Retail earnings queue up
U.S. stock futures were pointing higher on Tuesday morning after all three major indices started the week with losses, pulled down by communication, utilities and technology stocks.
First-quarter earnings season is winding down, with traders yet to see results from major retailers. Walmart (NYSE: WMT), Home Depot (NYSE: HD), and Macy’s (NYSE: M) are all scheduled to publish their earnings before the opening bell.
By 5:30 a.m. ET, Dow futures suggested a gain of 79 points, or 0.23% to 34,335. S&P 500 futures added 13.13 points, or 0.32% to 4,170.88 while the tech-heavy Nasdaq 100 futures rallied 100.88 points, or 0.76% to 13,404.38.
AT&T merges WarnerMedia with Discovery in a $43 billion deal
AT&T (NYSE: T) has agreed to combine its WarnerMedia assets with Discovery (NASDAQ: DISCA) in one of the biggest mergers in the entertainment industry.
The deal, which was announced on Monday, merges WarnerMedia assets that include HBO, CNN, TBS and TNT, with New York City-based Discovery.
AT&T’s shareholders would own the majority of stock in the new standalone media company, at 71%, while Discovery’s shareholders would own 29%.
Discovery President and CEO David Zaslav, who will lead the combined company, said that they will spend $20 billion on content as they aim to take on Netflix (NASDAQ: NLFX), Disney (NYSE: DIS) and other streaming services.
The companies expect to close the deal in mid-2022, subject to regulatory approval.
AT&T shares dropped 3.54% to $30.26 each in pre-market trade Tuesday, while Discovery shares were little changed.
Amazon said to be in talks to acquire MGM Studios
Meanwhile, Amazon (NASDAQ: AMZN) is holding talks to buy MGM, according to multiple media reports.
Variety reported on Monday, citing industry sources, that Amazon is weeks into negotiations on a deal to buy the iconic U.S. movie studio for about $9 billion.
The Information also reported that the online retail giant is eyeing acquiring MGM, which is responsible for classics like Gone with the Wind, A Christmas Story, and The Wizard of Oz.
Mike Hopkins, senior VP of Amazon Studios and Prime Video is orchestrating the deal directly with MGM board chairman Kevin Ulrich, according to Variety.
Amazon’s acquisition of MGM Studios would mark a major mark for its Prime streaming service.
