The Nasdaq extended its rally for the second straight session on Monday with the tech heavy index trading at almost new 3-month high. Now, the NASDAQ Composite is now up 0.77% to 2,990.62, extending its Friday’s 2% rally. On Friday the stock market had solid rally driven by strong Jobs data, which boosted confidence on the recovery of U.S markets. Moreover, better than expected earnings from blue chip companies also have supported the market rally. Technology SPDR (ETF)(NYSE:XLK) is up almost 1%.
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Facebook Inc(NASDAQ:FB) extended its biggest Friday’s gall and rose another3.50% to $21.79 after surging about 5.25% in Friday’s session. The stock has bounced back $2 or 10% from its life time low of $19.82 in the past week. The ongoing recovery is just a value buying or short covering on profit booking. The stock which is halting a string of ugly post-earnings declines in impressive fashion. With ~13% of the float shorted, short-covering is likely playing a role. Ealier today, Evercore's Ken Sena (previous) went on CNBC (video) to advise investors stay on the sidelines until Facebook's lock-up expiration, which will more than triple its float over the next 2 months to 1.4B shares, is finished.
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Cisco Systems, Inc.(NASDAQ:CSCO) is moving higher by 2% thanks to couple of stock upgrades from analyst at Deutsche Bank and Oppenheimer, stating they expect the company to beat the Wall Street estimates on August 15. Analyst at Oppenheimer pointed out that the company has witnessed solid product demand in the U.S. while Europe remains a challenge.
Cognizant Technology Solutions Corp(NASDAQ:CTSH) shares popped up 12% as the company posted solid second-quarter results, which easily topped analysts’ target and as a result the company boosted its full year earnings guidance. EPAM Systems Inc(NYSE:EPAM) also rose 2.56%.
Vringo, Inc.(AMEX:VRNG) shares rose 14.50% as reports surfacing that t AOL, Inc.(NYSE:AOL) has agreed to settle part of Vringo's patent suit against the company. Vringo's suit also targets Google Inc(NASDAQ:GOOG) and other Internet companies.
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Nuance Communications Inc.(NASDAQ:NUAN) added 4.50% after introducing Nina, a virtual assistant solution for iOS and Android customer support apps. Nina uses a combo of Nuance's voice recognition (VR), text-to-speech, and voice ID tech, and has already picked up financial services firm USAA as a customer. Nuance has been quickly fleshing out its mobile portfolio: other solutions include Swype, Vlingo, a developer program for its Dragon VR software, and the VR tech behind Apple's Siri.