Stock Market Today: This Major International Energy Deal Is Moving Markets

Stock market today, May 19, 2014: The Dow Jones Industrial Average rose on Friday as positive housing data raised investor sentiments and trimmed morning losses. U.S. consumer sentiment slipped in May, offering new concerns about U.S. income growth.

Here are the 10 things you should know to make your Monday profitable:

• A Signature Away: Russia and China are in the final stages of a major natural gas deal. Under the terms, Russia would supply China with 38 billion cubic meters of gas each year, which signals a steep change in policies for Vladimir Putin. By turning to Asia, Russia would significantly slash its reliance on European customers. The groundbreaking deal is two decades in the making, and marks Russia’s first major step in shifting its political focus on Asia.

• Another Energy Spinoff: In June, Chesapeake Energy Corp. (NYSE: CHK) will spin off its oilfield services division. Under the new name Seventy Seven Energy, the new company will specialize in drilling operations, hydraulic fracturing, and equipment rentals. Last year, the division generated revenues of roughly $2.2 billion. It will trade on the New York Stock Exchange under the ticker SSE.

• The Satellite Megadeal: The boards of AT&T Inc. (NYSE: T) and DirecTV (Nasdaq: DTV) announced the agreement of a massive deal over the weekend. AT&T will purchase the nation’s largest satellite TV operator for $48.5 billion.

• A Truce For Now: Both Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq:  GOOG) announced plans to dismiss all lawsuits against each other. For years, the companies have battled it out in the courtroom over patents. In a joint statement, the two companies pledged to end nearly 20 lawsuits in the U.S. and Germany.

• Voters Turn Down a Raise: The Wall Street Journal reports that Swiss voters rejected a plan to raise the nation’s minimum wage to 22 Swiss francs, or $25, per hour.  About 77% of voters opposed the hike, which would have created the highest minimum wage in the world.

• Today’s Economic Calendar: A quiet day on the U.S. economic calendar features speeches from two U.S. Federal Reserve Bank presidents. Dallas Fed President Richard Fisher and San Francisco Fed President John Williams will speak at 12:10 p.m.

• Dangerous Dealings: In a desperate plea for capital, Deutsche Bank AG (NYSE: DB) announced it will offer 300 million new shares to one shareholder at up to a 30% discount. Through the deal, the company would raise roughly 8 billion euros ($10.96 billion). The company is steeply exposed to 54.7 trillion euros in derivatives and is attempting to alleviate concerns that it is massively undercapitalized.

• The Deal That Won’t Die: U.S. pharmaceutical giant Pfizer Inc. (NYSE: PFE) announced it has raised its offer to purchase AstraZeneca plc (NYSE: AZN) to $116.6 billion. This is likely the last offer by the company, as insiders told reporters that the board will walk away if the deal is not accepted.

• It You Can’t Join Them, Beat Them: After being unable to purchase the app company, Facebook Inc. (Nasdaq: FB) will likely create its own video-chat application to rival Snapchat. The project is known as Slingshot and could be launched within the next few weeks. Facebook attempted to purchase Snapchat earlier this year for $3 billion, but the target’s board declined the offer.

• Earnings Reports: Stay tuned for earnings reports from Safe Bulkers Inc. (NYSE: SB), Campbell Soup Co. (NYSE: CPB), Valspar Corp. (NYSE: VAL), Compugen Ltd. (Nasdaq: CGEN), and RRSat Global Communications Network Ltd. (Nasdaq: RRST).

Full U.S. Economic Calendar May 19, 2014

• 4-Week Bill Announcement at 11 a.m.
• 3-Month Bill Auction at 11:30 a.m.
• 6-Month Bill Auction at 11:30 a.m.
• Dallas Fed President Richard Fisher and San Francisco Fed President John Williams speak on panel regarding the role of the Federal Reserve in Dallas at 12:10 p.m.

These three “smart investor indicators” will help you cut through the noise. With these three signals, you’ll have the knowledge… and the power.