From Briefing.com: 4:28 pm Closing Market Summary: Stocks Register Third Consecutive Win (:WRAPX) :On Monday, investors continued chipping away at last Wednesday's big loss, pushing the stock market to its third consecutive win. The S&P 500 and the Dow added 0.5% and 0.4%, respectively, while the Nasdaq (+0.8%) settled a step ahead of its peers.
The benchmark index dropped 44 points, or 1.8%, last Wednesday in response to a New York Times article that accused President Trump of asking former FBI Director James Comey to shut down the Bureau's investigation of former National Security adviser Michael Flynn. However, since the tumble, the S&P 500 has reclaimed all but seven points of the loss, as the buy-the-dip trade has prevailed once again.
Ten of eleven sectors settled in positive territory on Monday with the technology (+1.0%) and utilities (+0.9%) spaces leading the charge. The technology group was underpinned by large-cap names like Microsoft (MSFT 68.45, +0.76), Alphabet (GOOGL 964.07, +9.42), and Qualcomm (QCOM 59.28, +1.61) with QCOM showing relative strength (+2.8%) after the company's stock was upgraded to 'Overweight' from 'Neutral' at JP Morgan. QCOM's positive performance rubbed off on its semiconductor peers, evidenced by the 1.1% increase in the PHLX Semiconductor Index.
The industrial sector also finished ahead of the broader market, thanks in part to defense names like Boeing (BA 183.67, +2.91) and Lockheed Martin (LMT 277.03, +4.24). The two names added 1.6% apiece following a weekend meeting between President Trump and King Salman of Saudi Arabia, which included the signing of a $110 billion arms deal. The consumer staples (+0.6%) and consumer discretionary (+0.6%) sectors also outperformed.
Most of the remaining sectors finished with modest gains between 0.1% and 0.3%. However, the energy sector (-0.2%) settled in negative territory despite crude oil's positive performance. The energy component jumped 0.9% to $51.14/bbl as investors displayed confidence that top oil producers will extend the original OPEC/non-OPEC production cut agreement by six to nine months when they meet in Vienna on Thursday. In addition to pushing back the end date, reports indicate that producers may increase the magnitude of the supply cuts.
In U.S. corporate news, Ford Motor (F 11.10, +0.23) officially announced that Jim Hackett will replace Mark Fields as the company's Chief Executive Officer on Monday morning. According to a Wall Street Journal report that was released earlier this month, Ford's Board of Directors has been looking to refine the company's strategy in response to a declining market share and a disappointing stock performance. Ford shares lost around 36.0% of their value during Mr. Fields' time as CEO.
U.S. Treasuries settled slightly lower across the board with the benchmark 10-yr yield climbing two basis points to 2.25%. Meanwhile, the U.S. dollar lost 0.3% against the euro (1.1240) after German Chancellor Angela Merkel said the single currency is too weak.
Investors did not receive any economic data on Monday, but, on Tuesday, market participants will receive April New Home Sales (Briefing.com consensus 605,000) at 10:00 ET.
Nasdaq Composite +13.9% YTD
S&P 500 +6.9% YTD
Dow Jones Industrial Average +5.7% YTD
Russell 2000 1.5% YTD
4:10 pm Agilent beats by $0.10, beats on revs; guides Q3 EPS below consensus, revs in-line; co raises FY17 EPS and revs guidance (A) :
Reports Q2 (Apr) earnings of $0.58 per share, $0.10 better than the Capital IQ Consensus of $0.48; revenues rose 8.1% year/year to $1.1 bln vs the $1.05 bln Capital IQ Consensus.
Co issues guidance for Q3, sees EPS of $0.49-0.51, excluding non-recurring items, vs. $0.53 Capital IQ Consensus Estimate; sees Q3 revs of $1.06-1.08 bln vs. $1.08 bln Capital IQ Consensus Estimate.
Co raises guidance for FY17, sees EPS of $2.15-2.21, excluding non-recurring items, vs. $2.16 Capital IQ Consensus Estimate, from $2.10-2.16; sees FY17 revs of $4.36-4.38 nlm vs. $4.35 bln Capital IQ Consensus Estimate, from $4.33-4.35 bln
Tech Stocks from Briefing.com
The markets began the week in the green, attempting to break out of last week's losses. When the bell rang, the tech-heavy Nasdaq Composite was the best performer, adding 49.92 points (+0.82%) to 6133.62. The S&P 500 was up 12.29 points (+0.52%) to 2394.02, while the Dow Jones Industrial Average gained about 89.99 points (+0.43%) to 20894.83.
Second only to the Utilities space today, the Technology (XLK 55.68, +0.44 +0.80%) sector climbed on pace with the broader market. Component Qualcomm (QCOM 59.28, +1.61 +2.79%) helped the space outperform today as the stock was upgraded premarket to an Overweight rating at JP Morgan; the company also announced the pricing of a public offering of senior unsecured notes. As mentioned, the Utilities space XLU +0.86% performed well, followed by XLI +0.77%, IYZ +0.65%, XLP +0.56%, XLY +0.50%, XLV +0.27%, XLF +0.26%, XLRE +0.25%, XLB +0.11%, XLE -0.22%.
In the S&P 500 Information Technology (953.85, +8.99 +0.95%) space, trading also held pace with the broader market advance today. Component Motorola Solutions (MSI 82.93, +2.10 +2.60%) put in some strong ticks minute by minute, ultimately ending Monday near highs following a premarket upgrade of the stock at Raymond James. Other names in the space which outperformed today included QRVO +3.39%, ADSK +3.14%, ATVI +2.22%, NVDA +2.13%, CA +2.02%, RHT +2.00%, SYMC +1.93%, GPN +1.88%, AVGO +1.83%, ADBE +1.78%, CRM +1.76%, TSS +1.59%.
Other notable news items among sector components:
Qualcomm (QCOM) priced public offering of senior unsecured notes in a combined aggregate principal amount of $11.0 billion; intends to use the proceeds to fund a portion of NXP Semiconductors (NXPI 108.17, +0.42 +0.39%) acquisition.
Castlight Health's (CSLT 3.70, +0.10 +2.78%) Corporate Controller and Chief Accounting Officer Priya Jain will resign to pursue another professional opportunity.
TSR, Inc. (TSRI 6.25, +0.25 +4.17%) received an offer from 7.2% holder Zeff Capital L.P. to acquire outstanding shares of TSR Common Stock for $6.15 per share in cash.
The Trade Desk (TTD 52.51, +2.44 +4.87%) filed for $200 million Class A Common Stock shelf offering by holders.
In reaction to quarterly results:
Booz Allen Hamilton (BAH 38.50, +2.55 +7.09%) reported better than expected Q4 EPS and revenues of $0.45 and $1.58 billion, respectively. For FY18, the company sees in-line EPS of $1.79-1.89 on better than expected revenues of +4-7% to about $6.03-6.20 billion.
Cheetah Mobile (CMCM 11.34, +0.79 +7.49%) reported better than expected Q1 EPS of RMB0.81 and revenues of RMB1.19 billion. For Q2, the company sees in-line revenues of RMB1.19-1.24 billion.
Yirendai (YRD 23.63, -0.38 -1.58%) reported better than expected Q1 EPS and revenues of CNY5.81 and CNY1.02 billion, respectively. For Q2 and FY17, the company sees revenues below market expectations at CNY1.070-1.090 billion, and CNY4.400-4.600 billion, respectively.
Companies scheduled to report quarterly results tonight/tomorrow morning: A, LXFT, SNCR/MOMO, TTWO
Analyst actions:
QCOM was upgraded to Overweight from Neutral at JP Morgan,
MSI was upgraded to Outperform from Mkt Perform at Raymond James,
CREE was upgraded to Mkt Outperform from Mkt Perform at JMP Securities,
CIEN was upgraded to Buy from Hold at Stifel,
NTNX was upgraded to Buy from Neutral at Goldman;
ANET was downgraded to Neutral from Buy at DA Davidson,
SNCR was downgraded to Underperform from Neutral at Credit Suisse,
ORBK was downgraded to Hold from Buy at Standpoint Research,
NTES was downgraded to Outperform from Buy at CLSA;
AAOI was initiated with a Strong Buy at Needham,
PFPT was initiated with an Outperform at FBN Securities
