From Briefing.com: 4:10 pm : The stock market avoided its second consecutive decline thanks to a Monday session that was underscored by daylong strength in the top-weighted technology sector (+0.6%). The S&P 500 added 0.2% while the Nasdaq Composite (+0.4%) outperformed throughout the day.
Investor sentiment soured during late afternoon action after it was reported that nine people were killed and at least 50 were injured after an assailant drove a truck into a crowd at the Christmas market in Berlin. This followed a morning report from Ankara, where the Russian Ambassador to Turkey was assassinated by an off-duty Turkish policeman. The two developments likely contributed to afternoon profit taking.
Equity indices began the day near their flat lines, but the largest sector by weight-technology (+0.6%)-climbed shortly after the opening bell, leading the overall market higher. The advance received assistance from other groups like industrials (+0.6%), telecom services (+1.1%), and real estate (+1.0%), but technology stood out, keeping the Nasdaq in the lead. High-beta chipmakers contributed to the strength with the PHLX Semiconductor Index climbing 1.0%. ASML (ASML 110.22, +3.98) and Lam Research (LRCX 106.99, +2.54) climbed 3.8% and 2.4%, respectively, after receiving upgrades.
Other cyclical sectors were mixed relative to the broader market as industrials (+0.6%) settled higher while energy (-0.5%) and financials (+0.1%) lagged.
The industrial sector received support from transport stocks as the Dow Jones Transportation Average gained 0.7% with all but two components ending in the green. Meanwhile, energy (-0.5%) struggled amid a volatile day in crude oil. WTI crude alternated between gains and losses before ending higher by 0.3% at $52.12/bbl.
For its part, the financial sector (+0.1%) held a modest loss into the afternoon, but spiked off its low after Fed Chair Janet Yellen made upbeat comments about the U.S. labor market. The comments were made during the commencement ceremony at the University of Baltimore, and they were met with an uptick in the dollar and a brief slip in Treasuries.
The U.S. Dollar Index (103.11, +0.16) climbed 0.2% as greenback strength against the euro (1.0400) and the pound (1.2400) overshadowed a decline against the yen (117.11).
Treasuries entered the day with gains and continued their advance into the afternoon. A temporary downtick took place in reaction to Ms. Yellen's comments, but the complex returned to highs by the close with the 10-yr yield sliding six basis points to 2.53%.
Investor participation was in-line with average as more than 900 million shares changed hands at the NYSE floor.
Today's session was free of economic data and investors will not receive any economic data tomorrow.
Russell 2000 +20.8% YTD
Dow Jones Industrial Average +14.1% YTD
S&P 500 +10.7% YTD
Nasdaq Composite +9.0% YTD
DJ30 +39.65 NASDAQ +20.28 SP500 +4.46 NASDAQ Adv/Vol/Dec 1796/1.52 bln/1243 NYSE Adv/Vol/Dec 1875/947.8 mln/1117
3:30 pm :
Base metals lost some steam today with zinc, lead, nickel and copper futures falling notably
Mar copper on the CME fell 2.3% today to close at $2.50/lb
Moving over to energy, Jan WTI crude oil futures gained 0.3%, while Jan nat gas slipped 0.6% to end at $3.39/MMBtu
In the precious metals area, Feb gold rose a modest 0.4% to $1142.60/oz, while Mar silver fell 0.8% to $16.09/oz
Beginning the holiday week, the three major US indices held onto gains despite fading into the close. The Nasdaq Composite led all others higher today, adding 20.28 points (+0.37%) to 5457.44. The S&P 500 was up 4.46 points (+0.20%) to 2262.53, and the Dow Jones Industrial Average gained 39.65 points (+0.20%) today to close 19883.06.
Investor sentiment soured during late afternoon action after it was reported that nine people were killed and at least 50 were injured after an assailant drove a truck into a crowd at the Christmas market in Berlin. This followed a morning report from Ankara, where the Russian Ambassador to Turkey was assassinated by an off-duty Turkish policeman. The two developments likely contributed to afternoon profit taking.
Among the better performing sectors today, the Technology (XLK 48.92, +0.33 +0.68%) space was higher for the entirety of the session. Component Lam Research (LRCX 106.99, +2.54 +2.43%) was the best performer today after being upgraded to Buy from Neutral at Goldman and added to the Conviction Buy List. Other sectors as measured by the S&P closed Monday IYZ +2.01%, XLRE +0.89%, XLI +0.53%, XLU +0.37%, XLY +0.27%, XLP +0.19%, XLF +0.04%, XLB -0.14%, XLV -0.39%, XLE -0.46%.
In the S&P 500 Information Technology (820.64, +5.01 +0.61%) sector, trading came off highs slightly but still ended in the green. Component Akamai Tech (AKAM 67.76, +0.57 +0.85%) was modestly higher today after acquiring Cyberfend in an all-cash transaction. Other names in the space which performed better today included CA +2.19%, MSFT +2.12%, CSRA +2.05%, WDC +1.76%, WU +1.74%, ADBE +1.68%, INTC +1.60%, QRVO +1.39%, NVDA +1.22%, AVGO +1.14%, HPE +1.02%, TEL +1.00%, ADI +1.00%.
Other notable news items among sector components:
Akamai Tech (AKAM 67.76, +0.57 +0.85%) acquired Cyberfend in an all-cash transaction. Financial terms of the deal were not disclosed.
Accenture (ACN 123.65, +0.65 +0.53%) to acquire Arismore. Financial terms of the deal were not disclosed.
GlobalStar (GSAT 1.35, +0.30 +28.57%) shares were strong today after reports circulated that the FCC has put the company's revised proposal on circulation.
Gogo's (GOGO 9.99, +0.29 +2.99%) CFO Norman Smagley to retire effective December 31, 2017.
Vivint Solar (VSLR 3.00, +0.10 +3.45%) appointed David Bywater as CEO effective immediately.
WEX (WEX 114.05, +4.00 3.63%) signed a long term agreement with Chevron (CVX 117.64, -0.44 -0.37%) subsidiary Chevron Products Company to issue and operate Chevron and Texaco-branded commercial fleet cards commencing Jan 2018. Financial terms were not disclosed.
xG Technology (XGTI 3.62, +1.32 +57.39%) signed a final definitive business purchase agreement to acquire Vislink Communication Systems.
Qualcomm's (QCOM 67.02, +0.56 +0.84%) Qualcomm Technologies, Inc., has worked with Lionsgate (LGF 26.09, +1.10 +4.40%) to power the Power Rangers Virtual Reality (VR) experience at the 2017 International Consumer Electronics Show (CES) in Las Vegas.
Vivendi (VIVHY 18.95, +0.01 +0.05%) decided to increase its investment in Mediaset (MDIUY 11.54, +0.34 +3.04%) within the limits of 30% of the share capital and voting rights.
Helios & Matheson's (HMNY 4.49, +0.33 +7.93%) Red Zone Map introduced on Alphabet's (GOOG 794.20, +3.40 +0.43%) Google Play.
Eltek (ELTK 0.82, -0.05 -5.76%) to sell its Kubatronik-Leiterplatten shares to Alois Kubat.
ManTech (MANT 42.65, +0.51 +1.21%) acquired Edaptive Systems. Financial terms of the deal were not disclosed.
Mitel Networks (MITL 7.02, -0.39 -5.26%) to divest its mobile division to the parent company of Xura (MESG) for $350 million in cash, a $35 million non-interest bearing promissory note, and an equity interest in Sierra Private Investments.
ComScore (SCOR 34.00, +1.14 +3.47%) Serge Matta, a Class III member of the Board and former Executive Vice Chairman, President and CEO, delivered resignation to the Board effective immediately.
CGI Group (GIB 47.62, +0.42 +0.89%) intends to purchase for cancellation up to 1.5 million Class A subordinate voting shares under additional specific share repurchase program.
Analyst actions:
ETFC was upgraded to Buy from Hold at SunTrust,
LXFT was upgraded to Outperform from Market Perform at Cowen,
HUBS was upgraded to Strong Buy from Outperform at Raymond James,
ASML was upgraded to Buy from Neutral at BofA/Merrill,
FNSR was upgraded to Outperform from Market Perform at Northland,
LRCX was upgraded to Buy from Neutral at Goldman and added to Conviction Buy List;
AMAT was downgraded to Neutral from Buy at Goldman;
KLAC was initiated with a Buy at Goldman,
CY was initiated with a Buy at BofA/Merrill,
BIDU was initiated with an Underweight at Cantor Fitzgerald
4:08 pm NeoPhotonics announces deal to sell its low speed transceiver business to APAT Optoelectronics, lowers Q4 outlook (NPTN) :
Co lowers Q4 EPS guidance to $0.03-0.11 vs. $0.17 Capital IQ Consensus Est, down from $0.13-0.21, lowers revenue guidance to $105-109 mln vs. $112.6 mln consensus, down from $109-115 mln prior guidanc
Demand in the fourth quarter continues to exceed the Company's capacity to supply High Speed products while production capacities continue to increase
As new capacity has been brought on line, production yields at one of its fab facilities have been lower than anticipated, resulting in delayed shipments and higher manufacturing costs during the quarter versus previous projections
Co also announced that it executed a definitive agreement, to sell its Access and Low Speed transceiver product lines to APAT Optoelectronics Components Co., Ltd. of Shenzhen, China, a designer and manufacturer of optical sub-assemblies for telecom and datacom markets
The transaction is valued at approximately $26.4 million, inclusive of post-closing payments under a Transition Services Agreement
The transaction value consists of an equivalent of $25.0 million purchase price plus an additional equivalent of $1.4 million to be paid as certain transition services are delivered
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