Please ensure Javascript is enabled for purposes of website accessibility

Why Qualcomm, HP, and Madison Square Garden Jumped Today

By Dan Caplinger - Feb 26, 2018 at 4:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Find out why these stocks led the market higher.

Monday continued the strong momentum that the stock market built up late last week, and gains of roughly 1% in major benchmarks set the stage for another potential run toward record highs in the days and weeks to come. Investors calmed down after Treasury bond yields came off their recent highs, suggesting that fears about the Federal Reserve hurriedly boosting interest rates were overblown. Moreover, some good news helped send key stocks higher. Qualcomm (QCOM -1.91%), HP (HPQ -2.47%), and Madison Square Garden (MSGN) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Qualcomm plays (not so) hard to get

Shares of Qualcomm rose nearly 6% as investors responded to the latest exchange between the chip giant and would-be acquirer Broadcom (AVGO -0.94%). Qualcomm said that the two companies should meet again to discuss price, because the key sticking point on getting a deal done is valuation. Yet Broadcom didn't agree, essentially accusing Qualcomm of having pretended to be interested during past discussions. With Qualcomm having upped its own bid for NXP Semiconductors last week, it'll be tougher for Broadcom to negotiate an agreement that would bring it and Qualcomm together.

Virtual reality headset with Qualcomm Snapdragon logo on it.

Image source: Qualcomm.

HP gets a good review

HP stock climbed 6% after the hardware-focused company received positive comments from a Wall Street analyst company. Analysts at J.P. Morgan upgraded the tech stock from neutral to overweight, citing favorable valuation in the wake of a good earnings report last week. Even though the analysts are nervous that hardware companies still face competitive conditions and difficult industry fundamentals, HP has found ways to keep growing, especially in its key printer business. With a $28 price target on the stock, the analysts believe that HP could climb another 20% even after today's big move higher.

Madison Square Garden picks up some interest

Finally, shares of Madison Square Garden rose more than 6%. The company that owns the iconic New York City arena has attracted the interest of private equity company Silver Lake, which reported that it had taken a 4.9% stake in MSG. Silver Lake has a reputation for activism, and the institution said that it wants to help Madison Square Garden create long-term value for its shareholders by having discussions with management and others involved with the company. As one of the only ways to invest directly in sports-related assets, Madison Square Garden often gets attention at this time of year, when basketball and hockey are approaching their playoff runs.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

HP Inc. Stock Quote
HP Inc.
HPQ
$32.78 (-2.47%) $0.83
QUALCOMM Incorporated Stock Quote
QUALCOMM Incorporated
QCOM
$127.74 (-1.91%) $-2.49
MSG Networks Inc. Stock Quote
MSG Networks Inc.
MSGN
Broadcom Limited Stock Quote
Broadcom Limited
AVGO
$485.81 (-0.94%) $-4.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.