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
- 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