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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

August 12 Premarket Briefing: 10 Things You Should Know

Stocks in this article: AGN AMZN BNPQY BKS CZR DIA DIS EPB KMI KMP KMR NUAN QQQ SPY VRX WMT

NEW YORK (TheStreet) -- Here are 10 things you should know for Tuesday, Aug. 12:

1. -- U.S. stock futures were rosy early Tuesday across the board, as investors assessed potential changes to the energy field with the Kinder Morgan (KMI) reorganization foremost in mind.

European stocks shrank early Tuesday, as renewed uncertainty in the Ukraine helped push Germany‚Äôs market downwards and the French current account deficit gaped wider as a result of the huge fine French banking giant BNP Paribas  (BNPQY)  paid to U.S. regulators last month. The London market showed little movement.

Read More: The Keystone XL Pipeline Springs Another Leak

2. -- The economic calendar in the U.S. on Tuesday is relatively quiet, with the monthly Treasury budget appearing at 2 p.m.

3. -- U.S. stocks on Monday had strong intraday gains, but gave back much of those gains by the close. Markets took a breather from geopolitical concerns, as Russia appeared to step back from the brink over Ukraine and there were hopes that U.S. airstrikes in Iraq may have slowed the advance of Islamist rebels there. A renewed three-day ceasefire between Israel and Hamas in Gaza also played a role in the improved mood.

The Dow Jones Industrial Average (DIA) closed up 0.1%, to 16,569.98. The S&P 500 (SPY) rose 0.28% to 1,936.92. The Nasdaq (QQQ) jumped 0.7% to 4,401.33.

4. -- Houston-based oil pipeline company Kinder Morgan (KMI) announced that it will spend $71 billion to consolidate its master limited partnership empire of Kinder Morgan Energy Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB) into one company, traded under the ticker KMI. The deal is massive, and Wall Street spent all day digesting it.

Kinder Morgan stock rallied all day Monday, up 9% to $39.37. In premarket trading the stock gained another 0.2%. The soon-to-be-acquired stocks also rallied.

CEO Rich Kinder made $1.5 billion in share value alone yesterday. And the condensed stock will have a simpler structure, without the required dividend payouts for MLPs.

There may be larger implications for other MLP companies, and the energy sector will also need to figure out how the deal changes the landscape

Read More: Watch Out for a Swelling Wave of Exports From China to the World

5. -- Amazon (AMZN) is doubling down on its attempt to squeeze Walt Disney (DIS) for price concessions, blocking preorders for Captain America: The Winter Soldier and other DVDs. Online sales of home entertainment are about one-third of the market, and are a key source of profit for entertainment companies. Walmart (WMT) and Barnes & Noble (BKS) are still selling the DVDs as usual.

In its continued drive for low prices, Amazon has been in a months-long battle with book publisher Hachette in a bid to pay the publisher less for e-books. Writers have pushed back, suggesting that Amazon had misquoted Orwell and had pushed writers and publishers too hard.

Amazon is also in hot water for its $800 million in losses this quarter. Amazon's Jeff Bezos has long insisted on the long view on Amazon's profits. The question is whether Amazon is trying to get more concessions from publishers because the "everything store" increasingly needs to support its bottom line. And the hard-line tactics may boost rival retailers.

1 of 2

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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