Dow34327.79-54.34(-0.16%)Nasdaq13379.08-50.93(-0.38%)SP 5004163.29-10.56(-0.25%)10-yr Note -2/321.646NYSEAdv 1737 Dec 1532 Vol 880.0 mlnNasdaqAdv 2191 Dec 1948 Vol 3.9 bln Industry Watch Strong: Energy, Materials, FinancialsWeak: Information Technology, Communication Services, Utilities Moving the Market -- Large-cap indices close lower amid weakness in technology and media stocks-- AT&T's (T) WarnerMedia and Discovery (DISCA) agreed to combine in a Reverse Morris Trust transaction-- Cyclical tilt amid rising commodity pricesStocks lower to start the week The major averages had a down start to the new week, which may reflect a bit of profit taking after the bounce on Wall Street in the second half of last week. The Nasdaq rallied 2.3%, the S&P 500 climbed 1.5% and the Dow improved 1.1% on Friday to end a volatile week that saw inflation fears sink stocks in the first half of the week and then saw a big bounce in the indexes on Thursday and Friday. ECONOMIC EVENTS: In the U.S., the Empire manufacturing index dipped 2.0 points to 24.3 in May. The NAHB housing market index was unchanged at 83 in May, as expected. Meanwhile, Reuters reported that European Commission has agreed to a partial truce with the U.S. in a dispute over metal tariffs imposed by former President Donald Trump and to begin talks on global overcapacity and China's "trade-distorting" policies. TOP NEWS: AT&T (T) and Discovery (DISCA) confirmed that they have agreed to combine WarnerMedia's entertainment, sports and news assets with Discovery's nonfiction and international entertainment and sports businesses to create a standalone global entertainment company. Under the terms of the agreement, which is structured as an all-stock, Reverse Morris Trust transaction, AT&T would receive $43B in a combination of cash, debt securities, and WarnerMedia's retention of certain debt, and AT&T's shareholders would receive stock representing 71% of the new company; Discovery shareholders would own 29% of the new company. Shares of both companies initially rose in response to the deal, but AT&T closed 2.7% lower while class A shares of Discovery fell over 5%. Other streaming TV providers that traded lower following the news include Netflix (NFLX), Disney (DIS), ViacomCBS (VIAC), and Comcast (CMCSA). In COVID-19 news, Sanofi (SNY) and GlaxoSmithKline (GSK) announced that their adjuvanted recombinant COVID-19 vaccine candidate "achieved strong rates" of neutralizing antibody responses, in line with those measured in people who have recovered from COVID-19, in all adult age groups in a Phase 2 study with 722 volunteers. The Phase 2 interim results showed 95% to 100% seroconversion following a second injection in all age groups, 18 to 95 years old, and across all doses, with "acceptable tolerability and with no safety concerns," they said. A global pivotal Phase 3 study is expected to start in the coming weeks. In SPAC news, Redbox (RDBX) announced that it has entered into a definitive agreement to combine with Seaport Global Acquisition (SGAM), a publicly traded special purpose acquisition company. The transaction will result in Redbox becoming a publicly traded company with an enterprise value of $693M. Upon closing, Redbox's common stock is expected to trade on Nasdaq under the ticker symbol RDBX. Meanwhile, Duke Energy (DUK) was in focus after Elliott Investment Management sent a letter to the company's board, in particular recommending that the company explore separating into three regionally focused entities, with one in the Carolinas, one in Florida, and one in the Midwest. In response, Duke Energy said it will review Elliott proposals, though the board has determined such proposals are not in the best interests of the company. MAJOR MOVERS: Among the noteworthy gainers was Apellis (APLS), which rose almost 20% after announcing that the FDA has approved EMPAVELI for treatment of adults with paroxysmal nocturnal hemoglobinuria. Also higher was Lordstown Motors (RIDE), which gained 14.6% after it announced plans for "Lordstown Week," an event at the company's Ohio headquarters, hosted by the Lordstown Motors executive team and featuring factory tours, presentations and test drives of the Lordstown Endurance. Among the notable losers was Airbnb (ABNB), which declined 6.2% as an IPO lock-up period expired, releasing millions of shares from selling restrictions. Also lower was iBio (IBIO), which fell 7.5% after reporting quarterly results.Reviewing Monday's economic data: The NAHB Housing Market Index for May was unchanged at 83.0 (Briefing.com consensus 83.0).The Empire State Manufacturing Survey decreased to 24.3 in May (Briefing.com consensus 25.0) from 26.3 in April. Looking ahead, investors will receive Housing Starts and Building Permits for April on Tuesday. Russell 2000 +12.8% YTDDow Jones Industrial Average +12.2% YTDS&P 500 +10.8% YTDNasdaq Composite +3.8% YTDDisclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. 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