World shares gain as Treasury yields edge higher
The S&P 500 rose 0.5% and European shares gained 1%, while Brent crude traded at $104.48 per barrel.
SpaceX spectrum deal weighs on US and European telecom stocks
Major US carriers fell between 5.5% and 7.4% before the market opened, while telecom tower stocks rose on expectations of greater infrastructure demand.
Telecom stocks declined across the United States and Europe on October 9 as a SpaceX spectrum deal fueled worries about satellite-based mobile competition. Premarket losses for T-Mobile US, Verizon and AT&T ranged from 5.5% to 7.4%.
The European sector's benchmark, the STOXX Europe 600 Telecommunications index, lost more than 2%, touching a level last seen on January 30. Among individual operators, Deutsche Telekom was down 6.5%, Vodafone 4.1%, Orange 2.3% and Telefonica 3.9%.
SpaceX agreed to purchase a nationwide portfolio of spectrum in the 800 MHz band from private-equity firm Grain Management. The companies did not disclose financial terms; a media report citing sources valued the deal at about $8 billion. Regulators must still approve the acquisition, which supports SpaceX's satellite-to-cellular ambitions.
Analysts at Morgan Stanley viewed the transaction as evidence that SpaceX intends to step up spectrum purchases. They said any competitive threat to incumbent carriers would probably emerge gradually, with rural markets affected first.
Tower companies gained as investors anticipated that SpaceX's wireless expansion could increase demand for ground infrastructure. Gains for American Tower, Crown Castle and SBA Communications ranged from 6.7% to 8.3%. Morgan Stanley said satellite-focused networks could still use towers, rooftop sites and small cells, while competing more broadly in cities would require substantially greater infrastructure and spectrum.