AT&T Inc. (T), The Procter & Gamble Company (PG): Two Surprising Companies Behind the Dow (.DJI)’s Moves

On the day after Apple Inc. (NASDAQ:AAPL) announced earnings, most investors would have guessed that the tech giant would have been the primary focus of the stock market’s moves this morning. Yet while Apple Inc. (NASDAQ:AAPL) has certainly had an impact on trading, its muted share-price movements so far haven’t inspired much interest.

Instead, many analysts pointed to a big drop in durable-goods orders that was more than double the decline economists had expected to see as the primary cause for a slight drop in stocks overall. As of 10:45 a.m. EDT, the Dow Jones Industrials (Dow Jones Indices:.DJI) are down seven points, while the broader market has seen similarly negligible  changes.

For a couple of Dow stocks, however, the news wasn’t nearly as neutral. AT&T Inc. (NYSE:T) has plunged more than 5% after disappointing investors with its quarterly report. Overall sales for the telecom giant fell 1.4%, with the wireless segment providing only 3.4% growth. The main problem for AT&T Inc. (NYSE:T) is that rival Verizon Communications Inc. (NYSE:VZ) is seeing faster growth in its Verizon Wireless joint venture. Moreover, Verizon Communications Inc. (NYSE:VZ) has almost caught up to AT&T Inc. (NYSE:T) in the number of iPhones it sells, and AT&T Inc. (NYSE:T) lags behind Verizon in total smartphone activations. Continuing disappointment could hurt AT&T Inc. (NYSE:T)’s future prospects for the rest of the year and beyond, benefiting Verizon Communications Inc. (NYSE:VZ) further.

The Procter & Gamble Company (NYSE:PG) is the other big loser on the Dow, falling about 4.7%. The consumer giant beat earnings estimates but fell short on revenue, and it gave disappointing guidance for the current quarter. Slow growth continues to plague The Procter & Gamble Company (NYSE:PG), and even a bad flu season that helped boost health-care-related sales couldn’t pull The Procter & Gamble Company (NYSE:PG)’s overall revenue up enough to satisfy investors who are worried about the company’s lack of industry leadership in recent years.

Finally, outside the Dow, Unisys Corporation (NYSE:UIS) saw its shares lose nearly a quarter of their value after announcing a substantial loss. Although much of the hit to earnings came from Venezuela’s recent devaluation of its currency and additional pension expense, weakness in its systems-integration and technology divisions led to a big drop in revenue. As much larger competitors start to concentrate more on IT services, Unisys Corporation (NYSE:UIS) will struggle to find a niche it can rely on to reawaken its growth prospects.

The article 2 Surprising Companies Behind the Dow’s Moves originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns shares of Apple. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Apple and Procter & Gamble. The Motley Fool owns shares of Apple.

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