Stocks slide as AT&T, Discovery agree to combine media assets

Tesla has not sold its bitcoins: Musk

U.S. equity markets fell Monday as traders digested a mega-merger in the media space. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 33451.37 -372.08 -1.10%
SP500 S&P 500 4187.42 -34.44 -0.82%
I:COMP NASDAQ COMPOSITE INDEX 14076.03379 -85.32 -0.60%

The Dow Jones Industrial Average was lower by 56 points, or 0.16%, while the S&P 500 and the Nasdaq Composite were weaker by 0.25% and 0.38%, respectively. The selloff came after the major averages last week posted their largest weekly decline in three months. 

Ticker Security Last Change Change %
DISCA DISCOVERY, INC. 29.43 +0.02 +0.07%
T AT&T, INC. 28.52 -0.23 -0.80%
NFLX NETFLIX, INC. 501.86 +3.52 +0.71%
DIS THE WALT DISNEY CO. 172.80 -1.98 -1.13%

In stocks, AT&T Inc. has agreed to merge its WarnerMedia division, which includes CNN and HBO, with Discovery Communication Inc., creating a streaming media giant that will compete with Walt Disney Co.’s Disney+ and Netflix Inc. AT&T will receive $43 billion in cash and debt with its shareholders controlling 71% of the new company. Discovery shareholders will own the remaining 29%. 

AT&T, DISCOVERY AGREE TO MERGER OF CNN, OTHER MEDIA ASSETS

In other media news, ViacomCBS Inc. said it will reclaim the $120 million severance package owed to former CBS CEO Les Moonves, who resigned following allegations of sexual harassment. 

Ticker Security Last Change Change %
VIAB n.a. n.a. n.a. n.a.

Meanwhile, Tesla CEO Elon Musk clarified his company has not sold any bitcoin. Musk, in a weekend tweet, spurred speculation the electric-car maker was exiting its bets on the cryptocurrency.

TESLA HAS NOT SOLD BITCOIN MUSK CLARIFIES

Ticker Security Last Change Change %
TSLA TESLA, INC. 620.14 +3.54 +0.57%

MicroStrategy Inc. shares were under pressure as bitcoin fell below $45,000 per coin to its lowest level in more than three months. The business intelligence software provider owns about 91,850 bitcoins, accounting for the lion’s share of its cash.

Ticker Security Last Change Change %
MSTR MICROSTRATEGY 638.73 +7.92 +1.26%

Elsewhere, Walmart Inc., Home Depot Inc. and Macy’s Inc. are among the companies scheduled to report their quarterly results on Tuesday.

Ticker Security Last Change Change %
WMT WALMART, INC. 135.19 -2.50 -1.82%
HD THE HOME DEPOT, INC. 302.02 -1.37 -0.45%
M MACY'S, INC. 18.10 -0.03 -0.17%

In commodities, West Texas Intermediate crude oil climbed 90 cents to $66.27 per barrel and gold jumped $29.60 to $1,867.50 per barrel. 

COLONIAL PIPELINE FIASCO FORESHADOWS IMPACT OF BIDEN ENERGY POLICY

Overseas markets were mixed. 

European bourses were lower across the board with Britain’s FTSE 100 declining 0.71%, France’s CAC 40 down 0.41% and Germany’s DAX 30 weaker by 0.31%. 

In Asia, Japan’s Nikkei 225 slid 0.92% while Hong Kong’s Hang Seng index and China’s Shanghai Composite index advanced 0.59% and 0.78%, respectively.