Beleaguered telecom services provider Qwest Communications (NYSE:Q) $4.15 confirmed its CEO Joseph Nacchio resigned this past weekend and that its board unanimously elected Richard C. Notebaert, the chief executive of telecommunications equipment maker Tellabs (NASDAQ:TLAB) $8.58 as his replacement.
Qwest (Q), which is currently under an investigation into its accounting practices by the Securities and Exchange Commission, said that it planned no other changes in strategy or operations.
The company said Mr. Nacchio will act as a consultant for up to two year "to assist in transition, strategy, planning and other matters of importance to the company."
Nacchio said in a statement: "After criss-crossing the globe for five and one-half grueling years to build Qwest, living in two different cities, and having achieved our major goals, I have expressed my desire to spend more time with my family and pursue other opportunities."
XO Communications files for Chapter 11 bankruptcy
Phone and Internet service provider XO Communications (NASDAQ:XOXO) plans to file for Chapter 11 bankruptcy protection today. The company is struggling under about $5.4 billion in debt and has been working on restructuring plans with it biggest investor, Theodore J. Forstmann. The company reportedly said it has lined up financing in case Forstmann's buyout firm, Forstmann Little & Company, and creditor Telefonos de Mexico (NYSE:TMX) $33.50 back out of a plan to invest $800 million in XO. According to a report from Bloomberg News, the filing in U.S. Bankruptcy Court in New York won't affect business operations and it doesn't expect any job cuts or office closings.
Stock futures show gains
Stock futures are showing some strong gains this morning as S&P futures (sp02u) trade up 6.3 points at 1,016.30. NASDAQ futures (nd02u) are higher by 15 points at 1,131.50 and Dow futures (dj02u) are up 50 points at 9,530.
Fair value for the S&P 500 today is $1.90. That price will not change during the day. HL Camp & Company has their computers set for program buying at $3.10 and set for program selling at $-0.30. Fair value for the NASDAQ-100 today is $6.75.