Verizon Shines on a Dour Trading Day

Markets were in a tizzy this morning over the European Union's bailout of the tiny island country of Cyprus (for more on Cyprus and its deposit tax, click here). But by noon on Wall Street, traders had forgotten about Cyprus' financial difficulty (and, most likely, where the country is), and markets recovered somewhat. As of 3:25 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down just 0.37%, while the S&P 500 (SNPINDEX: ^GSPC  ) has fallen 0.54% for the day.

Showing just how little the Cyprus bailout mattered to the market, Bank of America (NYSE: BAC  ) barely budged today, up a penny at the time of writing. Competitor Goldman Sachs may get the most credit for that, having increased its U.S. GDP growth estimates to 2.9% this quarter and 2% next quarter. After passing the Fed's stress tests and getting more positive economic data, Bank of America has been on a roll in 2013.

Verizon Communication (NYSE: VZ  ) is up 1.6% after Citigroup analysts said it's likely Verizon will buy out Vodafone's 45% stake in Verizon Wireless. The two companies have been talking about a deal for years, but low interest rates and strong performance by the U.S. telecom giant make a deal attractive for both sides. Curiously, Vodafone is up only 1.3% today, even though it would likely be the bigger beneficiary because it can demand top dollar for its portion of Verizon Wireless.

On the flip side, Boeing (NYSE: BA  ) is one of the Dow's biggest losers today, falling 1.4%. About 7,400 of the company's technical workers are voting on a contract that would replace pensions with 401(k) retirement plans. The plan has already been rejected in a close vote, but workers will vote again today, and the company hopes it will pass this time. The next step is a strike, of which Boeing has seen many and which may push back important production even more.

Boeing is a major player in a multitrillion-dollar market in which the opportunities are massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best industrial-sector minds have collaborated to provide investors with the must-know info on Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2318640, ~/Articles/ArticleHandler.aspx, 10/25/2014 10:43:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement