Dow component AT&T (T: sentiment, chart, options) today announced it has signed a 2-year, $6-million contract with US Airways (LCC: sentiment, chart, options) to provide a wireless solution to aid the airline's cargo-tracking service, as well as wireless luxuries for corporate business travelers.
Under the terms of the deal, T will provide US Airways with a network featuring real-time tracking data for customer shipments. Airways' employees will be provided with hand-held barcode scanners, utilized in a move to improve the tracking of cargo. The deal will also include wireless services with e-mail via BlackBerry and voice service for corporate business travel.
The contract isn't huge news for AT&T investors, as the company is already in similar agreements with other various U.S. airlines. T will take all the good news it can get, though, considering the blue-chip has lost almost 13% since reaching a new annual high in late September. Since the equity's 10-day and 20-day moving averages made a bullish cross in mid-October, the stock has met resistance from its 10-day moving average. With the help of the good tidings, though, T has managed today to overcome its 20-day moving average for the first time since November 1.
As of 12:30 p.m., shares of AT&T are trading at $38.08, up 0.85%.
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