Skip to Content
Midday Market Update

Stocks Fall Ahead of Busy Earnings Week

Mentioned: , ,

U.S. Market    
Stocks were broadly lower this morning ahead of a busy earnings week.

There were no major economic data releases today.

At midday the Dow and S&P 500 were each down 0.5% while the Nasdaq was off 0.2%.

Stocks on the Move
 Verizon (VZ) has finally captured its target, agreeing to acquire  Yahoo’s (YHOO) core business for $4.8 billion. While the deal is too small to have a material impact on our fair value estimate or moat rating for Verizon overall, we aren’t enamored with the purchase. Despite its large audience surrounding sports, finance, and email, Yahoo has famously struggled to turn around its core business over the past several years. We are skeptical that Verizon will add much to reinvigorate innovation within Yahoo’s search and display advertising businesses via the combination with its AOL segment. Verizon shares were off slightly on the news while Yahoo fell 2.2%.

Shares of  Sprint (S) soared 23% this morning after reporting operating metrics and revenue that were ahead of expectations. The firm added a net 173,000 postpaid customers a turnaround from the 12,000 it lost in the year-ago quarter. Overall, the firm lost 8 cents per share, in line with analyst views.

Foreign Markets
European markets were mixed today. The FTSE 100 was off 0.5%, the Paris CAC fell 0.1% while Germany’s DAX was up 0.3%.

Asian shares were little changed. The Nikkei 225 was off slightly while the Shanghai Composite and Hang Seng were each up 0.1%. 

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.