AT&T got a few pieces of good news today that could help lift the stock price further.
First, the Federal Reserve announced that it made a large purchase of AT&T bonds on the secondary market. I don't know that this greatly changes the outlook for the stock, but in theory it means that AT&T could borrow more money in the future at more advantageous rates because the Fed has taken some of the supply of AT&T bonds off the private corporate bond market.
Second, Democratic senators introduced legislation to subsidize Internet access for Americans experiencing financial hardship due to the pandemic. Republicans have been working on their own bill to do the same thing. Telecom companies agreed in March not to cancel service or charge late fees to customers who have been impacted by the pandemic, but those commitments expire tomorrow, so legislators may feel some pressure to act quickly on this. If passed, the bill could increase demand for AT&T's services.
Third, AT&T launched its 5G coverage in 28 big-city markets today, expanding its reach to more than 160 million consumers. This opens up a lot more market share for AT&T.
The company is also enjoying some positive publicity for choosing Anne Chow, a woman of color, as CEO.
In terms of technicals, AT&T is sitting right atop a volume support.
First, the Federal Reserve announced that it made a large purchase of AT&T bonds on the secondary market. I don't know that this greatly changes the outlook for the stock, but in theory it means that AT&T could borrow more money in the future at more advantageous rates because the Fed has taken some of the supply of AT&T bonds off the private corporate bond market.
Second, Democratic senators introduced legislation to subsidize Internet access for Americans experiencing financial hardship due to the pandemic. Republicans have been working on their own bill to do the same thing. Telecom companies agreed in March not to cancel service or charge late fees to customers who have been impacted by the pandemic, but those commitments expire tomorrow, so legislators may feel some pressure to act quickly on this. If passed, the bill could increase demand for AT&T's services.
Third, AT&T launched its 5G coverage in 28 big-city markets today, expanding its reach to more than 160 million consumers. This opens up a lot more market share for AT&T.
The company is also enjoying some positive publicity for choosing Anne Chow, a woman of color, as CEO.
In terms of technicals, AT&T is sitting right atop a volume support.