Shares of AT&T and other telecom stocks rebounded in early trading after falling to multi-year lows yesterday.
AT&T, which ended Monday at its lowest close since February 1993, recently rose 2%. Verizon, which recorded its lowest closing price since September 2010, rose more than 4%.
The moves follow a Wall Street Journal investigation into toxic lead cables left behind by telecommunications companies, leading some on Wall Street to express caution about the liabilities those companies could face. (In a Monday note, Oppenheimer analysts referred to “a black hole of potential tort liability.”)