Welcome Back,

Three years ago Penn Entertainment ( $PENN) purchased Barstool sports for about $550m. Three years later it has sold the business back to the original founder Dave Portnoy for $1.

Market Headlines 👀 

• US CPI Inflation came in at 3.2%; est 3.3% on headline. Core CPI: 4.7%.

• US weekly initial jobless claims came in at 248k; est: 230k.

• Amazon (AMZN) will be cutting a dozen of its in house brands.

• US Securities Exchange Commission SEC seeks to appeal federal judge ruling that cryptocurrency token XRP Ripple is a security.

• US mortgage rates tick up for the third straight week and are approaching a 22 year high.

• Walt Disney (DIS) streaming prices are going up as much as 38% the company said in its earnings call.

• X (TWTR) CEO Linda Yaccarino spoke on CNBC for the first time today since taking over.

• Novo Nordisk (NVO) purchases obesity drug maker Inversago Pharma for ~$1.08b.

Earnings 💸

• Alibaba (BABA) ^{(in yuan)}

  • EPS: ¥17.37 beats (exp. ¥11.73)

  • Revenue: ¥234.16b beats (exp.¥223.75b)

  S&P 500 Heat Map

Recap Around the Street 🧠

How sustainable is current U.S. government spending, up 10% YOY on top of very stretched metrics (% of GDP at WWII levels)? And this is on cycle-high economic activity - what happens to an already juiced-up fiscal impulse if we slowdown or enter a recession? CBO recently upped its estimate of this year's deficit to $1.7 trillion or 6.5% of GDP. With unemployment at 3.5%. That % of GDP drops like a stone if U.S. economy slows down. (Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Headline inflation came in at 3.2% vs est: 3.3%. Main drivers included core goods (autos), airlines, and energy.

12 month change by category…

Market Preview 🎞️

• Friday, August 10th: Producer price index; University of Michigan sentiment

That’s all for this week, folks! We’ll be back around the same time Monday with a curated list of important news, economic data and market highlights. 

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