Ready for the week?
Jim Cramer is.
Here's what you need to know about the Raytheon (RTN - Get Report) and United Technologies (UTX - Get Report) merger, Merck (MRK - Get Report) and Salesforce's (CRM - Get Report) acquisitions and, of course, how the market is looking.
Donald Trump announced the "indefinite" suspension of tariffs planned on goods imported from Mexico after reaching an agreement with the Mexican government to tackle illegal immigration, but also warned that if cooperation falls short "we can always go back to our previous, very profitable, position of tariffs."
We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico's Legislative body!..— Donald J. Trump (@realDonaldTrump) June 10, 2019
And then President Trump hopped on a call with CNBC to further discuss his thoughts on the Federal Reserve, the suspended tariffs on Mexico and he weighed in on the Raytheon and United Technologies deal.
The markets held on to the rally that has been steadily going on since last Tuesday, with the Dow opening up over 140 points.
But, following the president's comments, should investors prepare for more risk ahead? Jim Cramer breaks it down:
Raytheon and United Technologies
Raytheon and Real Money Stock of the Day United Technologies announced that the companies are planning on an all-stock merger.
The companies would combine to become Raytheon Technologies.
According to the Wall Street Journal, Raytheon Technologies --which would be valued at more than $100 billion after planned spinoffs, would become the world's second-largest aerospace and defense company by sales behind Boeing (BA - Get Report) .
But, after President Trump, in a phone interview with CNBC, said that he had some hesitations about the merger--how should investors feel about it? And, will this merger go through without a hitch?
Raytheon and United are not the only companies announcing mergers & acquisitions on Monday.
- Behind the Label: How Salesforce Earned Its Cloud King Crown
The deal gives Tableau investors 1.103 in Salesforce stock and should increase the combined group's sales by between $300 million and $400 million, the companies said, with a new forecast of between $16.45 billion and $16.65 billion, an increase of around 35% year-over-year. Salesforce's fiscal 2020 earnings will, however, likely be reduced by about 75 basis points, year-on-year, with non-GAAP earnings now pegged in a range of $2.51 to $2.53 per share, down from last week's forecast of $2.88 to $2.90 that followed stronger-than-expected first quarter earnings.
And Merck announced that it was planning to buy Tilos Therapeutics for over $770 million.
Tilos focuses on developing therapeutics for the treatment of cancer, fibrosis and autoimmune diseases, Merck said in a press release announcing the acquisition.
Taking this from an investing education angle, Cramer weighs in on the three signs that a merger or acquisition is a good match for both companies.
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