To The Moon

Inflation Relief… For Now

• The long-delayed September PCE report finally landed, and brought good news:

• Headline PCE: +2.8% YoY

• Core PCE: +2.8% YoY, easing slightly from August

• This stability gives the Federal Reserve cover for another 25 bps rate cut next week, as policymakers shift their attention toward a weakening labor market.

• Still, inflation remains above the 2% target, leaving 2026 policy direction highly uncertain.

• Markets initially rallied on the data but later pared gains as investors reassessed the “higher for longer” risks.

Deal of the Year? Netflix Bets $83 Billion on Warner Bros. Discovery

Netflix Bets $83 Billion

• The biggest story in corporate America isn’t inflation, it’s $Netflix(NFLX)$ surprise blockbuster acquisition of Warner Bros. Discovery for $83 billion, including debt.

• The deal gives Netflix control of:

• Warner Bros. legacy film studio

• HBO and HBO Max

• Global franchises including Harry Potter, The Sopranos, Friends, The Wizard of Oz, Casablanca, and more

• Analysts say Netflix is overpaying, and the stock reacted accordingly:

• NFLX -2.9% today, -6% for the week

Netflix

• Regulatory approval in the U.S. and Europe could take 12–18 months, and the market isn’t convinced, Warner Bros. Discovery closed below Netflix’s offer price.

• Paramount Skydance, a competing bidder, saw its shares plunge 9.8%, making it the day’s worst performer.

Market Snapshot

• Dow Jones: +0.22%

• $S&P 500(.SPX)$ : +0.19%

• $NASDAQ(.IXIC)$ : +0.31%

• Top Stock: $ulta beauty(ULTA)$ +12.7%

• Worst Performer: $Paramount Skydance Corp(PSKY)$ –9.8%

PSKY

• Best Sector: Communication Services +1%

• Worst Sector: Utilities –1%

What’s Next: The Fed Takes Center Stage

• All eyes are now on next week’s FOMC meeting (Tue–Wed).

• A “hawkish cut” is expected: the Fed will likely reduce rates but avoid promising further easing.

• The central bank continues to emphasize risks on both sides of its dual mandate:

• Stable prices

• Maximum employment

• Earnings remain light but feature notable tech players:

• Wednesday: Adobe, Oracle

• Thursday: $Broadcom(AVGO)$ , Costco

Conclusion

The market is balancing good inflation news with rising uncertainty about 2026 monetary policy.

At the same time, Netflix’s audacious bid for Warner Bros. Discovery has reset the landscape for global media, and rattled investors.

With the Fed meeting just days away, volatility is likely to pick up as traders look for clues about the path ahead…

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.

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