Stocks closed out another week in the green with mixed daily performance. What was up went down, and what was down went up as the energy sector led and technology lagged. All eyes turn to the jobs data next week as investors look to position their portfolios for what could be a volatile Q4 and election season. 👀

Today's issue covers progress in the Fed’s preferred inflation metric, Novo Nordisk’s potential downside reversal., and why Dish and DirecTV may end up together after all. 📰

Here’s the S&P 500 heatmap. 8 of 11 sectors closed green, with energy (+2.04%) leading and technology (-0.93%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $ZCMD, $TCTM, $IONQ, $CMCT, $ARDX 📉 $SCHL, $OCFT, $ACHC, $LVS, $CMTL*

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The personal consumption expenditures price index rose 0.1% MoM in August, with the annual rate falling to 2.2% from July’s 2.5% rate. That’s the lowest reading since February 2021

Excluding food and energy, core PCE rose 0.1% MoM and 2.7% YoY, essentially in line with expectations as some analysts say it remains “all quiet on the inflation front.” 🤫

Personal incomes and spending both rose 0.2% MoM, below their respective estimates of 0.4% and 0.3%. Still, investors care less on inflation and more about the labor market, eying next week’s labor market data to signal whether the Fed’s next cut will be 25 or 50 bps. 🔮

Meanwhile, Richmond Fed president Tom Barkin urges caution on interest rate cuts because inflation has not been defeated. He shares the more conservative outlook that the Fed should wait for further progress before aggressively easing.

Lastly, consumer confidence improved for the third straight month to its highest reading since April, as their outlook for the economy continued to tick higher while inflation expectations stayed flat.

Time will tell which view on inflation is correct. But for now, the downward progress continues, giving bulls the confidence to continue pressing equity market (and other risk asset) prices higher. 📈

The combination of Dish and DirecTV has been rumored for years and was close to happening in 2002 until regulatory pressure killed the deal. Now, Charlie Egren is getting close to selling the pay-TV business he founded more than 40 years ago to its rival, DirecTV.

EchoStar is looking to sell the company for roughly $9 billion to DirecTV (which is owned by private equity firm TPG and telecom giant AT&T) in order to pay off $1.98 billion of debt that matures in November. 💸

As of June 30th, the company had just $521 million in cash and cash equivalents and forecasted negative cash flows through the end of the year, so an all-cash asset sale is seen as the easiest way of dealing with this debt.

Notably, no wireless spectrum assets are involved in the proposed deal, just Satellite TV, its digital business Sling, and any associated liabilities. 📵

Overall these remain structurally challenged businesses and consolidation seems inevitable, as legacy operators look to curtail costs and hang onto whatever market share they can in an environment full of alternatives.

EchoStar shares jumped 8% on the day to their highest level in about three years, with Stocktwits sentiment pushing into ‘extremely bullish’ territory. While asset sales are always a tough decision, investors seem to like the company's redirection and are betting on its continued turnaround. 🐂

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