The Justice Department will sue to block AT&T's acquisition of Time Warner, a source says. As Fred Katayama reports, AT&T and other telecom stocks lifted Wall Street Monday.
A source told Reuters Monday the Justice Department will file a lawsuit blocking AT&T's $85 billion purchase of Time Warner. Tech and telecom stocks like AT&T pushed Wall Street higher on Monday. Trading volumes could be thin this week ahead of the Thanksgiving holiday on Thursday since no big companies are reporting earnings and economic data are slim. Clarfeld Financial Advisors' chief investment officer Michael Hans: SOUNDBITE: MICHAEL HANS, CHIEF INVESTMENT OFFICER, CLARFELD FINANCIAL ADVISORS, (ENGLISH) SAYING: "As we sit today going into year end, we think that the stability will continue. However, thing things to pay attention to are the usual blocking and tackling items related to tax loss selling and any movement around portfolio reallocations going into year end. So we don't expect major moves to the upside or downside." AT&T shares rose on news of Justice's impending lawsuit. Time Warner's stock fell. Cisco shares rose. Independent Research upped its price target on the computer networking company. Marvell is buying fellow chip maker Cavium for about $6 billion. Shares of both companies climbed. Wal-Mart fell. Goldman Sachs downgraded the stock to "neutral" from "buy". European shares rose as investors brushed off worries over the collapse of coalition government talks in Germany.