After Market: Tech Giants Make Peace; AT&T Makes a Deal

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Tech stocks led the Nasdaq higher on Monday, but some big merger news didn't have the impact you might expect. The Dow Jones industrial average (^DJI) gained 20 points, the Standard & Poor's 500 index (^GPSC) added 7, and the Nasdaq composite (^IXIC) rose 35 points.

Apple (AAPL) and Google (GOOG), two of the biggest contributors to the Nasdaq, each gained more than 1 percent. The two companies agreed over the weekend to dismiss patent lawsuits against each other. Neither company scores a big "win," but they both remove some uncertainty overhanging their shares.

Facebook (FB) rose 2 percent, Netflix (NFLX) gained 4 percent and TripAdvisor (TRIP) jumped 5 percent each. Cyber-security firm FireEye (FEYE) rose 4 percent on upbeat product comments from a well-known tech analyst at Nomura. And Gogo (GOGO) gained 5½ percent after UBS raised its rating on the in-flight Internet company's stock to "buy" from "neutral."

On the merger front, AstraZeneca (AZN) slid 12 percent after rejecting Pfizer's (PFE) sweetened takeover bid. Pfizer added less than 1 percent. Shareholders may think the company can find a better way to spend more than $120 billion. One impetus behind the Pfizer bid is a plan to move its headquarters to Great Britain to lower its corporate tax rate.

That idea -– known as a tax inversion -- could be the motivation behind Walgreen's (WAG) expressed interest in buying out privately held Alliance Boots. Walgreen shares rose 3 percent. It already owns a 45 percent stake in the British pharmacy chain.

AT&T (T) fell 1 percent after officially announcing its $48.5 billion deal to take over DirecTV (DTV), which lost 2 percent, mostly because the acquisition was widely expected, and its approval was already baked into their stock prices. DirecTV shares have run up 30 percent over the past six months. But rival satellite TV provider Dish Network (DISH) give up early gains to end 1 percent lower, despite reports it, too, could become a takeover target, with Verizon (VZ) mentioned as a potential suitor.

Also feeling the fallout from the AT&T deal was American Movil (AMX), which fell 4 percent. AT&T plans to sell its substantial stake in the Mexican telecom company to help fund its purchase of DirecTV.

Finally, Johnson Controls (JCI) rose more than 4 percent on its plan to spinoff auto interiors business.

What to Watch Tuesday:
These major companies are scheduled to release quarterly financial statements:
  • Dick's Sporting Goods (DKS)
  • Home Depot (HD)
  • Intuit (INTC)
  • LaQuinta Holdings (LQ)
  • TJX Cos. (TJX)
  • Vodafone (VOD)
-Produced by Drew Trachtenberg.


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billgwatters

Eash time intc gets caught cheating or closes a fab or loses a customer . . . etc, and there have been many such incidences for intc in its' tumultuous path to the bottom of the pile, intc marketing and public relations is quick to gloss over the news with some fabricated upside Bulls__t. They are better at producing fiction than they are at developing feasible products. Yesterday they lost their appeal in the EU in an attempt to weasel out of paying a fine from 2010 brought against them for illegal and unethical sales tactics. To counter this they put together a fiction novel about a zombiefied PC market. One that comes back to life after death and decay. There is no penalty for such shameless manipulation of public opinion. At least not yet. Fortunately for intc all they lose is trust and credibility, the two expendable virtues that intc keeps low on its' priority list.

June 13 2014 at 1:08 PM Report abuse rate up rate down Reply
billgwatters

intc is not attempting to build momentum into a dubious positive surprise when reporting this quarter but rather is beefing up intc stock in anticipation of another miss. This has been intc operational standard for the past several quarters. This strategy will take the edge off of a catastrophic price plummet which will force intc to increase the amount it throws away each quarter in stock repurchases and public appearance. They are a bully turned cheater and liar. How pathetic.

June 13 2014 at 12:52 PM Report abuse rate up rate down Reply
billgwatters

intc has become such a low life in the tech market that they won't care at all when they miss both sales and profit and fall $3 to $4 back to $24 as some analyst predict. Let the day traders have their fun. PC sales aren't going anywhere. When you been a loser long enough your pride and integrity go out the door.

June 13 2014 at 11:47 AM Report abuse rate up rate down Reply
billgwatters

intc corp increased quarterly guidance triggering a reported increase of around 5%. This is based not upon what is actually happening but rather upon what intc says is happening and that is a re-kindling of interest in the pc market which is the only intc bellwether. This could credibly be construed as an act desperation on the part of intc in a losing battle to gain share in the mobile market. How easy is it to believe that the PC is making a comeback? Let us appeal to common sense.

June 13 2014 at 3:35 AM Report abuse rate up rate down Reply
billgwatters

I wonder if Michael Blair will be willing to take responsibility for his intc subsidized statements and slit his bowels open with a large and very sharp sword when he is proven to be wrong for the umpteenth time in the past 4 years. intc is always up on a blood red day because it strategically repurchases stock at a loss. Apple makes a better product than intc ever did. Micro and mobile are the way of the present and future. "Real" pc's i.e. big, cumbersome, energy intensive and wattage consuming desktops are in the scrap piles of destiny.

June 13 2014 at 3:11 AM Report abuse rate up rate down Reply
billgwatters

intc is at it again and again and again. Willing to repurchase stock at an elevated price and lose working capital in order to "make a showing" on a down day. Investors and analysts agree that such short term strategy is ultimately catastrophic, even for the day traders. The PC market is not coming back. The mobile market is well established and will never allow a known "bully" to be a player. intc R&D is a widespread joke having lost billions in revenue in an attempt to ignite improbable interest in over developed and overpriced product.

June 10 2014 at 1:20 PM Report abuse rate up rate down Reply
billgwatters

intc hit a new 52 week high by bribing analysts and purchasing their own stock. Where is the growth ? Where is the demand for intel processors ? Everyone who is anyone in the mobile market does not want "intel inside". Qualcomm and Arm are the real performers. Look for intc to be up to its' ears in red this earnings season with a price target back to $26.

June 07 2014 at 3:11 AM Report abuse rate up rate down Reply
billgwatters

Correction . . . make that a whopping 1% increase in MB shipments !! 6% vs 5%
I think that we are all taking crazy pills. intc has been shut out of the mobile market, shown no growth for 10 years, operating at a fraction of its capacity. Nobody wants intc inside and yet those with money to throw away may still be convinced to do so by a "research note expressing optimism at an increase of 1% in motherboard shipments. WOW !! the pc must be making a comeback!!

June 06 2014 at 5:35 PM Report abuse rate up rate down Reply
billgwatters

I think that we are all taking crazy pills. intc has been shut out of the mobile market, shown no growth for 10 years, operating at a fraction of its capacity. Nobody wants intc inside and yet those with money to throw away may still be convinced to do so by a "research note expressing optimism at an increase of 2% in motherboard shipments. WOW !! the pc must be making a comeback!!

June 06 2014 at 4:09 PM Report abuse rate up rate down Reply
billgwatters

There is a catastrophic event on its' way and intc knows that it is coming. They are spending 10 of million$ in working capital on stock buy backs to beef up their own stock in an attempt to make investors believe in a growth cycle for intc despite the cataclysmic downward spiral for intc, seemingly out of which their is no exit. intc has no upside, no growth and no future

June 04 2014 at 11:48 AM Report abuse rate up rate down Reply