EchoStar Stock Jumps as Firm Sells Spectrum to SpaceX

19 minutes ago

EchoStar (SATS) shares surged Monday as the DISH TV and Boost Mobile operator sold some spectrum licenses to Elon Musk's rocket and satellite company SpaceX for about $17 billion. It's the second such major deal in two weeks as the company moved to alleviate pressures from federal regulators.

EchoStar said the deal for its AWS-4 and H-block spectrum allocations included $8.5 billion in cash and up to $8.5 billion in SpaceX stock. In addition, SpaceX will pay $2 billion worth of interest on EchoStar's debt through November 2027.

EchoStar will also gain access to SpaceX's next-generation Starlink Direct to Cell service for its Boost Mobile subscribers.

CEO Hamid Akhavan said that teaming with SpaceX would allow the company to realize its vision of providing direct-to-cell satellite connectivity for consumers. 

Late last month, EchoStar sold $23 billion worth of low- and mid-band spectrum licenses to AT&T (T). The company noted today that it believes that agreement, along with the SpaceX one, "will resolve the Federal Communications Commission's (FCC) inquiries." Officials launched an investigation in May over whether EchoStar was meeting certain requirements for its wireless and satellite rights. President Trump eventually became involved, calling on the two sides to find a resolution.

EchStar shares were up 18% in recent trading. The stock has gained nearly 250% since the start of the year.

-Bill McColl

Robinhood, AppLovin Soar on News of S&P 500 Inclusion

50 minutes ago

Three new companies will join the S&P 500 later this month.

Trading platform Robinhood Markets (HOOD) and mobile app monetization company AppLovin (APP) are set to join the benchmark index on Sept. 22, according to S&P Dow Jones Indices, part of a quarterly rebalancing.

They will replace Caesar's Entertainment (CZR) and MarketAxess Holdings (MKTX), respectively. Emcor (EME), meanwhile, will take the place Enphase Energy (ENPH).

Shares of Robinhood and AppLovin were each up about 13% in early trading Monday, while Emcor shares inched higher.

Leading up to the decision, investors engaged in a favored niche pastime: trying to guess—and, perhaps, trade ahead of the news—what the picks might be. Robinhood and and Applovin were popular suggestions; so was bitcoin treasury company Strategy (MSTR), which didn't make the cut.

S&P Dow Jones Indices has in recent months changed companies both for company-specific business reasons—in August, for example, it tapped Interactive Brokers (IBKR) to replace Walgreens Boots Alliance (WBA) with the latter set to be taken private later this year, while Block (XYZ) joined earlier this summer after Hess was acquired—and as part of its periodic rebalancing efforts.

The S&P 500 rebalancing process takes place quarterly—in March, June, September and December—though no changes were announced in June.

Stocks of companies included in the S&P 500 can benefit because it exposes them to a wider group of investors who could become aware of them through an index. In addition, they can be added to various index funds that track stocks that are part of the S&P 500.

Caesar's, Enphase and MarketAxess will join the S&P SmallCap 600, S&P Dow Jones Indices said.

-David Marino-Nachison

Major Index Futures Point to Slightly Higher Open

2 hr 9 min ago

Futures tied to the Dow Jones Industrial Average were up 0.1%.

S&P 500 futures rose 0.2%.

Nasdaq 100 futures added 0.3%.