From Briefing.com: From Briefing.com:4:30 pm : The major equity averages were up more than 1% this morning, but some afternoon selling caused the market to wobble. Still, stocks managed to hold on for varied gains.
An improved mood among investors in both Europe and at home has perpetuated further buying interest during recent sessions. That carried over into trade this morning, such that buyers barely reacted to the August ADP Employment Change, which indicated that private payrolls increased by 91,000 when the consensus among economists polled by Briefing.com had called for an increase of 100,000.
In contrast to the prior session, financials provided leadership to the broad market, but the sector's strength wasn't enough to carry stocks through resistance around the 50% retracement of the market's July-August trading range. Stocks gradually descended from there, but buyers resurfaced once stocks slipped into the red. Their efforts were challenged in the final few minutes, but the market managed to hold on for a gain.
Late support helped the stock market lock in its fourth straight gain, or seventh advance in eight sessions. During those eight sessions the S&P 500 has climbed about 8.5%. Despite such a feat, the S&P 500 actually ended August 5.7% lower. The stock market hasn't had such a poor monthly performance since it fell 8.2% in May 2010.
For the month, financials and energy stocks were the worst performers. Both sectors ended August about 10% below their beginning levels. Utilities were actually the best performers of August. They managed to advance 1.7% as a group. Their strength was largely due to the preference of participants for steady businesses and relatively rich dividend yields amid all of the volatility in the first half of the month.
Telecom plays had also traded with strength in the face of volatility, but still ended the month with a 1.4% loss. Part of that is due to a 1.6% drop today. AT&T (T 28.48, -1.14) weighed on the space following word that the Justice Department is challenging the company's acquisition of T-Mobile.
Advancing Sectors: Financials +1.2%, Utilities +0.7%, Energy +0.7%, Industrials +0.7%, Health Care +0.7%, Consumer Discretionary +0.6%, Materials +0.3%, Consumer Staples +0.3%, Tech +0.1%
Declining Sectors: Telecom -1.6%DJ30 +53.58 NASDAQ +3.35 NQ100 +0.2% R2K -0.2% SP400 +0.3% SP500 +5.97 NASDAQ Adv/Vol/Dec 1277/1.99 bln/1284 NYSE Adv/Vol/Dec 1971/1.27 bln/1066
9:40AM Semiconductor Hldrs ETF slips into the red after early stall shy of Tues high -- INTC -0.3% (SMH) 29.20 -0.13 :
9:03AM IBM to acquire i2; Financial terms were not disclosed (IBM) 172.51 : Headquartered in the UK, i2 has 350 employees and additional offices in McLean, Va.; Tucson, Ariz.; Ottawa, Ontario; and Canberra, Australia. The acquisition is anticipated to close in the fourth quarter of 2011, subject to the satisfaction of customary closing conditions and applicable regulatory reviews.
Veeco Instruments (VECO) opened its new Taiwan Technology Center in Hsinchu, Taiwan to provide process support for the rapidly growing LED industry.
First Solar (FSLR), Verve Energy and GE (GE) unit GE Energy Financial Services announced that Australia's first utility-scale solar power project is under way. Output from the 10-megawatt AC project on 80 hectares of cleared land 50km southeast of Geraldton will contribute to offsetting the energy requirements of the Southern Seawater Desalination Plant.
12:40 pm S&P Tech Sector Shows Gains; Underperforming the Broader Market
The tech sector is trading higher today, but trails gains in the broader market. Semiconductors are showing relative weakness in the tech space with the Philly Semi Index trading 0.2% lower. Among chips in the index, CREE (+2.7%) is a notable leader, while ALTR (-2.9%) is under pressure. Among other major indices, the S&P 500 is trading 1.0% higher, while the NASDAQ and the QQQ are trading 0.6% higher. Among tech bellwethers, ORCL (+1.4%) is showing relative strength, while T (-4.3%) is under pressure following reports that the Dept. Of Justice will block T's acquisition of T-Mobile (DTEGY -6.5%).
Elsewhere in news, HPQ (+0.2%) plans to temporarily resume tablet production. In rumors, we are hearing AOL (+4.5%) takeover chatter making the rounds. Separately, we are hearing CSCO (+0.3%) for JDSU (-1.7%).
In earnings last night, SNDA (-4.9%) posted a Q2 miss. This morning, LTXC (-18.5%) also reported a quarterly miss.
Among notable analyst calls this morning, TQNT (-5.5%) was downgraded to Equal Weight at Barclays.
SAI (+1.4%) is the notable tech name set to report results today after the close.
LTX-Credence (LTXC $5.54 -1.07) reported fourth quarter earnings of $0.27 per share, excluding non-recurring items, $0.01 worse than the Capital IQ consensus of $0.28, while revenues rose 6.8% year/year to $62.7 million versus the $65.7 million consensus. The company issued guidance for the first quarter with EPS of ($0.10)-($0.06), which may not be comparable to $0.26 consensus and revenues of $35-39 million, which may not be comparable to $64.88 million consensus.
TriQuint Semi (TQNT $7.53 -0.64) was downgraded to Equal Weight from Overweight at Barclays Capital and their price target was lowered to $6 from $12 saying they believe TriQuint's fourth quarter guidance of up 10% Q/Q is too aggressive and see greater seasonality in the first quarter as Apple iPhone production is pulled back ahead of a new phone in June '12 and the iPad 3 is likely launched.
Thx Sam... on the II data!
Me be on a bit of a vacation. I think I will get back to it! RtS |
