U.S. Markets open in 6 hrs 17 mins

Time Warner rejects $80B Murdoch bid; BofA profits decline but beat; Gtech buys IGT

Hot Stock Minute

Here is a look at some of the stocks the Yahoo Finance team will be watching for you today.

Time Warner (TWX) shares surged in the pre-market. The media conglomerate rejected an $80 billion dollar takeover offer from Rupert Murdoch's 21st Century Fox. The New York Times reported Fox first approached Time Warner in early June. It also offered to sell CNN as part of its proposal, to clear any regulatory hurdles.

International Game Technology (IGT) soared in early trading. Italian lottery company Gtech is buying the Las Vegas-based maker of slot machines for $4.7 billion in cash and stock. The deal will make Gtech a bigger player in the global gambling business at a time when the industry is experiencing slower growth. The new holding company will be based in the U.K. 

Earnings also remain in focus this morning. Bank of America (BAC) reported a 43% percent drop in second-quarter profit as mortgage revenue fell and litigation expenses soared. However, when you exclude legal costs, earnings beat expectations, coming in at $0.41 a share. Revenue was also was slightly better than estimates. The company also said it has reached a settlement with AIG to resolve claims about mortgage-backed securities it sold before the financial crisis. 

Intel (INTC) shares rose in the pre-market. The world's largest chip maker gave an upbeat outlook for its current quarter thanks to a pick-up in demand for PCs and growth in its data-center businesses. The company also said it will buy back $20 billion worth of stock. This comes after it reported better-than-expected earnings and revenue in the second quarter. Profits jumped 40% from a year ago, while revenue increased 8%.

Yahoo (YHOO) shares fell in early trading after the company's earnings and revenue missed Wall Street estimates as it continued to struggle with display advertising sales. Yahoo also said it will sell back fewer of its Alibaba shares when the Chinese e-commerce giant goes public in the next couple of months. 

We're also keeping an eye on Apple (AAPL) and IBM (IBM) after the former rivals announced a partnership. IBM will create business apps for iPhones and iPads and then sell Apple products to its corporate customers. The partnership will also provide AppleCare support to enterprise clients. Apple and IBM engineers are developing over 100 new apps for specific industries, the first of which they hope to debut this fall. The apps will be for functions such as device management, data security and analytics.