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Wall Street waits for Fed minutes, Pfizer abandons $160 billion merger with Allergan

Allergan, Pfizer, Polycom and Mitel move on news

Wall Street is struggling to make headway following two straight days of losses.  Stocks (^DJI^GSPC^IXIC) were mixed in early trading, as investors await the latest Fed minutes for any clarity on the pace of rate hikes this year.  Meanwhile, oil prices (CLK16.NYM) rallied on hopes that major oil producers will agree on an output freeze when they meet on April 17.


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Allergan, Pfizer call off merger

Allergan (AGN) shares fell once again in early trading after Pfizer (PFE) decided to pull out of its $160 billion takeover of the Botox maker. The move comes after the U.S. Treasury Department set new rules that would make tax inversion deals less lucrative for companies. Pfizer will pay a deal termination fee of $150 million to reimburse Allergan for expenses, per their merger agreement. 

Polycom (PLCM) shares soared this morning following news that the company is in advanced merger talks with Canada based Mitel (MITL). A deal would combine the voice and telecommunications equipment providers and would value Polycom at about $1.7 billion, according to Bloomberg. 

Constellation Brands (STZ), the alcoholic drinks distributor, delivered better-than-expected earnings and revenue for its fourth quarter. Sales rose nearly 14% from a year earlier thanks to strong demand for its premium Corona and Modelo beer brands. The company also raised its dividend by 29%, announced its buying Prisoner Wine for $285 million in cash, and said it's evaluating an initial public offering of part of its Canadian wine business.  

Mattel (MAT) shares fell in early trading. Stifel Nicolaus downgraded the stock to hold from buy. Even though the investment firm sees a path towards improved profitability and cash flow next year, it has concerns over valuation, as the stock approaches its $34 price target.

Cruz, Sanders big win in Wisconsin

Both the Democratic and Republican presidential frontrunners lost the Wisconsin primary last night. GOP Sen. Ted Cruz beat Donald Trump and Bernie Sanders bested Hillary Clinton. With Cruz gaining momentum, it boosts the chances of a contested Republican convention.

San Francisco mandates six weeks of paid parental leave

San Francisco becomes the first city to mandate six weeks of fully-paid parental leave. The law, which was unanimously approved by the San Francisco Board of Supervisors, nearly doubles the pay mothers and fathers are currently eligible to collect under California law.