The chips have cushioning the downshift of telecom on Wall Street


© Reuters. WALL STREET ENDS UP SPREAD

by Tanya Agrawal

NEW YORK (Reuters) – Wall Street has finished in a very slight increase in the first session of the week, the progression, however, being more marked for the Nasdaq, the gains of the values of high tech following a big operation in semiconductors that have offset the losses in the telecoms sector.

Broadcom (NASDAQ:AVGO) on Monday presented a purchase offer on his counterpart, Qualcomm (NASDAQ:QCOM) for $ 130 billion (112 billion euros), liabilities included, which would make it the biggest acquisition ever carried out in the high tech.

The action, Broadcom has finished the session on Monday with a gain of 1.42%, while Qualcomm has taken a 1.15%.

“We haven’t seen much this year in terms of merger and acquisition; it could give a boost to this activity before the tax reform,” said Paul Nolte (Kingview Asset Management).

The Dow Jones has taken 9,23 points (0.04 percent) to 23.548,42 points. The S&P-500 gained 3,29 points (0.13 per cent) to 2.591,13 points. The Nasdaq Composite has advanced by 22 points (0.33 per cent) to 6.786,44 points. The Dow and the Nasdaq have registered record highs in the session.

In the semiconductor always, Intel (NASDAQ:INTC) and Advanced Micro Devices (AMD) allied in the chips for computers, in order to counter the specialist graphics cards Nvidia, according to the Wall Street Journal.

Intel has gained 1.37% and AMD has jumped by 7,28%, while Nvidia has advanced 0.45%.

Conversely, Sprint and T-Mobile US (NASDAQ:TMUS) announced Saturday that they had renounced their project to merge in order to create a telecom operator mobile capable of competing with the leaders of the u.s. market.

In contrast, Sprint and Altice (AS:TCAA) USA have announced on Monday an alliance in the mobile services under which the cable operator will use the telecommunications network of the mobile operator to market mobile services to the United States in the framework of a multi-year agreement.

Sprint has dropped 11,54% and T-Mobile US has dropped over 5.72%, while Altice USA has awarded 5,84%.

During this time, the publications of the results of companies quarterly continues. More than 400 companies of the S&P-500 have announced their results and, at this stage, the increase in benefits is estimated to be 8% instead of 5.9% anticipated in early October, according to data from Thomson Reuters I/B/E/S.

Investors take a break after a week that saw the presentation of the draft tax reform, a republican – also good practice for the market as it provides, among other things, reduce the rate of corporate tax (IS) 35% to 20% – and the nomination of Jerome Powell to the chairmanship of the federal Reserve.

Leave a Reply

^ To Top