AT&T and Verizon Celebrate Court Win While Tesla Soars Again
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The Dow Jones Industrial Average is having its first big two-day rally in 2014, nearly erasing the sharp loss seen on Monday. As of 1:05 p.m. EST, the Dow is up 120 points, or 0.74%, while the S&P 500 has risen 0.54% and the Nasdaq is up 0.67%.
Within the Dow, shares of AT&T and Verizon have climbed 1.4% and 2.2% to lead the blue-chip index higher. The moves come after a federal appeals court ruled that the FCC was out of line when it told Verizon that it could not charge different prices to different content providers based on their bandwidth and numbers of users. This is a reversal of the FCC's "net neutrality" rule and should allow both carriers to increase revenue and help protect their profits from customers who are costing them more money to service.
Outside the Dow, one big winner today is the controversial stock Tesla . Shares are higher by 2.3% after the company reported that it sold about 6,900 electric vehicles in the fourth quarter. That is 20% higher than what even the company believed it would do. This release is also helping offset the potentially negative impact from the company "recall" of more than 29,000 power adapters for the Model S vehicle. Tesla's CEO Elon Musk refuted the "recall" statement since Tesla will be sending the fix to customers and not calling the cars back into a service shop. This could be considered splitting hairs, and that "recall" tag being placed on the Model S vehicle could hurt sales and the company's growth in the future.
Fellow car maker General Motors is down 1.3%. Similar to Telsa, GM released some good news and some bad news. The good news was that the company will reinstate its dividend for the first time since 2008 and deliver a 3% dividend yield. The bad news is the company's forecast for 2014, in which it sees pre-tax profits to be just modestly higher. Global growth demand has been estimated to increase by 2% in 2014, so GM's forecast may seem a little light based on that expectation.
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The article AT&T and Verizon Celebrate Court Win While Tesla Soars Again originally appeared on Fool.com.
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