Here are five things you must know for Monday, June 10:
1. -- Stock Futures Rise as Trump Suspends Mexico Tariffs
U.S. stock futures were higher on Monday after Donald Trump announced the "indefinite" suspension of tariffs planned on goods imported from Mexico after reaching an agreement to tackle illegal immigration but also warned Sunday that if cooperation fall short "we can always go back to our previous, very profitable, position of tariffs."
Trump revealed the agreement late Friday, following his return from a week-long visit to Europe to commemorate the 75th anniversary of the D-Day landings in northern France. Tariffs that had been scheduled to apply to Mexican imports as of Monday would now be suspended, the president said.
"I am pleased to inform you that The United States of America has reached a signed agreement with Mexico," Trump said on his verified Twitter account. "The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended," he said.
"Given the dramatic increase in migrants moving from Central America through Mexico to the United States, both countries recognize the vital importance of rapidly resolving the humanitarian emergency and security situation," the two countries said in a joint statement published on the State Department website. "The Governments of the United States and Mexico will work together to immediately implement a durable solution."
The agreement with Mexico could now raise the prospect of a near-term solution to the ongoing trade dispute between the U.S. and China.
U.S. Treasury Secretary Steven Mnuchin told CNBC that Trump will decide whether to implement more tariffs on China after meeting with Chinese President XI Jinping later in June.
Finance leaders of the G-20 decried worsening trade tensions and their impact on global growth, but a statement from the group on Sunday didn't mention the tariffs the U.S. and China have used and stopped short of calling for a resolution of the trade conflict between Washington and Beijing.
Contracts tied to the Dow Jones Industrial Average rose 89 points, futures for the S&P 500 were up 9.10 points, and Nasdaq futures gained 25.25 points.
The economic calendar in the U.S. on Monday includes the Job Openings and Labor Turnover Survey for April at 10 a.m. ET.
Earnings reports are expected Monday from Ascena Retail Group (ASNA - Get Report) and Thor Industries (THO - Get Report) . Later in the week, reports will be issued by Dave & Buster's Entertainment (PLAY - Get Report) , RH (RH - Get Report) , Lululemon Athletica (LULU - Get Report) and Broadcom (AVGO - Get Report) .
2. -- United Technologies and Raytheon to Merge
Raytheon (RTN - Get Report) and United Technologies (UTX - Get Report) will merge in an all-stock deal to form an aerospace and defense giant that will be known as Raytheon Technologies and is expected to have $74 billion in pro forma sales in 2019.
The combined company, valued at more than $100 billion after planned spinoffs, would be the world's second-largest aerospace and defense company by sales behind Boeing (BA - Get Report) , according to The Wall Street Journal, which first broke the news of the merger over the weekend.
The deal combining defense contractor Raytheon with aerospace company United Technologies "will offer a complementary portfolio of platform-agnostic aerospace and defense technologies," said Raytheon in a statement.
United Technologies' divisions Otis and Carrier won't be included in the partnership, and the two are expected to be separated from United Technologies in the first half of 2020 as planned. Subsidiaries Collins Aerospace and Pratt & Whitney would be included.
"With a strong balance sheet and robust cash generation, Raytheon Technologies will enjoy enhanced resources and financial flexibility to support significant R&D and capital investment through business cycles," said Raytheon.
Owners of Raytheon shares will get about 2.33 shares in the combined company for each Raytheon share. Once the merger is completed, United Technologies shareholders will get about 57% of the combined company and Raytheon shareholders will own about 43%. The return of capital to shareholders is expected to be around $18 billion to $20 billion in the first three years of the merger, said Raytheon.
- Behind the Label: Raytheon's Evolution from Microwaves to Missiles
The combined company will have about $26 billion in debt, with $24 billion coming from United Technologies, the Journal noted.
The deal is expected to close in the first half of next year, after United Technologies breaks off its Otis and Carrier businesses.
The merger isn't expected to attract significant antitrust scrutiny, analysts told the Journal, because the companies don't compete against each other in most of their markets.
Greg Hayes, chief executive of United Technologies, would lead the new company and Raytheon CEO Tom Kennedy will serve as executive chairman.
3. -- American Airlines Extends 737 MAX Flight Cancellations
American Airlines (AAL) - the world's largest airline - again has pushed back the lift off date for Boeing's (BA - Get Report) 737 MAX jets, telling passengers the troubled plane will remain grounded through Sept. 3, missing most of the summer travel season.
"By extending the cancellations, our customers and team members can more reliably plan their upcoming travel on American," American said in a statement.
About 115 flights will be canceled daily for the airline while the jet is grounded.
The airline said, however, that it "remains confident" that software updates and new training under development will allow the aircraft to become certified again.
As the airline works with the Federal Aviation Administration, Department of Transportation, National Transportation Safety Board, and other regulatory authorities, it said, it's "pleased with the progress to date."
American already had held off giving the green light for the jet, and in April had extended grounding the MAX through Aug. 19.
American has a fleet of 24 Boeing 737 MAX aircraft. Controversy has surrounded the 737 MAX since a deadly crash in March in Ethopia, and another over Indonesia in October 2018.
4. -- Fiat Chrysler and Renault Look for Ways to Revive Merger - Report
Fiat Chrysler Automobiles (FCAU - Get Report) and Renault (RNLSY) are looking for ways to revive their collapsed merger plan and secure the approval of the French carmaker's alliance partner Nissan (NSANY) , Reuters reported, citing several sources close to the companies.
Nissan will urge Renault to significantly reduce its 43.4% stake in the Japanese automaker in return for supporting a Fiat Chrysler-Renault merger, two people with knowledge of its thinking also told Reuters.
It's still far from clear whether any concerted effort to revive the deal can succeed, Reuters said. Fiat Chrysler pulled out of the planned $35 billion merger last week amid accusations of meddling by the French government.
Separately, Fiat Chrysler has struck a deal with Aurora, the autonomous vehicle technology startup backed by Sequoia Capital and Amazon.com (AMZN - Get Report) , to develop self-driving commercial vehicles.
The partnership will focus on integrating Aurora's technology into Fiat Chrysler's line of Ram Truck commercial vehicles. The deal could extend to Fiat Chrysler's Professional brand as well, according to TechCrunch.
5. -- Uber's Operating and Marketing Chiefs Are Leaving
Uber had largely shielded Harford from the public spotlight after he was the subject of an internal review over what some employees described as racially insensitive remarks last year, according to Bloomberg. The investigation was closed last year and found no evidence of discrimination, the company said. Harford led much of Uber's business but remained a divisive figure, according to Bloomberg.
CEO Dara Khosrowshahi made the announcement about the leadership changes in an email to employees, saying that Harford will stay on with the company until July 1.
"I now have the ability to be even more involved in the day-to-day operations of our biggest businesses, the core platform of Rides and Eats, and have decided they should report directly to me," he wrote. "Given this, Barney and I have agreed that the COO role no longer makes sense, and he's decided to leave Uber. Barney is a talented businessperson, and I can't thank him enough for all of his contributions in helping get us to and through the IPO."
Khosrowshahi said he would be making additional changes in the company's structure, including marketing.