From Briefing.com: 4:15 pm TTM Tech's largest shareholder commences secondary offering of 12,000,000 shares of its common stock (TTMI) : The Selling Stockholder will receive all of the proceeds from the offering. The underwriters have a 30-day option to purchase up to an additional 1,800,000 shares of common stock from the Selling Stockholder. No shares of common stock are being sold by TTM in the offering.
4:20 pm : The stock market ended Monday's affair on a mixed, and relatively flat, note as investors continued to fine-tune their positioning following last week's election. The Nasdaq Composite (-0.4%) finished behind the S&P 500 (UNCH) and the Dow Jones Industrial Average (+0.1%). Separately, mid-cap and small-cap indices led as the Russell 2000 and the S&P Mid Cap 400 rose 1.3% and 1.6%, respectively.
Equity indices jumped out of the gate as market participants looked to build on last week's post-election rally. The Dow Jones Industrial Average (18934.05) and the Russell 2000 (1306.56) each notched new all-time highs while the S&P 500 tested technical resistance near the 2171 price level. The latter marked an approximate 7.0% gain from the lows the S&P futures hit the morning after Election Day.
The major indices did encounter some selling pressure and continued to see some divergences as investors contemplated the potential policies of a Trump Administration.
The financial sector (+2.3%) extended its recent gain while technology (-1.7%) continued to pull back amid weakness in widely-owned issues. Financials have advanced 12.2% so far this month while technology is down 3.2%.
Bonds have been far less fortunate, however, as selling pressure has accelerated in the wake of the election with fixed-income investors showing some angst about the potential for rising inflation that many think will follow on the back of increased fiscal stimulus. The yield on the benchmark 10-yr note kissed 2.30% in overnight action before garnering some buying interest from a short-term oversold condition. Even so, the yield still settled today up seven basis points at 2.23%. That marks a 51 basis point increase from the election night low on the 10-yr yield.
The economically-sensitive financial sector (+2.3%) outperformed as a rapid steepening in the yield curve in the past week has continued to bolster the group's earnings prospects. The sector also benefited from speculation regarding reduced regulations under the Trump Administration. Dow component JPMorgan Chase (JPM 79.51, +2.82) finished higher by 3.7%. The stock has rallied 14.8% so far in November compared to an equally heady 12.2% gain for the broader sector.
In the technology group (-1.7%), large-cap tech names underperformed as investors continued to evaluate their growth prospects under the next administration. Facebook (FB 115.09, -3.94) and Alphabet (GOOG 736.08, -17.94) finished down 3.3% and 2.4%, respectively. Top-weighted Apple (AAPL 105.71, -2.72) declined 2.5%, extending its November loss to 6.9%.
Pharmaceutical names underperformed in the health care space (-0.3%) as the group pulled back from its recent winning streak. Dow component Pfizer (PFE 32.38, -0.21) finished lower by 0.6%, narrowing its November gain to 1.4%. On the other hand, the iShares Nasdaq Biotechnology ETF (IBB 293.09, +5.09) ended higher by 1.8%
The energy sector gained 0.3% despite a modest loss in crude oil futures. WTI crude ended its day lower by 0.2% ($43.30/bbl; -$0.09). However, it is worth noting that crude prices rebounded smartly from an earlier 2.8% decline after news reports suggested OPEC is working to narrow its divide with Iran and Iraq, prompting speculation that such efforts could bode well for formalizing a production cap agreement at the November 30 OPEC meeting.
Today's trading volume was above the average of 961 million as more than 1.16 billion shares changed hands at the NYSE floor.
There was no economic data of note released today.
Tomorrow's economic data include Retail Sales for October (Briefing.com consensus +0.6%), Import/Export Prices for October, and Empire Manufacturing for November (Briefing.com consensus -0.5), which will each cross the wires at 8:30 a.m. ET. The day's data will be capped off with Business Inventories for September (Briefing.com consensus 0.2%) at 10:00 a.m. ET.
Russell 2000: +14.3% YTD
Dow Jones: +8.3% YTD
S&P 500: +5.9% YTD
Nasdaq Composite: +4.2% YTD
DJ30 +21.03 NASDAQ -18.72 SP500 -0.25 NASDAQ Adv/Vol/Dec 1716/2.13 bln/1201 NYSE Adv/Vol/Dec 1589/1.16 bln/1438 3:30 pm :
The dollar index was sitting near its 1-year high hit earlier in the session, was +0.9% around the 100.00 level, weighing heavily on precious metals
Commodities, as measured by the Bloomberg Commodity Index, were -0.04% around the 82.34 level
Crude oil ended a volatile session nearly unchanged after sinking to fresh 3-month lows earlier in pit trading, & subsequently rallying 1% after OPEC headlines crossed, although it failed to sustain those gains
December crude oil futures fell $0.09 (-0.2%) to $43.30/barrel
Color on recent price action in crude oil:
Crude oil has had a volatile morning, trading as low as 1.5% before reversing and rallying to fresh session highs after headlines crossed about OPEC stating they are looking to close the gap on the divide between Iraq & Iran, although OPEC is still divided over the details of how to implement output cuts, despite a weekend of meetings.
In addition, the Saudi Arabian oil Minister Khalid al-Falih reiterated that it was essential for OPEC to reach a consensus on activating the deal agreed in September.
It is also worth noting that over the weekend, Iran announced it was developing three new oil fields.
Reminder: Iran, Nigeria, & Libya are expected to be exempt from the Algiers Accord, Iraq is also seeking exemption from the previously announced production cut.
Data reminders:
API data will be released tomorrow after the bell
The next official OPEC meeting will take place in Vienna, Austria on November 30.
EIA data will be released on Wed at 10:30 am ET.
Rig count data will be released Friday at 1 pm.
Natural gas closed at a 1-week high on updated colder weather forecasts, compared to last week's milder weather forecasts, ahead of Thursday's inventory data
November natural gas closed $0.12 higher (+4.6%) at $2.75/MMBtu
Weekly EIA inventory data will be released on Thursday at 10:30 am ET.
Color on recent price action in natural gas futures:
Updated forecasts showed cold weather pushing into the western U.S. later this week, expected to track toward the eastern U.S. next weekend, bringing rain, snow, and cooler than normal temps. This colder weather is expected to result in increased demand for natural gas. This compares to last week's weather forecast models which showed that high pressure weather systems will dominate over the central & southern U.S. this week, resulting in much warmer than normal conditions & negatively impacting demand for natural gas.
In precious metals, gold declined to a 5-month low, down for the fourth consecutive session on notable strength in the dollar index
December gold ended today's session down $3.40 (-0.3%) to $1221.70/oz
December silver closed today's session $0.53 lower (-3.0%) at $16.88/oz
Base metal copper closed just shy of Friday's 17-month high
December copper closed $0.01 higher (+0.4%) at $2.52/lb
Closing split, the broader market began the week with the Dow Jones Industrial Average the only major US index posting gains...adding 21.03 points (+0.11%) to 18868.69. The tech-heavy Nasdaq Compsite on the other hand closed lower by 18.72 points (-0.36%) to 5218.40, and the S&P 500 was little changed (-0.01%) to 2164. Heavily-weighted Dow names UNH +4.00%, JPM +3.68%, MCD +3.19%, GS +2.57%, TRV +1.72%, CAT +1.25% kept the index out of the red today.
The worst performing S&P sector today, Technology (XLK 46.02, -0.71 -1.52%) finished just off lows as action quickly turned sour in the morning and never looked back. Component NVIDIA (NVDA 83.64, -4.33 -4.92%) posted a weak session on the back of last week's earnings, but despite a premarket upgraded to Buy at Needham. Other sectors as measured by the S&P closed Monday XLF +2.49%, XLFS +2.19%, XLRE +1.96%, XLE +0.59%, XLI +0.43%, XLB +0.23%, IYZ +0.20%, XLY +0.01%, XLU -0.07%, XLP -0.18%, XLV -0.30% as Financials led the positive bias and Healthcare lagged.
In the S&P 500 Information Technology (775.19, -13.50 -1.71%) sector, trading was hurt by the broader tech decline as investors allocated funds elsewhere. Payment names Global Payments (GPN 66.56, -2.93 -4.22%), Visa (V 78.38, -3.50 -4.27%), and MasterCard (MA 101.14, -3.48 -3.33%) were all weaker today as money rotated out of tech stocks and into more cyclical sectors which are expected to benefit from the upcoming Trump presidency. Other names in the space which closed lower included ATVI -4.15%, FB -3.31%, PYPL -3.17%, VRSN -3.13%, YHOO -2.77%, EBAY -2.62%, AAPL -2.48%, CRM -2.45%, GOOGL -2.40%, CTXS -2.35%.
Other notable news items among sector components:
Global Payments (GPN) and American Express (AXP 72.42, +1.92 +2.72%) announced an agreement that will enable Global Payments to provide enhanced payment acceptance solutions to American Express small merchants in the UK. These technology solutions include payment processing, settlement, reporting, support and statementing services on behalf of American Express.
IBM (IBM 158.21, -3.06 -1.90%) and NVIDIA (NVDA) announced collaboration on a new deep learning tool optimized for the latest IBM and NVIDIA technologies to help train computers to think and learn in more human-like ways at a faster pace.
Hewlett Packard Enterprise (HPE 23.35, +0.04 +0.17%) announced that its Enterprise Services business secured a $600 million agreement with Sykehuspartner, an ICT service provider serving the eleven health trusts in Norway's Southern and Eastern regional health authority (Helse Sr-st). The agreement will help transform and modernize the ICT infrastructure of Helse Sr-st health region to improve patient safety and free up resources for patient care.
Microsoft (MSFT 58.12, -0.90 -1.52%) announced its largest purchase of wind energy to date with the signing of two agreements. Combined, these agreements represent 237 megawatts of wind energy, which brings Microsoft's total investment in wind energy projects in the U.S. to more than 500 megawatts.
Elsewhere in the tech space:
Harman (HAR 109.72, +22.07 +25.18%) to be acquired by Samsung (SSNLF 1250.00, flat) for $112.00 per share.
Digi Intl (DGII 13.40, +1.75 +15.02%) on Friday, received a proposal from Belden (BDC 71.22, +1.52 +2.18%) to be acquired for about $380 million or $13.82 per share in cash. BDC noted DGII's CEO was 'expressing unwillingness to engage in discussions.' Then, on Monday, DGII confirmed the rejection of BDC's unsolicited, non-binding proposal for $13.82 per share.
On Sunday, Reuters was out suggesting Mentor Graphics (MENT 36.29, +5.61 +18.29%) was near a deal to be acquired by Siemens AG (SIEGY 117.60, +0.11 +0.10%). On Monday morning, MENT confirmed the acquisition by SIEGY for $37.25 per share.
Verizon (VZ 46.18, -0.51 -1.09%) acquired privately-held LQD WiFi. Financial terms of the deal were not disclosed.
SunEdison (SUNEQ 0.14, +0.01 +9.85%) responded to Terraform Power's (TERP 13.11, +0.47 +3.72%) settlement briefing.
IDT Corp (IDT 21.15, +2.24 +11.85%) signed a global franchise agreement with Future Electronics.
Avnet (AVT 44.31, +0.55 +1.26%) acquired Hackster. Financial terms of the deal were not disclosed.
ViaSat (VSAT 80.59, -0.56 -0.69%) to acquire Arconics. Financial terms of the deal were not disclosed.
Edgewater (EDGW 7.12, -0.88 -11.00%) concluded its formal review of strategic alternatives, and plans to continue as a stand-alone company.
In reaction to quarterly results:
Ceragon (CRNT 2.54, 0.25 +10.92%) reported better than expected Q3 EPS and revenues of $0.06 and $79.13 million, respectively.
NII Holdings (NIHD 2.10, -0.20 -8.70%) reported a Q3 loss per share of $14.10 on revenues which came in worse than market expectations at $260.8 million.
Companies scheduled to report tonight/tomorrow morning: ALRM GLOB ANY/CYRN DBD KLIC MBLY SSYS TSEM ZBRA
Analyst actions:
NVDA was upgraded to Buy from Hold at Needham,
KN was upgraded to Outperform from Neutral at Robert W. Baird,
GRUB was upgraded to Buy from Hold at Stifel,
CIEN was upgraded to Buy from Hold at Deutsche Bank,
SQ was upgraded to Overweight from Sector Weight at Pacific Crest;
HEAR was downgraded to Neutral from Buy at B. Riley & Co.,
CLGX was downgraded to Neutral from Overweight at Piper Jaffray,
QTWO was downgraded to Neutral from Buy at BTIG Research
