Tech Stocks from Briefing.com

Tech Stocks from Briefing.com

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

Analyst actions:

  • 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

Stocks Mixed After Trump Budget Cuts, Manchester Bombing

Stocks turned mixed again by mid-afternoon Tuesday after a Trump budget proposal backed big cuts to social programs, and a terrorist attack in Manchester, England, rattled nerves. 

The S&P 500 was up 0.14%, the Dow Jones Industrial Average increased 0.2%, and the Nasdaq fell 0.05%. The S&P 500 was on track to close with its fourth straight session of gains, a streak not seen since mid-February. 

The White House hopes to sell its 2018 budget proposal as a “taxpayer first” plan that makes deep cuts to a number of programs while raising spending on border security and defense. The Trump administration will send the budget proposal to Congress on Tuesday, outlining its wish list for how the federal government will spend its money next year.

The plan, titled “A New Foundation for American Greatness,” will include $3.6 trillion in spending reductions by slashing funds for entitlements and discretionary programs while increasing allocations for items including law enforcement, defense and school choice. About $600 billion in cuts would be made to Medicaid over the next decade, while cuts to food stamps would amount to $193 billion over 10 years. Trump promised on the campaign trail that he would not enact cuts to Medicaid should he become president.

Trump’s proposed budget cuts could hurt the discount retail sector, Brian Sozzi argued over on TheStreet’s premium site Real Money. Get his insights with a free trial subscription.

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Crude oil fluctuated on Tuesday morning after the Trump administration proposed selling roughly half of the U.S.’s emergency oil stockpile to lower the national debt. The emergency stockpile consists of 687.7 million barrels of oil. Trump’s plan also allows oil drilling in the Alaska National Wildlife Refuge.

Tech Stocks from Briefing.com

Tech Stocks from Briefing.com

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

Analyst actions:

  • 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

The iPhone 8 could push Apple closer to a lofty milestone by the end of the decade

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Tim Cook Auburn

(Apple CEO Tim CookApple)
If the upcoming iPhone 8 is as commercially successful as some predict, Apple may have 1 billion mobile users by the end of the decade.

The iPhone 8 release is set to “unleash pentup demand,” with annual unit sales reaching 270 million in 2019, according to research analysts at Credit Suisse.

Reaching those sales figures would put global iPhone users in the neighborhood of 970 million by the end of 2019.

“We remain convinced that the iPhone product cycle will be significant in terms of driving multi-year unit growth,” the Credit Suisse report noted. “Apple’s installed base has seen robust growth over the past few years, which we believe has doubled since 2013, and now stands at just under 700mn users.”

Credit Suisse expects iPhone 8 shipments to total 229 million in 2017 and 250 million in 2018. But those estimates may prove to be conservative if existing iPhone users upgrade at a similar rate as after the release of the iPhone 6. Returning to a higher upgrade rate would push iPhone sales roughly 9% above those estimated sales figures, according to Credit Suisse.

Apple already leads all of its competitors in customer loyalty, so an increase in upgrades may be within reach. 

Additionally, Oppenheimer’s equity research department issued a report stating there is increased interest over the iPhone 8 in China, which has been a difficult market for Apple to gain traction.

“We do believe there is pent-up demand for iPhone 8, which is widely reported to make a few major design changes,” noted the report. Oppenheimer also stated, “The key question, whether Apple can supply enough iPhone 8 without major bottlenecks in the supply chain, remains unanswered.”

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Screen Shot 2017 05 23 at 1.22.16 PM

(Markets Insider)

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