This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

May 19 Premarket Briefing: 10 Things You Should Know

Stocks in this article: AAPLPFEAZNTDTVGOOGFBURBN

Updated from 6:40 a.m. EDT:

Here are 10 things you should know for Monday, May 19:

1. 
-- U.S. stock futures were pointing to a lower start for Wall Street on Monday amid major deals news and after Asian stocks declined.

European stocks fell. China's Shanghai Composite Index fell 1.1% month-on-month gains in housing prices in China slowed to 0.1% in April from March's 0.3%. Tokyo's Nikkei 225 slid 0.6%.

2. 
-- The economic calendar in the U.S. on Monday is bare.

3. -- U.S. stocks on Friday closed in positive territory, shaking off poor consumer sentiment data as small caps and Internet stocks picked up in the final hour of trading.

The Dow Jones Industrial Average gained 0.27% to close at 16,491.31, while the S&P 500 increased 0.37% to 1,877.86. The Nasdaq rose 0.52% to finished at 4,090.59.

4. -- AT&T (T) said it would buy DirecTV  (DTV) for $48.5 billion in cash and stock, or $95 a share.

While DirecTV doesn't help the telecom company compete in the online video space immediately, cost savings from the merger and the extra cash flow will improve AT&T's ability to compete with the cable giant that would be formed by Comcast's (CMCSA) proposed $45 billion takeover of Time Warner Cable (TWC).

With 5.7 million U-verse TV customers and 20.3 million DirecTV customers in the U.S., the combined AT&T-DirecTV would serve 26 million. That would make it the second-largest pay TV operator behind a combined Comcast-Time Warner Cable, which would serve 30 million under a $45 billion merger proposed in February.

AT&T is already the largest mobile service provider in the U.S., serving 116 million customers compared to Verizon's 103 million.

"What it does is it gives us the pieces to fulfill a vision we've had for a couple of years -- the ability to take premium content and deliver it across multiple points: your smartphone, tablet, television or laptop," AT&T's Chairman and CEO Randall Stephenson said on a conference call with journalists Sunday.

AT&T shares fell 2.4% in premarket trading to $35.87. DirecTV shares fell 0.09% to $86.10.

5. -- AstraZeneca's (AZN) board rejected Pfizer's (PFE) improved $119 billion takeover offer, saying it "reiterates its confidence in AstraZeneca's ability to deliver on its prospects as an independent, science led business." 

Pfizer has been courting U.K. drugmaker AstraZeneca since January, On Sunday, Pfizer said it was ready to raise its stock-and-cash offer by 15% to $118.8 billion.

Pfizer has said it won't raise the offer again or launch a hostile takeover bid for AstraZeneca. Pfizer has said it hopes AstraZeneca's shareholders will push for a deal.

AstraZeneca shares fell 10.6% in premarket trading to $71.81. Pfizer rose 2% to $29.70.

6. -- Apple (AAPL) and Google  (GOOG) said they are dropping nearly two dozen lawsuits in U.S. and European courts against each other. The disputes revolved around the operating systems Apple uses for its iPhone and Google's Android software as well patent infringement accusations from Motorola Mobility, which Google acquired two years ago.

Apple fell less than 1% in premarket trading on Monday while Google fell 0.5%.

7. -- Facebook (FB) is taking on Snapchat and has been working for several months on a video-chat app, known internally as Slingshot, with a simple and speedy user interface, people familiar with the plans told The Financial Times.

Facebook CEO Mark Zuckerberg has been overseeing the top-secret project after failing to woo Snapchat's creators Evan Spiegel and Bobby Murphy with a $3 billion takeover offer late last year, the newspaper reported. 

Facebook fell 0.03% in premarket trading to $58.

8. -- Google's YouTube has reached a deal to buy Twitch, a videogame-streaming company, for more than $1 billion, Variety reported, citing sources familiar with the pact.

The deal, in an all-cash offer, is expected to be announced imminently, sources said. If completed, the acquisition would be the biggest for YouTube, which Google acquired in 2006 for $1.65 billion. 

9. -- Urban Outfitters (URBN) is forecast to report on Monday first-quarter earnings of 27 cents a share on sales of $680.2 million.

10. -- "Godzilla," the 3-D movie from Warner Bros. and Legendary Pictures had the second-largest debut of the year this weekend with $93.2 million, according to studio estimates.

"Godzilla" trails Disney-Marvel's "Captain America: The Winter Soldier," which opened with $95 million last month.

-- Written by Joseph Woelfel

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

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,715.91 +254.59 1.55%
S&P 500 1,953.38 +26.27 1.36%
NASDAQ 4,455.7340 +72.8870 1.66%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs