Verizon shares close lower on Friday, new four-year contract extension ratified by union workers

The union representing a number of employees of Verizon Communications Inc (VZ) reportedly said on Friday that a four-year extension of their labor contracts had been ratified. The current contracts expire in August 2019.

Verizon shares closed lower for the second time in the past eight trading sessions in New York on Friday. It has also been the steepest daily loss since July 31st. The stock went down 1.02% ($0.54) to $52.47, after touching an intraday low at $52.27, or a price level not seen since August 7th ($52.22).

Shares of Verizon Communications Inc have retreated 0.87% so far in 2018 compared with a 5.97% gain for the underlying index, S&P 500 (SPX).

In 2017, Verizon’s stock went down 0.84%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

According to the Communications Workers of America, the new contracts include better retirement benefits for 34 000 Verizon employees located in mid-Atlantic and northeast areas.

Additionally, Verizon said that separate agreements had also been ratified to cover some retail workers located in Pennsylvania as well as in New York.

On the other hand, the ratification process has not yet been completed by Verizon employees who are represented by the International Brotherhood of Electrical Workers, Reuters reported.

The largest wireless carrier in the United States expects the process to be completed at some point this week.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Verizon Communications Inc’s stock price, have a median target of $56.00, with a high estimate of $65.00 and a low estimate of $45.00. The median estimate represents a 6.73% upside compared to the closing price of $52.47 on August 10th.

The same media also reported that 16 out of 31 surveyed investment analysts had rated Verizon Communications Inc’s stock as “Buy”, while 15 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Verizon stock are presented as follows:

R1 – $52.53
R2 – $52.59
R3 (Range Resistance – Sell) – $52.65
R4 (Long Breakout) – $52.83
R5 (Breakout Target 1) – $53.04
R6 (Breakout Target 2) – $53.13

S1 – $52.41
S2 – $52.35
S3 (Range Support – Buy) – $52.29
S4 (Short Breakout) – $52.11
S5 (Breakout Target 1) – $51.90
S6 (Breakout Target 2) – $51.81

By using the traditional method of calculation, the weekly levels of importance for Verizon Communications Inc (VZ) are presented as follows:

Central Pivot Point – $52.50
R1 – $53.24
R2 – $54.01
R3 – $54.75
R4 – $55.49

S1 – $51.73
S2 – $50.99
S3 – $50.22
S4 – $49.45