Sprint Stock Soars, T-Mobile Gains and the Stock Market Is Rising…Again
Coronavirus fears can’t keep stock markets down. Overseas shares—and U.S. stock futures—are rising despite about 3,100 more cases reported in China. About 41,000 coronavirus cases have been reported world-wide since late January.
Hong Kong’s Hang Seng Index is up 1.3% in overseas trading. Europe’s FTSE 100 Index is up 0.9%.
Dow Jones Industrial Average futures are up 0.3%. S&P 500 futures are 0.2% higher. Nasdaq Composite futures have risen 0.4%.
The telecom sector is the big premarket mover Tuesday. Sprint (ticker: S) looks to be the stock of the day. Shares are up almost 65% in premarket trading. The telecom company stock rose on reports its merger with T-Mobile US (TMUS) will be approved by antitrust regulators. T-Mobile is up 7.8% to $91.12.
That’s given a boost to Deutsche Telekom (DTE.Germany) shares, which are up 4.1% in overseas trading, and SoftBank (9984.Japan) stock, which has risen 1.5%. Deutsche owns T-Mobile shares and SoftBank owns Sprint stock.
The merger news has even been good for T-Mobile competitors AT&T (T) and Verizon (VZ), which are up 1.5% and 1.2%, respectively. Investors often believe a more consolidated industry leads to more rational pricing. That’s good for everyone, as the saying goes: A rising tide lifts all boats.