U.S. Movers: AT&T, China ADRs, Nio, Stellantis, Volkswagen

Scott Peters
30 Sep, 2024
New York City

Benchmark indexes on Wall Street struggled to advance, and investors awaited comments from Fed Chair Powell. 

AT&T agreed to sell its stake in Direct TV and facilitated its merger with Dish TV. 

The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26. 

The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.

AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029. 

AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029. 

DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies. 

In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion. 

Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."

Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China. 

Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor." 

After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%. 

Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China. 

Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties. 

JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.