SpaceX Kneecaps Wireless ⚡ Now What?

Welcome to LazyListen. This is The Daily Rip for today. Stocks climbed again on Friday, marking the fifth gain in seven sessions as investors shrugged off some geopolitical jitters and zeroed in on solid economic data.

The S&P 500 closed up about six-tenths of a percent at 7,811, the Dow added eight-tenths to finish near 51,655, and the Nasdaq 100 ETF gained half a percent. Volatility eased, with the VIX dropping nearly four percent to just under 15. Most sectors were in the green, led by real estate and health care, while communication services and energy lagged slightly.

The market’s mood improved as fears of conflict with Iran cooled. S. won’t strike Iran before the midterm elections, easing some geopolitical risk.

Meanwhile, hurricane Isaias disrupted Gulf oil production, knocking out nearly three-quarters of output, but energy stocks barely budged, with the oil ETF up just a fraction. The big headline after the bell was SpaceX’s bold move into wireless. The company agreed to buy Grain Management’s nationwide 800 megahertz spectrum for about eight billion dollars in cash, pending FCC approval.

This low-band spectrum is crucial for mobile coverage inside buildings, and SpaceX plans to use it to build out Starlink Mobile, its terrestrial wireless network complementing its satellite internet service. Wireless carriers took a hit on the news. T-Mobile shares plunged over thirteen percent, AT&T dropped nearly ten percent, and Verizon fell close to nine percent.

The carriers are now facing a new competitor with a deep war chest and a unique satellite-ground hybrid network strategy. T-Mobile had sold this spectrum to Grain a few years ago for just under three billion dollars plus some higher-frequency licenses, so SpaceX’s purchase at a much higher price signals serious disruption ahead. On the flip side, tower companies that lease space for antennas rallied sharply.

Crown Castle jumped over fifteen percent, American Tower gained nine percent, and SBA Communications rose seven percent. The logic: SpaceX will need plenty of cell towers to support its new network, meaning more tenants and revenue for tower landlords. Crown Castle’s gain was its biggest one-day jump since 2008, underscoring how the market sees this as a major infrastructure play.

In health care, Humana got a boost after Medicare upgraded its plan ratings. The insurer now has ninety five percent of its Medicare Advantage members in plans rated four stars or higher for 2027, a big jump from twenty percent last year. This improvement unlocks bonus payments from the government, which could add to Humana’s earnings.

Shares jumped nearly twelve percent on the news, with analysts upgrading their outlooks. Moderna also made headlines, rejoining the Nasdaq 100 index and closing at a 52-week high near 225 dollars, up fourteen percent on the day. Index inclusion triggered buying from funds tracking the Nasdaq 100, but traders also cited optimism around Moderna’s cancer vaccine pipeline and its partnership with Merck.

Despite the rally, Wall Street’s average price target remains around 118 dollars, highlighting some skepticism beyond the index-driven move. Delta Air Lines reported third-quarter earnings that missed estimates, weighed down by soaring fuel costs. 80.

60 dollars per share. Despite the hit to profits, Delta said demand remains strong, with revenue up sixteen percent. Shares ended flat after an early dip.

Looking ahead, earnings season kicks into high gear next week with Wall Street expecting strong results overall. FactSet data shows S&P 500 earnings growth of nearly thirty percent year-over-year for the third quarter, marking a third straight quarter above twenty five percent growth. Notably, analysts have actually raised earnings estimates during the quarter, which is unusual.

About two-thirds of companies issuing guidance have given positive outlooks, well above the five-year average. Energy, tech, communication services, and materials sectors are expected to lead earnings growth. But with the forward price-to-earnings ratio near 19, investors will be watching closely to see if companies can clear these high expectations.

In quick movers, Palantir climbed five percent after back-to-back bullish analyst upgrades, with price targets around 230 to 265 dollars. I. hardware space.

Datadog jumped seven percent after a price target increase citing faster revenue growth. So, what’s the takeaway? The market is digesting a mix of solid economic data, easing geopolitical worries, and disruptive industry moves like SpaceX’s wireless spectrum deal.

Investors remain optimistic heading into earnings, but with valuations elevated and fuel costs pressuring airlines, there are clear risks to watch. Tower stocks and health care insurers are among the beneficiaries of recent developments, while traditional wireless carriers face new competition. Thanks for listening.

Catch you next time on LazyListen.