Stocks Slightly Higher on Mixed US Economic News

Oracle Health, part of Oracle Corp, disclosed a data breach affecting nearly 20 million people, far higher than earlier reports. The breach occurred in early 2025 on legacy Cerner systems, with the attacker using stolen credentials. Oracle has not publicly commented on the scale. Cerner, acquired by Oracle in 2022, notified customers in March 2025. The breach involved personal and medical data, with the hacker demanding cryptocurrency to prevent data leaks.

Oracle (ORCL) is discussing financing for AI chip purchases with Apollo (APO) and Goldman Sachs (GS), potentially structuring the deal as a lease to avoid adding to its $169.1 billion debt. Oracle's capex surged to $75.7 billion over the last four quarters, outpacing its $23 billion operating cash flow. The company's debt-to-EBITDA ratio improved to 3.78x in August, but it still faces funding challenges.

Oracle (ORCL) reported negative free cash flow of $23.7B for fiscal 2026 due to cloud spending and plans a $40B debt/equity raise. Project Jupiter data center delays raise execution risks. DA Davidson notes capital and compute capacity limits. ORCL will own 80.1% of U.S. TikTok operations. Jim Lebenthal sees recent pullback as a buying opportunity.

Asian shares fell Thursday due to strains in sovereign bond markets, rising AI-driven debt from tech firms like SpaceX, Broadcom, and Oracle, and higher oil prices. Japan's Nikkei dropped 1.1%, South Korea's market fell 2.1%, and MSCI's Asia-Pacific index lost 1.2%. Oil prices rose 2.1% for Brent and 1.7% for US crude. Samsung projected a 783% Q3 profit jump but shares declined 1.2%. The Fed may hike rates in December, keeping 2-year Treasury yields at 4.78% and 10-year yields near 5.30%.

Spyre Therapeutics (SYRE) completed a $350M equity offering at $85 per share, adding 4.1M shares. The stock has declined 9.2% in 7 days, 9.1% in 30 days, and 18.1% in 90 days, despite a 164.4% YTD return. Analysts see a fair value of $120.08, citing its antibody pipeline and long cash runway. The company's future depends on clinical trial results and market sentiment.

Oracle Health's Cerner unit reported a data breach affecting about 20 million patients, up from an initial estimate of 501. The breach, involving legacy servers, exposed personal and medical information. Oracle acquired Cerner in 2022 for $28.3 billion. Multiple states and healthcare providers have updated breach reports, and Oracle faces federal lawsuits.