Market Wrap For November 25: Nasdaq Breaks 4,000 Level For First Time Since 2000
The Nasdaq index traded above 4,000 for the first time since 2000. The other major indices were flat for the day as markets couldn't hold on to early gains that were boosted by an international accord with Iran. Economic news was rather light and there were no comments from a Fed chairperson that could have spooked or raised the markets.
- The Dow gained 0.05 percent, closing at 16,072.54.
- The S&P 500 lost 0.13 percent, closing at 1,802.48.
- The Nasdaq gained 0.07 percent, closing at 3,994.57.
- Gold gained 0.33 percent, trading at $1,248.20 an ounce.
- Oil lost 0.71 percent, trading at $94.17 a barrel.
- Silver gained 0.72 percent, trading at $20.00.
News of Note
Iran has reached an agreement with a coalition of six nations to ease some of the sanctions that have plagued the country for years. As part of the agreement, Iran will suspend some of its nuclear related activities.
U.S. Pending Home Sales for October came in lower at 0.6 percent, marking a 10 month low and the fifth straight month the index declined. The consensus was for a gain of 1.3 percent.
The Dallas Fed Manufacturing Activity for November rose 1.9 percent, below the 5.0 percent expectations, and below the previous reading of 3.6.
The European Central Bank remains prepared to further cut interest rates according to Estonia's central bank leader and ECB member Ardo Hansson.
The Bank of Japan expects its 2 percent inflation target to realized in late fiscal 2014 or early fiscal 2015 (which ends in March 2016.)
Equities-Specific News of Note
Comcast (NASDAQ: CMCSA) and Charter Communications (NASDAQ: CHTR) have discussed breaking up Time Warner Cable (NYSE: TWC) in a potential joint bid for the company to avoid any antitrust issues. Analysts at Wells Fargo believe the price tag for Time Warner could be worth $160 a share. Comcast gained 0.79 percent, closing at $49.91, Charter lost 0.27 percent, closing at $134.29 while Time Warner closed lower by 0.66 percent at $132.04.
Shares of Sirius XM Radio (NASDAQ: SIRI) were trading higher by 6 percent premarket, but erased most of these gains during the trading session as shares steadily declined after the opening bell. Barron's issued a bullish report titled “Sirius XM's Sweet Sound of Success.” Shares closed down by 0.54 percent at $3.66.
Analysts at Wells Fargo initiated Twitter (NYSE: TWTR) with a Market Perform rating and price target in the $36 to $39 range as current valuation reflects the analysts near to medium term optimism. Shares closed lower by 4.76 percent at $39.05.
Chrysler has decided not to proceed with an IPO before the end of 2013. A tentative timetable for early 2014 is still in the works.
Alcoa (NYSE: AA) was upgraded to Buy with a price target increased to $11 (from $8) at Goldman Sachs based on the company's solid position in high margin aluminum products. Shares gained 3.95 percent, closing at $9.61.
Jazz Pharmaceutical (NASDAQ: JAZZ) has been given a $198 price target from FBR Capital. The stock is a top pick in biopharmaceutical category, according to the analysts. Shares gained 1.47 percent, closing at $115.01.
Struggling Dow component Caterpillar (NYSE: CAT) was upgraded to Buy and given a $100 price target from analysts at Bank of America Merill Lynch (NYSE: BAC) Monday morning. Shares gained 1.83 percent, closing at $84.40.
Wal-Mart (NYSE: WMT) named Doug McMillon as the company's next CEO in an anticipated changing of the guard for early 2014. Shares of the world's largest retailer rose 0.78 percent, closing at $80.43 after hitting new all time highs of $80.57.
Shares of Qualcomm (NASDAQ: QCOM) were under pressure as the company faces an antitrust probe in China. Shares closed lower by 0.64 percent, closing at $72.49.
Shares of Fab Universal (NYSE: FU) remain halted, although the halt status has been modified to “regulatory” from “news pending.”
BlackBerry (NASDAQ: BBRY) saw its boardroom shakeup today. Leaving the company is COO Kristian Tear, CMO Frank Boulben and CFO Brian Bidulka is stepping down but will stay with the company through the rest of the fiscal year. Roger Martin, a board member since 2007 has also resigned. Shares were little changed, inching higher by 0.16 percent, closing at $6.25.
SolarCity (NASDAQ: SCTY) is set to build ten more California operations centers bring its total to 24. Shares were unable to stay in positive territory for the day having lost 4.04 percent, closing at $44.71.
Momentum for Macy's (NYSE: M) continue following its third quarter earnings earlier this month. Shares hit a new 52 week high of $52.43 before closing the day at $52.30, up 2.03 percent.
Katie Couric will join Yahoo! (NASDAQ: YHOO) as the company's Global Anchor in a bid to expand the company's news division and gain market share. Shares ended the day slightly lower at $36.29 down 0.53 percent. Shares hit a new 52 week high of $36.85 in the morning trading session.
Questcor (NASDAQ: QCOR) was the subject of a negative report by Citron Research which was published on Citron's website titled “FTC Investigates Questcor: Serious Jeapordy for Synacthen Deal.” Shares lost 4.84 percent, closing at $56.26.
Shares of eBay (NASDAQ: EBAY) fell to fresh 52 week lows of $48.47 as analysts at Janney reiterated a general market sentiment that eBay's Marketplaces are losing share to other online competitors. The analysts believe that the company's Cyber Monday same-store sales growth could be in a disappointing mid to high single digit range. Shares ended the day at $49.05, down 2.54 percent.
Shares of Tesla (NASDAQ: TSLA) couldn't stay in positive territory for the day despite positive comments from the company's CEO Elon Musk. Musk revealed he is confident the company will be exonerated of any wrong doing following several fires in the Model S electric cars. Shares closed slightly lower at $120.78, down 0.49 percent.
Winners of Note
Camtek (NASDAQ: CAMT) surged 72.08 percent, closing at $4.56 following the release of a bullish article that was circulated across many trading and news desks. The article claimed that the company should be considered a 3D printing play given the company's commercial 3D printer, set to be released in 2014, that manufactures Printer Circuit Boards.
Shares of Ariad Pharmaceuticals (NASDAQ: ARIA) extended last week's gain on no new news releases today. Shares gained 35.74 percent, closing at $5.13.
Shares of Sears Holdings Corporation (NASDAQ: SHLD) closed the day higher by 7.27 percent, at $65.80. Premarket, news reports surfaced that the company is in talks to sell its Canadian assets. Shares hit fresh 52 week highs of $67.50 but shares couldn't hold on to these gains as the company issued a press release denying the validity of the report and confirmed the company has no intention of selling its Canadian business.
Shares of Fresenius Medical Care (NYSE: FMS) gained 7.20 percent, closing at $34.54 and DaVita HealthCare Partners (NYSE: DVA) gained 8.86 percent, closing at $61.55. The Centers for Medicare & Medicaid Services decided against a proposed 9.4 percent cut in reimbursement rates for dialysis treatment. The payments will remain flat for the foreseeable future.
Decliners of Note
Shares of Lions Gate (NYSE: LGF) tumbled in a “post Hunger Games panic selling” despite very positive reports that the second instillation of the Hunger Games franchise has had a successful weekend opening both domestically and internationally. A potential reason for the sell off, as reported by several news outlets such as Variety is that the Street's expectations are “Sky-high.” Shares closed lower by 10.46 percent at $30.23.
Yelp (NASAQ: YELP) lost 6.72 percent, closing at $58.20 following a negative note from analysts at Topeka. The analysts believe the company faces serious competition from the likes of Facebook (NASDAQ: FB).
Earnings of Note
Chinese based Qihoo 360 Technology (NASDAQ: QIHU) reported an EPS of $0.47, ahead of the $0.37 consensus. Revenue of $1.28 billion was also ahead of the consensus of $1.26 billion. Analysts at Stifel cut its ratings on the stock to Hold (price target of $100) based on a perceived slow down in revenue growth over the next two quarters. Shares closed lower by 9.47 percent, closing at $78.40.
Quote of the Day
"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren Buffett
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