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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!