Why Lumen Technologies Rallied Back This Week
Shares of Lumen Technologies (NYSE: LUMN) were bouncing back this week, up 17.7% through Friday at 12:40 p.m. ET, according to data from S&P Global Market Intelligence.
Lumen had fallen hard after a disappointing earnings report on July 31; however, there were a couple of positive news items this week that helped it regain ground, especially regarding its newer network-as-a-service product.
First, as a heavily indebted company, Lumen's stock can be sensitive to inflation and interest rate news. On that front, Tuesday's Consumer Price Index (CPI) report came in tamer than expected. Overall the July CPI rose 2.7% year over year and 0.2% month over month, which was slightly better than economists had predicted. In the wake of the release, economists ramped up their bets for an interest rate cut at the next Federal Reserve meeting in September.
Source Fool.com
