Markets Open July With M&A Jolt and Earnings In Focus

Deal of the Day

Vertex Pharmaceuticals grabbed the spotlight Monday. It agreed to buy Crinetics Pharmaceuticals for $85 per share in cash. CRNX stock doubled on the news. Short interest had sat at 13.6% of free float before the deal — shorts were caught badly offside. Options traders scrambled to reprice the move. It is one of the sharpest M&A jolts of the summer.

Earnings Week Ahead

Delta Air Lines headlines Thursday. Morgan Stanley raised its target to $115 on Monday. Short interest is just 3.5% of free float — bears are largely absent. Investors want clarity on summer travel demand and fuel costs. PepsiCo reports Wednesday, with Levi Strauss also posting Q2 results that day. Tariff risks remain a live concern for apparel names.

Bears and Short Squeezes

Hertz is the week's most extreme short story. Short interest hit 60.8% of free float. Borrow availability has hit zero — a textbook squeeze setup. CoreWeave also drew fresh bears, with SI jumping to 29.4%. An AI founder sold $7.1M in stock, adding fuel to the short thesis.

Europe: Defence Conviction

German defence group Rheinmetall saw its CEO buy over $8M in stock across two trades last week. The purchases signal strong personal confidence in the rally. PIMCO and Moody's both flagged risks in private credit today — warning that AI disruption could stress software-heavy loan books and slow Asia's credit growth.

Analyst Watch

HSBC cut targets on Regeneron and Zoetis sharply today, flagging healthcare pressure. UnitedHealth got the reverse treatment — its target lifted to $380 from $300 as the managed care giant attempts a recovery.