AT&T (T) sells its remaining stake in DirecTV, which then acquires rival Dish and Sling TV from EchoStar (SATS); U.S. stock futures are edging lower on the last day of the third quarter; Stellantis (STLA) shares are tumbling in premarket trading after the Chrysler and Jeep parent issued a profit warning; U.S. dock workers at 14 ports from Boston to Houston are preparing to strike; and gold (GOLD) prices are in focus as the precious metal hovers near records. Here's what investors need to know today.
Telecom giant AT&T (T) sold its remaining 70% stake in DirecTV to private-equity firm TPG (TPG) for around $7.6 billion. EchoStar (SATS), parent of rival Dish, subsequently announced it sold the satellite-TV provider as well as streaming service Sling TV to DirecTV, which will assume Dish's debt of roughly $9.75 billion. Shares of AT&T, which expects its transaction "to close in the second half of 2025," are up 1% in premarket trading, while those of EchoStar are rising about 3%.
U.S. stock futures are edging lower as the third quarter comes to a close and Federal Reserve Chair Jerome Powell takes part in a moderated discussion at an economic conference today. In focus will be any comments from Powell that indicate where interest rates might go after the Fed's recent jumbo-sized easing, the first by the central bank in four years.
Stellantis (STLA) shares are tumbling 13% in premarket trading after the Chrysler and Jeep parent issued a profit warning, noting it is cutting excess North American inventory amid a "deterioration in global industry dynamics" and competition from Chinese rivals. The company said its fiscal 2024 adjusted operating income margin now is expected to be between 5.5% and 7.0%, versus its previous projection for "double digit" levels, with about two-thirds of the reduction "driven by corrective actions in North America." Shares of General Motors (GM) and Ford Motor (F) are falling more than 3% each.
U.S. dock workers at 14 ports stretching from Boston to Houston are gearing up to strike tomorrow, threatening to hurt most shipments at East and Gulf Coast ports and accelerate inflation. The current contract between the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) expires at midnight tonight. Those ports handled more than 68% of all containerized U.S. imports last year.
Gold (GOLD) prices likely will remain in focus on Monday after topping the $2,700 level last week, as several catalysts continue driving the demand for the metal as a hedge against currency deflation and geopolitical uncertainty. The precious metal's recent bullish momentum has been due to the Federal Reserve's half-point rate cut earlier this month and China’s massive stimulus measures last week, but buying by central banks and retail investors have been buoying prices throughout the year.
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