Good Evening! On Tuesday, U.S. equities showed a slow but mixed performance with the release of the latest employment data. The S&P 500 and the Dow Jones couldn’t produce enough steam to get out of the red, ending down by 0.06% & 0.22%, respectively. The performance of the Nasdaq was a different story, ending the day up by 0.31%.
A SHIFT IN THE INDUSTRY
By surpassing its longtime rival, Nokia Oyj, Ericsson AB (ERIC) was able to secure a $14 billion deal to update AT&T Inc.’s wireless network and commit to building an accessible network that other suppliers can service.
Why is this important for AT&T? According to Ericsson, the deal signifies a significant change in the industry’s strategy since it allows AT&T to choose suppliers for its antennas and infrastructure instead of being limited to a single relationship. Also, the funding will be disbursed over a period of five years, with a specific emphasis on enhancing AT&T’s infrastructure for 5G technology.
On top of that… AT&T said that the new network would enable them to promptly take advantage of the next wireless technological advancements. The business said that the benefits include more efficient and environmentally friendly networks that provide superior performance.
A win for Ericsson and a setback for Nokia… Nokia had a significant setback with the news that it would postpone its objective of achieving double-digit operating margins by up to two years. With this news, shares plummeted by 5.9% during Tuesday’s trading session in Helsinki. However, now Ericsson plans on providing 70% of AT&T’s network by late 2026, while Nokia will now be responsible for the remaining 30%.
CVS Health (CVS) is implementing modifications to its prescription medication pricing structure, which may result in cost reductions for clients commencing next year. The company announced its intention to use a new payment mechanism to enhance cost predictability at the pharmacy counter.
So, what does this mean for the customer? CVS Health drugstores will expand the use of the company’s new CostVantage model in 2025. Its purpose is to enhance the transparency of medicine prices. The process entails using a formula that considers the medication’s cost, a predetermined markup, and an additional charge for supplying the prescription. Additionally, it may result in cost reductions for customers starting in the next year.
What else is CVS up to? Additionally, the corporation disclosed a 10% increase in its quarterly dividend and presented its projections for the next year. CVS Health anticipates that its adjusted profits will be a minimum of $8.50 per share. The prediction also predicts a minimum total revenue of $366 billion.