medical-device maker Masimo for almost $10 billion, the companies said on Tuesday.

Danaher said it will pay $180 per share in cash for Masimo, a nearly 40% premium to where the stock closed Friday, confirming an earlier report by The Wall Street Journal.

Activist Elliott Builds Big Stake in Norwegian Cruise Line

Activist Elliott Investment Management has built a more than 10% stake in Norwegian Cruise Line and plans to push for changes to turn the struggling cruise-ship operator around.

Elliott, now one of Norwegian's top investors, outlined its plans in a letter and presentation to the company Tuesday. The plans were first reported by The Wall Street Journal.

U.S. Home-Builder Sentiment Edges Lower on Cost Concerns

Confidence among U.S. home builders inched lower this month, as affordability challenges persisted. Here are the main takeaways from the National Association of Home Builders' latest report released Tuesday:

-The NAHB/Wells Fargo Housing Market Index, a gauge of builder confidence in the market for newly built single-family housing-was 36 in February, down from 37 in January. Economists surveyed by The Wall Street Journal expected a higher reading of 38.

-The decline takes the index further below the threshold of 50 between builders' perceptions of "good" conditions and "poor" ones. The index was last weaker in September.

NAPA Owner Genuine Parts Plans to Split Into Two Companies

Genuine Parts, the big owner of NAPA auto-care centers, said Tuesday it plans to separate its auto and industrial parts units to create two separate public companies.

The split is the culmination of a review the Atlanta-based company has been undergoing with financial advisers. The Wall Street Journal reported earlier Tuesday that the deal announcement was imminent.

TALKING POINT Lenders to Commercial Real Estate Owners: Pay Up Now

Lenders to commercial real estate owners are reaching the breaking point, calling in tens of billions of dollars of troubled loans.

Refinancing property debt has become difficult since interest rates started to soar in 2022. Many lenders initially extended maturing loans they made when borrowing costs were far lower, hoping that either interest rates would fall or that cash flows would grow. It is a strategy known as "extend and pretend."

Now, many lenders have stopped pretending, and the default rate is surging. The delinquency rate for office loans in commercial mortgage-backed securities climbed to a record 12.34% in January, the highest level since Trepp began tracking in 2000.

The end of this forbearance reflects how lenders have made two determinations. For one, they are betting that mortgage rates aren't going back to the historic low levels seen during the pandemic.

Lenders, to office owners in particular, are also concluding that the decline in property values and cash flow aren't simply a response to the economic cycle. Rather, creditors increasingly believe that structural changes around the workplace and hybrid work have permanently reduced demand for most office space.

The shift comes as the volume of distressed commercial real estate debt has climbed to levels not seen since the aftermath of the 2008-09 financial crisis.

--Peter Grant

Expected Major Events for Wednesday

07:00/UK: Jan UK producer prices

07:00/UK: Jan CPI

07:45/FRA: Jan CPI

09:30/UK: Dec UK House Price Index

12:00/US: 02/13 MBA Weekly Mortgage Applications Survey

13:30/US: Dec New Residential Construction - Housing Starts and Building Permits

13:30/US: Dec Advance Report on Durable Goods

13:55/US: 02/14 Johnson Redbook Retail Sales Index

14:15/US: Jan Industrial Production and Capacity Utilization

15:00/US: 4Q Quarterly Retail E-Commerce Sales - To Be Rescheduled

21:00/US: Dec Treasury International Capital Data

21:30/US: API Weekly Statistical Bulletin

23:50/JPN: Dec Orders Received for Machinery

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

Amicus Therapeutics Inc $(FOLD)$ is expected to report $0.07 for 4Q.

Analog Devices Inc $(ADI)$ is expected to report $1.58 for 1Q.

Avis Budget Group Inc $(CAR)$ is expected to report $-0.22 for 4Q.

Bausch + Lomb Corp (BLCO.T) is expected to report $0.14 for 4Q.

Blue Foundry Bancorp (BLFY) is expected to report $-0.10 for 4Q.

Carver Bancorp Inc (CARV) is expected to report for 3Q.

Charles River Laboratories International Inc $(CRL)$ is expected to report $1.35 for 4Q.

(MORE TO FOLLOW) Dow Jones Newswires

February 17, 2026 16:36 ET (21:36 GMT)

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