Key Takeaways
- SK Hynix (000660) shares surged nearly 13% in their Nasdaq debut on July 10, following a landmark $29.4 billion U.S. listing aimed at funding AI chip production.
- Meta Platforms (META) suspended its new "Muse" AI image tool just three days after launch following intense backlash from Hollywood agencies and creators over the use of public Instagram photos without explicit consent.
- BHP Group (BHP) is exploring a sale of its Chilean desalination plant and power lines for up to $2 billion to refocus on core copper growth.
- MGM Resorts (MGM) is facing a formal investigation by securities law firms after Barry Diller’s People Inc. (formerly IAC) proposed an $18 billion buyout at $48.30 per share.
- The New York Times (NYT) filed a countersuit against the EEOC, alleging that a "reverse discrimination" lawsuit filed by the agency was political retaliation for the paper's coverage of the commission.
Technology & AI Sector Developments
SK Hynix (000660) successfully executed one of the largest foreign IPOs in history, with its shares jumping 13% on the first day of trading. The $29.4 billion raised will be used to expand manufacturing for high-bandwidth memory (HBM) chips, which are critical for AI servers. Major ETF providers including Direxion and ProShares have already filed to launch single-stock ETFs tracking the chipmaker.
Meta Platforms (META) abruptly discontinued its "Muse" AI feature on Instagram after only 72 hours. The tool allowed users to generate or manipulate images by tagging public accounts, effectively using personal photos as an open asset library. Organizations like SAG-AFTRA and the Creative Artists Agency (CAA) condemned the "opt-out" default, leading Meta to admit the feature "missed the mark."
Corporate M&A and Legal Actions
MGM Resorts (MGM) is under scrutiny following an unsolicited $18 billion go-private proposal from Barry Diller. Law firm Bleichmar Fonti & Auld LLP is investigating potential breaches of fiduciary duty, as Diller currently sits on the MGM board and his company, People Inc., already owns 26.1% of the stock. The offer represents a 24% premium over the May 29 closing price.
Cognizant Technology Solutions (CTSH) received preliminary court approval for a $5.5 million settlement in a long-standing stockholder derivative lawsuit. The settlement, funded by the company's insurers, resolves allegations of fiduciary breaches related to historical conduct and FCPA issues. A final settlement hearing is scheduled for September 14, 2026.
The New York Times (NYT) has escalated its legal battle with the Equal Employment Opportunity Commission (EEOC). The paper claims the agency's lawsuit—which alleges the paper passed over a white male editor for a leadership role in favor of a multiracial woman—is a violation of the First and Fifth Amendments. The Times argues the suit is retaliation for its reporting on the EEOC's internal pressures to prioritize certain cases.
Energy and Infrastructure
BHP Group (BHP) is considering the sale of infrastructure assets in Chile, including the Puerto Coloso desalination plant and associated electricity transmission lines. The assets are valued between $1.5 billion and $2 billion. This move is part of a broader strategy to unlock up to $10 billion to fund copper expansions at the Escondida mine and the Vicuña district.
Santander Brasil (BSBR) has approved a R$2 billion (approx. $365 million) distribution of interest on equity. The distribution is part of the bank's shareholder-friendly capital allocation strategy for 2026. Shareholders of record as of late June will be eligible for the payment, which follows a strong start to the fiscal year.
International Affairs
President Donald Trump and Saudi Crown Prince Mohammed bin Salman held a high-level phone call on July 10 to discuss regional stability and U.S.-Iran negotiations. The discussion emphasized the security of maritime navigation in the Strait of Hormuz, a critical corridor for global oil shipments. Concurrently, North Korean leader Kim Jong Un and Chinese President Xi Jinping reaffirmed their strategic partnership, signaling a "new strategic stage" in bilateral relations.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.