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  • 🧱 Pentagon Buys $400M Of Stock

🧱 Pentagon Buys $400M Of Stock

+ Ferrero Acquires WK Kellogg for $3.1B in Major U.S. Cereal Deal

July 11, 2025

Good Morning! The infamous Bahamas music fest that promised luxury villas and delivered cheese sandwiches is getting a second life - on eBay. Billy McFarland, fresh out of prison, is auctioning off the Fyre Festival brand starting at one cent, claiming it still holds marketing gold. He says the name has racked up 32 billion impressions and could fuel merch drops, livestreams, or even a media brand.

One media exec has already grabbed some Fyre trademarks for a streaming venture but passed on reviving the actual fest. Whether Fyre rises from the ashes or burns buyers again depends on who hits “Place Bid” next.

MARKETS

  • The S&P 500 closed at a new high, rising 0.3% thanks to strong jobless claims data, a solid Delta earnings kickoff, and a well-received 30-year bond auction. The Dow rose 0.4%, and the Nasdaq tagged its second straight all-time high.

  • Bitcoin hit a fresh record, while the Russell 2000 added 0.5% to continue its Q3 climb. Tech and communication stocks lagged, with the Nasdaq 100 slipping 0.2% despite Nvidia ticking higher.

STOCKS
Winners & Losers

What’s up 📈

  • MP Materials soared 50.62% after the U.S. Defense Department announced it would buy $400 million in preferred stock, becoming the miner’s largest economic shareholder. ($MP)

  • WK Kellogg popped 30.63% after Ferrero agreed to acquire the cereal brand for $3.1 billion, or $23 per share in cash. ($KLG)

  • ProKidney climbed 19.35%, continuing its biotech breakout after posting strong results for a diabetes treatment trial. ($PROK)

  • Hertz Global jumped 11.78% as retail traders pushed the meme stock even higher. The stock is now up over 118% year to date. ($HTZ)

  • Delta Air Lines rose 11.99% after reinstating its 2025 profit outlook and topping Q2 revenue and earnings estimates. ($DAL)

  • Trex gained over 6.39% after Baird upgraded the building materials stock to outperform, citing rising demand for decking. ($TREX)

  • Estée Lauder rose 6.34% after Bank of America issued a buy rating and forecast 27% upside from its previous close. ($EL)

  • Tesla rebounded 4.73% after Elon Musk teased robotaxi expansion into the Bay Area and the rollout of Grok, Tesla’s in-car AI assistant. ($TSLA)

  • Freeport-McMoRan and Southern Copper gained 3.55% and 2.34%, respectively, after Trump announced copper tariffs set to take effect August 1. ($FCX, $SCCO)

  • Advanced Micro Devices moved 4.15% higher after HSBC upgraded it to buy and highlighted pricing upside for its newest AI chips. ($AMD)

What’s down 📉

  • Ultragenyx and Mereo BioPharma plunged 25.11% and 42.52%, respectively, after releasing disappointing results for their rare bone disease treatment trial. ($RARE, $MREO)

  • Helen of Troy tumbled 22.71% after forecasting Q2 earnings well below expectations and citing “tariff-related impacts” as a major drag. ($HELE)

  • Autodesk fell 6.89% and PTC dropped 7.55% after reports surfaced that Autodesk is considering acquiring the rival software firm. ($ADSK, $PTC)

  • Embraer declined 4.65% after Trump imposed a 50% tariff on Brazilian imports. The broader iShares MSCI Brazil ETFalso slipped 1%. ($ERJ, $EWZ)

  • Vertiv lost 5.96% after Amazon unveiled its own liquid cooling tech, stoking fears of competitive pressure in the AI hardware space. ($VRT)

  • Mobileye slid more than 3.75% after pricing a secondary stock offering at a discount to its previous close. ($MBLY)

STOCK
Pentagon Invests $400M in MP Materials to Build U.S. Rare Earth Magnet Supply Chain

The U.S. military just made its biggest move yet to pry rare earth control away from China. The Pentagon is investing $400 million into MP Materials, America’s sole rare earths miner, snapping up a 15% stake and becoming the company’s largest shareholder. The goal? Build a domestic magnet manufacturing powerhouse that doesn’t need Beijing’s blessing to function.

The deal includes a decade-long purchase agreement: The Defense Department will buy every single magnet produced at a new $1 billion facility backed by JPMorgan and Goldman Sachs. MP’s stock exploded 50% on the news. The plant dubbed the “10X Facility” is expected to be online by 2028 and will churn out 10,000 metric tons of neodymium-praseodymium magnets annually, enough to power U.S. fighter jets, submarines, and EV motors.

Decoupling by Design

Rare earths are the oil of modern warfare and clean tech. But right now, China mines 70% of them and processes 90%—giving it enormous leverage. When Trump escalated tariffs earlier this year, Beijing flexed its dominance by restricting rare earth exports. Some U.S. factories were even forced to pause operations. The Pentagon’s latest move isn’t just industrial policy—it’s economic self-defense.

The structure of the investment convertible preferred shares, a price floor of $110/kg, and guaranteed government demand—reflects how serious the U.S. is about building supply chain independence. Analysts are calling it “transformative,” not just for MP, but for the entire U.S. magnet industry, which has long been stifled by China’s undercutting tactics and America’s own environmental red tape.

Zoom out: For decades, rare earth projects in the U.S. struggled under regulatory costs and China's market manipulation. This new plan doesn’t just revive domestic mining, it funds a full end-to-end system: from mine to magnet to missile.

NEWS
Market Movements

ACQUISITION
Ferrero Acquires WK Kellogg for $3.1B in Major U.S. Cereal Deal

Move over Nutella, Ferrero is adding Froot Loops to its pantry. The Italian candy giant just struck a $3.1 billion deal to acquire WK Kellogg, the cereal maker behind childhood staples like Frosted Flakes and Rice Krispies. The $23-per-share all-cash deal represents a roughly 31–40% premium, depending on which premarket surge you measure from. Kellogg stock soared over 30% on the news.

For Ferrero, this marks another bite into the U.S. grocery aisle. Already known for buying up Keebler, Famous Amos, and Nestlé’s U.S. candy business, Ferrero is betting that even in a world shifting to Greek yogurt and protein bars, there's still room for nostalgia-fueled carbs especially if they come with reliable cash flow. WK Kellogg’s recent financials have been rocky, but analysts say Ferrero’s global footprint and deeper pockets could revitalize the sleepy cereal category.

The Cereal Wars Just Got Crunchier

WK Kellogg, spun off in 2023 to focus on North American cereals while parent Kellogg became snack-focused Kellanova, has had a rough run. Volume’s been weak, revenue guidance cut, and sugar-packed cereals are increasingly under fire from health-conscious consumers and from regulators like RFK Jr., who’s blasted artificial dyes. But Ferrero sees opportunity: a stable revenue base, iconic brands, and a strategic U.S. foothold in a consolidating industry.

The deal fits a broader trend of packaged food M&A as companies try to offset commodity shocks (hello, cocoa prices) and navigate Trump-era tariffs. Ferrero, which started as a pastry shop in post-war Italy, is now a global juggernaut with Kinder, Tic Tac, and $21.5 billion in annual revenue. This deal could mark a turning point for WK Kellogg or just another sugary trophy for Ferrero’s U.S. takeover tour.

Bottom line: Ferrero’s cereal play may seem retro, but it’s a sharp bet on brand equity, consolidation, and U.S. shelf space. It’s also proof that while consumers might cut sugar, Wall Street still loves a sweet deal.

Calendar
On The Horizon

Today

Friday’s federal budget report is expected to draw extra scrutiny as Wall Street digests the impact of Trump’s sweeping tax cuts. The big question: Just how deep is the hole getting?

Despite a bump from tariff revenues, interest payments on the national debt continue to eat up the budget. In May alone, the U.S. shelled out $92 billion in interest more than it spent on anything except Medicare and Social Security.

NEWS
The Daily Rundown

  • 🌎 Trump Announces 50% Tariff on Brazil: President Trump unveiled a 50% tariff on Brazilian imports, citing political “witch hunts” against ex-president Jair Bolsonaro and unfair trade dynamics. Brazil plans to retaliate. Trump also issued tariff threats to seven more countries, ranging from 20% to 40%.

  • 📈 U.S. Measles Cases Hit 33-Year High: The CDC reports 1,288 measles cases so far in 2025 already the highest since 1992. A Texas outbreak caused the year’s first U.S. measles deaths in a decade, driven largely by falling vaccination rates.

  • 🏦 Fed Officials Split on Rate Cuts: The Fed’s June meeting minutes reveal internal disagreement over the timing and number of interest rate cuts. Ten officials expect two or more, two expect one, and seven see none. Tariff-driven inflation remains a key concern.

  • 💻 Nvidia Briefly Hits $4T Valuation: Nvidia became the first company to cross a $4 trillion market cap, though it closed just shy at $3.97T. A 74% rebound since April helped erase earlier losses, driven by surging AI demand and market confidence. Analysts say $6T by 2028 isn’t out of reach.

  • 🌯 McDonald’s Revives Snack Wrap: McDonald’s is bringing back the beloved Snack Wrap for $2.99 in a bid to win back budget-conscious customers. Alongside new spicy McMuffins, the move comes after its worst U.S. quarter since 2020. Tariff tensions and international boycotts continue to weigh on global sales.

  • 🧠 OpenAI Building Browser, Acquires Jony Ive’s Startup: OpenAI is reportedly launching an AI browser to rival Chrome, combining chat agents with web navigation. It also finalized a deal to acquire Jony Ive’s hardware startup, signaling a broader push into consumer tech.

  • 🖱 Court Blocks FTC’s “Click-to-Cancel” Rule: A federal appeals court struck down the FTC’s new rule requiring easy online subscription cancellations. The court cited procedural missteps, delaying consumer-friendly changes while legal wrangling continues.

  • 🏁 Christian Horner Ousted by Red Bull: After 20 years and multiple F1 championships, Red Bull fired team principal Christian Horner. Despite surviving misconduct probes, internal tension and a slump in performance led to his ouster. Laurent Mekies will take over as the team seeks a reboot.

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