The stock market began its day on a higher note with the Nasdaq Composite (+0.4%) leading the S&P 500 (+0.3%) and the Dow Jones Industrial Average (+0.3%).
Six sectors trade in the green with commodity-sensitive energy (+1.5%) and materials (+0.9%) leading the upside. The remaining gainers sport upticks between 0.3% (health care) and 0.7% (industrials). Conversely, utilities (-0.6%), telecom services (-0.4%), and consumer staples (-0.2%) round out the leaderboard.
In the industrial space (+0.7%), airline names demonstrate relative strength as the group trades higher with Delta Air Lines (DAL 42.61, +1.01). Recently, the company cut its fourth quarter domestic capacity growth rate from 4.0% to 2.5%. Additionally, the company raised its stock’s dividend 50.0% to $0.81 per share.
On the commodities front, WTI crude trades higher by 3.3% at $47.71/bbl. Meanwhile, gold trades higher by 1.2% ($1,287.90/ozt).
Canaccord Genuity upgrades Nokia Corp (ADR)(NYSE:NOK) to Buy from Hold and raises their tgt to $7 from $5.50 as they believe co’s mgmt will continue its strong execution on cost cutting initiatives following the Alcatel Lucent (ALU) acquisition. Further, they believe the technology licensing business can also create a source of high margin growth. LT, firm believes the mgmt team has a cogent plan to integrate ALU to create a strong technology leadership culture while also achieving its recently announced above €900M cost synergy target by 2018.
Exelixis, Inc.(NASDAQ:EXEL) indicated for a lower open (-2.3%) following the Friday approval of peer Eisai’s (ESALY) lenvatinib; Hearing Leerink out on the name, suggesting approval does not pose ‘significant competitive threat’ to other agents (5.61)