Action was mostly flat today, yet the tech-heavy Nasdaq Composite found a way to stay above water when others could not. The index added 4.96 points (+0.08%) to 6390.00. The Dow Jones Industrial Average, by contrast, lost 28.97 points (-0.13%) today to close at 21611.78, and the S&P 500 shed less than a point (-0.02%) to 2473.45.
The Technology (XLK 57.55, +0.13 +0.23%) space posted another strong session on Thursday, taking month-to-date gains to 4.7%. Component CenturyLink (CTL 23.22, +0.54 +2.38%) performed the best today after announcing its Managed Security Services 2.0 suite is now available in Asia Pacific. The remaining S&P sectors were led by the US Telecom space IYZ +0.92% and followed by XLU +0.72%, XLV +0.66%, XLP +0.02%, XLF -0.04%, XLY -0.21%, XLRE -0.28%, XLE -0.30%, XLI -0.56%, XLB -0.74%.
In the S&P 500 Information Technology (992.71, +0.42 +0.04%) space made it an ever 10 sessions of gains today. Despite this, there were weak points as component Alliance Data (ADS 238.62, -24.91 -9.45%) showed particular weakness following Q2 results and lowered FY17 guidance; similarly, component Qualcomm (QCOM 53.97, -2.81 -4.95%) was hit hard today after giving some unimpressive Q4 guidance in concurrently with earnings. In spite of these select weak points, other names which followed the broader trend higher today included SWKS +2.12%, QRVO +1.60%, NVDA +1.45%, CSRA +1.33%, FSLR +1.31%, HPE +1.30%, HPQ +1.28%, PYPL +1.27%, CRM +1.09%, NTAP +1.00%, MCHP +0.89%.
Other notable news items among sector components:
- Corning (GLW 31.71, -0.02 -0.06%) acquired SpiderCloud Wireless a provider of in-building wireless solutions; terms not disclosed.
- SAP AG (SAP 105.82, +0.28 +0.27%) in addition to reporting earnings announced an EUR500 million share buyback.
- DXC Technology's (DXC 78.63, -0.08 -0.10%) Enterprise Services entered into Master Accounts Receivable Purchase Agreement.
- Camtek (CAMT 5.41, -0.20 -3.57%) to sell its PCB business for $35 million to Principle Capital, a private-equity fund; co will sell it for $35 million, of which $32 million will be paid in cash upon closing and an additional amount of up to $3 million conditioned upon the PCB business' financial performance in 2018.
- USA Tech (USAT 5.25, +0.45 +9.38%) priced a 8,333,333 common stock offering at $4.50 per share.
- Pareteum (TEUM 1.15, +0.19 +19.79%) received two new cloud services contracts from UK-based Communications Service Providers; the new three-year contracts represent an additional $1 million to the company's current revenue backlog.
- DragonWave (DRWI 0.89, flat) announced receipt of a repayment notice from Comerica Bank for the repayment in the amount of $17,243,336.
In reaction to quarterly results:
- SAP AG (SAP) reported in-line Q2 EPS of EUR0.94 on better than expected revenues of EUR5.78 billion. The company also guided FY17 revenues in-line at EUR23.3-23.7 billion.
- Qualcomm (QCOM 53.97, -2.81 -4.95%) reported better than expected Q3 EPS and revenues of $0.83 and $5.37 billion, respectively. For Q4, the company sees EPS below market expectations at $0.75-0.85 on revenue guidance mostly above market views at $5.4-6.2 billion.
- T-Mobile US (TMUS 61.12, -0.85 -1.37%) reported better than expected Q2 EPS and revenues of $0.67 and $10.21 billion, respectively. For FY17, the company sees adjusted EBITDA of $10.5-10.9 billion, up from $10.4-10.8 billion.
- Rogers Comms (RCI 51.58, +0.77 +1.52%) reported better than expected Q2 EPS of CAD1.00 on in-line revenues of CAD3.59 billion.
- Check Point Software (CHKP 107.41, -8.31 -7.18%) reported better than expected Q2 EPS of $1.26 on in-line revenues of $458.6 million. The company also guided Q3 EPS of $1.18-1.28 on revenues between $440-465 million. CHKP also reaffirmed FY17 EPS of $5.05-5.25 and revenues of $1.85-1.90 billion.
- HPQ was upgraded to Outperform from Sector Perform at RBC Capital Mkts; NEWR and RNG were downgraded to Equal Weight from Overweight at Morgan Stanley, NVEC was downgraded to Hold from Buy at Craig Hallum, DIOD was downgraded to Neutral from Buy at Cleveland Research; COUP was initiated with an Overweight at Cantor Fitzgerald
Expect quarterly results tonight from the following companies: ETFC, EBAY, MANH, MXIM, MSFT, NCR, SWKS, V