Why Telecom Stocks Took the Dow Higher Today

Before you go, we thought you'd like these...
Before you go close icon

These are interesting times in the smartphone market. Telecom investors are reaping the rewards of all this industry buzz: AT&T and Verizon are two of the Dow's top five gainers today.

The Dow Jones Industrial Average is trading up in general, rising 0.5% as of 1:45 p.m. EST. But AT&T gained 2%, and Verizon jumped 1.3%, leaving all but a handful of Dow tickers firmly in the dust. Neither Ma Bell nor Big Red reported earnings last night -- they both got that item off the agenda last week.

No, the big telecom stocks are driven by frenzied sector interest today.


Former smartphone king Research In Motion wants to reclaim that long-lost title, and it hopes to do it with a new line of BlackBerry 10 devices. The first wave of these will be unveiled tomorrow morning, and RIM investors have been licking their chops. Share prices may have fallen 14% over the last three days, but RIM is still a 30% gainer in the new year.

Appleleft investors disappointed last week, and the reigning king of high-end smartphones is down 10% in 2013. But today, Cupertino introduced a new spin on the full-sized iPad, this time with more storage and a higher price tag. Yes, both Verizon and AT&T will sell these new devices and take a cut of the profits.

^DJI Chart

^DJI data by YCharts.

Today's gains notwithstanding, the big telecoms have still underperformed their Dow peers in January. RIM and Apple will do their best to help reverse the graph in 2013.

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons both to buy and to sell Apple, as well as what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thoughts on Apple, simply click here now.

The article Why Telecom Stocks Took the Dow Higher Today originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+.The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners