Ultime notizie per SPDR S&P Telecom ETF (ARCA:XTL)

SPDR S&P Telecom ETF

Technology

Communication Services

Other

In seeking to track the performance of the S&P Telecom Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the telecommunications segment of the S&P Total Market Index (S&P TMI).

Ast Spacemobile Inc Class A

Telephone & Data Systems Inc

Arista Networks Inc.

Frontier Communications Corp

Motorola Solutions Inc.

T-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558

AT&T Inc.

Iridium Communications Inc

Verizon Communications, Inc.

Calix Inc

Ciena Corp

F5 Networks Inc.

Cisco Systems, Inc.

Cogent Communications Holdings Inc

Lumentum Holdings Inc

Juniper Networks Inc.

Equities

Large Cap

News

Guidance

Movers

Tech

FYBR

RSPC

Verizon acquista Frontier per 20 miliardi di dollari, espandendo significativamente la sua rete in fibra e potenziando le previsioni 2024.

Verizon acquista Frontier e potenzia la rete in fibra

XTL Biopharmaceuticals Ltd. - American Depositary Shares

XTL Biopharmaceuticals Ltd

AST SpaceMobile, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) shares are trading higher premarket on Monday. The company inked a deal with Vodafone Group Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VOD#NASDAQ">VOD</a>) to establish a jointly-owned European <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/b44069666/vodafone-and-ast-spacemobile-sign-agreement-to-create-european-direct-to-device-satellite-service-" rel="noreferrer noopener">satellite service venture, &#8220;SatCo.&#8221;</a>
SatCo aims to provide full geographic coverage across Europe, enabling consumers and businesses to access secure space-based cellular broadband via their mobile network operators (MNOs). This new entity will cater to MNOs across European markets.
As the exclusive distributor of AST SpaceMobile&#8217;s satellite services in Europe, SatCo will operate under a turnkey model, supported by a European-based network management center leveraging Vodafone&#8217;s engineering expertise.
It will also establish ground stations to connect MNOs to the satellite network in low Earth orbit.
Margherita Della Valle, Vodafone Group CEO, said: &#8220;Vodafone&#8217;s space-based mobile broadband will mean our customers can stay connected, wherever they are. Our new satellite company will be able to offer this pioneering technology to other European mobile operators through a turnkey service that combines Vodafone&#8217;s leading network and engineering with AST SpaceMobile&#8217;s &#8216;antennas in the sky&#8217;.&#8221;
Notably, last month, Vodafone, AST SpaceMobile, and the University of Málaga partnered to establish a space and land mobile broadband research hub, which is expected to open by Summer 2025.
Additionally, AST SpaceMobile is expanding in Spain with a new 5,600-square-meter manufacturing and office facility in Barcelona, boosting production capacity and accelerating satellite and telecom system testing.
Last week, the company was awarded a $43 million contract in support of the U.S. Space Development Agency<a target="_blank" href="https://www.benzinga.com/25/02/43985177/whats-going-on-with-ast-spacemobile-stock-wednesday" rel="noreferrer noopener"> through&nbsp;its prime contractor</a>.
AST is anticipated to release its 2024 fiscal-year fourth-quarter earnings report <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">today after the market closes</a>.&nbsp;Analysts estimate a loss of 17 cents per share and revenue of $19.20 million, per data from&nbsp;<a target="_blank" href="https://www.benzinga.com/pro/" rel="noreferrer noopener">Benzinga Pro</a>.
Investors can gain exposure to the ASTS via&nbsp;Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action: ASTS shares are up 7.05% at $29.02 premarket at the last check Monday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/44051518/nvidia-tesla-lead-tech-stock-rebound-whats-driving-markets-friday" target="_blank" rel="noreferrer noopener">Nvidia, Tesla Lead Tech Stock Rebound: What&#8217;s Driving Markets Friday?</a></li>
</ul>
Image: Shutterstock/ nmedia.

Mid Cap

Contracts

ASTS

AST SpaceMobile Teams Up with Vodafone For Satellite Broadband Service Across Europe

AST SpaceMobile, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) shares are trading higher premarket on Friday.
On Thursday, the company received Special Temporary Authority (STA) from the Federal Communications Commission (FCC) <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43375177/ast-spacemobile-announces-fcc-grant-of-special-temporary-authority-sta-in-the-united-states-with-s" rel="noreferrer noopener">to conduct testing in the U.S.</a>
This approval allows AST SpaceMobile&#8217;s first five commercial BlueBird satellites, currently in low Earth orbit, to operate with unmodified smartphones using AT&amp;T and Verizon&#8216;s premium low-band spectrum.
The testing supports voice, full data, video applications, and other native cellular broadband capabilities without requiring specialized software, devices, or updates.
The FCC&#8217;s approval reflects its shared priorities with AST SpaceMobile. These include expanding digital access, strengthening emergency communications, and accelerating digital transformation.
The decision also supports U.S. leadership in the emerging space economy and direct-to-device technology.
The Block 1 BlueBird satellites will provide intermittent cellular broadband service across the U.S. and select global markets, targeting nearly 100% nationwide coverage with over 5,600 coverage cells.
The next-generation Block 2 BlueBird satellites, with up to 2,400 square-foot arrays, will deliver up to 10 times the bandwidth of Block 1, supporting peak speeds of 120 Mbps for voice, data, and video.
Vikram Raval, Global Head of Regulatory Affairs of AST SpaceMobile, said, &#8220;The FCC USA regulatory approvals represent a pivotal moment for AST SpaceMobile as we advance toward delivering seamless space-based cellular broadband connectivity.&#8221;
&#8220;Alongside integration efforts with partner networks we are installing five gateways in the United States, and we are now accelerating our path to commercial activity, starting with testing service with off-the-shelf cellular handsets on AT&amp;T and Verizon networks,&#8221; said Chris Ivory, Chief Commercial Officer of AST SpaceMobile.
Notably, in 2024, AST SpaceMobile secured investments from AT&amp;T, Verizon, Google, and Vodafone, along with U.S. government contracts. The company partners with over 45 mobile operators serving 2.8 billion subscribers.
Investors can gain exposure to the ASTS via&nbsp;Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action: ASTS shares are up 6.48% at $19.40 premarket at the last check Friday.
Image: Shutterstock/ nmedia.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/content/43262324/5-space-stocks-to-watch-as-the-industry-reaches-new-heights" target="_blank" rel="noreferrer noopener">5 Space Stocks to Watch as the Industry Reaches New Heights</a></li>
</ul>

Why Is AST SpaceMobile Stock Jumping Today?

While the S&amp;P 500 Index continues its post-election surge, breaking through key resistance levels, <a href="https://www.benzinga.com/topic/nasdaq-100">the NASDAQ 100</a> is struggling to keep up.
This catch-up is prompting JPMorgan analyst Jason Hunter to ask: Is this a shift in market leadership or a temporary pause for the tech-heavy index?
<h1 class="wp-block-heading">S&amp;P 500 Breaks Out, NASDAQ 100 Stalls</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png" alt="" class="wp-image-643450" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
After the S&amp;P 500 re-accelerated through April's channel resistance and the 5850-5878 highs post-election, the index remains firmly bullish, with key support holding in the 5600s. The next resistance levels are now pegged at 6166 and 6194. Meanwhile, the NASDAQ 100 has faced a roadblock, unable to surpass its August rebound high. 
Hunter highlights that despite a broad market rally, the NASDAQ has underperformed, suggesting a potential leadership shift away from tech.
This divergence between the two indices is critical. If the NASDAQ 100 fails to break through its recent range, it would further support the idea that a regime change is in the cards — one where sectors outside of tech, like communication services, could be driving the market forward.
Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41214202/ishares-semiconductor-etf-soxx-approaching-death-cross-despite-recent-gains-should-inves">iShares Semiconductor ETF (SOXX) Approaches Death Cross Despite Recent Gains: Should Investors Worry?</a>
<h1 class="wp-block-heading">Communication Services Steals The Spotlight</h1>
Interestingly, while the NASDAQ 100 as a whole struggles, the Communication Services sector has been leading the charge in the index's breakout. Good news for investors in the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) and the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)
Tech and semiconductor stocks have lagged, clustered just below resistance. Relevant for investors in the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), the Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>).
Hunter's outlook suggests that in the coming weeks these hardware-oriented stocks may get "dragged higher" if the broader market rally continues. The question remains: Will they catch up, or will they continue to underperform as the rally unfolds?
<h1 class="wp-block-heading">Semiconductor Struggles: A Key Test For Tech's Future</h1>
Semiconductors, once at the heart of tech's dominance, have been particularly sluggish. The Philadelphia Semiconductor Index (SOX) has faced stiff resistance at the 5397 July peak and the 5537 78.6% retracement level.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png" alt="" class="wp-image-643479" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
While it has managed to hold above the 4997 200-day moving average, Hunter is closely watching whether these resistance levels will break.
If the semiconductor sector can't clear this hurdle, it would signal a continuation of the underperformance that has characterized the group since mid-summer. 
On the other hand, if bullish momentum drags semiconductors through these barriers, it could fuel a catch-up rally in tech stocks, reversing the trend of broad market leadership shifting to other sectors.
Investors in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the Direxion Daily Semiconductor Bull 3x Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) should remain wary of their holdings.
<h1 class="wp-block-heading">Will Tech Stage A Comeback?</h1>
Despite these challenges, Hunter remains optimistic that the post-election bullish momentum could eventually carry tech stocks, particularly semiconductors, back into the leadership role they held for much of the 2022-2024 rally. 
But if semiconductors continue to falter, and the broader market continues to rally without them, it could confirm that the days of tech dominance are coming to an end — at least for the near term.
For now, Hunter is watching for any breakouts in the tech sector, especially in semiconductors, to see if they can reclaim their former leadership position. 
The key levels to watch are the 5397 July gap for the SOX Index and the 21433-22306 range for the NASDAQ 100.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41911474/russell-2000-rallies-jpmorgan-analyst-says-small-cap-may-outperform-mega-cap-peers">Russell 2000 Rallies, JPMorgan Analyst Says Small Cap May Outperform Mega-Cap Peers</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

Analyst Color

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

Technicals

Analyst Ratings

Trading Ideas

ETFs

iShares Dow Jones US Telecommunications Sector Index Fund

QQQM

SOXL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

NASDAQ 100 Struggles To Close Gap With S&P 500 During Semiconductor Slowdown

Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) shares are trading lower on Monday. JP Morgan analyst Samik Chatterjee downgraded the company to Neutral from Overweight <a target="_blank" href="https://www.benzinga.com/quote/cien/analyst-ratings" rel="noreferrer noopener">with a price target of $65</a>.
The analyst writes that the downgrade is due to current valuations overlooking key factors that limit EPS upside, including constrained telco spending, limited gross margin levers compared to peers, and lower exposure to cloud capital expenditures.
Chatterjee says that the capex growth outlook for U.S. telcos is muted for 2025, with international telcos also lagging in recovery.
The analyst notes that Ciena&#8217;s telecom revenues are currently 9% below pre-pandemic levels, while North American telco capex is down 8%, indicating limited potential for Ciena to significantly outperform these trends.
For FY25, the analyst expects revenue growth to align with the long-term rate of 6%-8%, as telecom spending remains constrained, contrasting with prior years of outsized growth driven by pent-up demand from network underinvestment.
This month, Ciena authorized a three-year share repurchase program, <a target="_blank" href="https://www.benzinga.com/news/24/10/41147368/whats-going-on-with-ciena-stock-wednesday" rel="noreferrer noopener">starting in the 2025 fiscal year</a>.
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: CIEN shares are down 3.93% at $64.07&nbsp;at the last check Monday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/41212008" target="_blank" rel="noreferrer noopener">Trump Considers Robinhood Exec Dan Gallagher For SEC Chair If Re-Elected</a></li>
</ul>

Downgrades

Price Target

CIEN

Ciena Downgraded: Analyst Cites Telco Spending Slump And Margins Squeeze

Frontier Communications Parent, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) shares are trading lower after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/g40725239/verizon-to-acquire-frontier" rel="noreferrer noopener">inked an acquisition deal</a> with Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>).
As per the terms, Verizon will acquire Frontier in an all-cash deal valued at $20 billion.
In particular, Verizon will acquire Frontier for $38.50 per share in cash, a 43.7% premium over Frontier&#8217;s 90-day volume-weighted average share price (VWAP) as of September 3, 2024.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/08/40318456/verizon-secures-4m-federal-contract-touts-new-security-infrastructure" rel="noreferrer noopener">Verizon Secures $4M Federal Contract, Touts New Security Infrastructure</a>
The acquisition will integrate Frontier&#8217;s advanced fiber network with Verizon&#8217;s extensive fiber and wireless assets, including Fios. Frontier&#8217;s 2.2 million fiber subscribers and 7.2 million fiber locations will join Verizon&#8217;s 7.4 million Fios connections.
This strategic buyout, involving the largest pure-play fiber internet provider in the U.S., will significantly enhance Verizon&#8217;s fiber footprint nationwide, boost its delivery of premium mobility and broadband services, and expand its intelligent edge network for digital innovations like AI and IoT.
Frontier has invested $4.1 billion in its fiber network over the past four years and plans to expand by an additional 2.8 million fiber locations by 2026.
The transaction has received unanimous approval from the Boards of Directors of both Verizon and Frontier.
The deal is expected to close in about 18 months, pending approval by Frontier shareholders, regulatory approvals, and other customary closing conditions.
Synergies: The transaction is expected to boost Verizon&#8217;s revenue and Adjusted EBITDA growth rates upon closing.
Verizon anticipates achieving at least $500 million in annual cost synergies through increased scale, distribution, and network integration by year three.
Outlook: Verizon reaffirmed FY24 guidance for wireless service revenue growth of 2.0% to 3.5%, adjusted EBITDA growth of 1.0% to 3.0%, and adjusted EPS of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$4.50 to $4.70 (vs. cons. of $4.57)</a>.
The company reiterated the capital expenditures of $17.0 billion-$17.5 billion in FY24.
Investors can gain exposure to the stock via Invesco S&amp;P 500 Equal Weight Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action: FYBR shares are down 9.72% at $34.92 premarket at the last check Thursday. VZ shares are up 1.21% to $41.98.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39911411/verizons-postpaid-net-adds-in-focus-these-analysts-dive-into-q2-results" target="_blank" rel="noreferrer noopener">Verizon Postpaid Net Adds Decline, But Broadband Growth Is &#8216;Close To The Best&#8217;: Analyst</a></li>
</ul>
Photo via Shutterstock

Verizon To Acquire Frontier In $20B Deal, Reaffirms FY24 Outlook

Lumentum Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LITE#NASDAQ">LITE</a>) shares are trading higher after the company reported fourth-quarter results and several analysts raised <a target="_blank" href="https://www.benzinga.com/quote/LITE/analyst-ratings" rel="noreferrer noopener">the price target on the stock</a>.
On Wednesday, the company reported net revenue of $308.3 million, beating the consensus of $300.8 million, and adjusted EPS of&nbsp;$0.06, which surpassed <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40395893/lumentums-cloud-and-ai-focus-drives-q4-beat-stock-jumps" rel="noreferrer noopener">the street view of&nbsp;$0.03</a>.
Lumentum expects first-quarter net revenue of $315 million – $335 million (vs. consensus of $312.57 million), adjusted operating margin of 0% – 3%, and adjusted EPS of&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$0.07 – $0.17 (vs. street view of $0.13)</a>.
Rosenblatt analyst Mike Genovese raised the price target to $69.00 from $65.00 with a Buy rating.
The analyst writes that despite trailing Coherent Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COHR#NYSE">COHR</a>), Innolight, and Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>) in 800+G AI transceivers, the company is well-positioned to catch up and achieve similar growth.
Genovese adds that Lumentum&#8217;s positive outlook on the Telecom market, which has been weak recently, mainly highlights ZR and ZR+ technologies driven by Web Scale customers.
Since ZR often replaces traditional DWDM systems for DCI applications, the analyst does not see LITE&#8217;s Telecom comments as beneficial for Telecom optical players.
Instead, they may pose a headwind for optical vendors primarily focused on Telecom customers, writes the analyst.
Genovese raised the revenue estimate to $1.58 billion (from $1.51 billion) for FY25 and $1.90 billion (from $1.82 billion) for FY26.
Moreover, Needham analyst Alex Henderson maintained a Buy rating and upped the price target to $70 (from $65).
The analyst writes that they expect CY25 to be a strong recovery year for the company, driven by growth in AI transceivers and EML/CW chips, which could see quarterly revenue jump from ~$111 million to $215 million.
The analyst adds that telecom demand seems to be bottoming out, with a rebound anticipated in late CY24/early CY25.
Henderson writes that the stock responded positively to Lumentum&#8217;s announcement of a major new AI transceiver customer, with more potential customer wins anticipated in the coming quarters.
The analyst raised EPS estimates to $1.60 from $1.26 for FY25 and $3.04 from $3.26 for FY26.
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and Syntax Stratified MidCap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMDY#NYSE">SMDY</a>).
Price Action: LITE shares are up 13.5% to $51.70 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Reiteration

COHR

LITE

SMDY

Lumentum Set For Growth: Analysts See Strong Recovery Ahead With AI And Telecom Momentum

A 2024 election victory for ex-President Donald Trump could unleash a new wave of deregulation, <a href="https://www.benzinga.com/real-estate/reit/24/02/36933312/the-2024-showdown-trumps-deregulation-vs-bidens-healthcare-expansion-what-it-means-for-investors">according to Goldman Sachs</a>.
This would help companies in industries subject to strict rules and regulatory oversight, the firm&#8217;s analysts, Ronnie Walker and Alec Phillips, explained in a research note. Those sectors include energy (oil and gas), utilities, financials, healthcare, industrials, materials, and telecom. Conversely, consumer discretionary, consumer staples, technology, and real estate have less exposure.
Recall Trump&#8217;s recently proposed deal with leading oil and gas companies, where he offered to roll back environmental regulations in return for <a href="https://www.benzinga.com/news/24/05/38997165/trumps-policies-for-money-transaction-with-big-oil-under-investigation-by-senate-democrats-cronyism">$1 billion in campaign contributions</a>.
It&#8217;s worth noting, however, that the Biden administration presided over a record boom in oil and gas. Politico <a href="https://www.eenews.net/articles/what-bidens-oil-record-means-for-the-industrys-future/">reports</a> that Biden&#8217;s Interior Department, which oversees the federal oil program, outpaced Trump in approving new drilling permits.
But according to the Wall Street investment bank, &#8220;equity market sectors that might benefit from an easier regulatory environment generally saw relative strength alongside the changing presidential probabilities.&#8221;
<h3 class="wp-block-heading">ETFs To Watch </h3>
<ul>
<li>SPDR Oil &amp; Gas Exploration And Production (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</li>
<li>iShares U.S. Aerospace And Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>)</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>)</li>
<li>Invesco S&amp;P Smallcap Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCI#NYSE">PSCI</a>)</li>
<li>SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)</li>
<li>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</li>
<li>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) </li>
</ul>
<h3 class="wp-block-heading">Focus Areas For Deregulation</h3>
During Trump&#8217;s previous administration, significant deregulatory actions targeted environmental and energy regulations, including lowering fuel efficiency standards and reducing environmental permitting requirements.
Energy companies even <a href="https://www.npr.org/2020/08/13/901863874/trumps-methane-rollback-that-big-oil-doesn-t-want">criticized</a> Trump who, in 2020, rolled back rules meant to reduce climate-warming methane emissions — far more potent than carbon dioxide. Shell, BP and the Exxon Mobil Corp disapproved of his decision.
Biden <a href="https://degette.house.gov/media-center/press-releases/biden-signs-legislation-invalidate-trump-administrations-methane-rule">reinstated</a> the methane emissions standards the following year. 
Should Trump win in November, he will likely roll back the Biden-era methane emission rules, Goldman&#8217;s analysts said.
Another apparent change, the firm notes, would likely be the resumption of LNG export permit approvals, which were paused under Biden.
Goldman Sachs expects a Trump administration to expand LNG exports, and reverse restrictions on greenhouse gas emissions. Additionally, there would likely be an expansion of oil leases on federal land and offshore energy development, and eased regulations on refineries.
In the utilities sector, a Trump administration would likely seek to modify recently finalized rules restricting CO2, mercury, and other pollutants from fossil-fuel-fired power generation. 
Regarding auto emissions, the administration would probably aim to relax limits set by the Biden administration, which automakers might meet by increasing the proportion of electric vehicles sold. Goldman Sachs also anticipates a tightening of domestic content requirements for electric vehicle subsidies and loosened criteria for energy credits to make it easier for less climate-friendly energy sources to qualify.
While antitrust enforcement officials in a potential Trump administration might continue pursuing some cases in the internet/tech sector, merger enforcement could ease compared to the current regime.
<h3 class="wp-block-heading">Financial Regulations</h3>
Financial regulation might also shift, with more rapid changes in consumer finance and more gradual adjustments in capital and liquidity requirements. 
A key area for potential changes is the "Basel III Endgame," which would raise capital requirements for large banks. However, the Federal Reserve and the Federal Deposit Insurance Corporation are independent of the White House, and their leadership terms do not automatically turn over with a new administration. 
For instance, Fed Vice Chair for Supervision Michael Barr's term runs through July 2026, and Chair Powell's term runs through May 2026, complicating the outlook and timing.
In contrast, leadership of the Consumer Financial Protection Bureau (CFPB) would likely change quickly under a Trump administration, benefiting consumer finance stocks.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39677621/ed-yardeni-downplays-recession-fears-but-warns-we-need-more-bears-to-keep-the-bull-">Ed Yardeni Downplays Recession Fears But Warns, &#8216;We Need More Bears To Keep The Bull Market Going&#8217;</a></li>
</ul>

Government

Regulations

New ETFs

Topics

Federal Reserve

iShares Dow Jones US Aerospace & Defense Index Fund

PSCI

Trump's Deregulation Agenda: Oil & Gas, Defense, And Finance Stocks May Benefit From Loose Rules, Goldman Sachs Says

AST SpaceMobile, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) stock was somewhat volatile on Wednesday for no specific reasons.
AST SpaceMobile tapped telecom industry veteran Johan Wibergh to its board, <a href="https://www.benzinga.com/pressreleases/24/06/b39157799/ast-spacemobile-welcomes-telecom-industry-veteran-johan-wibergh-to-board-of-directors" target="_blank" rel="noreferrer noopener">effective June 3</a>. Wibergh has over 35 years of experience in telecommunications, including leadership positions at Vodafone and Ericsson.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39176625/spacexs-starship-cleared-for-4th-liftoff-faa-greenlights-june-6-test-launch" rel="noreferrer noopener">SpaceX&#8217;s Starship Cleared For 4th Liftoff: FAA Greenlights June 6 Test Launch</a>
Wibergh will also serve as chairman of AST SpaceMobile&#8217;s newly formed Network Planning and Spectrum Committee of its board.
On May 29, Verizon Communications collaborated with AST SpaceMobile to provide Verizon customers with direct-to-cellular <a href="https://www.benzinga.com/news/24/05/39062478/whats-going-on-with-ast-spacemobile-stock-on-wednesday" target="_blank" rel="noreferrer noopener">AST SpaceMobile service</a>.
Also, in May, AST SpaceMobile inked a deal with AT&amp;T to provide a broadband network directly to cell phones, challenging Elon Musk&#8217;s SpaceX, which struck <a href="https://www.benzinga.com/news/22/08/28643154/musks-spacex-collaborates-with-t-mobile-to-put-an-end-to-cell-phone-dead-zones" target="_blank" rel="noreferrer noopener">a similar deal</a> two years ago with T-Mobile US. In 2022, Apple forged a similar agreement with Globalstar global satellite service.
AST SpaceMobile stock gained 61% in the last 12 months. Investors can gain exposure to the stock via Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
ASTS Price Action:&nbsp;AST SpaceMobile&nbsp;shares were down 1.15% at $8.57 at the last check Wednesday.
Read Next: <a href="https://www.benzinga.com/news/24/06/39188243/boeings-starliner-launches-into-space-with-nasa-astronauts-on-board">Boeing&#8217;s Starliner Launches Into Space With NASA Astronauts On Board</a>
Photo: AST SpaceMobile video screenshot

SPACE

Management

What's Going On With AST SpaceMobile Stock Wednesday?

Telephone and Data Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>) shares are trading higher after the company announced a definitive deal to sell its wholly owned subsidiaries OneNeck IT Solutions and OneNeck Data Center Holdings to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39134041/tds-to-sell-its-oneneck-business-to-us-signal" rel="noreferrer noopener">US Signal Company for an undisclosed amount</a>.
US Signal, a portfolio company of&nbsp;Igneo Infrastructure Partners, is acquiring all of OneNeck&#8217;s operations, encompassing its data centers, cloud hosting, and solutions provider services.
Vicki L. Villacrez, TDS Executive Vice President and CFO, said, &#8220;As part of our capital allocation process, we are prioritizing assets to determine what is strategic and can improve our competitiveness.&#8221;&nbsp;
&#8220;The sale of OneNeck provides additional capital that can be used to support TDS Telecom&#8217;s fiber program, which includes investing in communities throughout the US with quality broadband connectivity. I believe that OneNeck&#8217;s business complements US Signal and I am excited about future opportunities for both associates and the operations.&#8221;
The transaction is expected to close in the third quarter of 2024, pending the satisfaction of customary closing conditions.
Michael Ryder, US Signal board chair and co-head of Igneo in&nbsp;North America, stated, &#8220;This acquisition is an important step toward fulfilling the company&#8217;s<a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39134316/us-signal-to-acquire-oneneck-expanding-nationwide-data-center-footprint-it-infrastructure-network" rel="noreferrer noopener"> expansion plans in the U.S. middle market.</a>&#8220;
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>).
Price Action: TDS shares are up 12.9% at $22.46 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Asset Sales

PSCU

Why Is Telephone And Data Systems Stock Surging Today?

AST SpaceMobile Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>) shares are trading higher after the company announced a partnership with Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) to provide Verizon customers with direct-to-cellular AST SpaceMobile <a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b39059697/ast-spacemobile-and-verizon-announce-plans-to-target-100-percent-geographical-coverage-of-the-cont" rel="noreferrer noopener">service when needed</a>.
The deal involves a commitment of $100 million from Verizon, including $65 million ​of​ commercial prepayments, $45 million of which are subject to earnout, and $35 million of convertible notes.
&#8220;This new partnership with Verizon will enable AST SpaceMobile to target 100% coverage of the continental United States on premium 850 MHz spectrum with two major U.S. mobile operators in the most valuable wireless market in the world, a transformational commercial milestone,&#8221; said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile.&nbsp;
AST SpaceMobile has agreements with over 45 mobile network operators globally who collectively serve over 2.8 billion existing subscribers.
<a target="_blank" href="https://www.benzinga.com/news/24/05/38872822/ast-spacemobile-stock-is-soaring-thursday-whats-going-on" rel="noreferrer noopener">Earlier in May</a>, AST SpaceMobile inked a deal with AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) to provide a space-based broadband network directly to cell phones.&nbsp;
Verizon&#8217;s partnering with a satellite communication provider is not new to the industry. Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) <a target="_blank" href="https://www.benzinga.com/news/22/11/29660999/apple-earmarks-450m-for-iphone-14s-satellite-emergency-sos" rel="noreferrer noopener">made big news</a> when it partnered with Globalstar, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSAT#NYSE">GSAT</a>), a global satellite service.
Apple earmarked $450 million of its Advanced Manufacturing Fund to support the critical infrastructure powering Emergency SOS via satellite for <a target="_blank" href="https://www.benzinga.com/pressreleases/22/11/w29658257/emergency-sos-via-satellite-on-iphone-14-and-iphone-14-pro-lineups-made-possible-by-450-million-ap" rel="noreferrer noopener">safety capability for the iPhone 14 lineup</a>.&nbsp;
Available to customers in the U.S. and Canada shortly, the new service will allow iPhone 14 and iPhone 14 Pro models to connect directly to a satellite, enabling messaging with emergency services when outside of cellular and Wi-Fi coverage.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/23/11/35565088/apple-partner-globalstar-stock-is-falling-after-q3-performance-whats-going-on" rel="noreferrer noopener">Apple Partner Globalstar Stock Is Falling After Q3 Performance &#8211; What&#8217;s Going On?</a>
Also, AST SpaceMobile reported fiscal first-quarter sales of $0.5 million, which missed analyst consensus of $5.5 million.
The company reported an adjusted EPS loss of $(0.16), which beat the consensus loss of $(0.21).
AST SpaceMobile stock lost over 2% in the last 12 months. Investors can gain exposure to the stock via Procure Space ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UFO#NASDAQ">UFO</a>) and SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action: ASTS shares were up 19.50% at $6.38 premarket at the last check on Wednesday.

AAPL

GSAT

What's Going On With AST SpaceMobile Stock On Wednesday?

Major U.S. equity indexes ended Thursday&#8217;s session on a weaker note as investors reconsidered the economic outlook in light of the latest <a href="https://www.benzinga.com/calendars/economic">batch of contrasting data.</a>
Both the S&amp;P 500 and the Nasdaq 100 fell by 0.2%, closing at 5,297 points and 18,557 points, respectively. 
The Dow Jones Industrial Average, which surpassed the 40,000 mark during morning trading, closed 0.1% lower at 39,869.
Thursday&#8217;s economic data revealed a decline in initial jobless claims and higher-than-expected import and export prices, with the latter reigniting some anxiety about inflation. Housing starts and building permits were disappointing, and industrial production stalled.
Federal Reserve Bank of Cleveland President Loretta Mester stated on Thursday that it will take longer to be confident that inflation is moving toward 2% and emphasized the need for continued restrictive policies. She welcomed the latest inflation data as a sign of cooling price pressures but warned that the U.S. fiscal path is unsustainable and must be brought under control.
Treasury yields closed higher across the board, with the rate-sensitive two-year yield surging by 7 basis points to 4.80%, snapping a three-day streak of declines.
<h3 class="wp-block-heading">Is Bad News Still Good News?</h3>
Veteran investor Ed Yardeni explained that both good and bad news are working as a positive catalyst for the stock market. Yardeni noted that stocks positively reacted to the weaker-than-expected economic indicators, which led to a decline in the 10-year U.S. Treasury bond yield from its recent peak.
For example, the market welcomed the ISM manufacturing index dropping below 50 and flat retail sales data in April, despite these indicators suggesting slowing economic momentum.
Offering a contrarian view, Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions, argued, &#8220;The ‘bad news is good news' narrative should not be this bullish.&#8221; He cautioned that the market&#8217;s risk stance is complacent, evidenced by the low level of the VIX.
Holzer also warned that the high and positive correlation between bonds and stocks poses a significant risk to overall portfolio performance.
<h3 class="wp-block-heading">Thursday&#8217;s Movers In Sectors And Stocks</h3>
Sector-wise, consumer staples was the only sector recording gains on Thursday, with the Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) up 1.4%. 
Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) rallied 6.5% amid stronger-than-expected earnings, contributing to nearly half of the daily performance of the overall consumer staples sector. 
Materials, as tracked by the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>), were the laggards, down 0.7%. Martin Marietta Materials, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLM#NYSE">MLM</a>), Vulcan Materials Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMC#NYSE">VMC</a>) and Freeport-McMoRan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) were the sector&#8217;s weakest performers, down 5%, 3.9% and 2.8%, respectively. 
Industry-wise, homebuilders fell heavily amid worse-than-expected housing starts and building permits data, with the iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>) falling 3.1%, on its worst day in more than a month. 
D.R. Horton Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) and Lennar Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) were notable fallers among the sector&#8217;s heavyweights, with declines of 4.2% and 3.3%, respectively. 
Telecom stocks, as tracked by the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>), closed in the green, up 1.6%, marking their sixth straight session of gains. Notable gainers were AST SpaceMobile, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>), up 68.4%, and Extreme Networks, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXTR#NASDAQ">EXTR</a>). 
Now Read: <a href="https://www.benzinga.com/markets/asia/24/05/38878116/big-short-investor-michael-burry-bets-heavy-on-gold-renewable-energy-stocks-exits-amazon-alphabet">&#8216;Big Short&#8217; Investor Michael Burry Bets Heavy On Gold, Renewable Energy Stocks, Exits Amazon, Alphabet</a>
Image: Pixabay

Macro Economic Events

Macro Notification

Market Summary

Bonds

Small Cap

Treasuries

Econ #s

Economics

Markets

EXTR

iShares Dow Jones US Homenstruction Index Fund

Major Indexes Close In The Red, Dow Falls Below 40,000 As Investors Make U-Turn On Economic Outlook

Frontier Communications Parent,&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>)&nbsp;reported&nbsp;a&nbsp;fiscal first-quarter revenue growth of 1.5% year-on-year to $1.46 billion, versus the&nbsp;analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38609748/frontier-reports-first-quarter-2024-results" rel="noreferrer noopener">consensus estimate of $1.44 billion</a>.
The American telecommunications company's EPS of $0.00 beat the&nbsp;analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus loss estimate of $(0.08)</a>. The&nbsp;stock gained after the print.
Declines in copper-based products offset the growth in fiber-based products.&nbsp;Consumer revenue was $787 million, a 3.4% growth&nbsp;year over year, and Consumer fiber revenue rose by 11.0%&nbsp;year over year&nbsp;to $484 million.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38325616/frontier-communications-stock-slides-after-company-reveals-cyberattack-the-details" rel="noreferrer noopener">Frontier Communications Stock Slides After Company Reveals Cyberattack: The Details</a>
Consumer fiber broadband revenue increased 12.7%&nbsp;year over year&nbsp;to $505 million, driven by growth in fiber broadband customers and ARPU.
Business and wholesale revenue was $659 million, flattish Y/Y, while the Business and wholesale fiber revenue was $300 million, a 6.8% growth Y/Y.
Frontier built fiber to 322,000 locations, bringing total fiber passings to 6.8 million.&nbsp;Consumer fiber broadband net adds were 88,000, resulting in fiber broadband customer growth&nbsp;of 18%.
The adjusted EBITDA margin expanded by 140 bps to 37.4%.&nbsp;Frontier held $1.5 billion in cash and equivalents and used $(694) million in free cash flow&nbsp;as of March 31, 2024.
"We had a strong start to the year and achieved another major inflection point. We grew revenue year-over-year for the first time since 2015 and delivered our third consecutive quarter of Adjusted EBITDA growth," said Nick Jeffery, President and Chief Executive Officer of Frontier. "We also grew our customer base and increased ARPU in the quarter, resulting in a 24% increase in fiber broadband revenue."
FY24 Outlook:&nbsp;Frontier&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37422774/why-is-fubotv-stock-trading-down-friday" rel="noreferrer noopener">reiterated adjusted EBITDA</a>&nbsp;of $2.20 billion – $2.25 billion and targeted fiber builds to 1.3 million new locations.
Frontier Communications stock gained over 17% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P 500 Equal Weight Communication Services ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>) and&nbsp;SPDR S&amp;P Telecom ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
Price Action:&nbsp;FYBR shares traded higher by 7.29% at $25.75&nbsp;at the last check Friday.

Earnings

Frontier's CEO Celebrates Turnaround With Revenue Growth and Customer Base Expansion

Ciena Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) reported a first-quarter fiscal 2024 revenue decline of 1.8% year-on-year to $1.04 billion, beating the consensus&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/b37530602/ciena-reports-fiscal-first-quarter-2024-financial-results" rel="noreferrer noopener">estimate of $1.02 billion</a>.
The American telecommunications networking equipment and software services supplier reported an adjusted EPS of $0.66, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $0.48</a>. The stock price plunged after the results.
Segments:&nbsp;Total Networking Platforms revenue declined by 5.6% Y/Y to $807.2 million, and Total Global Services increased by 12.6% Y/Y to $126.8 million.
Margins:&nbsp;The adjusted gross margin expanded by 200 bps to 45.7%. Adjusted operating margin grew by 60 bps to 13.2%.
Two customers represented 10%-plus of revenue for the quarter, combining for a total of 26.5% of revenue.
Ciena held $1.48 billion in cash and equivalents and generated $266.1 million in operating cash flow.
CEO Gary Smith said, &#8220;While we remain very confident in the strength and durability of bandwidth demand as a long-term driver of our business, it is taking longer than expected for service providers to work through high levels of inventory.&#8221;
Investors can gain exposure to the stock via&nbsp;SPDR S&amp;P Telecom ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and&nbsp;The Future Fund Active ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFND#NYSE">FFND</a>).
Outlook: Ciena expects fiscal 2024 revenue of $4 billion &#8211; $4.3 billion, down from previous expectations for 1%-4% growth (2024 revenue estimate $4.5 billion). For fiscal year 2023, Ciena reported revenue of $4.39 billion.
The company continues to expect its <a href="https://www.benzinga.com/calendars/guidance">2024 adjusted gross margin in the mid-40s%.</a>
The company projects second-quarter revenue of $850 million &#8211; $930 million below the consensus of $1.1 billion. The company foresees adjusted gross margin in the low-40s% for the second quarter.
Price Action:&nbsp;CIEN shares were trading lower by 13.89% at $53.35 on the last check Thursday.

General

FFND

Why Is Networking Company Ciena Stock Plunging Thursday?

Ligado Networks&nbsp;filed a lawsuit against the U.S. government, alleging that the Defense Department and Commerce Department obstructed its business plans with a calculated disinformation campaign.&nbsp;
The long-struggling satellite company seeks compensation of up to $39 billion for the spectrum rights it claims were unjustly denied.&nbsp;
This legal action comes amid the looming threat of $4 billion in November bond payments, as Ligado has been navigating financial instability while striving to secure its spectrum rights.
The heart of the matter revolves&nbsp;<a class="editor-rtfLink" href="https://www.wsj.com/articles/ligado-sues-u-s-seeking-39-billion-in-spectrum-fight-888ad542?mod=latest_headlines" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">around</a>&nbsp;Ligado&#39;s contention that the Pentagon and Commerce Department used a false pretext to deny the company the wireless spectrum licenses that should have been commercially available, the Wall Street Journal noted.&nbsp;
Federal officials at both departments have consistently argued that Ligado&#39;s planned fifth-generation wireless signals could disrupt the Global Positioning System (GPS) functionality.
Ligado&#39;s lawsuit further alleges that the Pentagon took control of Ligado&#39;s spectrum in the L-band without disclosing alternative purposes to other regulators or Congress.&nbsp;
The Pentagon frequently uses this frequency range for classified weapons and communication programs, rendering it unavailable for civilian use.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Legal

FCOM

FIVG

TMUS

Beleaguered Satellite Firm Ligado Networks Sues US for $39B in Spectrum Rights Dispute

Editor&#39;s note:&nbsp;A&nbsp;previous version of this story incorrectly suggested a sell recommendation was made for American Express. The&nbsp;headline has been corrected. 
On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/09/20/final-trades-american-express-copart-more.html">Halftime Report Final Trades</a>,&quot; Shannon Saccocia of Boston Private named SPDR S&amp;P Telecom ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xtl#NYSE">XTL</a>), saying telecommunication services sector has <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/09/34783523/over-18m-bet-on-asana-check-out-these-3-stocks-insiders-are-buying"> done very well. </a>
Stephanie Link of Hightower said American Express Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/axp#NYSE">AXP</a>) is trading at 13 times its forward estimates and has historically traded closer to 18 times. &quot;I like the valuation,&quot; she added.
RBC Capital analyst Jon Arfstrom recently upgraded American Express from Sector Perform to Outperform and raised the price target from $197 to $200.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here</a>.&nbsp;
Joseph Terranova of Virtus Investment Partners said Copart, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cprt#NASDAQ">CPRT</a>) reported quarterly earnings last Friday. The stock fell slightly and this is a &quot;great opportunity to pick up a quality company,&quot; he added.
Copart reported upbeat results for its fourth quarter, posting adjusted earnings of 34 cents per share, topping market estimates of 32 cents per share.
Liz Young of BNY Mellon Investment Management recommended selling Consumer Discretionary Select Sector SPDR Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xly#NYSE">XLY</a>), adding the consumer is getting weaker.
Price Action: Copart shares fell 1.2% to close at $44.02, while American Express shares fell 1.3% to settle at $157.23 on Wednesday.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/09/34784291/top-4-health-care-stocks-that-could-lead-to-your-biggest-gains-in-q3"> Top 4 Health Care Stocks That Could Lead To Your Biggest Gains In Q3 </a>

Long Ideas

Media

CPRT

Select Sector SPDR-Consumer Discretionary

CORRECTED: American Express, Consumer Discretionary, Copart And More: CNBC's 'Final Trades'

The U.S. telecommunications industry is experiencing a volatile period following a detailed investigation conducted by the Wall Street Journal revealing that telecom companies, such as AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Telephone and Data Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>), Frontier Communications Parent Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) and others neglected more than 2,000 lead-containing cables across the country that were installed under the old Bell System <a href="https://www.benzinga.com/government/23/07/33158334/toxic-lead-covered-cables-from-at-t-verizon-and-other-telecoms-are-hazardous-wsj">and are now decaying.</a>
Environmental researchers, collaborating with Journal reporters, conducted tests on water and sediment samples from various locations. Shockingly, eight out of 12 tests showed elevated levels of lead contamination.
<h2 class="wp-block-heading">Lead-Cabling Controversy Hits Telecoms Stocks: Analysts React</h2>
The market impact was swift and severe. Analysts, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33256330/at-t-verizon-plummet-to-multidecade-lows-toxic-lead-investigation-sparks-telco-sell">Citigroup&#8217;s Michael Rollins</a>, wasted no time downgrading the affected stocks due to the environmental threat. 
On Monday, shares of AT&amp;T plummeted to their lowest value since 1993, dropping 7%. Although there was a slight recovery attempt on Tuesday&#8217;s opening, AT&amp;T ultimately closed flat. 
Verizon shares also experienced a significant decline, hitting their lowest point in over a decade on Monday with a 7.5% drop, followed by a marginal 2.4% rebound on Tuesday. TDS saw the most notable recovery on Tuesday, surging 9% after an 8.4% decline on Monday.
<h2 class="wp-block-heading">Telecom Companies Respond to Lead Cable Concerns:</h2>
In response to the Wall Street Journal&#8217;s investigation, the telecom companies and USTelecom, a group representing the broader industry, defended their practices. 
They emphasized that they provide safety training and protective gear to workers to handle lead properly. 
AT&amp;T said in a press release that it does not consider lead-sheathed cables to be a public health concern, citing scientific literature. The company also criticized the testing methodologies used by the newspaper and questioned the credibility of one of the testing companies due to a conflict of interest.
TDS acknowledged the presence of a limited amount of lead cabling in its network and said it is identifying the next steps to address the issue while complying with applicable laws. Verizon did not issue a PR on the matter.
<h2 class="wp-block-heading">5 ETFs With The Highest Exposure To Telecom Stocks</h2>
Among the exchange-traded funds that show a concentration of holdings in telecommunication stocks affected by the lead-cabling crisis, Benzinga found:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>T (weight %)</th>
<th>VZ (%)</th>
<th>TDS (%)</th>
<th>FYBR (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>)</td>
<td>4</td>
<td>11.8</td>
<td>0</td>
<td>2.5</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>)</td>
<td>2.59</td>
<td>3.55</td>
<td>0</td>
<td>2.3</td>
</tr>
<tr>
<td>SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)</td>
<td>3</td>
<td>3.1</td>
<td>3.5</td>
<td>3</td>
</tr>
<tr>
<td>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>)</td>
<td>3.8</td>
<td>4.4</td>
<td>0.1</td>
<td>0</td>
</tr>
<tr>
<td>Invesco S&amp;P 500 Equal Weight Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>)</td>
<td>4</td>
<td>4.1</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>
</figure>
Also Read: <a href="https://www.benzinga.com/news/23/07/33253034/whats-going-on-with-verizon-shares">What&#8217;s Going On With Verizon Shares</a>
Photo: Shutterstock

First Trust Morningstar Dividend Leaders Index Fund

iShares Trust S&P Global Telecommunications Sector Index Fund

VLUE

Telecom Stocks Under Pressure As Toxic Lead Cable Concerns Discourage Buyers: 5 ETFs To Watch

Shares in telecom giants AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon Communication Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Telephone and Data Systems, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>), and Frontier Communication Parent, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) dropped dramatically Monday, shedding 7% to 15%. The Wall Street Journal&#8217;s investigation revealing the neglect of a network of harmful lead-coated cables <a href="http://benzinga.com/government/23/07/33158334/toxic-lead-covered-cables-from-at-t-verizon-and-other-telecoms-are-hazardous-wsj">prompted the market backlash.</a>
In a note released Monday, Citigroup analyst Michael Rollins examined the situation regarding the cable network deployed by these telecom companies nationwide. 
According to Rollins, a considerable percentage of these cables may have lead sheathing, with varied amounts of exposure for each company. As a result, the analyst believes that this issue will continue to have an impact on stocks and their valuation for a few months, if not longer, until the market has a better understanding of the financial risk involved.
Rollins stated that gathering more information regarding the matter could take several months, and that a final resolution could take years. According to Citigroup&#8217;s current scenario estimate, most wireline telecommunications companies will experience a firm valuation discount ranging from 0.2x to 1.0x of EBITDA.
Also Read: <a href="https://www.benzinga.com/markets/eurozone/23/07/33255186/tesla-prepares-to-double-berlin-factory-size-aiming-for-1-million-evs-annually">Tesla Prepares To Double Berlin Factory Size, Aiming For 1 Million EVs Annually</a>
Chart: AT&amp;T Tumbles to February 1993 Levels, Verizon to November 2010
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="702" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1024x702.png" alt="" class="wp-image-69555" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1024x702.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-300x206.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-768x526.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1536x1052.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83.png 1804w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Citigroup Actions</h2>
In response to recent developments, Citigroup has downgraded its ratings on AT&amp;T, Telephone and Data Systems, and Frontier Communication to Neutral/High Risk. While the price targets for these stocks have been reduced to $16, $8, and $17, respectively.
<h2 class="wp-block-heading">ETF That Holds Telcos</h2>
The U.S.-listed exchange-traded funds with the highest exposure to AT&amp;T are the iShares MSCI USA Value Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#NYSE">VLUE</a>) with a 5.1% weight and the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) with a 4.2% weight.
The iShares Trust &#8211; iShares U.S. Telecommunications ETF also has a large stake in Verizon (12.4%), which is also represented by an 8.3% weight in the First Trust Morningstar Dividend Leaders Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDL#NYSE">FDL</a>). 
Frontier Communication is a 3% holding in the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
<h2 class="wp-block-heading">Telcos&#8217; Response</h2>
In response to the investigation, AT&amp;T and USTelecom, an industry group, developed websites debunking concerns about the environmental and public health implications of lead cables. 
A spokesperson for USTelecom emphasized that&nbsp;there is no evidence that legacy lead-sheathed telecom cables are a significant source of lead exposure or a public health concern. The representative additionally stressed the importance of safe work procedures in the telecommunications industry in avoiding worker exposure to lead.
Read now: <a href="https://www.benzinga.com/news/23/07/33249131/at-t-stock-is-trading-lower-whats-going-on">AT&amp;T Stock Is Trading Lower: What&#8217;s Going On?</a>
Photo: Shutterstock

AT&T, Verizon Plummet To Multidecade Lows: Toxic Lead Investigation Sparks Telco Sell-Off, Analysts Head For The Exits

<ul>
<li>Congress&rsquo;s temporary $3.2 billion broadband subsidy program has seen over 2.3 million U.S. households subscribed,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/world/us/more-than-23-million-us-households-sign-up-broadband-subsidy-fcc-2021-06-07/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reported</a>&nbsp;based on the Federal Communications Commission (FCC) data.</li>
<li>Over 1,000 broadband providers have agreed to support the program aimed towards the lower-income and pandemic afflicted Americans to provide internet access to the underserved communities.</li>
<li>Some providers expect the program initiated on May 12 to run out of funds in four to six months.</li>
<li>Verizon Communications Inc&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/vz#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">VZ</a>),&nbsp;T-Mobile US Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tmus#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TMUS</a>),&nbsp;AT&amp;T Inc&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/t#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">T</a>) are some of the U.S.&rsquo;s major broadband providers.</li>
<li>Reuters notes there are 33.2 million households eligible for the subsidy.</li>
</ul>

CHTR

CMCSA

LBRDA

LBRDK

Over 2.3M US Households Signed for Broadband Subsidy: Reuters

XLRE

Benzinga Pro Midday Sector Update: Consumer Discretionary -0.3%, Consumer Staples +0.04%, Energy +0.7%, Financials +0.7%, Health Care +0.06%, Industrials -0.01%, Tech -1.6%, Materials +0.3%, Real Estate +0.08%, Telecom +2.39%, Utilities -0.4%

Traders are busy building out brackets for 2018&rsquo;s best competing stocks.
Some <a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/01/10972142/stephens-analysts-present-their-best-ideas-for-2018">bet on</a> FireEye Inc (NASDAQ: <a class="ticker" href="/stock/feye#NASDAQ">FEYE</a>) and CBS Corporation (NYSE: <a class="ticker" href="/stock/cbs#NYSE">CBS</a>), others <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/01/10973717/new-year-predictions-bitcoin-drops-ripple-rises-retail-takeo">bet against</a> bitcoin. Here&rsquo;s what Drexel Hamilton had to say.
<h3>
	The Rating</h3>
Drexel Hamilton earlier this week named its top industry Buys as:
<ul>
<li>
		Textron Inc. (NYSE: <a class="ticker" href="/stock/txt#NYSE">TXT</a>) ($66 price target) for aerospace and defense;</li>
<li>
		OSI Systems, Inc. (NASDAQ: <a class="ticker" href="/stock/osis#NASDAQ">OSIS</a>) ($105 price target) for health care and defense;</li>
<li>
		QEP Resources Inc (NYSE: <a class="ticker" href="/stock/qep#NYSE">QEP</a>) ($33 price target) in energy;</li>
<li>
		Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) ($235 price target) in IT hardware and software;</li>
<li>
		Tower Semiconductor Ltd. (USA) (NASDAQ: <a class="ticker" href="/stock/tsem#NASDAQ">TSEM</a>) ($46 price target) among chip manufacturers;</li>
<li>
		ARRIS International plc (NASDAQ: <a class="ticker" href="/stock/arrs#NASDAQ">ARRS</a>) ($40 price target) in cloud computing; and</li>
<li>
		Consolidated Communications Holdings Inc (NASDAQ: <a class="ticker" href="/stock/cnsl#NASDAQ">CNSL</a>) ($20 price target) in telecom.</li>
</ul>
<h3>
	The Thesis</h3>
The analysts defended their Buys with the following justifications:
Textron&rsquo;s business and military jets are expected to accelerate organic revenue growth and improve margins, compounding the capex-unlocking effects of tax reform.
Last year, OSI Systems delivered strong revenue growth in its security business, stable profits from its optoelectronics line and a recovery in its health-care division. Analyst Brian Ruttenbur now forecasts two-year annual revenue growth of 10 to 15 percent.
After a strong performance in late 2017, QEP Resources is expected to carry momentum through the first half of 2018. The firm is seen to be transforming into a low-cost, high-growth Permian oil producer expanding its crude oil mix.
Analyst Brian White considers Apple poised to surpass a $1 trillion market cap in 2018 amid a &ldquo;revaluation phenomenon,&rdquo; capital opportunities from tax reform, innovations in the HomePod and Apple Watch, sales growth in China and progress in &ldquo;ultra-luxury&rdquo; smartphones.
Tower Semiconductor is expected to build on a 16-quarter growth streak with 15-percent earnings increases and near-double digit revenue growth. Its increased competitiveness in specialty analog foundry technologies and manufacturing capabilities; long-term contracts; and low-cost manufacturing model are seen to drive peer outperformance.
With two recent wireless acquisitions, ARRIS International will register earnings accretion and combat margin headwinds. Analyst Greg Mesniaeff also anticipates profits from the loss of Net Neutrality and the deployment of next-generation broadband technologies.
Consolidated Communications&rsquo; technical pressure and strong fundamentals support Drexel&rsquo;s upgrade to Buy. The firm is forecasted to maintain its $1.55 annual dividend despite merger-related declines in revenue and earnings before interest, taxes, depreciation and amortization.
Drexel Hamilton affirmed that the individual stocks should outperform corresponding exchange-traded funds identified as:
<ul>
<li>
		iShares Dow Jones US Aerospace &amp; Def.ETF (BATS: ITA) for Textron and OSI;</li>
<li>
		Energy Select Sector SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) for QEP;</li>
<li>
		Technology Select Sector SPDR Fund (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) for Apple;</li>
<li>
		VanEck Vectors Semiconductor ETF (NYSE: <a class="ticker" href="/stock/smh#NYSE">SMH</a>) for Tower;</li>
<li>
		First Trust Exchange-Traded Fund II (NASDAQ: <a class="ticker" href="/stock/skyy#NASDAQ">SKYY</a>) for ARRIS; and</li>
<li>
		SPDR Series Trust (NYSE: <a class="ticker" href="/stock/xtl#NYSE">XTL</a>) for Consolidated Communications.</li>
</ul>
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/01/10972170/bitcoin-bites-amazon-acquires-gene-munsters-8-tech-pred">Bitcoin Bites, Amazon Acquires: Gene Munster&#39;s 8 Predictions For 2018</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/12/10929027/here-are-jefferies-top-13-tanker-picks-for-2018">Here Are Jefferies&#39; Top 13 Tanker Picks For 2018</a>

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