Merrill Lynch (MER) is up 3.31 to 28.00 after CNBC reports that Merrill will announce tomorrow a deal to sell its stake in Bloomberg for $4.5 billion. Also reports no word of MER selling its BlackRock (BLK) stake.

Microsoft (MSFT) rises 1.11 to 27.26 after WSJ.com, citing people familiar with the situation, reports that Microsoft is planning to meet executives from Time Warner's (TWX) AOL today to advance discussions on a possible tie-up, as the software giant seeks an alternative to a deal with Yahoo (YHOO).

Intel (INTC) posts $0.28, vs. $0.22 a year ago, second quarter EPS on 9% revenue rise. Says revenue were at the high end of expectations, and that demand remains strong for its microprocessor and chipset products in all segments and all parts of the globe. Sees third quarter revenue of $10-$10.6 billion, gross margin of 58% plus or minus a couple of points, 2008 gross margin of about 57%. S&P reiterates hold.

Seagate Technology (STX) posts $0.37 [including restructuring charge of $0.07], vs. $0.96 a year ago, fourth quarter EPS despite 5.6% revenue rise. Notes some product execution issues in the notebook and nearline markets. Expects residual effects of the missed execution to be reflected in first quarter. As such, sees first quarter non-GAAP EPS of $0.22-$0.26 on revenue of $3.15-$3.3 billion.

Alpha Natural Resources (ANR) agrees to be acquired by Cleveland-Cliffs (CLF) in a cash and stock deal valued at about $10 billion. Terms: 0.95 CLF share and $22.23 in cash for each ANR share.

St. Jude Medical (STJ) posts $0.58, vs. $0.39, second quarter EPS on 20% revenue rise. Sees $0.56-$0.58 third quarter EPS. Raises 2008 EPS forecast to $2.28-$2.33. In addition to reflecting the strength in the business, says increased guidance assumes that the federal research and development tax credit is approved and the benefit is recognized during 2008.

Charles Schwab (SCHW) is up 2.74 to 21.96 after SCHW posts $0.27, vs. $0.20, second quarter EPS from continuing operations on 8.5% revenue rise. S&P maintains buy.

Knight Capital Group (NITE) posts lower-than-expected $0.32, vs. $0.24, second quarter EPS on 8.8% revenue rise.

Gannett (GCI) posts $1.02, vs. $1.24, second quarter EPS from cont. ops on 9.9% lower total operating revenue. Notes results do not include non-cash charges to be recorded in quarter, which have not yet been finalized, for impairment of goodwill, other intangible assets, certain other charges.

AMR Corp. (AMR) posts $1.13 second quarter loss per share, excluding more than $1 billion in special charges, vs. $1.13 EPS a year ago, as record jet fuel prices offset 5.1% consolidated revenue rise. Street was looking for $1.40 loss.