BUD - Wall Street Breakfast Podcast: SF Fed: Shelter Inflation Negative In 2024?

2023-08-08 06:37:38 ET

Summary

• US headline inflation may turn negative in 2024, according to the Federal Reserve Bank of San Francisco.
• Dish Network and EchoStar are nearing a deal, with an announcement expected soon.
• Tilray is acquiring several beer brands from Anheuser-Busch in an effort to boost its beverage portfolio.

Listen below or on the go on Apple Podcasts and Spotify U.S. shelter inflation , the biggest component of CPI, may turn negative in 2024 - SF Fed. (00:27) Dish Network (DISH), EchoStar ( SATS ) nearing deal to merge - report. (01:25) Tilray ( TLRY ) to buy eight beer brands from Anheuser-Busch ( BUD ) in bid to boost beverage portfolio. (02:04)

This is an abridged transcript of the podcast.

According to the Federal Reserve Bank of San Francisco, U.S. headline shelter inflation is set to cool markedly and could even turn negative next year. This info released in a research note published Monday.

San Francisco Fed economists said, “Our baseline forecast suggests year-over-year shelter inflation will continue to slow through late 2024 and may even turn negative by mid-2024,” – Augustus Kmetz, Schuyler Louie, and John Mondragon wrote.

The economists built a model using the Case-Shiller Home Price Index, CoreLogic, Zillow ( Zillow Group, Inc. (Z) Stock Price Today, Quote & News ) ( Zillow Group, Inc. (ZG) Stock Price Today, Quote & News ) and Apartment List, to determine the path for the shelter component.

Results from the model show the Fed's rate hikes that have persisted almost every month since March 2022 "have had a significant effect on slowing housing markets, and this slowdown is likely to continue going forward."

Dish Network (NASDAQ: DISH Network Corporation (DISH) Stock Price Today, Quote & News ) and EchoStar (NASDAQ: EchoStar Corporation (SATS) Stock Price Today, Quote & News ) are close to a deal .

An announcement on a deal may come as soon as today, according to a WSJ report late Monday.

The exact terms of the transaction couldn't be learned, though the price for EchoStar ( EchoStar Corporation (SATS) Stock Price Today, Quote & News ) may be lower than where EchoStar closed on Monday after jumping 21% ahead of its Q2 results today.

EchoStar ( EchoStar Corporation (SATS) Stock Price Today, Quote & News ) traded around $17 on July 5, the day before a Semafor report that the two companies were looking to merge.

On Monday, investment firm Raymond James upgraded EchoStar, citing its position at a "critical juncture" in the industry.

Tilray Brands (NASDAQ: Tilray Brands, Inc. (TLRY) Stock Price Today, Quote & News ) on Monday said it would buy eight brands from beer giant Anheuser-Busch ( Anheuser-Busch InBev SA/NV (BUD) Stock Price Today, Quote & News ).

This is a push by the Canadian cannabis company to boost its beverages portfolio.

Premarket TLRY is up more than 7%.

Tilray will acquire Shock Top, Breckenridge, Blue Point, 10 Barrel, Redhook, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy.

TLRY said the deal includes current employees, breweries and brewpubs associated with the eight BUD brands. The purchase price would be paid in all cash and the transaction is expected to close this year.

Other headlines to look out for on Seeking Alpha:

Three stocks make the cut for Credit Suisse's 'Top of the Crop' list

Palantir rises as Q2 results meet estimates, raises full-year sales forecast

Lucid Group rises; on track to produce more than 10,000 vehicles this year

Electric bus maker Proterra tanks on bankruptcy filing, cancels earnings call

Amazon said poised to meet with FTC next week

Beyond Meat beyond disappoints saying it will miss cash flow targets; shares fall

Wall Street's major averages on Monday rebounded from last week's losses to end higher.

The S&P 500 ( S&P 500 Index (SP500) Stock Price Today, Quote & News ) gained 0.90%. The Dow ( Dow Jones Industrial Average Index (DJI) Stock Price Today, Quote & News ) added 1.16%.

The Nasdaq ( NASDAQ Composite Index (COMP.IND) Stock Price Today, Quote & News ) ended 0.61% higher.

All 11 S&P sectors - with the exception of Utilities - ended in positive territory, led by Communication Services and Financials.

On Monday, the 10-year yield ( United States 10-Year Bond Yield (US10Y) Stock Price Today, Quote & News ) was up 3 basis points to 4.09%, while the 2-year yield ( United States 2-Year Bond Yield (US2Y) Stock Price Today, Quote & News ) was down 2 basis points to 4.77%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. The Dow is down 0.4%, the S&P 500 is down 0.4% and the Nasdaq is down 0.3%. Crude oil is down 1.4% at more than $80 a barrel. Bitcoin is up 0.3%.

In the world markets, the FTSE 100 is down 0.5 % and the DAX is down 0.9%.

Our biggest stock movers for the day premarket: First one of the biggest gainers. Chegg (NYSE: Chegg, Inc. (CHGG) Stock Price Today, Quote & News ) is up more than 21% after the company outperformed guidance for both revenue and adjusted EBITDA in Q2 and saw Y/Y customer acquisition and retention rates improve during the quarter.

And for one of the biggest losers, International Flavors & Fragrances ( International Flavors & Fragrances Inc. (IFF) Stock Price Today, Quote & News ) plunged more than 20% after missing the consensus mark in Q2, and slashing its full-year sales guidance on weak demand and sharply higher inventory costs.

On today’s economic calendar, at 830am goods and services trade.

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