The Dow Climbs As Pfizer and AT&T Lift the Market
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 got a little closer to getting back to all-time record territory this morning, with gains of about 47 points as of 10:45 a.m. EDT. Mixed news on the economic front, combined with anxiety about the Federal Reserve's Open Market Committee meeting today and tomorrow, didn't hold stocks back, as positive news from Pfizer and AT&T gave the markets a lift.
Pfizer gained 1.5% as the drug giant reported its third-quarter earnings results, sending the stock to a new nine-year high. Sales of its former blockbuster drug Lipitor continued their recent fall after the drug lost its patent protection, but gains in sales of other popular drugs helped Pfizer limit its overall revenue decline to 2%. Adjusted earnings came in above expectations, and Pfizer also raised its guidance for the year.
For AT&T, today's nearly 2% gain came after the Federal Communications Commission approved a deal between AT&T, Dish Network , and other smaller wireless companies to provide access to help broaden the availability of certain spectrum bands to more carriers. Interoperability among different carriers might seem to be a negative for AT&T, but the deal will be especially helpful for carriers in rural areas that could benefit from the strong signals available in the spectrum band in question. Given that the government has repeatedly put pressure on AT&T and rival Verizon in favor of competitors, AT&T's voluntary move could actually prevent more restrictive regulation.
More broadly, the Dow reacted favorably to a jump in single-family home prices of 0.9% in August and an unexpected decline in inflation at the wholesale level that thwarted economists' calls for a sizable increase. Even though more troubling news from falling retail sales and a drop in the Conference Board's Consumer Confidence Index pointed to a more pessimistic assessment of the economy, the Dow's gains likely reflect the belief that the Fed will once again hold off on reducing its bond-buying activity until the economy reaches a more even keel.
Will AT&T win the smartphone wars?
Smartphones have revolutionized the wireless industry, but the biggest winners aren't the ones you might expect. Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits no matter who ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."
The article The Dow Climbs As Pfizer and AT&T Lift the Market originally appeared on Fool.com.Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.