From Briefing.com: 4:35 pm Closing Market Summary: Equity Market Advances to New Record High (:WRAPX) :
Wall Street kicked off the week on a positive note as the S&P 500 (+0.8%) bucked its recent sideways trend and advanced to a new record close. The Dow (+0.7%) also settled at a fresh all-time high while the tech-heavy Nasdaq (+1.4%) exhibited relative strength as technology and biotechnology stocks outperformed. The three major averages finished Monday's session at their best marks of the day.
The top-weighted technology sector (+1.7%) rebounded from back-to-back weekly declines on Monday, underpinning the broader market from start to finish. The sector's top component by market cap--Apple (AAPL 146.34, +4.07)--was one of the group's best-performing components, jumping 2.9%, after the company's target price was raised to $180 from $171 at Maxim Group. Chipmakers also put together a noteworthy performance, pushing the PHLX Semiconductor Index higher by 1.9%.
Likewise, the health care sector (+1.1%) finished comfortably ahead of the benchmark index amid broad strength. Biotech names were among the sector's strongest components on Monday, advancing the iShares Nasdaq Biotechnology ETF (IBB 299.79, +7.06) higher by 2.4%, with Biogen (BIIB 260.54, +8.80) leading the charge. BIIB jumped 3.5% after the company was upgraded to 'Neutral' from 'Sell' at UBS.
Out of the remaining advancers--financials (+1.0%), consumer discretionary (+0.8%), industrials (+0.6%), materials (+0.8%), consumer staples (+0.5%), and real estate (+0.1%)--the financial group's positive performance is the most noteworthy given the sector's important role in driving economic activity. The sector picked up its bullish two-week run right where it left off, extending its month-to-date advance to 5.8%.
It's worth pointing out that Monday's top-performing sectors--technology, financials, and health care--are also the largest sectors by weight, comprising nearly half of the broader market combined. When combined with the five remaining advancers, sectors accounting for around 85.0% of the broader market closed Monday in positive territory.
On the downside, the energy sector (-0.7%) settled solidly lower as crude oil tumbled another 1.1%, extending its four-session slide to 4.3%. The commodity settled at a price of $44.46/bbl, which marks its worst level since mid-November. The lightly-weighted utilities (-0.4%) and telecom services (-0.2%) groups also closed Monday in the red.
In the bond market, U.S. Treasuries settled lower across the curve with the benchmark 10-yr yield climbing four basis points to 2.19%. Treasury yields moved higher in early-morning action following some hawkish remarks from New York Fed President William Dudley (FOMC voter).
The thrust of Mr. Dudley's remarks was that inflation will soon resume its upward path towards the Fed's 2.0% target. He also said that the flattening U.S. yield curve has to do with global forces, which is in contradiction with some observers who say that it reflects pessimism about the U.S. economy in an environment of higher policy rates.
Higher Treasury yields drew capital to the United States and buoyed the greenback on Monday, leaving the U.S. Dollar Index (97.24, +0.37) higher by 0.4%.
Investors did not receive any economic data on Monday. The first report of the week--first quarter Current Account Balance (Briefing.com consensus -$123.4 billion)--will cross the wires on Tuesday at 8:30 ET.
Nasdaq Composite +15.9% YTD
S&P 500 +9.6% YTD
Dow Jones Industrial Average +8.9% YTD
Russell 2000 +4.5% YTD
Tech Stocks from Briefing.com
Wall Street started off the week on a high note with the Dow Jones Industrial Average (+0.68%) and S&P 500 (+0.83%) closing at fresh all-time highs. The Nasdaq Composite (+1.42%) outperformed as technology rallied, but the index still remains roughly 100 points away from its all-time high set earlier this month.
The S&P Technology Sector (+1.66%) was the best performing industry, followed by Health Care (+1.08%) and Financials (+0.98%). Conversely, Energy (-0.69%) was the biggest laggard as crude oil futures continued their downward spiral, slipping to new seven-month lows.
Looking inside the Technology Select Sector SPDR (XLK 56.07, +0.82), Micron (MU 31.20, +1.34), Advanced Micro (AMD 11.93, +0.49), & NVIDIA (NVDA 157.32, +5.70) led the space higher as semi's outperformed in today's session. Additionally, Apple (AAPL 146.34, +4.07) jumped nearly 3% after Maxim Group increased their price target on shares from $171 to $180. On the other hand, CenturyLink (CTL 25.36, -0.36) was the ETF's biggest decliner as investors continued to digest Friday's whistleblower claims.
Top Sector Developments
Notable News
IPG Photonics (IPGP 144.38, +4.11) announced that it had signed a definitive agreement to acquire
Innovative Laser Technologies, for $40 million in cash. ILT is a Minneapolis, Minnesota-based designer and manufacturer of laser-based systems used to produce high-value, critical components primarily for the medical device industry. The acquisition is expected to be neutral to IPG's earnings per diluted share for the fiscal year ended December 31, 2017.
RealPage (RP 37.10, +1.80) announced that it had acquired substantially all of the assets of American Utility Management, a provider of utility and energy management solutions for the multifamily housing industry. The purchase price was approximately $70 million and RealPage expects the acquisition to contribute approximately $15 million in revenue and an Adjusted EBITDA range of $2 - $3 million during 2017.
Notable Analyst Actions
Apple (AAPL 146.34, +4.07) target raised to $180 at Maxim Group
Impinj (PI 55.85, +0.14) downgraded to Equal-Weight from Overweight at Morgan Stanley
MercadoLibre (MELI 274.32, +10.87) upgraded to Buy at Citigroup
