Shares of telecommunications companies were flat as hopes for a tax cut prompted a rotation into more cyclical sectors. "Verizon appears to be leading its peers in the 'race toward 5G,' which could provide a competitive advantage," said analysts at brokerage KeyBanc, in a note to clients. "Longer term, we see the stock range-bound until the next catalyst of 5G or tax reform begin to take shape." Shares of Swedish telecom equipment maker Ericsson, which analysts at Morgan Stanley had predicted will be another beneficiary of 5G trends, rose after its earnings report hinted that a turnaround effort was starting to bear fruit. Advertising giant Publicis Groupe sent shockwaves through the ad industry Thursday when it reported below-target quarterly earnings and warned that the outlook was difficult to predict. Publicis may shift focus to strategic investment from short-term profit growth, according to one brokerage. Publicis may soon "emphasize reinvestment in talent and technology to drive growth and previous margin targets will be revised or pushed further into the future," said analysts at brokerage Credit Suisse, in a research note.
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(END) Dow Jones Newswires
October 20, 2017 16:39 ET (20:39 GMT)