AT&T announced quarterly financial results yesterday that it said modestly exceeded analysts' expectations, amid signs that the trends that have devastated parts of its business, if not getting better, are at least not growing worse.

Both AT&T's consumer and business-services operations are still shrinking because of continued weakness in the company's core long-distance telephone market.

CEO: "Given ongoing weakness in the economy and instability among some players in the telecommunications industry, I'm pleased with our second-quarter results. We continue to execute with purpose and integrity."

AT&T would have to assume the risk of trying to sell billions of dollars' worth of shares in Time Warner Cable at a time when the stock market generally, and cable stocks in particular, are taking heavy losses.