Shares of RadioShack Corp. jumped more than 14% on Monday following news on Friday that the retail chain would begin selling the iPhone. In early afternoon trading, the stock traded at US$20.31, up $2.57 (+14.49%) on heavy volume of 12.1 million shares, almost twice the firm's daily average.
Shares in Apple Inc. also rose more than 3%, part of a broader tech rally propelled by semiconductor gains. The stock crossed the $200 mark again to trade at $200.18, a gain of $5.84 (+3.01%) on moderate volume. AAPL had hit an all-time high of $204.92 on October 21st before profit taking and a broader market selloff sent the stock south again.
The deal to carry iPhones in some of its retail locations is being seen as a boost for RadioShack Corp as the company works to enhance its presence in the mobile phone market, according to Bloomberg. Stephen Chick and Anne McCormick, analysts at FBR Capital Markets Corp., told the media outlet, "The iPhone is another significant vote of confidence for RadioShack's wireless business."
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.