Rocket Companies (NYSE: RKT) has announced the acquisition of Mr. Cooper in an all-stock transaction valued at $9.4 billion.

The deal comes just weeks after Rocket’s acquisition of real estate listing company Redfin, signaling an aggressive expansion strategy.

Shares of Mr. Cooper surged more than 27% pre-market following the announcement.

On market open, the stock was up by more than 16%.

However, Rocket Companies was down by more than 7%.

Under the terms of the agreement, Mr. Cooper shareholders will receive 11 Rocket shares for each share of Mr. Cooper common stock.

This value Mr. Cooper shares at $143.33 based on Rocket’s closing price as of March 28, 2025, representing a 35% premium over Mr. Cooper’s 30-day volume-weighted average price.

Once finalized, Rocket shareholders will own approximately 75% of the combined company, while Mr. Cooper shareholders will hold the remaining 25%.

A combined servicing portfolio of $2.1 trillion

With the acquisition, Rocket will significantly expand its mortgage servicing business.

The combined company will oversee a servicing book of $2.1 trillion across nearly 10 million clients, representing one in every six mortgages in the US

Rocket aims to leverage its mortgage recapture capabilities to enhance long-term customer relationships and drive higher loan volumes.

“Servicing is a critical pillar of homeownership – alongside home search and mortgage origination,” said Varun Krishna, Rocket CEO.

“With the right data and AI infrastructure we will deliver the right products at the right time. That’s how we build lifelong relationships, by proactively unlocking benefits and meeting needs before they arise. We look forward to welcoming Mr. Cooper’s nearly 7 million clients.””

Mr. Cooper Chairman and CEO Jay Bray echoed this sentiment, emphasizing the complementary strengths of the two companies.

“By combining Mr. Cooper and Rocket, we will form the strongest mortgage company in the industry,” Bray said.

“We are creating an end-to-end homeownership experience backed by leading technology and customer care.”

Revenue growth and cost synergies

The deal is expected to generate significant financial benefits.

Rocket anticipates an additional $100 million in pre-tax revenue due to improved mortgage recapture rates and the integration of its title, closing, and appraisal services into Mr. Cooper’s operations.

Additionally, the company projects $400 million in pre-tax cost savings from streamlining operations, reducing corporate expenses, and optimizing technology investments.

Following the acquisition, Rocket’s combined servicing portfolio will generate steady earnings growth regardless of interest rate fluctuations.

In 2024, the two companies’ servicing businesses collectively generated $4 billion in revenue.

Rocket has a history of strong client retention, boasting an 83% mortgage recapture rate—triple the industry average.

The acquisition of Mr. Cooper is expected to enhance this figure further, leveraging data from nearly 7 million additional clients and 150 million annual customer interactions.

Outlook and regulatory approvals

The transaction, subject to regulatory approvals and shareholder votes, is expected to close by early 2026.

Mr. Cooper will also pay a $2.00 per share dividend to its shareholders before the deal’s completion.

With this acquisition, Rocket aims to reinforce its position as a dominant force in the U.S. mortgage industry, delivering an integrated and data-driven homeownership experience.

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Investors were nervous about US President Donald Trump’s tariff plans, which caused the S&P 500 to fall on Monday and enter correction territory. 

However, the index recovered its losses from earlier in the day and was trading flat. 

At the time of writing, the S&P 500 index was largely unchanged, while the Nasdaq Composite fell 1.3% from the previous close.

The Dow Jones Industrial Average rose 0.2%. 

NVIDIA and Meta Platforms led the market lower, falling 4% and 1%, respectively. Tesla also experienced a 4% loss.

Tech stocks, spurred by rising artificial intelligence sentiment, have been unable to recapture last year’s meteoric rise.

“The weakness follows on from Friday’s session, which saw a significant sell-off,” David Morrison, senior market analyst at Trade Nation, said. 

Coca-Cola and Walmart are two Dow components that saw gains as investors sought safety. Meanwhile, NVIDIA, an AI darling, has fallen more than 31% from its 52-week high.

Starting on Wednesday, which President Trump has referred to as “Liberation Day,” several tariffs previously announced by the Trump administration, including a 25% levy on all cars not manufactured in the United States, will take effect. 

Additionally, the president is anticipated to reveal his strategy for reciprocal duties targeting nations that place tariffs on imports from the US on April 2.

Morrison said:

It’s a big week for labour market data, ending with Non-Farm Payrolls on Friday. But it will be tariff news that will dominate the headlines ahead of ‘Liberation Day’ on Wednesday.

The stock market’s positive trajectory in mid-March, with the S&P 500 recovering from a correction, reversed sharply on Monday.

Newsmax surges

Newsmax, the conservative cable news network, experienced a surge of over 500% in its stock price on its first day of trading on the New York Stock Exchange on Monday.

The stock, which was initially priced at $10 per share, opened at $14 and was last trading around $66 per share.

The company’s decision to go public, announced last September, comes at a time of uncertainty for the traditional cable news industry. 

Newsmax, however, has seen a consistent rise in ratings following President Donald Trump’s re-election for a second term.

“I think there was a demand for more competition against Fox,” Newsmax CEO and founder Christopher Ruddy was quoted in a CNBC report.

I think it’s a pretty big achievement for a 10-year-old, new cable company.

Moderna tumbles

Moderna’s stock price fell 8% after Peter Marks, the FDA’s top vaccine regulator, resigned. 

Marks cited “misinformation and lies” about immunization as the reason for his departure. 

This has raised concerns about the Trump administration’s ability to quickly approve and promote essential vaccines, leading to investor uncertainty and a drop in Moderna’s stock price. 

This is a significant concern given the ongoing COVID-19 pandemic and the critical role vaccines play in mitigating its spread.

Canada Goose slips

Canada Goose, the renowned Canadian outerwear company, experienced a significant drop in its share prices, plummeting by over 6% and reaching a new 52-week low. 

This decline was triggered by Barclays’ decision to downgrade the stock from equal weight to underweight. 

The Wall Street firm attributed this downgrade to a multitude of factors, including the prevailing global macro pressure, escalating competition within the outerwear industry, and the potential adverse effects of tariff exposure. 

These concerns have raised significant doubts about the company’s prospects and its ability to navigate the challenging global economic landscape.

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Newsmax, the conservative cable news network, made its public debut on the New York Stock Exchange on Monday, defying market trends with an explosive opening.

Trading under the symbol “NMAX,” the stock opened at $14 after being priced at $10 per share.

By midday, it had soared more than 500% in volatile trading, attracting comparisons to past speculative frenzies seen in so-called meme stocks.

The IPO raised $75 million through the sale of 7.5 million Class B shares, marking a rare instance of a standalone television network going public in the US.

Dealogic data indicates that no comparable cable news IPO has occurred in recent decades.

Newsmax’s listing comes at a time when traditional cable television faces increasing pressure from streaming platforms.

Yet, live news and sports continue to draw strong viewership, making them attractive targets for advertisers.

The network’s audience has expanded in recent years, fuelled by the rise of Donald Trump and other right-wing politicians.

Retail investors drive speculation in NMAX

The dramatic surge in Newsmax’s stock price quickly caught the attention of retail traders.

Online forums and social media platforms, including Reddit and Stocktwits, saw a wave of posts likening the stock to GameStop’s 2021 rally.

One Reddit user commented that Newsmax shares were being “sent to the moon,” a reference to the speculative trading craze that drove up struggling stocks like GameStop and AMC Entertainment.

While institutional investors have been cautious about Newsmax’s financial health, retail traders appeared undeterred.

The network reported a loss of more than $55 million in the first half of 2024 on a revenue of $80 million, according to regulatory filings.

It also listed $142 million in total liabilities against $69 million in assets.

The surge in Newsmax’s stock price mirrors past IPO booms that saw early sky-high valuations collapse over time.

Analysts noted that two dozen companies that posted similar 300%-plus gains on debut have since fallen by an average of 85% from their IPO prices.

A challenger to Fox News

Christopher Ruddy, Newsmax’s founder and CEO, described the IPO as a strategic move to position the network as a competitor to Fox News.

“I think there was a demand for more competition against Fox,” Ruddy said on CNBC’s “Squawk Box” on Monday.

He emphasized that while Fox dominates right-wing media, Newsmax had carved out its own audience as the fourth-largest cable news network behind CNN, MSNBC, and Fox News.

Nielsen ratings confirm that Newsmax consistently ranks fourth in cable news viewership, and overall, it is among the top 20 cable networks in both prime-time and daytime ratings.

Newsmax initially started as a digital news outlet in 1998 before evolving into a cable channel in 2014.

The company has grown its revenue model by securing licensing fees from major pay-TV providers.

In 2023, it resolved a dispute with DirecTV, which had briefly dropped Newsmax over fee negotiations.

Analysts question long-term viability

Despite the initial stock frenzy, analysts caution that Newsmax’s business model faces challenges.

Traditional cable news networks have struggled with declining subscriptions as more viewers turn to streaming.

Fox News, CNN, and MSNBC have diversified their offerings, while Newsmax remains heavily reliant on cable distribution.

The company’s pro-Trump reputation has also drawn scrutiny.

Last year, Newsmax reached a $40 million settlement with Smartmatic over false claims that the voting machine company rigged the 2020 election.

However, Ruddy sought to downplay Newsmax’s political leanings during the IPO launch.

“We believe we’re conservative with an independent news mission and ask tough questions of the Trump administration,” he said.

Following Newsmax’s market debut, Trump personally called Ruddy to discuss the company’s future.

In a social media post, Ruddy shared that their conversation touched on the IPO, adding: “I shared with Potus my new saying: ‘A rising Trump lifts all boats!’”

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The AUD/USD exchange rate remained under pressure on Tuesday after the Reserve Bank of Australia (RBA) delivered its second interest rate decision of the year. It was trading at 0.6245, down slightly from the year-to-date high of 0.6390. So, what’s ahead for the Aussie ahead of the US jobs numbers and Liberation Day tariffs?

RBA interest rate decision

The AUD/USD exchange rate moved sideways after the RBA concluded its two-day meeting and left interest rates unchanged. 

It left the official cash rate at 4.1% as it solidified its state as the most hawkish central bank in the developed world. 

Unlike other major central banks, the RBA left interest rates unchanged in 202, even as the economy slowed down and consumer inflation moved downwards. 

The RBA delivered its first interest rate cut in the last meeting, moving it from 4.35% to 4.1%. In its Tuesday’s meeting, officials decided to leave interest rates unchanged at 4.1%, noting that it wanted to see more evidence that inflation was moving downwards. The statement added:

“The assessment is that monetary policy remains restrictive. The continued decline in underlying inflation is welcome, but there are risks on both sides and the Board is cautious about the outlook.”

Recent economic numbers have painted a mixed picture about the Australian economy. The labor market remains tight, with the unemployment rate moving at 4.1%, while inflation has moved inside the RBA’s target range of between 2% and 3%. 

Consumer spending has ticked up as inflation retreated. While these are important developments, the RBA is concerned that long-term inflation expectations are still high.

Trump Liberation Day tariffs 

The next key catalyst for the AUD/USD pair will be the upcoming Liberation Day tariffs by Donald Trump. 

These tariffs will greatly impact most economies, especially those with a large trade surplus with the United States. 

On the positive side, Australia runs a trade deficit with the US, meaning that the Trump administration may not target it.

However, the administration will target countries like China that do a lot of business with Australia. These tariffs, could, in theory, affect companies’ prices of top commodities like iron ore as steel demand falls. 

US NFP data ahead

The next key catalyst for the AUD/USD pair will be the upcoming nonfarm payrolls (NFP) data on Friday. This is important data that measures the health of the US economy. 

Economists expect that these numbers will show that the headline the economy created over 140k jobs, while the unemployment rate remained unchanged at 4.1%. 

While important, these numbers will likely have a limited impact on the Federal Reserve, which is focusing more on inflation instead of the labor market. 

The US will release some flash jobs numbers before Friday’s NFP figure. The Bureau of Labor Statistics (BLS) will publish the latest JOLTS job openings repair on Tuesday, while ADP will release the private payrolls data.

AUD/USD technical analysis

AUDUSD chart | Source: TradingView

The four-hour chart shows that the AUD/USD exchange rate has come under pressure in the past few months. It has dropped from a high of 0.6390 in April to the current 0.6255. 

The pair formed a double-top pattern at 0.6390, and whose neckline was at 0.6188. A double-top is one of the most bearish signs in the market. 

The AUD/USD pair has also moved below the 50-period moving average, a sign that bears are in control.

Therefore, the outlook is bearish, with the next point to watch being at 0.6188, the neckline of this pattern, which is 1.10% below the current level.

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Gold prices surged to an all-time high on Tuesday, fueled by growing anxieties that US President Donald Trump’s planned reciprocal tariffs will trigger inflationary pressures and hinder global economic growth.

The move reflects a flight to safety as investors seek refuge from mounting uncertainty.

As of 0310 GMT, spot gold was trading up 0.6% at $3,142.83 an ounce, after hitting a record high of $3,145.38 earlier in the session. US gold futures also climbed, rising 0.7% to $3,171.80.

This rally follows a remarkable performance in the previous quarter, where bullion recorded its strongest gains since 1986, marking a significant upswing in the precious metal’s fortunes.

“The anticipation of the April 2 US reciprocal tariffs has led market participants to lean towards a defensive stance, with some de-risking and turning to safe-haven gold as a hedge against impending portfolio volatility,” explained IG market strategist Yeap Jun Rong.

While technical indicators may suggest that gold is overbought in the near term, the uncertainty surrounding Trump’s “Liberation Day” tariff announcement is likely to sustain its upward trajectory.

Buyers appear to be targeting a retest of the $3,200 level, Rong added.

Trump, who views tariffs as a tool to protect the domestic economy from unfair global competition, has promised to unveil a sweeping tariff plan on Wednesday.

These reciprocal tariffs are expected to affect all nations.

Markets are also closely watching the impending automobile tariffs, set to take effect on April 3.

Gold’s safe-haven appeal: thriving in a low-rate environment

Gold, traditionally viewed as a safe haven during times of geopolitical and economic turmoil, tends to flourish in a low-interest-rate environment.

New York Federal Reserve President John Williams recently stated that maintaining current interest rate levels “for some time” will allow officials to carefully analyze incoming data and determine the appropriate course of action.

This week’s US economic data, including job openings, the ADP employment report, and the non-farm payrolls report, could provide valuable insights into the Federal Reserve’s future rate-cut strategy.

Spot silver edged up 0.2% to $34.13 an ounce, while platinum remained flat at $992.70. Palladium experienced a more significant gain, rising 0.8% to $990.34.

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