When the bell rang on Friday, the broader market posted a split finish. Leading action 'higher' (if you could call it that) was the tech-heavy Nasdaq Composite - adding 4.94 points (+0.08%), the index finished at 6210.19, an all-time closing high. The S&P 500 added less than a point (+0.03%) to 2415.82, while the Dow Jones Industrial Average was kept under wraps, shedding about 2.67 (-0.01%) to 21080.28. These moves take the three major US indices +15.4%, +7.9% and +6.7% YTD, respectively.
Market data today included the April durable goods orders reading which declined 0.7%, while the prior month's reading was revised to 2.3% (from 0.7%). Excluding transportation, durable orders decreased 0.4% to follow the prior month's revised uptick of 0.8% (from -0.2%). The second reading of first quarter GDP pointed to an expansion of 1.2%, while the second estimate of first quarter GDP Deflator came in at 2.2%. The final reading of the University of Michigan Consumer Sentiment Index for May declined to 97.1 from 97.7 in the preliminary reading.
The Technology (XLK 56.38, -0.03 -0.05%) space ended modestly lower today. Component Synopsys (SNPS 74.37, +0.84 +1.14%) was one of the better performing names today as the company announced an accelerated share repurchase agreement to repurchase an aggregate of $100 million of stock. The Consumer Staples XLP +0.37% space was the best performing S&P sector today, followed by XLY +0.30%, XLB +0.21%, XLE +0.14%, XLI +0.12%, XLU +0.00%, XLF -0.08%, XLV -0.18%, IYZ -0.28%, XLRE -0.62%.
In the S&P 500 Information Technology (966.77, +0.10 +0.01%) space, trading managed to escape Friday with a ten cent gain. Component HP (HPQ 18.47, +0.10 +0.54%) was one of the names in the green today after the company announced a partnership with Easy Print, a printing products platform. Other names in the space which outperformed included NVDA +2.59%, MU +1.12%, AMAT +1.07%, WDC +0.83%, LRCX +0.79%, XLNX +0.64%, ADI +0.57%, PYPL +0.51%, MSFT +0.50%.
Other notable news items among sector components:
- BlackBerry (BBRY 11.11, -0.11 -0.98%) reached an agreement with Qualcomm (QCOM 57.52, -0.36 -0.62%). An arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of $940 million for calendar 2016 and 1Q17.
- Synopsys (SNPS) accelerated its share repurchase agreement to repurchase an aggregate of $100 million of stock.
- HP (HPQ) announced a strategic partnership with Easy Print, a printing and customized products enterprise-level procurement platform.
- CDK Global (CDK 60.48, -0.71 -1.16%) announced that CFO Al Nietzel, is leaving the Company to pursue other interests effective May 31, 2017.
- Atlassian (TEAM 35.58, -0.37 -1.03%) co-CEOs adopted new 10b5-1 trading plans.
- Web.com (WEB 23.10, +1.90 +8.96%) shares were higher today in reaction to reports of takeover interest.
- Asure Software (ASUR 14.40, -0.23 -1.57%) acquired iSystems and Compass HRM and updated FY17 guidance.
In reaction to quarterly results:
- Marvell (MRVL 17.67, +0.73 +4.31%) reported better than expected Q1 EPS and revenues of $0.24 and $579.18 million, respectively. For Q2, the company sees EPS ahead of market expectations at $0.26-0.30 and in-line revenues of $585-615 million.
- Splunk (SPLK 62.41, -4.68 -6.98%) reported a better than expected loss per share of $0.01 for Q1 and better than expected revenues of $242.4 million. For Q2, the company sees revenues of $267-269 million. For FY18, SPLK sees revenues of about $1.195 billion (prior of about $1.185 billion).
- Veeva Systems (VEEV 66.82, +5.08 +8.23%) reported better than expected Q1 EPS and revenues of $0.24 and $157.9 million, respectively. For Q2, the company sees EPS and revenues ahead of market expectations at $0.20 and $163-164 million, respectively. For FY18, VEEV sees EPS of $0.82-0.84 (from $0.78-0.80) on revenues between $665-669 million (from $655-660 million).
- Brocade (BRCD 12.63, -0.02 -0.16%) reported worse than expected Q2 EPS and revenues of $0.10 and $552.8 million, respectively.
- 21Vianet (VNET 5.33, -0.27 -4.82%) reported a Q1 loss of RMB0.17 per share on better than expected revenues of RMB862.2 million.
- NTAP was upgraded to Neutral from Sell at UBS, MRVL was upgraded to Outperform from Perform at Oppenheimer, VEEV was upgraded to Buy from Neutral at BofA/Merrill, INFN was upgraded to Outperform from Market Perform at Wells Fargo, PHI was upgraded to Outperform from Neutral at Macquarie; TRIP was downgraded to Underperform from Neutral at Macquarie, JKS was downgraded to Underweight at Morgan Stanley and to Sell from Neutral at Citigroup