United Technologies, Raytheon Propose Merger

Proposed merger would create second-largest defense contracting company. United Technologies (UTX) made a proposal to purchase competitor Raytheon (RTN) in an all-stock deal on Monday. The merger, if approved, would create the second-largest company in the defense space after Boeing (BA). The combined entity would create a company making everything from parts to F35 fighter jet engines to Patriot missile systems. With some proposed spinoffs to make the merger work, the value would still put the new company at over $100 billion ...
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U.S. and Mexico Reach Border Agreement and Avert Tariffs

Both countries agree to work together on curbing migration, sending stocks up on Monday. Mexico and the United states have agreed to stem the tide of migration through Mexico and into the United States. The news came late Friday after 10 hours of meetings, and the news gave markets another bounce on Monday. The State Department released a declaration stating that it would work with Mexican authorities to expand a program returning asylum seekers while claims are adjudicated. Mexico also agreed to take ...
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Insider Activity: MGM Resorts International (MGM)

Hedge fund titan makes huge bet on the casino operator. One director just made a $75 million bet on the future of gambling. On June 7, director Keith Meister bought 2.8 million shares of MGM Resorts International (MGM). Meister, an activist hedge fund manager at Corvex Management, already owns over 18 million shares. The casino company saw shares rise last week along with the overall market, but around $27 per share, shares are still below their 52-week high of $32. Casino stocks are somewhat ...
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Unusual Options Activity: Advanced Micro Devices (AMD)

Trader bets on 50 percent decline in shares over the next year. At least one trader is betting on a massive decline in Advanced Micro Devices (AMD) between now and June 2020. On Monday, over 7,000 contracts traded on a June 2020 $15 put option for AMD. With a prior open interest of 466, this represents a fifteen-fold surge in volume. Shares currently trade around $34, implying a downside of over 50 percent for these put options to move in-the-money in the ...
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Unusual Options Activity: Altice USA (ATUS)

Cable and internet provider shares see a surge in call option buying. At least one trader is betting on a big rally in Altice USA (ATUS) between now and September. On Friday, over 2,500 contracts traded on a September $26 call option for the company. With a prior open interest of 120, this represents a massive surge in volume. Shares currently trade around $24.50, implying at least $1.50 in upside over the summer. Based out of Long Island, Altice operates broadband and video ...
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Gold Prices Surge to Multi-Month Highs

After lagging year to date, the metal surges higher as Fed actions indicate weak economy. Thanks to a combination of economic and trade uncertainty, potential weakness in the U.S. dollar, a dovish Fed, and moderate inflation, gold prices have been heading higher in recent weeks. Gold prices closed last week over $1,340 per ounce, managing to hold their gains during a strong week of stock market performance. With rising expectations for the Fed to now cut interest rates later in the year, gold ...
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Jobs Numbers Come in Weaker than Expected

75,000 jobs created in May lags expectations, but unemployment is still unchanged at 3.6 percent. Despite stronger jobs numbers from private data sources, the Bureau of Labor Statistics released jobs numbers on Friday. With an increase of 75,000 non-farm payrolls, the unemployment rate remains 3.6 percent. Traders had been betting on a larger number, but now an unusual situation exists in the job market. If the numbers are too good, the likelihood of an interest rate cut later in the year drops. While ...
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Insider Activity: Encana (ECA)

One director buys over $250,000 in shares. One director is betting that shares of oil and natural gas production company Encana (ECA) have gotten oversold. Last week, director Bruce Waterman picked up 50,000 shares of the company for just over $5.00 per share, shelling out over $253,000. The purchase increased his stake in shares by 25 percent. Shares of the company have been declining in recent weeks, in line with falling oil prices. Shares of Encana have been more out of favor than other ...
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