Verizon Communications Inc. (VZ)’s Vodafone Group Plc (ADR) (VOD) Talks Keep the Dow Jones Industrial Average (^DJI) in the Green

Page 1 of 2

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.

Verizon Communications Inc. (NYSE:VZ)

Stocks have fallen back from earlier highs in today’s market session, but the Dow Jones Industrial Average (INDEXDJX:^DJI) has stayed in the green all day. As of 2:15 p.m. EDT, the Dow Jones Industrial Average (INDEXDJX:^DJI) has picked up modest gains of more than 40 points. Most stocks aren’t going anywhere fast today, but the majority of the Dow Jones Industrial Average (INDEXDJX:^DJI)’s blue-chip members are rising. Verizon Communications Inc. (NYSE:VZ) has done the heavy lifting for the Dow Jones Industrial Average (INDEXDJX:^DJI) today after news about a potentially huge deal sent shares of the telecom leader surging. Let’s catch up on the stock action you need to know about.

Verizon Communications Inc. (NYSE:VZ) and Vodafone Group Plc (ADR) (NASDAQ:VOD) get down to business
Verizon Communications Inc. (NYSE:VZ)’s shares are up 2.6% today to lead the Dow Jones Industrial Average (INDEXDJX:^DJI) after Vodafone Group Plc (ADR) (NASDAQ:VOD) announced that it is talking with the telecom company about selling its 45% stake in Verizon Communications Inc. (NYSE:VZ) Wireless. Verizon Communications Inc. (NYSE:VZ) Wireless has surged in the U.S. to become the country’s top wireless network by subscribers. Verizon Communications Inc. (NYSE:VZ) is looking to control the full share of this lucrative business, rather than missing out while Vodafone Group Plc (ADR) (NASDAQ:VOD) capitalizes.

However, a deal won’t come cheap: According to sources referenced by Bloomberg, such a sale could end up at a mind-blowing $130 billion. Vodafone Group Plc (ADR) (NASDAQ:VOD)’s stock has surged more than 7.5% on the news. It’s a hefty price to pay, but for Verizon, which gained about 66% of its revenue last year from its wireless business, it’s a chance to take over a dominant leadership role in the U.S. market and pull far ahead of rival AT&T, which controls the country’s second-largest wireless network.

The U.S. mobile market might be somewhat saturated in an age when everyone seems to have a wireless phone, but with more and more devices using wireless connectivity, Verizon sees plenty of strength to come in future quarters.

The Dow Jones Industrial Average (INDEXDJX:^DJI)’s losers are a small group today, but Big Oil giants Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) are leading the holdouts down, losing 1.6%and 0.9%, respectively.

Page 1 of 2

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!