Zaid Admani

Shares of the company USA Rare Earth are surging this morning after the company announced that the US government is taking a 10% stake in the company.

Now, in exchange for the 10% stake, the US Department of Commerce is giving the company $277 million in federal grants and $1.3 billion in government-backed debt financing.

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Rare Earths says they'll use this money to build a magnet manufacturing facility in Oklahoma and a rare earth mineral mine in Texas.

You know, this investment is part of the Trump administration's broader push to make the U.S.

more self-sufficient on critical supply chains like Rare Earths.

We've already seen the administration take similar equity stakes in companies like MP Materials, Lithium Americas, and Trilogy Metals.

Investors clearly love it.

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Rare Earths stock is up 20% this morning in reaction to this news.

Now, on the flip side, shares of Revolution Medicines are getting absolutely crushed today after the pharma giant Merck officially walked away from acquisition talks.

According to the Wall Street Journal, Merck and Revolution had been discussing a deal valuing Revolution at $30 billion, but the talks collapsed after the two sides couldn't agree on price, and that's sending the stock of Revolution's medicine down by 20% this morning.

Now, Revolutions is expected to release trial data around their treatment sometime in the first half of this year.

And if that ends up delivering, it could be a blockbuster therapy.

Some analysts believe that Revolutions' lead drug alone could generate tens of billions of dollars in annual sales if successful.

But I think investors are getting nervous because Merck is walking away from the acquisition.

And I wonder if it's a sign that Merck doesn't think the trial results will be good.

Something to keep an eye on, but investors are definitely bailing on the stock today.

Let's wrap the show with a fun fact.

The UFC debuted on Paramount Plus this past weekend, and fans were not happy because of all the ads.