Stock Market News For Nov 21, 2017

Gains in telecom and semiconductor stocks boosted all the three key U.S. indexes on Monday. Shares of Verizon rose following a target price upgrade from Wells Fargo (NYSE:WFC), which in turn lifted the telecom sector. Also, shares of Cavium reached new highs following a takeover bid by Marvell, which in turn powered the semiconductor index and subsequently, the broader tech sector, higher. Further, investors kept a close eye on cut prospects as the year nears its end.

The Dow Jones Industrial Average (DJIA) increased 0.3%, to close at 23,430.33. The S&P 500 Index (INX) rose 0.1% to close at 2,582.14. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,790.71, gaining 0.1%. A total of 5.67 billion shares were traded on Monday, lower than the last 20-session average of 6.81 billion shares. Advancers outnumbered decliners on the NYSE by a 1.50-to-1 ratio. On Nasdaq, a 1.54-to-1 ratio favored advancing issues. The CBOE VIX decreased 6.8% to close at 10.65.

Telecom, Semiconductor Boost Markets

Verizon Communications Inc’s (NYSE:VZ) shares increased 1.7% after Wells Fargo analyst Jennifer Fritzsche raised the telecom company’s price target from 48 to 50. Fritzsche also projected stronger dividend outlook for the company. The S&P 500 Telecom Services Sector rose 1% following strong gains in Verizon.

Additionally, the PHLX Semiconductor index increased 1.2% after one of its holdings Cavium, Inc. (NASDAQ:CAVM) rose to its all-time intraday high of $84.41. Shares of Cavium climbed by 10.8% to close at $84.02 after rival chipmaker Marvell Technology Group Ltd. (NASDAQ:MRVL) decided to acquire the company for around $6 billion. Cavium has a Zacks Rank #3 (Hold), while Marvell Technology Group possess a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gains in telecom and semiconductor sectors led the broader technology sector northward. The Technology Select Sector SPDR (XLK) increased 0.4% and was one of the best performing sectors among the S&P 500.

Investors Watchful of Tax Hike Prospects

Further, investors continued to focus on the prospects of Republicans’ tax overhaul plans. Per the tax bill, corporate tax rate will be reduced from the existing 35% to 20%, which will turn will benefit small-cap companies. The small-cap index, Russell 2000 advanced 0.7% on Monday, better than major large-cap indices.

Leading Indicators Data Encouraging

Leading Indicators Index rose 1.2% in October, better than September’s increase of only 0.1%. Stronger leading indicators index indicated expansion of the U.S. economy, which in turn boosted investor sentiment.

Stocks That Made Headlines

Lowe's Q3 Earnings & Sales Top Estimates, View Intact

Lowe’s Companies, Inc. (NYSE:LOW) posted better-than-expected third-quarter fiscal 2017 results. (Read More)

Dollar Tree Stock Jumps on Q3 Earnings Beat, View Up

Dollar Tree Inc. (NASDAQ:DLTR) posted third-quarter fiscal 2017 results, wherein both the earnings and sales topped estimates and improved year over year. (Read More)

Urban Outfitters Stock Falls Despite Q3 Earnings Top

Urban Outfitters Inc. (NASDAQ:URBN) delivered better-than-expected results for the second straight quarter, when it reported third-quarter fiscal 2018 financial numbers. (Read More)

Signet's Q3 Earnings Meet, Stock Plunges on Bleak View

Signet Jewelers Limited (NYSE:SIG) reported mixed results in third-quarter fiscal 2018, wherein earnings came in line with the Zacks Consensus Estimate. (Read More)

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