After months of negotiations to take over T-Mobile, Sprint has
decided to build up its subscriber base and compete with the likes
of Verizon and AT&T on its own.
At a board meeting on Tuesday, the company decided to abandon a
deal that valued T-Mobile at $32 billion and instead, focus on
expanding coverage and pushing new pricing plans later this
The company's CEO Dan Hesse is also expected to be replaced by
entrepreneur Marcelo Claure.
In other news around the markets:
21st Century Fox said the 11 percent drop in its stock price
coupled with a lack of willingness on Time Warner's part has caused
the media company to give up its pursuit to acquire Time Warner.
Fox had offered nearly $80 billion for Time Warner, which was
rejected, but Fox had said it was willing to continue negotiating.
However, the company said the recent drop in its stock price has
made the deal less beneficial to its shareholders. With a temporary
ceasefire in place in Gaza, delegates from both Israel and Hamas
are working to find a lasting solution for peace while the calm
continues. The talks will begin on Wednesday in Cairo, but they are
not expected to go smoothly as both sides have specific demands
which will be difficult to meet. An Iranian negotiator was quoted
by the news agency IRNA as saying that nuclear talks will probably
continue at September's U.N. General Assembly. World powers and
Iranian officials agreed last month to extend the deadlines for the
nuclear talks after being unable to reach an agreement by the
original July 20th deadline. On Wednesday, Samsung and Apple agreed
to end the ongoing patent war outside the U.S., taking the rivalry
between the two down a notch. Both companies have agreed to drop
all patent lawsuits outside the U.S. while still continuing the
ongoing cases in the U.S. The agreement will end litigation in
several European countries as well as Australia, Japan and South
Asian markets were lower with the exception of the Shenzhen
composite, which gained 0.37 percent. The NIKKEI was down 1.05
percent, the KOSPI lost 0.27 percent, the Shanghai composite fell
0.11 percent and the Hang Seng index lost 0.26 percent.
European markets were down across the board, the FTSE lost 0.62
percent, the STOXX 600 fell 0.81 percent, the DAX was down 0.87
percent and the MIB lost 1.25 percent.
Energy futures were higher, both Brent and WTI futures gained
0.23 percent. Gold and silver gained 0.58 percent and 0.36 percent
respectively, while industrial metals were mostly lower. Copper
fell 1.05 percent, aluminum lost 0.79 percent and zinc was down
The euro continued to slide, trading at $1.3366 and losing 0.24
percent to the yen and 0.21 percent to the pound. The dollar was
also lower against the yen, down 0.14 percent, but gained 0.29
percent against the pound and 0.03 percent against the franc.
Notable earnings released on Tuesday included:
) reported second quarter EPS of $1.13 on revenue of $34.60
billion, compared to last year's EPS of $0.97 on revenue of $31.25
billion. Walt Disney (NYSE:
) reported third quarter EPS of $1.28 on revenue of $12.47 billion,
compared to last year's EPS of $1.03 on revenue of $11.58 billion.
Emerson Electric (NYSE:
) reported third quarter EPS of $1.03 on revenue of $6.30 billion,
compared to last year's EPS of $0.97 on revenue of $6.34 billion.
MGM Resorts (NYSE:
) reported second quarter EPS of $0.21 on revenue of $2.60 billion,
compared to last year's loss of $0.19 on revenue of $2.48 billion.
Stocks moving in the Premarket included:
General Electric (NYSE:
) gained 0.92 percent in premarket trade after losing 1.69 percent
over the past week. Perrigo Company (NYSE:
) was up 0.54 percent in premarket trade after falling 1.27 percent
on Tuesday. Time Warner (NYSE:
) was down 10.61 percent in premarket trade after rising 1.60
percent over the past five days. AbbVie (NYSE:
) lost 1.88 percent in premarket trade after falling 0.94 percent
Notable earnings releases expected on Wednesday include:
Prudential Financial (NYSE:
) is expected to report second quarter EPS of $2.35 on revenue of
$11.12 billion, compared to last year's EPS of $2.30 on revenue of
$11.72 billion. 21st Century Fox (NASDAQ:
) is expected to report fourth quarter EPS of $0.39 on revenue of
$7.97 billion, compared to last year's EPS of $0.31 on revenue of
$7.21 billion. Chesapeake Energy (NYSE:
) is expected to report third quarter EPS of $0.45 on revenue of
$4.76 billion, compared to last year's EPS of $0.51 on revenue of
$4.68 billion. CenturyLink (NYSE:
) is expected to report second quarter EPS of $0.64 on revenue of
$4.50 billion, compared to last year's loss of $0.69 on revenue of
Notable economic releases expected on Wednesday include German
factory orders, Italian industrial production, British industrial
production, British manufacturing production, Italian GDP, U.S.
trade balance and U.S. oil inventory data.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Harlan Pyan,
Sarah Potter & Gregg Greenberg by clicking
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