Closing Bell Update| Sprint downgraded by two analysts, shares fall 4 percent
01/14/2013 4:31 PM
05/16/2014 8:48 PM
Shares in Sprint Nextel fell nearly 4 percent Monday after two analysts downgraded the wireless company's stock.
JPMorgan cuts its rating on the stock to “neutral” from “overweight.” The bank's analysts expect the company to spend big on capital investment this year and say that the outlook for subscriber growth in uncertain.
Also a UBS analyst downgraded Sprint’s shares from a “buy” to “neutral.” The rating cut likely prompted the stock to fall 23 cents to close at $5.69.
Sprint is facing a potential bidding war from Dish Network to acquire control of Clearwire Corp. Sprint has an agreement with Clearwire’s board, but Dish countered with an unsolicited bid that is higher than Sprint’s offer.
Wireless rival AT also fell while Verizon finished unchanged.
Elsewhere among regional stocks, H Block fell nearly 3 percent, while Compass Minerals and YRC Worldwide fell 1 percent.
Among the gainers, Commerce Bancshares rose 1.4 percent and Ferrellgas Partners finished 1.7 percent higher.
On Wall Street, stocks ended the day mixed as investors wait for more earnings reports to come in. Apple dropped on concern that demand for the iPhone 5 is waning.
The Dow Jones industrial average closed up 18.89 points, or 0.14 percent, to close at 13,507.32.
It fell as much as 29 points at the start of the day.
The Standard Poor’s 500 fell 1.37 points, or 0.09 percent, to close at 1,470.68.
The Nasdaq composite index fell fell 8.13 points, or 0.26 percent, to close at 3,117.50.
The BATS 1000 rose 7.61 points, or 0.05 percent, to close at 16,589.70.
The S and Nasdaq were dragged down by Apple, the biggest component of both indexes. Apple fell 4 percent following a report that the company has cut its orders for iPhone 5 components due to weak demand.
Falling stocks outnumbered rising ones on the New York Stock Exchange. Volume was light at 2.9 billion shares.Regional stocks
Capitol Federal Financial fell 2 cents, or 0.17%, to close at $11.86.
Cerner Corp. rose 54 cents, or 0.66%, to close at $82.16.
Commerce Bancshares Inc. rose 50 cents, or 1.37%, to close at $36.99.
Compass Minerals fell 75 cents, or 1.02%, to close at $72.70.
DST Systems Inc. fell 46 cents, or 0.73%, to close at $62.97.
Ferrellgas Partners L.P. rose 30 cents, or 1.66%, to close at $18.38.
Garmin Ltd. rose 31 cents, or 0.78%, to close at $39.91.
Great Plains Energy rose 6 cents, or 0.29%, to close at $20.79.
H Block Inc. fell 57 cents, or 2.85%, to close at $19.41.
Inergy L.P. rose 5 cents, or 0.25%, to close at $20.19.
Kansas City Life Insurance Co. fell 6 cents, or 0.16%, to close at $37.37.
Kansas City Southern rose 15 cents, or 0.18%, to close at $85.69.
Layne Christensen Co. fell 1 cents, or 0.04%, to close at $23.34.
O’Reilly Automotive Inc. rose 54 cents, or 0.61%, to close at $88.55.
Sprint Nextel Corp. fell 23 cents, or 3.89%, to close at $5.69.
UMB Financial Corp. rose 27 cents, or 0.60%, to close at $45.22.
Waddell Reed Financial Corp. rose 25 cents, or 0.67%, to close at $37.60.
YRC Worldwide Inc. fell 7 cents, or 1.04%, to close at $6.63.