IE 11 is not supported. For an optimal experience visit our site on another browser.

Sector Snap: Telecom shares gain with market

Shares of telecommunications companies soared Monday as the broader market rallied following the government's plan to bail out Citigroup Inc.
/ Source: The Associated Press

Shares of telecommunications companies soared Monday as the broader market rallied following the government's plan to bail out Citigroup Inc.

The government announced on Sunday it would invest $20 billion in Citigroup and guarantee $306 billion in risky assets.

"Riskier (telecom) names have gotten beaten down more so than most of the other telecom names over the last several months," said Stifel Nicolaus analyst Christopher King in an interview. "Today, people are presumably more comfortable with risk."

All the major stock indexes jumped more than 3 percent Monday afternoon. King said he would expect riskier names like Sprint Nextel Corp., Qwest Communications International Inc. and Clearwire to outperform the market.

Shares of Overland Park, Kan.-based Sprint rocketed up 36 cents, 21.1 percent, to $2.07. The stock is still down 84 percent for the year to date.

Qwest stock climbed 25 cents, or 10.9 percent, to $2.55, and Clearwire Corp.'s shares added 70 cents, or 17 percent, to $4.82.

The three largest telecom providers by market capitalization also saw shares climb Monday. AT&T Inc.'s stock jumped $1.60, or 6.4 percent, to $26.76. U.S.-traded shares of Vodafone Group PLC added $1.45, or 8.5 percent, to $18.59 and Verizon Communications Inc.'s shares rose $1.58, or 5.6 percent, to $30.05.