The telecom services landscape is changing dramatically, according to Morgan Stanley analyst Simon Flannery.
Flannery Tuesday changed his ratings on a number of stocks in the sector to reflect dramatic changes and deals, like the proposed takeover of AT&T Wireless
Flannery is positive on the Baby Bells and companies like Alltel
and Rogers Wireless
, but negative on “standalone” firms like AT&T
, saying that pricing pressures will persist, particularly in the long-distance business, as a long-term shakeout continues.
The broader market declined Tuesday on a weaker than expected consumer confidence reading.
The Nasdaq slipped 2 to 2005, the S&P 500 lost 1 to 1139, and the Dow fell 43 to 10,566. Volume rose to 1.53 billion shares on the NYSE, and 2.07 billion on the Nasdaq. Advancers led by just a few issues on the NYSE, while decliners led 17-14 on the Nasdaq. Downside volume was 58% on the NYSE, and 56% on the Nasdaq. New highs-new lows were 119-12 on the NYSE, and 87-18 on the Nasdaq.
After the close, Semtech
and Portal Software
During the day, Microsoft
edged higher on hopes for an antitrust settlement with the EU.
soared 85% on news that it will be acquired by Synopsis
, which also issued an earnings warning. Shares of Synopsis were down 13%.
fell 11% despite raising guidance, as investors were concerned about falling margins at the company.
dropped 13% on a warning.
jumped 13% after raising guidance.
edged higher ahead of its mid-quarter update Wednesday.
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