- AT&T Inc. (NYSE: T): Down $0.48 (1.20 percent) to $39.56
- Verizon Communications Inc. (NYSE: VZ): Down $0.47 (1.07 percent) to $43.35
- Qwest Communications International Inc. (NYSE: Q): Down $0.16 (2.32 percent) to $6.74
So why did all three of these guys head in the opposite direction of the rest of the market? I've got a couple of theories. AT&T has the most obvious answer. It lowered its U-verse forecasts today by 1 million while saying it'll be $500 more expensive. (See AT&T Readjusts U-verse Forecast .) On the surface, this is bad news, but the company is doing this in preparation for a push into the BellSouth territories. So I think AT&T may be delaying short-term rollouts for more expansive rollouts in the long run.
Qwest has been in a steady decline ever since it announced its earnings last week. (See Qwest to Spend up to $300M on FTTN.) Investors are worried about flat revenues, and there's uncertainty surrounding the new CEO and what direction he is going to take the company in. So today's results are in line with what has been happening for a few days now.
With no significant news coming out of Verizon so far this week, it's hard to pin an exact reason on why its stock dropped today. I'm no financial analyst, but I do know that sometimes declines come in groups. It could be uncertainty surrounding wireline telecom in general that's pushing Verizon down. The sinking housing market, for one, has some people worried about it since wireline telecom services are connected to houses, after all. Either way, it certainly isn't helping the stocks.
There's my two cents on a Tuesday afternoon.
— Raymond McConville, Reporter, Light Reading