Lizzie...
One fundamental that seems to be holding..... we won't be cutting off our phone service <vbg>
NEW YORK (CBS.MW) - Telecommunications stocks mostly retreated Thursday amid persistent gloom about the state of the economy, but the sector cut its losses by day end.
Earlier Thursday, the U.S. government reported that weekly jobless claims rose to the highest level in nine years. Since the terrorist attack on Sept. 11, numerous companies have announced big layoffs, especially in the airline sector.
With growth tapering off, analysts say the recovery in an already-pummeled telecom sector could take longer.
Telecom stocks fell sharply early, but recovered as the day wore on. At day end, the American Stock Exchange's Networking Index, which represents large manufacturers, was off 2.0 percent.
Cisco Systems (CSCO: news, chart, profile) was the most active decliner, losing 8.1 percent to $11.24. It hit a 52-week low, as did Ciena (CIEN: news, chart, profile), Sycamore Networks (SCMR: news, chart, profile), Comverse Technology (CMVT: news, chart, profile), Juniper Networks (JNPR: news, chart, profile) and Ciena (CIEN: news, chart, profile).
The only big gainer was ADC Telecom (ADCT: news, chart, profile), up 9.6 percent to $3.41. There was no major news.
The Nasdaq Telecommunications Index, which tracks younger equipment manufacturers and phone carriers, fell 1.1 percent.
The index got a boost from leaders such as Qualcomm (QCOM: news, chart, profile), EchoStar Communications (DISH: news, chart, profile) and Ericsson (ERICY: news, chart, profile), one of its largest stocks. The Swedish mobile phone maker gained 2.6 percent on news that European antitrust regulators have approved its joint venture with Sony (SNE: news, chart, profile).
And big phone stocks, as measured by Standard & Poor's Communications Services Index, slid a lesser 1.5 percent.
In the local phone sector, Verizon (VZ: news, chart, profile), SBC Communications (SBC: news, chart, profile) and BellSouth (BLS: news, chart, profile) ended slightly lower. The big local phone stocks tend to hold up well in downturns because customers rarely give up phone service.
AT&T (T: news, chart, profile), WorldCom (WCOM: news, chart, profile) and Sprint (FON: news, chart, profile) closed narrowly mixed.
AT&T jumped 5.1 percent to $18.70 amid reports that it plans to resume discussions with Comcast about the sale of Ma Bell's cable business. In addition, BusinessWeek reported that AT&T has held talks with BellSouth about a potential merger if the cable unit is sold.
Global Crossing (GX: news, chart, profile) and Qwest Communications (Q: news, chart, profile) were the largest decliners.
Global Crossing, the biggest stakeholder in Exodus Communications, fell 18 percent to $1.97 in the wake of the Web-hoster's bankruptcy filing. Qwest gave up 15 percent to $16.50.
Elsewhere, wireless stocks traded mixed to lower. Nextel Communications (NXTL: news, chart, profile), off 6.1 percent to $7.95, touched another 52-week low.
Jeffry Bartash is a reporter for CBS.MarketWatch.com in Washington. |
