Stock Market Today, June 30: Verizon Falls as Investors Weigh Dow Removal and BT Venture Costs
Verizon’s next earnings report will test whether restructuring efforts and recent wireless plan changes are supporting margins and cash flow.
Overview
Verizon Communications (NYSE:VZ), a wireless carrier and enterprise connectivity provider, closed at $42.34, down 3.99%. On Tuesday, shares fell after the Dow Jones Industrial Average removal and restructuring-charge headlines, while investors are watching profitability and the BT joint venture.
S&P 500 (SNPINDEX:^GSPC) rose 0.75% to 7,496, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.52% to 26,214. Among wireless telecommunications services and diversified communications technology peers, AT&T (NYSE:T) fell 5.18% to $20.69 and T-Mobile US (NASDAQ:TMUS) declined 3.63% to $167.65 as telecom shares absorbed Verizon's removal from the Dow and related profit worries.
Details
Verizon’s decline followed several company-specific developments. Its removal from the Dow Jones Industrial Average created sentiment and index-related pressure, while the BT joint venture resulted in near-term charges for Verizon’s international enterprise business. Although the joint venture may simplify operations over time, the immediate focus is on the potential impact of these charges on near-term profitability.
Source
Originally published at www.fool.com.