MARKET WRAPS

STOCKS: Stocks rose and the Nasdaq Composite closed at a record high as optimism about artificial intelligence offset fears about rising bond yields.

TREASURYS: Yields on 10- and 30-year Treasurys closed at their highest levels since 2002.

FOREX: The U.S. dollar rose against rivals as French budget worries weighed on the euro, sending it to the lowest level compared to the greenback in more than a year.

COMMODITIES: Oil futures fell amid hopes that Middle East supply interruptions would be mitigated by the Group of Seven nations' release of emergency fuel reserves.

HEADLINES

U.S. Services-Sector Activity Continued to Expand in September

U.S. services-sector activity expanded at a slower pace in September,

a survey of managers found.

The Institute for Supply Management's purchasing managers index for

services providers was 54.9 in September, compared with 55.4 in the prior

month. Economists polled by The Wall Street Journal expected a reading of

55. A reading above 50 suggests economic growth, while one below 50

indicates contraction.

The new orders index registered 59.8, compared with 60.9 in the prior

month. The employment index returned to slight expansion after two months

in contraction, the survey said.

Supreme Court Questions Oil Companies' Bid to Shut Down Climate Lawsuits

WASHINGTON-Oil companies seeking to avoid lawsuits over climate change

faced skeptical questions Monday at the Supreme Court, with several

justices expressing doubts about the industry's campaign to shut down

dozens of cases brought by state and local governments.

On the first day of the court's new term, the justices debated whether

communities can seek financial damages for harms allegedly caused by

extreme weather events that scientists say are tied to the worldwide

burning of fossil fuels. Justices across the ideological spectrum noted

that state-based lawsuits are routinely used to target other conduct with

widespread effects, such as the marketing of tobacco, the manufacture of

asbestos or the production of defective automobiles.

"What makes this situation different from all those other ones?" Chief

Justice John Roberts asked a lawyer representing ExxonMobil and Suncor

Energy, which are fighting a lawsuit brought by Boulder, Colo. Similar

lawsuits are pending around the country and threaten the energy industry

with massive financial liability.

Paramount Names Leadership Team for Combined Entity Post $81 Billion

Warner Deal

Paramount Skydance laid out more details of its leadership structure

ahead of the close of its deal for Warner Bros. Discovery, confirming the

positions of David Ellison, Bari Weiss and Mark Thompson.

The appointments, announced Monday, come as Paramount looks to close

its $81 billion deal for Warner this week. A federal judge last week

approved Paramount's settlement with 12 state attorneys general to

resolve an antitrust case, paving the way for the acquisition to close.

David Ellison, CEO of Paramount, will be chairman and chief executive

of the combined company-dubbed Skydance-alongside co-CEO Ynon Kreiz.

Paramount disclosed the appointment of Kreiz, the outgoing CEO of Mattel,

last week.

Schneider Electric to Buy Software Maker PTC for $22.6 Billion

France's Schneider Electric agreed to buy PTC in an all-cash deal that

values the U.S. industrial-software maker at $22.6 billion, moving to

prepare its portfolio for industrial artificial intelligence.

Schneider said Monday that it offered $205 a share in cash for PTC, a

42% premium to its last closing price. PTC's board decided to recommend

that the company's shareholders approve the deal.

Shares in Schneider dropped more than 8% in European morning trading,

while PTC's stock jumped 35% in U.S. premarket exchanges.

C.H. Robinson to Buy RXO for About $5.8 Billion

America's largest freight broker C.H. Robinson Worldwide is buying one

of its biggest rivals, RXO, in a stock-and-cash transaction valued at

$5.8 billion.

C.H. Robinson CEO Dave Bozeman, who has used artificial intelligence

to boost productivity, said the acquisition will expand his company's

expedited and last-mile delivery services. The deal will generate about

$300 million in annual savings within two years of its close, the company

said.

It will make C.H. Robinson the fifth-largest third-party logistics

company in the world by revenue and more than twice as big as its next

biggest competitor in the U.S. domestic freight brokerage sector,

according to market research and consulting group Armstrong & Associates.

GE HealthCare to Buy Sofie for Nearly $1 Billion to Grow Medical-Imaging

Business

GE HealthCare Technologies said Monday it planned to purchase a

manufacturer of radioactive substances used in medical imaging procedures

for $945 million in cash.

The deal marks a continued push by medical-equipment maker GE

HealthCare into the growing market for radiopharmaceuticals, which have

uses for both diagnosing and treating diseases including cancer, heart

disease and Alzheimer's.

Drugmakers such as Novartis and other devicemakers have been investing

in the segment. In August, Curium struck a deal to acquire Lantheus

Holdings for an initial $6.7 billion in a consolidation of two

radiopharma companies.

Texas AG Paxton Launches Investigation Into UnitedHealth Group

Texas Attorney General Ken Paxton launched an investigation into

UnitedHealth Group, accusing the healthcare company of illegal practices

that have blocked access to healthcare for Texans.

Paxton has sent civil investigative demands to the company to collect

evidence around potential violations of the Texas Deceptive Trade

Practices Act, according to a Monday statement from his office.

The statement highlighted reports alleging that United bribed nursing

homes to delay hospitalizations for patients, directed and in some cases

denied patient care over physicians' judgement, and retroactively

withdrew its approval of a prior-authorization request for one Texas

patient.

Centalion, Fresh From Rebrand, Does Deal for U.S. Gas Fields

Centalion, the commodities trader formerly known as Gunvor, has bought

a collection of natural-gas assets from Silver Hill Energy Partners in a

deal valued at around $1.5 billion, according to people familiar with the

matter.

The deal is a bet that demand for U.S. gas will keep growing at home

and abroad, fueled by supply disruptions in the Middle East and the

growing power needs of data centers. It will make Centalion a major

player in the Haynesville basin, a prolific gas region straddling Texas

and Louisiana.

The trading firm has done a series of U.S. gas deals under Chief

Executive Gary Pedersen, who replaced co-founder Torbjörn Törnqvist after

an ill-fated attempt last fall to acquire the international operations of

Russia's Lukoil.

Eli Lilly Scores FDA Win for Pancreatic Cancer Drug. How It's Moving

Beyond GLP-1s.

Another day, another chance for Eli Lilly to prove it is more than

just a leader in weight-loss drugs. That validation came in the form of a

regulatory win for its experimental cancer treatment, olomorasib.

The Food and Drug Administration on Monday granted olomorasib orphan

drug designation. The status is reserved for investigational treatments

that target rare, life-threatening diseases affecting fewer than 200,000

people in the U.S.

The move also builds on a decision by the FDA in August, which granted

olomorasib so-called Breakthrough Therapy status as a standalone

treatment for adults with a specific form of pancreatic cancer who have

received at least one prior therapy.

TALKING POINT BofA's Merrill Agrees to $39 Million Settlement Over Low Interest Rates on Retirement Accounts Bank of America's Merrill unit has agreed to pay $39 million to settle a class-action lawsuit against the company for allegedly underpaying interest on certain customers' cash in so-called sweep accounts. The proposed settlement document was filed in court Sept. 30 by attorneys representing both the company and the plaintiff, Merrill Edge customer Sarah Valelly.

The settlement potentially covers customers who had Merrill Edge retirement accounts with cash balances that were swept into low-paying sweep accounts from Dec. 15, 2016 through March 15, 2020, according to the court document. Customers were paid as little as 0.01% in interest on cash, according to the court document. U.S. District Judge Valerie Caproni still has to approve the settlement.

A representative for Merrill declined to comment on the case.

Adam J. Blander, an attorney at law firm Wolf Popper which represents Valelly, says his client's cash sweep case has inspired similar legal battles. "We are gratified that Wolf Popper was able to achieve this result after seven years of hard-fought litigation," he says. "Valelly was the first known case to address a broker's contractual obligation to pay a reasonable rate of interest on retirement sweep accounts."

The settlement could bring closure to a seven-year long legal battle in which Valelly accused the company of breach of contract. Her lawsuit, which was filed in federal court in New York in 2019, centered on how the company moved, or swept, some Merrill Edge customers' idle cash into accounts that paid a "paltry" rate of interest that was below prevailing market rates of approximately 2% at the time. The company's client relationship agreement for Merrill Edge self-directed customers promised to pay reasonable rates, according to Valelly's lawsuit.

In February, a federal judge issued an order granting class certification to Valelly's lawsuit. The two sides were due to go to trial later this month, according to the proposed settlement agreement.

Valelly's legal complaint predates other cash sweep lawsuits that have been filed in recent years against other companies such as LPL Financial and Charles Schwab. Those cases are continuing.

--Andrew Welsch, Barron's

Expected Major Events for Tuesday 02:00/JPN: Sep Imported Vehicle Sales

06:00/GER: Aug Manufacturing orders

06:00/GER: Aug Manufacturing turnover

06:45/FRA: Aug Industrial production index

08:30/UK: Sep S&P Global UK Construction PMI

10:00/FRA: Aug OECD CPI

12:30/CAN: Aug International merchandise trade

12:30/US: Aug U.S. International Trade in Goods & Services

12:55/US: 10/03 Johnson Redbook Retail Sales Index

14:00/CAN: Sep Ivey Purchasing Managers Index

14:00/US: Oct RCM/TIPP Economic Optimism Index

20:30/US: API Weekly Statistical Bulletin

23:30/JPN: Aug Provisional Labour Survey - Earnings, Employment & Hours Worked

23:50/JPN: Sep International Reserves / Foreign Currency

23:50/JPN: Sep Provisional Trade Statistics for 1st 20 days of Month

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Expected Earnings for Tuesday Apogee Enterprises Inc (APOG) is expected to report $0.62 for 2Q.

Art's Way Manufacturing Co $(ARTW)$ is expected to report for 3Q.

Constellation Brands Inc $(STZ)$ is expected to report $3.53 for 2Q.

Lamb Weston Holdings Inc (LW) is expected to report $0.53 for 1Q.

Neogen Corp $(NEOG)$ is expected to report $-0.07 for 1Q.

Penguin Solutions Inc (PENG) is expected to report for 4Q.

RPM International Inc (RPM) is expected to report $1.95 for 1Q.

Saratoga Investment Corp (SAR) is expected to report $0.49 for 2Q.

Vicarious Surgical Inc (RBOT) is expected to report for 2Q.

Village Super Market Inc - Class A (VLGEA) is expected to report for 4Q.

Wins Finance Holdings Inc (WINSF) is expected to report for Interim.

Worthington Steel Inc (WS) is expected to report for 1Q.

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This article is a text version of a Wall Street Journal newsletter published earlier today.