Closing out the first week of December, the broader market closed split. The Nasdaq Composite was the best performer, albeit only adding +0.09% on the day, up 4.54 points to 5255.65. The S&P 500 was also above flat lines when the bell rang, higher by less than a point though (+0.04%) to 2191.95. The Dow Jones Industrial Average was the lone underperformer, shedding 21.51 points (-0.11%) to 19170.42. Given this week's moves, the markets land +5.0%, +7.3% and +10.0% YTD, respectively.
The Technology (XLK 46.69, +0.17 +0.37%) sector rebounded modestly from a weak two-session run to closed out the first week of December slightly above flat lines. Heavyweight XLK components AAPL +0.34%, MSFT +0.08%, FB +0.26%, GOOG +0.34% were all higher today.
In the S&P 500 Information Technology (781.08, +3.39 +0.44%) sector, trading was higher for most of the session. Components AMAT +4.45%, EBAY +3.76%, WDC +2.82%, QCOM +2.62%, GPN +2.57%, SWKS +2.17%, CA +2.10%, HPE +2.05%, STX +1.99%, ADSK +1.95% were all strong today.
Other notable news items among tech names:
- Per a CNBC report, Pandora (P 13.33, +1.85 +16.11%) is apparently open to a potential sale to Sirius XM Radio (SIRI 4.30, -0.25 -5.60%).
- Wipro (WIT 9.33, -0.14 -1.48%) won an infrastructure deal from Australian oil and gas company Woodside (WOPEY 23.16, -0.21 -0.90%).
- Accenture (ACN 117.29, -0.37 -0.31%) opened a flagship location for Accenture Interactive in Hong Kong, a more than 40,000-square-foot studio space that will serve as a go-to destination for the company's clients to co-create, innovate and apply the latest digital technologies and experiences to shape the way we live and work.
- Juniper Networks (JNPR 26.83, -0.15 -0.56%) to acquire AppFormix. Financial terms of the deal were not disclosed.
- Alliance Data (ADS 218.71, -9.47 -4.15%) issued a statement regarding Canada's Protecting Rewards Points Act. Per this act, ADS's LoyaltyOne expects that, following passage of the Act in Ontario, similar legislation may be enacted in some or all other Canadian provinces. As a result of the pending and anticipated changes in applicable law, LoyaltyOne is today announcing the cancellation of its five-year expiry policy. Based on the available information, it is expected that LoyaltyOne will incur a one-time charge as a result of the cancellation of the expiry policy, which will likely be recorded as a reduction of revenue in 2016. At this time LoyaltyOne anticipates the amount of the expected charge to be between USD $180 million and $250 million.
- Texas Instruments (TXN 70.72, +0.31 +0.44%) named Rafael Lizardi as next CFO. Current CFO, Kevin March, to retire in October 2017.
- Twitter (TWTR 17.93, -0.10 -0.55%) acquired app startup called Yes Inc.
- Information Services Group (III 3.80, -0.38 -11.11%) acquired Alsbridge. The deal is expected to be accretive to 2017 EPS and to have material impact on 2017 financials.
- Digital Ally (DGLY 4.80, -0.20 -4.00%) announced a 'notable' sale of DVM-250 event recorder video systems along with FleetVu cloud services to a customer with a 'large' non-emergency medical transportation vehicle fleet.
- Digital Ally (DGLY) also commented on yesterday's TASER (TASR 27.92, +0.20 +0.72%) allegations which asserted the invalidity of '292 patent. The company stated that it welcomes the opportunity to 'beat' TASR again in a patent case.
- Xerox (XRX 9.50, +0.05 +0.53%) announced William Osbourn, Jr. will serve as CFO following the completion of the company's planned separation into two publicly-traded companies at year end.
- Ingram Micro (IM 38.88, +1.31 +3.49%) confirmed that approval from China's State Administration of Foreign Exchange has been obtained with regard to the equity portion of the aggregate merger consideration to be funded by Tianjin Tianhai.
In reaction to quarterly results:
- Workday (WDAY 71.40, -10.20 -12.50%) reported better than expected Q3 EPS and revenues of $0.03 and $409.6 million, respectively. For FY17, the company sees revenues ahead of market expectations at $1.560-1.563 billion, up from $1.548-1.558 billion.
- Ambarella (AMBA 54.47, -6.92 -11.27%) reported better than expected Q3 EPS and revenues of $1.11 and $100.5 million, respectively. For Q4, the company sees revenues of $84-87 million, worse than expected.
- SQ was upgraded to Buy from Hold at Deutsche Bank, TEAM was upgraded to Outperform at Robert W. Baird; PAY was downgraded to Hold from Buy at Stifel, AXE was downgraded to Neutral from Buy at Longbow, NOW and GWRE were downgraded to Neutral from Overweight at Piper Jaffray, ZAYO was downgraded to Neutral from Buy at MoffettNathanson, WDAY was downgraded to Sell from Hold at Societe Generale, CGNX was downgraded to Neutral from Buy at Northcoast; PCTY and SHOP were initiated with Perform ratings at Oppenheimer, PAYC and HUBS were initiated with Outperform ratings at Oppenheimer, QSII was initiated with a Neutral at Dougherty, PANW was initiated with a Hold at Summit Redstone, EQIX was initiated with a Buy at Guggenheim