In the past two trading days, after a solid earnings beat, shares of Beyond Meat (BYND) have surged by nearly 87 percent. This just goes to show how tough it is to value an IPO.
 | | Good morning. In the past two trading days, after a solid earnings beat, shares of Beyond Meat (BYND) have surged by nearly 87 percent. This just goes to show how tough it is to value an IPO. When an IPO is considered a "failure," investors can buy in at a lower price than the bigwigs that got in at the IPO price. When an IPO is successful, initial buyers make out like bandits—but individual investors see another missed opportunity as shares take off like a rocket.
Conventional market wisdom is that bull markets die on hope, not fear. Another term for that is "animal spirits." But perhaps we should update that in our enlightened era to "plant-based alternative animal spirts." And if meat-alternative IPOs like Beyond Meat signal a market top to this long-running market, don't be surprised. | | |
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| | |  | DOW 30, 26,062.68 | +0.30% | | | | S&P 2,886.73 | +0.47% | | | | NASDAQ 7,823.17 | +1.05% | | | | | *As of market close | | | • | Stocks rallied on Monday, on merger news and a suspension of tariffs on Mexican goods scheduled to take effect. | | | | • | Precious metals pull back, as geopolitical fears ease. Gold and silver post 1 and 2 percent declines. | | | |
| | | 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.
» FULL STORY | | | | |
| | Shocking Interview Stuns Wall Street | |  | For the very first time, former Wall Street insider Paul Mampilly sat down for a tell-all interview that has stunned investors around the globe. What he says contradicts most of what you're hearing from Wall Street and the mainstream media, but if you heed his advice … it could set you up for a very prosperous year ahead. See Paul's interview here…
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| | 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 in valuation.
» FULL STORY | | | | |
| | | | 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.
» FULL STORY | | | | |
| | 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 next 375 days.
» FULL STORY | | | | |
| | | • | Up by 70 tons since December, China continues to buy more gold as the trade war continues. | | | | | • | Also on the trade war front, China is exporting fewer rare earth elements to overseas buyers. | | | | | • | Once again calling for the Federal Reserve to lower rates, President Trump calls the central bank "very disruptive." | | | | | • | Besides the United Tech/Raytheon merger, Salesforce makes a big push into analytics with a $15.3 billion offer for Tableau Software. | | | | | • | And in the mobile event space, Cvent acquires DoubleDutch. | | | | | • | In tech, Microsoft Power Platform update moves to put AI in reach of business users. | | | | | • | While hardly a tech name, JPMorgan Chase CEO Jamie Dimon compares the bank to Netflix. | | | | | • | Thanks to declining prices, some parts of the country will see sub-$2 gas this summer. | | | | | • | In an effort to increase and retain quality employees, Target expands childcare and family leave benefits. | | | | | • | In earnings news, Casey's General Stores beats big as earnings rise 33 percent. | | |
| | | | TOP | | | M | 6.07% |  | | | | ADI | 5.82% | | | | | LYB | 5.592% | | | | | KHC | 5.463% | | | | | WYNN | 5.089% | | | | | BOTTOM | | | CRM | 5.258% |  | | | | INCY | 4.986% | | | | | COG | 4.953% | | | | | ADS | 4.53% | | | | | TAP | 3.914% | | | | | |
| | |  | | China should still take an open attitude towards the trade tensions, treating trade deals and foreign companies friendly… Even if a trade agreement can't be reached in future, China should reform its markets to make it fair and transparent in the global trading system. | - Qiao Yide, vice-chairman of the Shanghai Development Research Foundation  | |
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