From Briefing.com: 5:02 pm Rambus: Rahul Mathur has accepted the position of Sr. VP and CFO (RMBS) : Prior to joining Rambus, Mr. Mathur served as senior vice president of finance at Cypress Semiconductor (CY).
4:17 pm IBM also announced extended Red Hat (RHT) collaboration for next-generation cloud platforms and plans for new facility in Boston expected to open in mid-2017 (IBM) : Through joint engineering and deeper product collaboration, the two companies plan to deliver solutions built on key components of Red Hat's portfolio of open source products. The move will help position IBM Power Systems as a featured component of Red Hat's hybrid cloud strategy spanning platform infrastructure located both on and off premises.
4:05 pm Autodesk authorizes share repurchase program of up to 30 mln shares of common stock (ADSK) : Co announced a program to repurchase up to 30 million shares of the company's common stock, in addition to the approximately 1.5 million shares that remained at the end of the second quarter of fiscal 2017 under previously announced share repurchase programs. The share repurchase program does not have an expiration date.
4:15 pm : The stock market began the week on a flat note as participants displayed a lack of conviction ahead of key policy statements from the Federal Reserve and Bank of Japan. The Nasdaq Composite (-0.2%) settled behind both the Dow Jones Industrial Average (UNCH) and the S&P 500 (UNCH).
The major averages advanced at the start of the session as a rebound in crude oil futures and a positive bias in global markets facilitated a higher start to the trading week. Oil was in focus as renewed speculation surrounding a production cap agreement boosted the energy component. Venezuelan President Nicolas Maduro made headlines over the weekend, stating that oil producers are close to reaching a deal to stabilize oil markets. However, the comments were taken with a grain of salt following contradictory reports from OPEC Secretary General Mohammed Barkindo. The oil cartel is scheduled to meet on September 26-28.
The benchmark index notched a session high in the first half hour of trade, testing but failing to clear technical resistance near the 2150/2151 price level. The broader market walked back early gains through the session as the heavily-weighted technology (-0.2%) and health care (-0.4%) sectors came under pressure. The broader market notched a session low shortly after midday, but managed to settle above that level. Four sectors ended in the green with industrials (+0.3%), financials (+0.5%), and utilities (+1.0%) leading. Conversely, technology (-0.2%), health care (-0.4%), and telecom services (-0.7%) underperformed.
The financial space (+0.5%) finished ahead of the benchmark index, rebounding from recent losses. Wells Fargo (WFC 46.01, +0.58) jumped 1.3% after Robert W. Baird upgraded the stock to Outperform from Neutral. The broader sector displayed relative strength as participants assessed the rate hike picture in coming months. The implied probability of a rate hike at the September meeting sits at 12.0% while the odds of a rate hike at the December meeting registers at 55.0%. Rate hike expectations increased last week following some firming inflation data.
In the energy sector (-0.1%), refining names outperformed amid reports of gasoline shortages on the East coast of the United States. Phillips 66 (PSX 80.35, +1.26) and Tesoro (TSO 83.54, +1.56) ended higher by 1.6% and 1.9%, respectively. Separately, Dow component Chevron (CVX 98.04, +0.20) finished ahead of the price-weighted index. For its part, crude oil settled higher by 0.6% ($43.90/bbl; +$0.28).
Homebuilders outperformed in the consumer discretionary space (-0.1%), evidenced by the 0.9% gain in the iShares Dow Jones US Home Construction ETF (ITB 27.52, +0.25). The sub-group gained following a stronger-than-expected reading of the NAHB Housing Market Index for September. Lennar (LEN 45.09, +0.75) jumped 1.7% ahead of tomorrow morning's earnings report. Separately, General Motors (GM 31.72, +0.75) rallied 2.4% after being upgraded to "Overweight" at Morgan Stanley.
In the health care space (-0.4%), biotechnology gained after Sarepta Therapeutics (SRPT 48.94, +20.79) received conditional approval from the FDA for the company's muscular dystrophy treatment. On the flipside, Merck (MRK 61.33, -0.95) ended lower by 1.5%.
On the M&A front, Infoblox (BLOX 26.35, +3.52) spiked 15.4% after announcing that Vista Equity Partners will acquire the company for $26.50 per share or approximately $1.6 billion. Separately, Isle of Capri (ISLE 22.04, +5.11) rallied 30.2% after Eldorado Resorts (ERI 13.84,- 0.41) agreed to acquire the name for $23.00 per share or approximately $1.7 billion.
Treasuries ended on a lower note with yields rising through the curve. The yield on the 2-yr note rose one basis point to 0.77% while the yield on the 10-yr note also increased one basis point (1.70%).
Today's participation was below the recent average as fewer than 760 million shares changed hands on the NYSE floor.
Today's economic data was limited to the NAHB Housing Market Index for September:
The NAHB Housing Market Index for September rose to 65 from a revised 59 in August (from 60) while the Briefing.com consensus expected the reading to come in at 59.
Tomorrow's economic data will include Housing Starts (Briefing.com consensus 1186k) and Building Permits (Briefing.com consensus 1160k) for August, which will each be released at 8:30 ET.
Russell 2000: +8.5% YTD
S&P 500: +4.7% YTD
Nasdaq: +4.6% YTD
Dow Jones: +4.0% YTD
DJ30 -3.63 NASDAQ -9.54 SP500 -0.04 NASDAQ Adv/Vol/Dec 1693/1.65 bln/1172 NYSE Adv/Vol/Dec 2042/759.5 mln/927
3:30 pm :
The dollar index was -0.3% around the 95.84 level, aiding precious metals
Commodities, as measured by the Bloomberg Commodity Index, were +0.5% around the 83.61 level
Crude oil rallied off of 1-month lows hit in the previous session ahead of tomorrow's API data after comments from the Venezuelan President & export concerns in Libya
November crude oil futures rose $0.28 (+0.6%) to $43.90/barrel
Factors affecting the price of oil include:
Shipments originally expected to resume at the ports of Ras Lanuf & Sidra last week in Libya have now been delayed by ongoing conflict in the region.
Statements from Venezuelan president Nicolas Maduro that OPEC & non-OPEC members are nearing a potential deal to restrict output.
However, comments from OPEC Secretary General Mohammed Barkindo over the weekend conflict with what was said by Maduro, as Barkindo suggested that no deal to freeze output will be reached at next week's meeting as the talks are informal and will not be a decision-making meeting.
Upcoming data to keep in mind:
The next OPEC meeting is scheduled to take place in Algiers, Algeria from Sept 26-28.
API data will be released tomorrow at 4:30 pm ET.
EIA data will be released at 10:30 am ET.
China is expected to release oil trade data this Wed, potentially contributing to further volatility in oil prices
Rig count data will be released Friday at 1 pm ET.
Natural gas erased the majority of Friday's gains ahead of Thursday's inventory data
October natural gas closed $0.02 lower (-0.7%) at $2.93/MMBtu
EIA weekly storage data will be released on Thursday at 10:30 am ET
In precious metals, gold & silver ended near session highs as the dollar index dropped
December gold ended today's session up $7.30 (+0.6%) to $1317.70/oz
December silver closed today's session $0.42 higher (+2.2%) at $19.28/oz
Today's session began on a higher note as participants responded to a rebound in crude oil futures and a positive bias in global markets. The move higher in oil was facilitated by renewed speculation surrounding a potential output agreement between OPEC and non-OPEC members. Venezuelan President Nicolas Maduro resuscitated supply freeze speculation, indicating that oil producers are close to reaching a deal to stabilize oil markets. The oil cartel is scheduled to meet on September 26-28.
The broader market narrowed its gain shortly before midday as the benchmark index tested, but failed to clear resistance near the 2150 price level. The move lower in the broader market lacked a specific catalyst, but appears to be associated with anxiety ahead of policy meetings from the Bank of Japan and Federal Reserve. However, it is widely believed that the Fed will hold steady at the September meeting. The fed funds futures market shows that the odds of a U.S. rate hike register at a mere 12.0%.
Market data today was limited to the NAHB Housing Market Index for September which rose to 65 from a revised 59 in August (from 60).
The broader market closed Monday lower as all three major US indices jogged into the red as the bell rang. Leading the losses, the Nasdaq Composite shed 9.54 points (-0.18%) to 5235.03. The Dow Jones Industrial Average lost 3.63 points (-0.02%) to 18120.17, and the S&P 500 was lower by less than a point (-0.00%) to 2139.12. Pressuring the Nasdaq today, top Nasdaq 100 components KHC -2.2%, EXPE -1.6%, VRTX -1.6%, NFLX -1.4%, REGN -1.4% and SBUX -1.4% all finished the day firmly in the red.
Posting modest losses today, the Technology (XLK 47.12, -0.09 -0.19%) sector began in the green, yet the latter half of the day tailed off with only flashes of positive trading, never returning to opening gains. Component Red Hat (RHT 75.94, +2.14 +2.90%) was the best performer today in a down sector as the stock showed relative strength ahead of Wednesday's quarterly print. Other sectors as measured by the S&P closed the day XLRE +1.03%, XLU +0.99%, XLF +0.68%, XLI +0.44%, XLFS +0.39%, XLB +0.15%, IYZ +0.06%, XLE -0.01%, XLY -0.08%, XLP -0.21%, XLV -0.36% with Healthcare lagging the rest.
In the S&P 500 Information Technology (790.15, -1.90 -0.24%) sector, trading was back and forth but ultimately ended in the red as sellers pressured the sector to near lows of the day. Component PayPal (PYPL 40.01, -0.69 -1.70%) had a tough session on the back of a premarket downgraded to a Hold rating from Buy at Canaccord Genuity. Other names in the space which closed slightly lower today included WU -1.62%, SYMC -1.47%, INTC -1.35%, AAPL -1.17%, FSLR -1.15%, YHOO -1.10%, LRCX -0.87%, TSS -0.87%.
Other notable news items among sector components:
Alphabet (GOOG 765.70, -3.18 -0.41%) announced the release of Google Trips, a travel planning app that some were suggesting will be competition for TripAdvisor (TRIP 60.00, -1.29 -2.10%).
Salesforce.com (CRM 73.00, -0.29 -0.40%) filed for a 354,473 share offering by selling stockholders.
Cisco Systems (CSCO 31.02, +0.18 +0.58%) disclosed two trusts related to Executive Chairman John Chambers adopted a pre-arranged stock trading plan.
Applied Materials (AMAT 30.30, +0.25 +0.83%) and the Institute of Microelectronics announced a five-year extension of their research collaboration at the Centre of Excellence in Advanced Packaging in Singapore.
Oracle (ORCL 39.23, +0.31 +0.80%) acquired Palerra. Financial terms of the deal were not disclosed.
Accenture (ACN 110.50, +0.62 +0.56%) and Oracle (ORCL) announced that infrastructure-as-a-service (IaaS) offerings will now be available through the Accenture Oracle Business Group, adding to the already-existing software-as-a-service (SaaS) and platform-as-a-service (PaaS) capabilities. The expansion of capabilities further positions Accenture as Oracle's largest global systems integrator (GSI) and a leader in Oracle Public Cloud.
Elsewhere in the tech space:
Tech Data (TECD 84.80, +15.46 +22.30%) to acquire the Technology Solutions business from Avnet (AVT 41.89, +2.68 +6.83%) for $2.4 billion in cash and 2.785 million shares of Tech Data common stock, in a transaction valued at about $2.6 billion. Tech Data also expects to realize about $200 million in present value of tax benefits. The transaction is expected to be significantly accretive to TECD's non-GAAP EPS in the first year after closing. TECD expects to achieve annual cost savings of about $100 million within two years after closing, primarily from efficiencies related to technology platforms, as well as duplicative functions and corporate expenses.
Infoblox (BLOX 26.35, +3.52 +15.42%) to be acquired by private equity firm, Vista Equity Partners. Under the terms of the agreement, Infoblox stockholders will receive $26.50 per share of common stock in cash, which represents a 33% premium to Infoblox's average closing share price over the last 60 trading days, and a 73% premium to Infoblox's unaffected closing price as of May 11, 2016, when media reports of interest in acquiring Infoblox were first published. The transaction values Infoblox at about $1.6 billion. The agreement was unanimously approved by Infoblox's Board of Directors. The transaction is expected to close in Infoblox's fiscal second quarter, subject to customary closing conditions and regulatory approvals.
WebMD Health (WBMD 49.02, -2.95 -5.68%) announced that the Board of Directors has appointed Steven Zatz, M.D., its President, to serve as its CEO, effective immediately. WBMD also announced an increase in the amount available under WebMD's existing stock repurchase program to $50 million, an increase of about $35 million over the amount remaining from prior authorizations.
Tessera Tech (TSRA 33.48, +0.04 +0.12%) entered into a settlement agreement with St. Paul Mercury Insurance Company.
Science Applications (SAIC 67.85, +1.00 +1.50%) was awarded an estimated $700 million fixed-price with economic-price-adjustment, indefinite-quantity contract for chemicals, packaged petroleum, oils and lubricants.
TerraForm Power (TERP 13.45, +0.40 +3.07%) and TerraForm Global (GLBL 3.76, +0.36 +10.59%) reported preliminary Q2 results and later announced the exploration into strategic alternatives.
MGT Capital Investments (MGT 2.52, -0.74 -22.70%) received a subpoena from the SEC requesting certain information from the company.
Zebra Tech (ZBRA 68.77, +1.51 +2.25%) appointed Tom Bianculli to its newly created Chief Technology Officer position to advance its leadership in the growing market of Enterprise Asset Intelligence (EAI).
Exar (EXAR 9.11, +0.12 +1.33%) appointed Gary Meyers as Chairman effective immediately.
Bitauto Holdings (BITA 26.52, +0.88 +3.43%) appointed Cynthia He as CFO effective immediately.
Analyst actions:
BKFS was upgraded to Outperform from Mkt Perform at Keefe Bruyette;
PYPL was downgraded to Hold from Buy at Canaccord Genuity,
WU was downgraded to Negative from Neutral at Susquehanna,
ANET was downgraded to Neutral from Buy at MKM Partners,
CALD was downgraded to Sell from Neutral at Dougherty & Company,
BLOX was downgraded to Neutral at Piper Jaffray, to Market Perform at William Blair, and to Mkt Perform at JMP Securities
