Movers: Citigroup, Morgan Stanley, Alcoa, GE, Yahoo, WellPoint

Citigroup (C) and Morgan Stanley (MS) announced they have reached a definitive agreement to combine Morgan Stanley's Global Wealth Management Group and Citi's Smith Barney, Quilter in the UK, and Smith Barney Australia into a new joint venture to be called Morgan Stanley Smith Barney. Under the terms of the agreement, Citi will exchange 100% of its Smith Barney, Smith Barney Australia and Quilter units for a 49% stake in the joint venture and an upfront cash payment of $2.7 billion. Morgan Stanley will exchange 100% of its Global Wealth Management business for a 51% stake in the joint venture.

Alcoa (AA) posts $1.16 fourth quarter loss from continuing operations (including $0.88 in charges), vs. $0.75 EPS a year ago, on 6.6% decline in revenue. Notes 35% decline in aluminum prices in the quarter (56% decline from July) and a sharp drop in demand, particularly from the automotive, commercial transportation and building and construction industries. S&P reiterates sell; cuts estimate and target.