Sprint, T-Mobile Merger Under Fire

States plan legal battle ahead of DOJ approval for the carrier merger. Shares of both T-Mobile (TMUS) and Sprint (S) struggled on Tuesday, on reports that at least 10 state attorneys general are preparing to stop the proposed merger of the company. The combined entity would create a $26 billion carrier company. The Department of Justice was expected to make a decision on the merger later this week, with the head of the antitrust division appearing to approve of the merger. The deal would have merged the two smallest wireless carrier companies on the market, so the prospect of anti...
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Insider Activity: Occidental Petroleum (OXY)

Two insiders make a multi-million dollar buy in the oil giant. Two corporate insiders have just bought in over $2 million in shares of Occidental Petroleum (OXY). On June 10, CEO Vicki Hollub bought 37,460 shares, a commitment of over $1.8 million. SVP Marcia Backus bought 10,000 shares, putting down over $480,000. The buys come after shares have slid from $54 in the past month to $47 in recent days. Oil prices have been weak, particularly for this time of year when the summer driving season boosts demand for gasoline. As a result of this seasonal aberration, energy stocks have ...
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One Corporate Event that Creates Buying Opportunities Time and Again

There’s an old market adage to buy when there’s “blood in the streets.” But there are plenty of ways to draw blood. In today’s litigious society, one such way is with a big lawsuit. From hot cups of coffee to weed killer that may be cancerous, it’s no surprise that America still leads the world in producing lawyers who need something to do—which usually means finding someone with deep pockets to sue. While many cases have their merits, a favorable jury will often hand out pretty sizeable sums—and that kind of news can set back the shares of a company’s price. The days of the biggest ...
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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 steps to increase enforcement and “irregular migration” throughout the country, ...
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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 cyclical, tending to expand with the economy. They tend to contract during recessions,...
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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 prices may rally further on perceived economic weakness. Gold prices peaked in 2011 ov...
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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 any one monthly report is just a data point, the trend of the past few months sh...
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Insider Activity: Conn’s (CONN)

Multiple directors buy at the regional retail firm. Three different directors have been buying shares recently in regional retail outlet Conn’s (CONN). Director James Haworth picked up 2,240 shares, shelling out nearly $40,000 to do so. Director Bob Martin picked up 26,600 shares, for a commitment of over $453,000. And director William Saunders bought 10,000 shares even, paying nearly $180,000. This kind of cluster of buys by directors is a solid sign. With only 125 locations in the South and Western United States, Conn’s operates as a specialty retailer of consumer goods and s...
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Unusual Options Activity: Freeport McMoRan (FCX)

Big bet that copper mining giant will move at least 10 percent higher by early July. At least one trader is betting on a 10 percent pop in Freeport McMoRan (FCX) in the next month. On Thursday, nearly 5,900 contracts traded on July 5th $11 calls. With shares just over $10, they would need to rally nearly $1, or about 10 percent, for these calls to expire in-the-money. With a prior open interest of 102 in the contract before the trade, this is a big move. As a copper producer, Freeport is best-in-class. However, copper prices have been weak year-to-date, amidst trade war fears. ...
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Insider Activity: American Airlines (AAL)

Half a dozen insiders get bullish on American Airlines this week. Six different insiders bought near the recent market bottom for American Airlines (AAL). From the Chairman and CEO, to the company President to several Executive Vice Presidents, over $2.4 million in shares were bought by insiders on Tuesday, just before shares started rallying. The largest buy came from CEO Douglas Parker, who bought 50,000 shares, spending over $1.4 million alone. Based on the price he paid per share, he fared the worst among insiders so far. This type of cluster of insider buying is far more b...
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