Investing.com - AT&T (NYSE:T) led telecom stocks higher in midday trading, while financial stocks retreated on the last day of a strong week.
AT&T rose about 2% at 12:00 PM ET (16:00 GMT).
The stock was boosted by an upgrade from UBS, which raised the stock to buy from neutral, according to published reports. UBS raised its price target to $38 from $33 and said the company should return to growth in earnings before interest, taxation, depreciation and amortization (EBITDA) in the second half.
Sentiment was also buoyed by the company after it asked a federal appeals court to reject the Justice Department’s challenge of its acquisition of Time Warner.
AT&T was one of several strong performers in the S&P Telecom Sector index, which was up about 1.5%.
With bond yields retreating today, telecoms tend to outperform as their dividends become more attractive.
But there is an argument that AT&T will diverge from that sector when, as expected, the Time Warner deal goes through and that it will be looked on as more of a content and tech play.
The rise in bonds and corresponding retreat in yields also impacted the financial stocks, which are down but still on track for a strong week.
The S&P Financial Sector index, which hit levels not seen since the first quarter recently, was down about 0.2%.
Moody's (NYSE:MCO) was the biggest loser in the index, falling about 2%.