From Briefing.com: Broader market action wrapped up the week on a positive note. The Nasdaq Composite led the way higher, advancing 31.28 points (+0.62%) to 5104.92. The Dow Jones Industrial Average also edged higher, up 91.06 points (+0.51%) to 17823.81. The S&P 500 rounded out the bunch up 7.93 points (+0.38%) to 2089.17. The markets traded on relatively light news,
Technology (XLK 44.20, +0.32 +0.73%) closed Friday action near highs on the day. Components which outperformed today included INTU +5.93%, WIN +3.81%, GOOG +2.46%, FSLR +2.18%, HPQ +1.96%. Other sectors closed the session XLY +1.20%, XLV +0.86%, XLI +0.51%, XLU +0.42%, XLF +0.16%, XLB -0.31%, IYZ -0.34%, XLP -0.71%, XLE -1.06%.
In the S&P 500 Information Technology sector (743.81, +6.34 +0.86%), components finished with increased buying at the bell. Names which finished in the green included YHOO +1.49%, BRCM +1.38%, IBM +1.29%, EMC +1.16%, RHT +1.09%, INTC +1.05%, ADP +1.04%, EBAY +1.01%, FB +1.00%.
Other notable news items among sector components:
Cisco (CSCO 27.57, +0.20 +0.73%) announced its intent to acquire Acano for $700 million in a deal which is expected to close in 3Q16. Acano is a privately held company based in London that provides collaboration infrastructure and conferencing software.
Technicolor (TCLRY 7.86, +0.31 +4.11%) has completed the acquisition announced on 23 July 2015 of Cisco Connected Devices, the Cisco (CSCO) customer premises equipment business for $600 million in a stock and cash transaction. In parallel, Technicolor is entering into a strategic collaboration agreement with Cisco that will allow both companies to develop and deliver next generation video and broadband technologies, with cooperation on Internet of Things solutions and services.
Microsoft (MSFT 54.19, +0.25 +0.46%) previewed Black Friday saying it will offer a collection of deals ranging from 1,000 digital movie, music, game and app deals at just 10 cents on Windows 10 devices to Xbox One starting at $299, PCs at less than $150, and more, for shoppers on everyone's lists.
HP (HPQ 14.06, +0.27 +1.96%) announced the HP Elite x2 -- a tablet that offers the productivity of a full notebook with the convenience of a tablet.
Elsewhere in the technology space:
Sprint (S 3.84, -0.22 -5.31%) signed a $1.2 billion deal with the newly formed Mobile Leasing Solutions, LLC for the sale and lease-back of certain leased devices. The company also provided downside 2015 adjusted EBITDA guidance to be $6.8-7.1 billion.
Splunk (SPLK 60.54, -2.22 -3.54%) in addition to reporting quarterly results, announced the retirement of President and CEO Godfrey Sullivan. Following, announced Doug Merritt will replace Sullivan as President and CEO effective immediately.
Echelon (ELON 0.59, -0.00 -1.00%) announced the shareholder approval for its 1:10 reverse stock split, which is to become effective December 7, 2015.
Agilent (A 39.28, +0.78 +2.03%) reported an increase to its quarterly dividend to $0.155 from $0.10 per share.
Viavi (VIAV 6.28, +0.02 +0.32%) entered into an accelerated $40 million share repurchase program.
Analyst actions:
INTC was upgraded to Mkt Outperform from Mkt Perform at JMP Securities,
TRMB was upgraded to Buy from Neutral at Goldman;
NMBL was downgraded at Barclays, UBS, Oppenheimer, Monness Crespi & Hardt, Raymond James, Pacific Crest, Stifel, Wells Fargo, RBC Capital Mkts and Wunderlich,
MENT was downgraded at DA Davidson, Pacific Crest, BofA/Merrill and JP Morgan,
ADSK was downgraded to Sector Perform from Outperform at RBC Capital Mkts,
SUNE was downgraded to Neutral from Overweight at JP Morgan,
AKAM was downgraded to Sell from Neutral at Goldman ,
WDAY was downgraded to Neutral from Outperform at Wedbush,
CAJ was downgraded to Neutral from Outperform at Macquarie
4:07 pm Closing Market Summary: Strong Week Ends on Higher Note (:WRAPX) :
The stock market ended an upbeat week on a higher note with the bulk of today's action taking place during the opening hour. The S&P 500 gained 0.4%, ending the week higher by 3.3% while the Nasdaq Composite (+0.6%) outperformed, boosting its weekly gain to 3.6%.
Equity indices rocketed out of the gate, marking their best levels of the day about 45 minutes after the opening bell. The S&P 500 set a session high just above the 2,097 level and spent the remainder of the trading day in a slow retreat from that perch.
The consumer discretionary sector (+1.2%) displayed strength from the start while five other sectors also finished in the green. As for the discretionary space, the group extended its weekly gain to 4.5%, ending atop this week's leaderboard. Apparel names were largely responsible for the strength with Dow component Nike (NKE 132.65, +6.87) soaring 5.5% after announcing a new $12 billion share repurchase program and boosting its quarterly dividend by four cents to $0.32/share. In addition, the industry giant announced its stock will undergo a two-for-one split.
Staying in the discretionary sector, another apparel stock-Abercrombie & Fitch (ANF 24.37, +4.88)-soared 25.0% after beating earnings and revenue estimates while the broader SPDR S&P Retail ETF (XRT 44.16, +0.88) spiked 2.0%.
The strong showing from retailers overshadowed a 12.3% plunge in the shares of Chipotle Mexican Grill (CMG 536.19, -75.32), which unfolded after the Center for Disease Control published a report detailing new E. coli cases at CMG restaurants in six states.
Elsewhere among cyclical sectors, industrials (+0.6%) and technology (+0.9%) also settled ahead of the broader market while energy (-1.0%) and materials (-0.3%) could not stay out of the red. Interestingly, the energy sector finished at the bottom of the leaderboard even though crude oil overcame intraday weakness to end the pit session higher by 0.3% at $41.90/bbl.
Moving to the countercyclical side, consumer staples (-0.7%) and telecom services (-0.5%) retreated during the afternoon while utilities (+0.5%) and health care (+0.7%) settled in the green. The health care sector fared better than the biotech group as the iShares Nasdaq Biotechnology ETF (IBB 333.49, +0.07) settled flat.
Treasuries held modest gains through the bulk of the session but they dipped in the afternoon with the 10-yr yield ending higher by a basis point at 2.26%.
Today's participation was ahead of average with the final tally receiving a healthy boost thanks to options expiration. As a result, more than 950 million shares changed hands at the NYSE floor.
Investors did not receive any economic data today and Monday's economic news will be limited to the October Existing Home Sales report (Briefing.com consensus 5.50 million), which will be released at 10:00 ET.
Nasdaq Composite +7.8% YTD
S&P 500 +1.5% YTD
Dow Jones Industrial Average 0.0% YTD
Russell 2000 -2.4% YTD
Week in Review: Stocks March Higher
The stock market began the trading week with a broad-based rally, which unfolded after a range-bound start to the trading day. The S&P 500 gained 1.5% while the Nasdaq Composite (+1.2%) underperformed throughout the session. Overnight, it was reported that the Japanese economy has re-entered recession for the second time in as many years as Q3 GDP contracted 0.2% quarter-over-quarter (expected -0.1%; last -0.3%), according to the preliminary reading. Naturally, that news was met with hopes for more monetary support from the Bank of Japan, which boosted global equities while the yen retreated, sending the dollar/yen pair higher by 0.5% to 123.20. That being said, Japan's Nikkei could not stay in the green, falling 1.0%. Once the focus turned to the U.S., stocks began the day with slim losses, but the opening weakness was erased promptly. The S&P 500 spent the first two hours of the day just above its flat line, but the index extended its gain during the afternoon with the energy sector (+3.3%) setting the pace.
Equity indices finished Tuesday on a flat note after enjoying an opening rally that briefly placed the S&P 500 (-0.1%) above its 200-day moving average (2,064). The benchmark index was up around 0.7% during late morning action, but steady afternoon selling ensured a lower finish. The second-half retreat accelerated after police officials in Hanover, Germany confirmed that a credible bomb threat forced the cancellation of a soccer match between Germany and the Netherlands. Press reports suggested that an emergency vehicle loaded with explosives was found at the soccer stadium, but this was refuted by the German Interior Minister just before the market closed for the day. Six sectors ended the day with losses while health care (+0.4%) ended in the lead thanks to daylong strength in biotechnology.
The market ended the midweek session on a broadly higher note with the Nasdaq Composite leading the way. The tech-heavy Index spiked 1.8% while the S&P 500 (+1.6%) followed not far behind, charging back above its 200-day moving average (2,065). Equity indices climbed out of the gate, continuing their steady charge into the afternoon and through the release of FOMC minutes from the October meeting, which left little doubt that the Fed is poised to raise rates at the December meeting. Specifically, the minutes indicated that "it may well become appropriate to initialize the normalization process at the next meeting, provided that unanticipated shocks do not adversely affect the economic outlook." To be fair, it would be hard to categorize the statement as hawkish if one were to judge solely based on the market's reaction to the commentary as Treasuries charged back to unchanged (10-yr yield 2.27%) while the dollar ticked lower against the euro.
Thursday ended on a flat note after the market spun its wheels throughout the day. The S&P 500 shed 0.1% after spending the day in an eight-point range while the Nasdaq Composite (unch) outperformed slightly. Equities began the trading day just below their flat lines due to daylong weakness in two relatively large sectors. To that point, health care (-1.6%) and energy (-1.3%) struggled from the start with the health care space responding to a 5.7% dive in the shares of UnitedHealth (UNH 110.57, -6.68) after the insurer lowered its guidance, citing exposure to public exchanges. To be fair, UNH was not the only soft spot as biotech names also lagged with iShares Nasdaq Biotechnology ETF (IBB 333.42, -5.32) ending lower by 1.6%. For its part, the energy sector lagged throughout the day, ending well behind the broader market despite an afternoon rebound in crude oil, which narrowed its loss to 0.5%, ending the pit session at $40.54/bbl.
Weekly Recap - Week ending 20-Nov-15
The stock market ended an upbeat week on a higher note with the bulk of today's action taking place during the opening hour. The S&P 500 gained 0.4%, ending the week higher by 3.3% while the Nasdaq Composite (+0.6%) outperformed, boosting its weekly gain to 3.6%.
Today after the close, no companies were scheduled to report earnings.
Futures are higher after hours: S&P 500 futures are +1.75 from fair value of 2,086.00 and Nasdaq100 futures are +2.38 from fair value of 4685.00.
Monday morning before the open, no economic reports of note will be released.
Monday before the open the following companies are scheduled to report earnings: JEC, TSN, MNK, TSL, NM and GME.
Index Started Week Ended Week Change % Change YTD %
DJIA 17245.24 17823.81 578.57 3.4 0.0
Nasdaq 4927.88 5104.92 177.04 3.6 7.8
S&P 500 2023.04 2089.17 66.13 3.3 1.5
Russell 2000 1146.55 1175.13 28.58 2.5 -2.5
2:17 pm Pericom Semi shareholders approve merger w/ Diodes (DIOD) at $17.75/share; transaction expected to close as early as next week (PSEM) :
12:27 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (152) outpacing new highs (129) (SCANX) : Stocks that traded to 52 week highs: ADBE, AFL, AHH, AIZ, AVY, AYI, AZZ, BANC, BDGE, BERY, BHBK, BOCH, CAC, CB, CBNK, CBOE, CLI, CMN, CNO, COR, COST, CPS, CRVL, CSFL, CUBE, CVT, DHR, DMND, DSGX, EBS, EDU, EDUC, EFII, EPAY, EW, EXTR, FBC, FBHS, FCB, FFG, FISV, FLIC, FNBC, FNWB, FSV, GABC, GDEN, GGAL, GOOG, GOOGL, GPN, GT, GWB, HD, HPY, HRL, IIIN, IM, IPHI, JBL, KBIO, KMB, LDOS, LII, LION, LMAT, LMT, LNCE, LOXO, LUV, LYTS, MAA, MAS, MB, MCBC, MKTX, MORE, MPWR, MYOK, NBBC, NDAQ, NI, NPK, NTES, OME, ONFC, ORI, OSIS, PAC, PACB, PAM, PARR, PAYX, PBF, PCL, PCTY, PLAB, PPBI, PROV, PSA, ROP, RTEC, RTN, SBGI, SFBS, SHEN, SPKE, STL, STZ, TFSL, TRV, TSS, TTS, UHAL, VC, VCRA, VGR, VLRS, VMC, VNTV, VR, VRSN, VTN, WDFC, WFBI, WFD, XRS, YDKN, ZIXI
Stocks that traded to 52 week lows: ADM, AEZS, AFT, AHGP, AKAM, AMFW, AMID, APTO, ARCI, ARDC, AUPH, AZUR, BBOX, BCS, BEBE, BGI, BGX, BPT, BSL, BTU, BWEN, CBIO, CCCR, CEQP, CGG, CHK, CLDN, CLF, CLUB, CMLS, CNAT, COG, COYN, CPST, CRMT, DCO, DEST, DGLY, DRWI, DTEA, DXI, DXLG, EFF, ENBL, ENPH, ENVA, ENZN, EQT, ESCA, ESEA, EVDY, EVEP, FREE, FTSL, FUEL, FULL, GASS, GDP, GMZ, GOGL, GPOR, GRAM, GROW, GSM, GUID, HERO, HGT, IPI, ISR, JCS, JYNT, KED, KEYS, KIRK, KMF, KYE, KYN, LEU, LGCY, LHO, LINE, LNCO, LTRX, MEMP, MENT, MESO, NAO, NBG, NBR, NES, NM, NMBL, NMM, NOR, NRP, NS, NTG, OBCI, OEC, OSTK, PAA, PAGP, PBT, PDII, PEB, PQ, PSTG, RGSE, RLJ, RNO, ROSG, ROYT, RTK, RYI, SALT, SJT, SMCI, SRF, SSH, SSI, STRP, STV, SUNE, SWN, SXC, SYRX, TC, TCI, TCS, TGH, TK, TLP, TMST, TOO, TOR, TPLM, TTP, TWER, TWI, UNFI, UPL, URRE, UUUU, UVE, VNR, WAIR, WLB, WMLP, WRES, WSM, X, XHR
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: JJC, UNG
11:39 am SunEdison (-10%) at fresh three year low (SUNE) :
7:01 am Canadian Solar wins 110 MWp of solar power projects in Brazil; three projects are targeted to reach commercial operation by late 2018 (CSIQ) : Canadian Solar will develop and build the solar power plants. Once connectd to the grid, the electricity genereated will be sold to CCEE (Camara de Comercializacao de Energia Eletrica), under a 20-year Power Purchase Agreement at R$300/MWh (~$78.8/MWh). The three projects are targeted to reach commercial operation by late 2018.
3:48 am Nokia converts EUR750 mln of convertible bond into shares (NOK) :
Co announces a total of 27 238 491 new Nokia shares have today been registered with the Trade Register.
The shares were subscribed for by using the conversion right pertaining to Nokia's EUR 750 million convertible bond. The conversion amount, EUR 65 100 000, is recorded into the fund for invested non-restricted equity, hence, the share capital of the company will not increase.
3:34 am Pericom Semi reiterates support for Diodes (DIOD) transaction; responds to Montage's offer (PSEM) :
Pericom Semiconductor (PSEM) announced that leading independent proxy advisory firm, Glass, Lewis issued an update this evening to its report, dated November 11, 2015, in favor of a Pericom-Diodes transaction.
The Company also issued the following statement to Pericom shareholders reiterating the Pericom Board of Directors' recommendation in favor of a transaction with Diodes Incorporated (DIOD), pursuant to the Agreement and Plan of Merger between Diodes and Pericom, dated September 2, 2015, as amended November 5, 2015"Our Special Meeting to be convened tomorrow morning (Friday, November 20, 2015) at 9:00 a.m. PT, is being called primarily to seek shareholder approval of the acquisition of Pericom by Diodes. We encourage our fellow shareholders not to allow Montage "last-ditch ploys" to pressure them into gambling on a highly uncertain deal that would derail them from the benefits of a transaction with Diodes that would provide substantial and certain cash value in a matter of days. To reiterate, the Pericom Board believes that the Diodes Merger Agreement is in the best interest of Pericom shareholders because: Diodes' $17.75 per share all-cash offer is backed by a fully-funded credit agreement and term loan from Bank of America. The $17.75 per share purchase price represents a 46% premium to Pericom's unaffected closing price on September 2, 2015, and exceeds the five-year trading high in Pericom shares by 8%. The transaction with Diodes is expected to close within a matter of days, at which point shareholders would be able to immediately reinvest the proceeds of the sale and potentially earn returns instead of waiting for another, less certain transaction to go through a protracted regulatory approval process and possibly never even close.PSEM comments regarding Montage: "Montage has still not...made any substantive improvements to the aspects of its acquisition proposal that have truly been the key points of contention here." Rather, its 11th hour maneuvers are nothing more than desperate attempts to distract Pericom shareholders from the fact that the Montage offer is wholly unviable and that Pericom shareholders have the opportunity to promptly receive certain and substantial value in a matter of days just by approving the Diodes offer."
