Big news from two of the market’s biggest names is making waves across Wall Street today as stocks advance through a quiet start to the week. The Dow Jones Industrial Average (DJINDICES: ^DJI) has had a quiet day overall, hanging flat as of 2:15 p.m. EDT despite most of its 30 member stocks rising into the green so far. The big loser on the Dow? Look no further than AT&T (NYSE: T), which has dropped 1.9% after its monumental acquisition announcement over the weekend. Meanwhile in health care, Pfizer’s (NYSE: PFE) own push to make merger history has hit a stumbling block, but investors have sent this stock up to the top of the index despite that. Let’s catch up on what you need to know.

AT&T makes a big statement 

AT&T’s mammoth proposed acquisition of DIRECTV (Nasdaq: DTV) has sent a tidal wave of reactions around the market today, taking down both companies’ stocks and generating no shortage of commentary. The $48.5 billion price tag makes this one of the biggest deals of the new year and would establish AT&T as a huge player in the television market, a new growth route for the company in the hopes of giving it leverage in bundling its wireless and phone services with DIRECTTV’s video and streaming services across the country.

That’s no small feat for the telecom giant. AT&T currently has only around 5 million subscribers in its U-verse pay TV package, but the DIRECTV buyout would add more than 20 million enrollees to that number. In all, the deal would make AT&T the second-largest television provider by subscribers in the country if the deal’s approved. It also would put AT&T oncommon footing with giant rival Comcast (Nasdaq: CMCSA), which holds the No. 1 spot andnow finds itself squaring off for dominance in this hotly contested market. The deal’s a pricey one for AT&T, but the potential of pairing its wireless phone prowess — the company’s the second-largest wireless provider behind Verizon (NYSE: VZ) in the U.S. — with the opportunity to establish a major foothold in TV would give the firm major long-term leverage in bringing down licensing costs, as well as distributing video across its wireless customer base, a move that would offer a strong advantage over rivals and add growth potential to AT&T in the long run. Still, the deal’s not set in stone just yet. Expect select groups to push hard for regulators to block a deal that could see customers paying higher charges as the industry consolidates.

AstraZeneca says “no” 

Merger talk’s big across the market’s sectors today, but in big pharma, it’s a deal that hasn’t worked out that’s making the biggest news. Pfizer has rocked analysts and regulators on both sides of the Atlantic over the past few weeks as it aims to acquire British rival AstraZeneca (NYSE: AZN) in what could become the largest health care buyout in history. Now, however, it looks like that dream could be fizzling out. Pfizer upped its bid for the drugmaker late Sunday night, offering up around $119 billion in all for the company that boasts an intriguing oncology pipeline but also the lurking threat of patent expirations for two key drugs, Crestor and Nexium, in the coming two years. AstraZeneca isn’t playing ball. The firm reportedly rejected the “final bid” today, the latest rejection from the British company that has claimed Pfizer hasn’t appropriately valued its pipeline and drug portfolio. While Pfizer still has time to consider raising its offer again, the firm previously had said it would not engage in a hostile takeover — and paying even more for AstraZeneca might not be the wisest move, either. Most of AstraZeneca’s pipeline programs won’t be ready for regulatory filing until 2016 at the earliest, and the threat of losing billions of dollars of annual revenue from Crestor and Nexium in the near future isn’t a prospect that’s enticed many AstraZeneca observers. While Pfizer could gain substantial tax benefits from the buyout by incorporating the new company in Britain, it’s questionable whether the enormous price tag is worth the gamble.

However, with the deal looking more unlikely by the day, that risk might not matter at all.

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