Diamonds and Dogs
Sprint (S) and T-Mobile (TMUS) soar after the FCC Chairman supports their merger. Sprint is up 24% while T-Mobile is up 6% as the two companies will have to make minor concessions to get their deal approved, a year after the announcement. The FCC wants the two companies to deploying a 5G network that would cover 97% of our nation's population within three years of the closing of the merger and 99% of Americans within six years. All the telecom stocks are higher as the deal will reduce competition and probably raise prices.
More pain for the semiconductor sector. Lumentum (LITE) is down 3% after lowering guidance due to the trade tariffs with China. Lumentum is a supplier to the Chinese firm, Huawei, but the United States Department of Commerce has made it more difficult to do business with them imposing license requirements and prior approval to do business with Huawei. Lumentum will fully comply with the United States Department of Commerce imposed license requirements for Huawei exports or lack there of.