Sprint Corporation (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS) each dropped after news broke that their potential merger was unlikely to be approved as currently structured, the Wall Street Journal reported Tuesday. This afternoon, FOX Business correspondent Charles Gasparino criticized the story, which cited sources familiar with the Justice Department's thinking, saying the odds were 50/50.
Sprint shares fell 6% to close at $5.65, and T-Mobile dropped 2.2% to $72.46.
Morgan Stanley (NYSE:MS) shares rose after the company beat first quarter expectations before the bell Wedneday. The money center bank brought in earnings of $1.39 per share on revenue of $10.3 billion, topping analyst estimates of $1.16 EPS on revenu of $10 billion. The company posted $1.45 EPS on revenue of $11.1 billion in the year ago quarter. One area where revenue increased year over year was wealth management, which grew 0.3% to $4.37 million.
The stock finished 2.6% higher at $48.26.
Qualcomm (NASDAQ:QCOM) stock surged after the company reached a settlement agreement with Apple Inc (NASDAQ:AAPL) on its royalty dispute late Tuesday. The companies began court proceedings on Monday. As part of the deal, Apple will pay the chipmaker and the two sides agreed to a six-year licensing agreement, meaning Qualcomm chips will be back in iPhones. As a result of the settlement, Qualcomm expects incremental earning per share of $2 as production increases, the company said.
The San Diego chipmaker saw shares rise more than 12% to $79.08, while the iPhone maker’s stock ended the day up 1.5% at $203.13.
International Business Machines Corporation (NYSE:IBM) stock dipped after a quarterly decline in revenue and net income. The tech giant saw revenue drop $18.2 billion in the first quarter from $19.1 billion in the year-ago quarter, missing expectations of $18.5 billion. Income slipped to $1.6 billion from $1.7 billion in the previous quarter. The company beat on earnings, posting $2.25 per share against expectations of $2.22 EPS. Looking forward, it reiterated its full-year outlook of $13.90 EPS or more, compared with analysts' expectations of $13.91.
Shares dipped 4.2% to $139.08.
Intel Corporation (NASDAQ:INTC), which supplied chips to Apple during their dispute with Qualcomm, decided to get out of the 5G modem business after the two companies settled their dispute. “In the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” CEO Bob Swan said. The company will continue to invest in 5G network infrastructure.
The stock rose nearly 3.3% to $58.56.
United Continental Holdings Inc (NASDAQ:UAL) soared after reporting first-quarter net income after the close Tuesday that doubled to $292 million. Despite the concerns around Boeing 737 MAX planes that affected the sector as a whole, the airline flew more passengers than it ever had in a first quarter. Earnings came in at $1.09 per share on revenue of $9.58 billion, compared to Street expectations of $0.94 EPS on revenue of $9.6 billion.
Shares ascended 4.8% to $89.24.
CSX Corporation (NASDAQ:CSX) stock rolled ahead after it reported first quarter earnings late Tuesday that rose to $1.02 per share from $0.78 EPS in the previous year. Analysts had expected $0.91 EPS. The transportation-focused holding company’s revenue was $3.01 billion, right in line with expectations, fueled by volume growth and price gains.
Shares were up 4% to $78.94.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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