From Briefing.com: Major indices all finished lower in May's final trading session, although they did manage to post gains on the month. Economic news was light today, aside from first quarter GDP data, which pointed to a contraction of 0.7%, down from the 0.2% increase observed in the preliminary reading. One would assume given the weakness shown by the GDP numbers that traders would view the data in a positive light, potentially leading to a further delay in rate hikes - at least that has been the case lately - buy the bad economic data.
Turning to the tech sector, the superstar today was the Philadelphia Sox Index (SOXX +0.3%), which was lead by M&A news, with Altera (ALTR 48.85, +1.85, +4%) and Intel (INTC 34.46, +0.45, +1.3%) near a deal, and Avago Tech (AVGO 148.07, +5.69, +4%) agreeing to purchase Broadcom (BRCM 56.85, +0.60, +1.1%). In all the market noise, one things for certain, M&A is heating up.
In the S&P 500 information technology sector (-0.75%) lagged the broader market today, even with the strength of of the Semiconductors, which is not surprising considering the underperformance of its larger constituents such as Google (GOOG 532.11, -7.67, -1.4%), Western Digital (WDC 97.36, -1.87, -1.9%), Qualcomm (QCOM 69.68, -0.92, -1.3%), and Visa (V 68.68, -0.88, -1.3%).
Notable news items from sector components included the following:
Altera (ALTR 48.85, +1.85, +4%): Financial Times reported that Intel (INTC 34.46, +0.45, +1.3%) is nearing a $15 billion deal for Altera
Google (GOOG 532.11, -7.67, -1.4%): Pulse.io announced on its website that it has been acquired by Google
Apple (AAPL 130.32, -1.46, -1.1%): Digitimes reports that global smartphone shipments are expected to rise 13.6% in 2015. Related names: Blackberry (BBRY 9.80, -0.23, -2.3%), Samsung (SSNLF), Nokia (NOK 7.29, -0.09, -1.2%), and Microsoft (MSFT 46.89, -0.56, -1.2%)
Elsewhere in the technology space:
Equinix (EQIX 268.07, -1.12, -0.4%): The Boards of Equinix and TelecityGroup announced that they have reached agreement on the terms of a recommended cash and share offer for the entire issued and to be issued share capital of TelecityGroup.
Digital Ally (DGLY 14.89, -0.21, -1.4%): Announced it has received follow-on orders from Superior Ambulance for roughly 175 additional DVM-250Plus Event Recorders. The order, which will be shipped in the current quarter, will allow Superior to complete the outfitting of its over 400 ambulances and paratransit vehicles with Digital Ally DVM-250Plus Event Recorders and access to the Company's FleetVU Manager cloud-based asset tracking and telematics software storage and management systems.
Tyler Tech (TYL 121.48, -3.64, -2.9%): Acquired mobile hand-held solutions provider Brazos Technology Corporation. The financial terms of the transaction were not disclosed.
Rosetta Stone (RST 7.62, +1.19, +18.5%): Confirmed its Board of Directors has received an expression of interest from RDG Capital Fund Management
Analyst Action:
Avago Tech (AVGO 148.07, +5.69, +4%): upgraded to Buy from Hold at Jefferies... price target raised to $170 from $145 at Canaccord Genuity; Buy... price target raised to $175 from $140 at Craig Hallum; Hold... price target raised to $180 from $145 at Brean Capital; Buy
MagnaChip Semi (MX 7.17, +0.78, +12.2%): upgraded to Buy from Hold at Topeka Capital; price target $9
Broadcom (BRCM 56.85, +0.60, +1.1%): downgraded to Neutral from Outperform at Macquarie... downgraded to Neutral from Positive at Susquehanna... downgraded to Hold from Buy at Topeka Capital; price target raised to $60 from $53... downgraded to Market Perform from Outperform at Cowen; price target raised to $58 from $52... downgraded to Equal-Weight from Overweight at Morgan Stanley... downgraded to Neutral from Buy at Goldman... price target raised to $58 from $48 at UBS; Neutral... price target raised to $59 from $51 at Canaccord Genuity; Hold... price target raised to $67 fron $59 at Brean Capital; Buy
Tech Data (TECD 63.12, -1.37, -2.1%): downgraded to Market Perform from Outperform at Raymond James... price target raised to $71 from $63 at Brean Capital; Buy
Himax Tech (HIMX 6.26, -0.27, -4.1%): downgraded to Sell from Neutral at Chardan Capital; price target lowered to $4 from $5
Rally Software Development (RALY 19.42, -0.03, -0.2%): downgraded to Neutral from Buy at ROTH Capital
Marvell (MRVL 13.99, -0.21, -1.5%): initiated with Sell at Citigroup; price target $13
ExlService (EXLS 35.90, +0.20, +0.6%): initiated with Neutral at Sun Trust Rbsn Humphrey; price target $39
Descartes (DSGX 15.24, +0.05, +0.3%): price target raised to $18 from $17 at Barclays; Overweight
Skyworks (SWKS 109.36, +1.71, +1.6%): price target raised to $130 from $108 at Canaccord Genuity; Buy
Splunk (SPLK 67.62, -3.45, -4.9%): price target lowered to $83 from $86 at Canaccord Genuity; Buy
ePlus (PLUS 77.65, -6.83, -8.1%): price target raised to $90 from $85 at Canaccord Genuity; Buy
QAD (QADA 23.90, -1.41, -5.6%): price target raised to $28 from $25 at The Benchmark Company; Buy
OmniVision (OVTI 26.96, -0.15, -0.6%): price target raised to $29 from $27 at Wedbush; Neutral
VeriFone (PAY 38.16, +0.13, +0.3%): price target raised to $45 from $44 at Wedbush; Outperform
HubSpot (HUBS 50.80, -1.16, -2.2%): price target raised to $60 from $50 at Needham; Buy
NXP Semi (NXPI 112.28, +1.49, +1.3%): price target raised to $130 from $120 at Stifel; Buy
Ambarella (AMBA 90.21, +1.25, +1.4%): price target raised to $99 from $73 at Stifel; Buy
Activision Blizzard (ATVI 25.26, -0.47, -1.8%): price target raised to $30 from $26 at Stifel; Buy
Infoblox (BLOX 25.99, -0.33, -1.3%): price target raised to $30 from $28 at Piper Jaffray; Overweight
Palo Alto Networks (PANW 169.49, +3.12, +1.9%): price target raised to $185 from $170 at Imperial Capital; Outperform
NQ Mobile (NQ 4.11, -0.03, -0.7%): resumed with Buy at Rosenblatt; price target $8.10
Weekly Recap - Week ending 29-May-15Dow -115.44 at 18010.68, Nasdaq -27.95 at 5070.03, S&P -13.40 at 2107.39
The major averages registered their second consecutive decline on Friday, but they managed to end May in the green. The S&P 500 lost 0.6% today, but added 1.1% for the month while the Nasdaq Composite (-0.6%) ended in-line with the S&P 500 on Friday, but gained 2.6% in May.
Equity indices spent the duration of the session in negative territory with heavily-weighted sectors like consumer discretionary (-0.7%), financials (-0.9%), industrials (-1.0%), and technology (-0.8%) exerting pressure on the market. Furthermore, uninspiring economic data and the lack of tangible progress between Greece and its creditors weighed on the overall sentiment.
To be sure, stocks climbed off their late-morning lows after Greece's Economy Minister Giorgos Stathakis said his country will make its next debt payment to the International Monetary Fund. According to Mr. Stathakis, the country will pay EUR304 million next Friday. That headline was viewed as a positive sign considering deposit outflows in Greece have accelerated, dropping overall balances to levels not seen in more than ten years, according to reports.
The late-morning boost helped the S&P 500 reclaim more than 2/3 of its decline, but the index revisited its session low during afternoon action amid persistent weakness in some of the most influential sectors. Eight sectors ended the day in negative territory with industrials (-1.0%) spending the day behind its peers.
Once again, transport stocks struggled, evidenced by a 0.8% decline in the Dow Jones Transportation Average. The bellwether complex lost 2.2% for the week and surrendered 3.4% in May. Con-way (CNW 40.47, -1.42) was the weakest performer of the bunch, falling 3.4% after Bank of America/Merrill Lynch downgraded the stock to 'Underperform.'
Elsewhere, the technology sector (-0.8%) slipped behind the broader market during afternoon action, but chipmakers showed relative strength. The PHLX Semiconductor Index added 0.3% with Altera (ALTR 48.85, +1.88) spiking 4.0% amid renewed speculation the company may be acquired by Intel (INTC 34.51, +0.50). For the month, the PHLX Semiconductor Index soared 8.6% while the tech sector added 2.1%.
All ten sectors registered losses with energy (-0.1%) ending just below its flat line even as crude oil jumped 4.5% to $60.26/bbl. Over on the countercyclical side, health care (-0.2%) and utilities (-0.2%) outperformed while consumer staples (-0.7%), and telecom services (-0.5%) ended near the broader market.
Treasuries climbed into the afternoon, ending on their highs with the 10-yr yield down three basis points at 2.10%.
Today's participation was above-average with month-end flows contributing to the increased activity as more than a billion shares changed hands at the NYSE floor.
Economic data included Q1 GDP, Chicago PMI, and Michigan Sentiment Index:
- First quarter GDP was revised down to -0.7% in the second estimate from an originally reported +0.2% in the advance release, which is what the Briefing.com consensus expected
- That was the first contraction in GDP growth since Q1 2014
- The real final sales component, which strips out volatile inventories, declined 1.1%. That topped the 1.0% decline from Q1 2014 and was the biggest real final sales drop since a 3.3% decline in Q1 2009, suggesting that economic growth trends in Q1 2015 were some of the worst seen since the Great Recession
- The Chicago PMI declined to 46.2 in May from 52.3 in April while the Briefing.com consensus expected an increase to 53.0
- That was the third time the Chicago PMI has fallen below 50, the expansion/contraction threshold, in the last four months
- With the exception of the Prices Paid Index (51.2 from 43.1), all of the sub-indexes declined and also contracted in May
- The University of Michigan Consumer Sentiment Index was revised up to 90.7 in the May final reading from 88.6 in the preliminary reading while the Briefing.com consensus expected an increase to 89.0
- The month-over-month decline in sentiment generally reflects higher gasoline prices while other factors that influence sentiment trends, like equity movements and labor market conditions, were largely flat in May
On Monday, Personal Income/Spending data for April and Core PCE Prices will be released at 8:30 ET while April Construction Spending and the May ISM Index will both be reported at 10:00 ET.
Week in Review: Nasdaq Sets Fresh Record Close
Bond and equity markets were closed on Monday for Memorial Day.
On Tuesday, each of the major indices fell at least 1.0% as buyers proved to be a reluctant bunch. That reluctance started early and it continued for most of the session, which saw the S&P 500 flirt with testing support at its 50-day simple moving average (2096). The fact that the S&P 500 didn't pierce that level was perhaps the lone bright spot in Tuesday's action, which saw all ten sectors lose ground and all 30 Dow components end with a loss.
The major averages enjoyed a daylong rally on Wednesday that helped the S&P 500 (+0.9%) erase the bulk of its decline from Tuesday. Meanwhile, the Nasdaq Composite (+1.5%) closed at a fresh record high and turned its weekly decline into a 0.3% advance for the week. Equity indices began the session with modest gains and enjoyed an early surge amid reports that Greek officials and Eurogroup members have started crafting a staff-level agreement to secure funds for the country. However, those reports were refuted during the next hour with Bloomberg citing a Eurogroup official as saying the two sides have yet to begin working on a joint statement. Strikingly, the stock market all but ignored the prompt refutation and continued rising into the afternoon with the technology sector (+1.8%) pacing the move. The PHLX Semiconductor Index surged 3.9% after it was reported that Avago Technologies (AVGO 141.49, +10.19) is in advanced talks to acquire Broadcom (BRCM 57.13, +10.21). Shares of AVGO jumped 7.8% while Broadcom soared 21.8%.
The stock market spun its wheels throughout the Thursday session, ending on a modestly lower note. The S&P 500 shed 0.1% after spending the entire day in negative territory amid light volume. Equity indices began the day in the red with some residual damage to risk tolerance after China's Shanghai Composite tumbled 6.5% in reaction to more equity brokers increasing their margin requirements. Furthermore, repurchase operations conducted by the People's Bank of China stirred concerns that the central bank may be preparing to stop or slow its easing cycle. To be fair, the decline in the Shanghai Composite only caused the index to surrender its week-to-date gain. In either case, things did not get any more cheery by the start of the European session with signals from the G7 meeting in Dresden suggesting that wide-ranging differences remain between Greece and the creditor institutions. The PHLX Semiconductor Index added 0.1% after Wednesday's rumor became Thursday's news and Avago Technologies (AVGO 142.38, +0.89) confirmed its acquisition of Broadcom (BRCM 56.25, -0.91) for $37 billion.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 18232.02 | 18010.68 | -221.34 | -1.2 | 1.1 | | Nasdaq | 5089.36 | 5070.03 | -19.33 | -0.4 | 7.1 | | S&P 500 | 2126.06 | 2107.39 | -18.67 | -0.9 | 2.4 | | Russell 2000 | 1252.22 | 1246.53 | -5.69 | -0.5 | 3.5 |
5:39 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).
This week's top 20 % gainers
Healthcare:HRTX (19.76 +58.46%),FPRX (25.64 +27.88%),CLLS (42.9 +26.18%),IDRA (3.84 +22.68%),AMRN (2.31 +20.31%),HUM (214.65 +19.92%),RTRX (31.64 +18.9%),KANG (20.7 +17.88%),AGEN (8.18 +16.69%),PRTA (39.44 +15.86%),CCXI (8.67 +15.75%),MNKD (5.18 +14.6%)
Industrials:TITN (15.89 +17.97%)
Consumer Discretionary:SFXE (4.87 +18.2%)
Information Technology:RALY (19.42 +42.69%),BRCM (56.85 +20.3%),SIMO (35.46 +15.47%),VIMC (14.89 +13.58%)
Energy:MDR (5.46 +16.92%)
Utilities:NYLD (27.07 +14.9%)
This week's top 20 % losers
Materials:SID (1.91 -17.67%),CENX (11.18 -12.18%),GEF (38.19 -11.62%)
Industrials:URI (88.91 -15.24%),MY (3.09 -14.88%),TEX (24.73 -13.92%),EGLE (9.05 -13.06%)
Consumer Discretionary:TLYS (9.64 -26.8%),KORS (46.5 -24.55%),DANG (8.37 -21.85%),TOUR (16.69 -17.9%),QUNR (44.09 -15.76%),JMEI (22.53 -11.3%)
Information Technology:LEJU (7.56 -12.8%)
Energy:FRO (2.58 -13.71%),GTE (2.9 -12.91%),IO (1.42 -11.8%),CNX (27.84 -11.59%),ECR (6.3 -11.39%),TDW (24.54 -11.18%)
4:06 pm Lattice Semi subsidiary SiBEAM, Inc announces that Google ATAP has selected it as a partner for integrating touchless gesture sensing to smart devices ( LSCC) :
4:04 pm Qualcomm subsidiary Qualcomm Technologies announces that its Qualcomm Snapdragon 810 processor will power Google's ( GOOG) next-gen Project Tango smartphone development platform ( QCOM) :
3:31 pm Earnings Preview for the week of June 1 - 5 (:SUMRX) : Of the companies reporting earnings for the week of June 1 - 5 some of the bigger names include:
Monday:
After Hours - PVH
Tuesday:
Pre Market - MDT, DG, CBRL, CONN, SOL, AMWD, DAKT
After Hours - ABM, ASNA, GES, GIII, NCS, GWRE, AMBA, VMEM
Wednesday:
Pre Market - BF.B, NX
After Hours - FIVE, LF
Thursday:
Pre Market - NAV, SJM, MIK, JOY, CIEN, LE, CYBX
After Hours - THO, ESL, PAY, COO, IDT, DMND, ZUMZ, ALOG, ZOES, VNCE, RALY, SEAC
Friday:
Pre Market - YGE, LITB, IXYS
12:39 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
ALTR (48.99 +4.3%): Reports out the co is near a deal to be acquired by Intel (INTC) for $15 bln.
AVGO (147.04 +3.27%): Favorable commentary on Thursday's Mad Money; Upgraded to Buy from Hold at Jefferies; PT raised at Brean Capital, Craig Hallum, & Canaccord Genuity.
LLY (78.46 +2.68%): Announced a clinical trial collaboration with AstraZeneca (AZN) to evaluate the safety and preliminary efficacy of MEDI4736 in combination with ramucirumab; also notable earnings activity in the name.
Large Cap Losers
VIPS (24.69 -2.72%): Underperforming following renewed cautious blog commentary.
POT (31.71 -1.93%): Downgraded to Hold from Buy at TD Securities.
CMI (136.12 -2.25%): Under pressure following negative commentary from BofA/Merrill on the trucking industry.
Mid Cap Gainers
GME (44 +7.53%): Beat Q1 consensus EPS estimates by $0.09, beat on revs; guided Q2 EPS in-line; raised FY16 EPS guidance, just below consensus, reaffirmed comps. Price tgt raised at Telsey Advisory Group.
ALKS (61.98 +3.44%): Said it would present data from its phase 1 clinical study of ALKS 8700 for the treatment of multiple sclerosis; exposures comparable to Tecfidera, with favorable gastrointestinal tolerability.
NBR (14.9 +2.55%): Initiated with an Overweight at JP Morgan.
Mid Cap Losers
GEF (37.75 -9.6%): Revised its FY15 EPS guidance to $1.65-1.75, down from previous guidance of $2.25 to $2.35; downgraded to Underperform at BofA/Merrill.
VEEV (27.63 -4.72%): Beat Q1 consensus EPS estimates by $0.02, beat on revs; guided Q2 EPS in-line, revs in-line; guided FY16 EPS in-line, revs in-line.
URI (89.16 -6.1%): Downgraded to Underperform from Neutral at BofA/Merrill.
11:49 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (90) outpacing new lows (78) (:SCANX) : Stocks that traded to 52 week highs: ALJ, ALN, ALTR, AMAG, AMBA, ANAC, ANCX, ATTU, ATVI, AVGO, AVID, BCV, BF.A, BLOX, BSQR, CBIN, CBPO, CE, CIEN, CIVI, COHU, CSGS, CYNI, DATE, DRC, DRRX, EBAY, EGRX, EMKR, EPAM, FHN, FMBI, FOE, FTNT, FUN, GKNT, GTT, HMHC, HMPR, HOLX, HRTX, HSKA, HSP, IMPV, IMS, INNL, ISSI, KTWO, LLY, LOGI, LYTS, MDLZ, MFG, MMI, MOFG, MRTX, MTG, NEP, NFLX, NPTN, NUVA, NYCB, PBCT, PKBK, PLXS, PRAH, PZZA, Q, QTEC, RARE, RTRX, SAGE, SAL, SBUX, SEDG, SFG, SIMO, SKX, SNOW, SNX, SOXX, STRP, STRZA, SUNE, TCX, UEC, ULTA, VC, VIMC, ZTS
Stocks that traded to 52 week lows: AA, ACI, AIQ, AMIC, ARO, ASM, AVH, AWX, AXE, BKK, BOOM, CBD, CCG, CEN, CKP, CLI, CNI, CNW, CP, CPA, CPST, CRD.B, CTL, CTP, CVSL, DAVE, DEJ, DXM, FAX, FHCO, FPO, GCO, GMCR, GRVY, HGG, HK, HNRG, IMRS, INF, ISH, KEM, KORS, KSU, LXFR, MPA, MUJ, MXWL, NAV, NCZ, NMRX, NOR, NRP, NSC, NTX, NUM, NVDQ, ORN, PFIS, PNX, PQ, PRI, RBCN, RELL, RLJE, SGI, SJR, SJT, STRM, TRMB, TROX, UE, USEG, VNCE, WPG, WRES, WYNN, XPL, YRCW
ETFs that traded to 52 week highs: PPH, SMH, SOXX
ETFs that traded to 52 week lows: KOL |
