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 is down just 0.37%, while the S&P 500 has fallen 0.54% for the day.
Showing just how little the Cyprus bailout mattered to the market, Bank of America 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 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 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.
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The article Verizon Shines on a Dour Trading Day originally appeared on Fool.com.Fool contributor Travis Hoium manages an account that owns shares of Vodafone. The Motley Fool recommends Goldman Sachs and Vodafone Group. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.