Updated from 5:53 a.m. EDT with Deere earnings.

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Here are five things you must know for Friday, Aug. 19:

1. -- Viacom's  (VIAB - Get Report)  board approved a settlement that will end Philippe Dauman's 11 years as CEO, said sources close to the discussions. 

The agreement, which is expected to be made official on Friday, will make clear that Viacom is controlled by 93-year-old Sumner Redstone, the company's ailing chairman emeritus, and his daughter Shari, its vice chairwoman, who had feuded bitterly with Dauman in recent years. Dauman, who has worked with the elder Redstone since 1986, is expected to relinquish his post at Viacom with a severance package as high as $72 million. 

Chief Operating Officer Tom Dooley, 59, is expected to be named interim CEO of Viacom through at least September. Dauman, 62, will hold the position of non-executive chairman until Sept. 13.

Pending court approval, lawsuits filed by Dauman and another Viacom board member, George Abrams, against the Redstones in Massachusetts and Delaware are expected to be withdrawn. Similarly, lawsuits filed in Delaware will also be ended. Five new directors backed by the Redstones will be added to the Viacom board, which will number as many as 15 until the company holds its next annual meeting in early 2017.

2. -- Emerson Electric  (EMR - Get Report) agreed to buy Pentair's (PNR - Get Report) valves and controls business, which is based in Switzerland, for $3.15 billion in cash. 

The deal, announced late Thursday, comes nearly four years after Pentair acquired the business through an all-stock merger with Tyco International's flow controls business in a deal that valued the combination at $4.9 billion, including net debt and minority interest. 

Pentair's valves and controls business had 2015 revenue of $1.8 billion and employs nearly 7,500 people. It supplies industries including petrochemicals, oil and gas and mining with product brands such as Anderson-Greenwood, Crosby, Vanessa, Keystone and Biffi.

Emerson's acquisition comes a little more than three weeks after the company announced two disposals worth more than $5 billion.

Shares of Emerson Electric fell 1.5% in premarket trading.

3. -- Gap (GPS - Get Report)  reported that second-quarter same-store sales fell 2%, on top of a 2% drop a year earlier, as the struggling retailer was unable to ride the resurgence seen recently at department store such as Macy's, Kohl's and Nordstrom.

Same-store sales fell 3% at Gap, plunged 9% at Banana Republic and were unchanged at Old Navy. 

"We think Gap's valuation proposition is no longer competitive, and two of its major brands (Gap and Banana Republic) have lost relevance with consumers. These are not easily fixable near-term, leaving us confident Gap will continue to cede market share like the department stores and teen retailers," wrote Morgan Stanley analyst Kimberly Greenberger ahead of the results.

Gap's earnings came in at 60 cents a share, narrowly beating Wall Street estimates for 59 cents a share. The company issued full-year earnings guidance of $1.87 to $1.92 a share, down from $2.20 to $2.25 a share to start the year. 

Gap shares fell 5% in premarket trading on Friday.

In other earnings news, Applied Materials (AMAT - Get Report)  posted better-than-expected third-quarter earnings and strong guidance for the fourth quarter. The stock was jumping 6.2% in premarket trading on Friday.

Deere (DE - Get Report) posted fiscal third-quarter profit of $1.55 a share, blowing past estimates of 94 cents. The stock rose 1.4% in premarket trading.

4. -- U.S. stock futures were declining and European stocks traded to the downside as the rally in oil prices fizzled early Friday.

Crude oil in the U.S. fell 0.2% to $48.13 a barrel. Oil ended Thursday up 3%, extending a rally into a sixth session.

The economic calendar in the U.S. Friday includes the Baker Hughes Rig Count at 1 p.m. EDT.

U.S. stocks on Thursday rose and the S&P 500 closed just points from its record high as the oil rally distracted Wall Street from uncertainty over the Federal Reserve's rate-hike plans.

5. -- A federal judge rejected a legal settlement that would have divided up to $100 million among about 380,000 Uber drivers to resolve claims the ride-hailing service has been exploiting them by treating them as independent contractors instead of employees, the Associated Press reported.

U.S. District Judge Edward Chen declared the deal unfair in a decision issued late Thursday, complicating Uber's efforts to remove the legal threat of having its drivers classified as employees.

That distinction would give Uber's drivers more rights and benefits. That would in turn force the San Francisco company to change its business in ways that would cause its expenses to soar and potentially undercut its plans to eventually sell its stock in an initial public offering.

Uber said in a statement it was disappointed with Chen's ruling and said it will consider its options. The alternatives include taking the case to trial, awaiting rulings in two appeals that would bolster Uber's cause, or negotiating a revised settlement with the drivers in an attempt to appease Chen, according to the AP.