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April 22 Premarket Briefing: 10 Things You Should Know

Updated from 6:46 a.m. EDT

Here are 10 things you should know for Tuesday, April 22:

1.
-- U.S. stock futures were pointing to a weaker start on Tuesday ahead of earnings from a number of sector heavyweights and home-sales data.

European stocks rose. Asian shares ended the session mixed; Japan's Nikkei 225 fell 0.9%.

2.-- The economic calendar in the U.S. on Tuesday includes existing-home sales for March at 10 a.m. EDT.

3.-- U.S. stocks on Monday closed higher as investors awaited critical earnings reports this week.

The Dow Jones Industrial Average added 0.25% to finish at 16,449.25, the S&P 500 gained 0.38% to 1,871.89 and the Nasdaq climbed 0.64% to close at 4,121.55. The gains marked the S&P's fifth straight positive session.

4. -- Valeant Pharmaceuticals (VRX) is teaming up with activist investor Bill Ackman in a bid for Allergan (AGN), the Botox maker, that could be worth about $40 billion.

The offer was confirmed Tuesday by Valeant.

Ackman's Pershing Square Capital Management said it owns a 9.7% stake in Allergan worth $4.1 billion. Ackman's stake would make an Allergan deal worth around $40 billion.

Valeant shares rose 11.3% in premarket trading to $140.30. Allergan rose 21.9% to $173.15.

5. -- Switzerland's Novartis (NVS) agreed to buy GlaxoSmithKline's (GSK) cancer-drug business for $14.5 billion, plus up to $1.5 billion more if certain milestones are met, and to divest most of its vaccines business to Glaxo for $7.1 billion, plus royalties.

The two drugmakers also are creating a new consumer health care business through a joint venture. 

Novartis also said it would sell off its animal health division to Eli Lilly (LLY) for about $5.4 billion.

Novartis shares were up 1% in premarket trading to $86.34; GlaxoSmithKline shares rose 4.4% to $55.48; Lilly shares fell 3.1% to $59. 

6. -- Netflix (NFLX - Get Report), the online entertainment company, posted mixed first-quarter results on Monday and said it topped 35 million streaming subscribers. The company also announced a price increase for new members.

Netflix earned 86 cents a share on revenue of $1.27 billion in the first quarter; analysts were expecting earnings of 83 cents a share on revenue of $1.27 billion.

Netflix said streaming margins hit 25.2% in the first quarter. 

CEO Reed Hastings said there would be an increase for new members of $1 or $2, depending on the country.

Netflix shares rose 6.9% in premarket trading to $372.50.

7. -- Ford (F) will soon name Mark Fields its next CEO and reveal when current CEO Alan Mulally will retire from the company he is credited with saving, Bloomberg reported, citing two people familiar with the pending announcement.

Mulally, 68, will step down before the end of the year and be succeeded by Fields, 53, now chief operating officer, according to the people. The automaker may announce the moves as soon as May 1, the people told Bloomberg.

Ford fell 0.1%.

8. -- Comcast (CMCSA - Get Report) posted first-quarter adjusted earnings of 68 cents a share, ahead of forecasts of 64 cents. Revenue rose 14% to $17.41 billion.

The stock rose 0.7% to $50.22 in premarket trading.

9. -- AT&T (T) is expected by analysts to post earnings of 70 cents a share in the first quarter on revenue of $32.44 billion.

10. -- McDonald's (MCD) posedt first-quarter profit of $1.21 share, below estimates of $1.24 a share.

-- Written by Joseph Woelfel

To contact the writer of this article, click here:Joseph Woelfel

To submit a news tip, send an email to:tips@thestreet.com.

Follow @josephwoe58

 

Copyright 2014 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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