Plus: Charles Ergen’s Net Worth Doubles After Controversial AT&T Sale |
Good morning,
Unemployment is on the rise—but the economic picture looks vastly different depending on where you live.The national joblessness rate ticked up slightly to 4.6% in July, but more than 60% of U.S. metro areas actually hired more people, Bureau of Labor Statistics data shows. Charlotte, North Carolina saw the highest employment growth for the year so far among metro areas with a population over 1 million, while Philadelphia and the New York City region also saw big gains. The softening of the labor market is a major factor weighing on the Federal Reserve, as the central bank’s chairman Jerome Powell indicated in his Jackson Hole address that rate cuts could be coming.
Let’s get into the headlines, |
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| Nvidia once again set a sales record in its latest quarterly earnings, beating Wall Street’s expectations even as its stock fell in after-hours trading. Some analysts were seeking clarity from the AI juggernaut’s CEO Jensen Huang about the Chinese government pressuring domestic companies not to buy the company’s H20 AI processors over national security concerns. The Trump Administration wants more in return for the hundreds of billions of dollars a year the government spends with defense companies, but unlike Intel, major defense companies may be better able to fend off any of their demands. For instance, billionaire SpaceX founder Elon Musk may have stronger leverage to deny the U.S. a seat at the table, since it’s the world’s No. 1 launch provider and maker of low-Earth orbit satellites—and already has a robust balance sheet. |
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| Things were looking rough for Charles Ergen for a while. In the fall of 2023, the satellite mogul saw his estimated net worth fall to under $800 million, down from its 2015 peak of $20.1 billion. That’s when the share prices of his companies EchoStar and Dish hit 25-year and all-time lows, respectively. Dish was losing money, staggering under $21 billion in debt and hemorrhaging pay TV subscribers. Meanwhile, the outlook of the wireless network he’d promised the government to develop appeared uncertain. Many analysts believed his businesses were destined for bankruptcy. Now Ergen, a former professional poker player, appears to have upgraded his junk hand. On Tuesday, EchoStar announced that AT&T had agreed to buy its 600 MHz and 3.45 GHz spectrum licenses—among its most valuable spectrum—for around $23 billion. The share price of EchoStar closed at $50.87 on Tuesday, up 70% from the day before. That’s higher than it had been at any time since spinning off Dish in 2008. Ergen’s estimated net worth soared with it, hitting $6.6 billion on Tuesday—up from $3.6 billion hours earlier. By the end of trading on Wednesday, his fortune had more than doubled to $7.8 billion. But behind his personal good fortune are more complicated consequences for consumers. The sale dooms his promised nationwide 5G mobile network, and with it hopes of a more competitive cell service market anytime soon. |
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| The deal is certainly a boon for Ergen and other shareholders. Though EchoStar could eventually shut down—as customers continue to switch from pay TV to streaming, the future of its satellite TV and internet provider is barely brighter than the 5G network—the company can likely now take full advantage of selling off its holdings for a tidy sum. |
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| In the latest in the whirlwind controversy over its branding, Cracker Barrel abandoned its new logo after it drew ire from conservatives and President Donald Trump, leading shares to surge 8%. Critics argued the company had abandoned its classic Southern feel by removing the old man “Uncle Herschel” and his barrel, as it attempted to join a spate of companies embracing minimalistic logos. |
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| Eight men have been accused of defrauding Instacart and Target-owned Shipt of as much as $30 million, allegedly hacking into more than 7,500 gig worker accounts. The FBI says the perpetrators tricked workers into sharing one-time passcodes, and the case shows how gig workers can be vulnerable to hacking at scale. |
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| The White House announced late on Wednesday that it has officially fired CDC Director Susan Monarez, hours after her lawyers issued a combative statement disputing her removal by the Health and Human Services Department and saying she has not resigned. An attorney for Monarez said she chose to protect “the public over serving a political agenda,” and the New York Times reported that her departure stemmed from a clash with Health Secretary Robert F. Kennedy Jr. over vaccine policy. |
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| When it comes to net worth, the Dallas Cowboys are in a league of their own: For the 19th year in a row, the franchise topped Forbes’ list of the NFL’s Most Valuable Teams, with a record $13 billion valuation. The average team value in the NFL now sits at $7.1 billion, a 25% increase over 2024, and league-wide revenue climbed to an estimated $21.2 billion during the 2024 season. |
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| As students head back to school, most are carrying a cell phone—making them a target for scams. Technology plays a big part in making young people more vulnerable to fraud: |
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$55 million | The amount in losses due to fraud among those 19 and under | |
| $370 billion | The share of scams reported to JP Morgan Chase that originate from social media |
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| The job hopping trend of the pandemic years has turned into “job hugging,” or staying put due to economic uncertainty. But employers shouldn’t take this low turnover as a sign of success—instead, double down on mentorship and training opportunities, showing employees that you are invested in their loyalty and growth. |
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