Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

AT&T Inc. (T), Bank of America Corp (BAC): Dow (.DJI) Sapped of Energy, Loses Record Highs

Page 1 of 2

The Dow Jones Industrial Average opened 10 points lower than its record-high close yesterday. Though yesterday’s gains were boosted by positive economic data, investors seem to be pulling back due to continued uncertainty revolving around the Fed’s plan for its stimulus policy. As of this writing, the Dow is down 172 points and headed lower.

Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI)Economic data releases are limited today, with only the MBA mortgage purchase application survey coming out this morning. The newest data shows an 8.8% decrease in application activity, driven by a 12% decrease in refinancing applications. Since refinancing activity accounts for 71% of the overall applications, this data is not necessarily a bad sign for the housing market. Purchase applications for new mortgages increased 3% versus the previous week, and with the recent home price data showing a rise in prices due to higher demand, mortgage applications may begin commanding a bigger share of the applications activity.

Inside the Dow
The two telecom titans, AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ), are trailing this morning as rumors have emerged that a new era of mobile communications from Google Inc (NASDAQ:GOOG) is coming soon. With Google Fiber potentially turning the industry on its head, the current leaders are taking a hit, with AT&T Inc. (NYSE:T) down 1.72% and Verizon losing 3.11%. But this is a story that we’ve heard before. Google has yet to bring a product to market that would send both AT&T Inc. (NYSE:T) and Verizon packing, so the two providers have nothing to worry about — yet. Right now, the speculation may be taking its toll on the telecom leaders, but until Google puts its wares on the market it will remain just speculation.

Though the mortgage data would not be favorable to banks, both Bank of America Corp (NYSE:BAC) and JPMorgan Chase & Co. (NYSE:JPM) are up this morning. B of A is leading the charge with a 1.04% gain, while JPMorgan is experiencing a more modest rise of 0.1%. Both banks are reaping the rewards of a long-awaited event — Moody’s newly upgraded rating of the banking system. The change to “stable” from “negative” took five years, and the banks have worked hard to get it. With record earnings, improved capital reserves, and cleaner balance sheets, the banks have given Moody’s plenty of evidence that the banking sector will continue to grow. Moody’s outlook for the banks includes improved creditworthiness over the next 12 to 18 months, with fewer downside risks for the financial institutions.

Page 1 of 2
Loading Comments...