Hello friends and Fortune readers.
Wall Street stock futures are lower this morning in the pull of the bond markets, which are being spooked by the prospect of higher U.S. rates and the threat of a Greek exit from the Eurozone.
In major M&A news, telecom giant Verizon (VZ) announced Tuesday morning it is buying AOL for $50 per share, or about $4.4 billion. AOL Chairman and CEO Tim Armstrong will continue to run AOL operations once the transaction is done. The deal is aimed at advancing the telecom giant’s growth plans in mobile video and advertising.
Today’s must-read story is by Fortune’s Stephen Gandel and gives readers an inside look at the bruising four month battle between Dupont and hedge fund Trian, which will be decided this week. It offers a new window into whether shareholder activism is good for corporate America or crippling it.
Here’s what else you need to know today.
1. Picasso painting smashes world record at auction
A painting by Pablo Picasso became the most valuable piece of art ever to be sold at auction, fetching over $179.4 million in a sale at auction-house Christie’s on Monday evening in New York. More records are expected to fall tonight when rival Sotheby’s holds its spring sale of Contemporary art.
2. Zillow earnings may not be up to snuff.
Zillow, the real estate website operator, reveals its first-quarter results after the market close today. Analysts aren’t too bullish on the company, which is expected to report revenues of $128 million and a loss of 42 cents per share. Zillow closed its acquisition of Trulia in February, though a Federal Trade Commission review may have held up the smaller competitor’s ability to sell, according to analysts. Zillow said in April that 2015 is a “transition year” and acknowledged that the company is “a couple quarters behind” where it would like to be post Trulia acquisition.
3. GoDaddy reveals its first quarterly results.
GoDaddy reports its first-quarter earnings after the market close — it’s first since going public in April. The web-hosting company, known for its racy commercials, has earned seven “buy” ratings from analysts, according to the Wall Street Journal. GoDaddy raised about $460 million when it debuted on the public markets April 1. Revenue grew about 52% in the past three years to about $1.39 billion. Analysts expect the company to report sales of $371.5 million and a loss of 37 cents per share.
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5. Boeing holds its annual investor conference.
Boeing investors and executives gather at the company’s Chicago headquarters today starting at 10 a.m. ET. CEO Jim McNerney, COO Dennis Muilenburg and other executives will lead presentations followed by a question and answer session. Boeing is on track to meet its annual goal for Dreamliner deliveries based on its results released to date. So far 41 of the 787 models have been delivered this year, about a third of the 120 planes it intends to ship out in 2015. The airplane manufacturer has faced ongoing cost issues with the Dreamliner’s production, and CFO Greg Smith expects the company to start breaking even on incremental 787 sales later this year. The conference will be live casted here.
4. San Francisco Fed President John Williams speaks.
Federal Reserve Bank of San Francisco President John Williams will talk about the economic outlook before the New York Association for Business Economics today. The talk follows an appearance on CNBC Monday where he reminded investors that policy makers could raise rates at any meeting, depending on economic data. Williams is against pre-broadcasting any upcoming rate hike. “It’s healthy for the future actions to be uncertain because economic conditions can change,” he said.
—Reuters contributed reporting to this story.
