From Briefing.com: 4:30 pm : The Dow ended the day with a gain of almost 150 points, but that is actually only half of what it had sported just a couple of hours prior to the close.
Stocks got a nice pop at the open as market participants took their cues from Europe, where the major bourses bounced to gains that ranged from 4% to almost 6% amid hope that plans are being crafted to help restore the region's fiscal and financial conditions. That also helped drive the euro up sharply, although its gain petered out into the close. Still, the euro ended the day 0.6% higher than where it began.
Broad-based buying had the stock market up almost 3% at its session high, but traders began to lean on stocks late in the session. Selling accelerated into the close, but a bit of buying in the final minutes kept stocks from settling at their session lows.
Financials fell the hardest. The sector had been up more than 3% before its break down took it into negative territory. The sector managed to work its way back to a modest gain of 0.4%. Goldman Sachs (GS 99.55, +0.41) managed to eke out such a gain despite word that influential analyst Meredith Whitney cut her earnings estimate on the stock.
Materials managed to hold their position as the day's best performers. The sector scored a 2% gain as traders reacted to a stronger stock market and a jump in commodity prices, which took the CRB Commodity Index to a 2.7% gain.
Walgreen Co. (WAG 33.77, -2.26) was one of only a handful of names making announcements ahead of trade. The company's better-than-expected earnings were shrugged off due to the lack of progress in its negotiations with Express Scripts (ESRX 39.68, +0.36).
Advancing Sectors: Materials +2.1%, Industrials +1.6%, Energy +1.5%, Health Care +1.5%, Telecom +1.2%, Tech +1.1%, Consumer Discretionary +0.8%, Consumer Staples +0.6%, Financials +0.4%, Utilities +0.3%
Declining Sectors: (None)DJ30 +146.83 NASDAQ +30.14 NQ100 +0.9% R2K +2.2% SP400 +3.7% SP500 +12.43 NASDAQ Adv/Vol/Dec 1966/2.10 bln/659 NYSE Adv/Vol/Dec 2510/1.19 bln/552
5:59PM SMTC refinances revolving credit facility With PNC (SMTX) 1.56 -0.04 : Co announce it has signed new three year loan agreements with PNC Bank, N.A. to refinance the Co's revolving debt facility. Under the new banking arrangements, PNC will provide a new asset-backed $45 mln revolving credit facility to provide the Corporation with greater flexibility to manage working capital requirements for organic growth as well as strategic acquisitions. This new credit facility replaces a previous asset-backed revolving facility provided by Wells Fargo Bank and will be used for working capital, general purposes, as well as the recently announced acquisition of ZF Array Technology. SMTC will maintain its existing term debt agreement with EDC
4:31PM Atmel to acquire ADD Semiconductor, does not expect the acquisition to have a material impact on its overall financial position (ATML) 9.48 +0.10 : Co announces it has signed a definitive agreement to acquire Advanced Digital Design, a privately held company based in Zaragoza, Spain that develops power line communication solutions. The transaction is subject to customary closing conditions and is expected to close in October. Atmel does not expect the acquisition to have a material impact on its overall financial position and results of operations in 2011. Financial terms were not disclosed.
4:09PM SMSC misses by $0.01, reports revs in-line; guides Q3 EPS below consensus, revs below consensus (SMSC) 20.54 +1.04 : Reports Q2 (Aug) earnings of $0.36 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.37; revenues rose 8.2% year/year to $112.6 mln vs the $112.4 mln consensus. Co issues downside guidance for Q3, sees EPS of $0.30-0.37, excluding non-recurring items, vs. $0.45 Capital IQ Consensus Estimate; sees Q3 revs of $105-110 mln vs. $117.23 mln Capital IQ Consensus Estimate. "Despite a very challenging macro environment, SMSC delivered record revenue in the second quarter of fiscal 2012...We expect modest sequential growth in consumer and automotive sales while PC and industrial sales are anticipated to decline. For the second half of fiscal 2012, while computing and consumer demand is expected to be challenged, we anticipate continued growth in our automotive and wireless audio product sales."
4:05PM Jabil Circuit beats by $0.07, beats on revs; guides Q1 EPS above consensus, revs in-line (JBL) 17.38 +0.65 : Reports Q4 (Aug) earnings of $0.62 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.55; revenues rose 10.3% year/year to $4.3 bln vs the $4.19 bln consensus. Co issues upside EPS guidance for Q1, sees EPS of $0.62-0.70, excluding non-recurring items, vs. $0.60 Capital IQ Consensus Estimate; sees Q1 revs of $4.3-4.5 bln vs. $4.42 bln Capital IQ Consensus Estimate.
4:01PM Universal Display and PPG Industries announce new OLED supply and service agreement (PANL) 53.08 +1.44 : The co and PPG Industries (PPG) announced that the companies have entered into a new organic light-emitting diode materials supply and service agreement. Under the new agreement, PPG will remain the exclusive manufacturer of Universal Display's proprietary phosphorescent OLED materials.
Marvell (MRVL) announced that ZTE will mass-produce a variety of Ethernet Passive Optical Network products for China using Marvell's AVANTA family of processors.
Marvell (MRVL) introduced the ITU-T G.hn compliant transceiver chipset, which enables the complete unification of the home wireline network for distributing more content.
Integrated Device (IDTI $5.77 +0.08) lowered revenue guidance for the second quarter to $138-141 million versus the $149.4 million Capital IQ consensus, down 7-9% sequentially and down from $147-153 million. "The broad-based weakness in customer orders we experienced in the latter half of the June quarter has continued through September," said Dr. Ted Tewksbury, president and CEO of IDT. "In the face of weaker macro-economic growth and shorter component lead times, many of our customers have focused on controlling inventory and remain cautious about placing new orders. This has resulted in lower than anticipated turns-fill for the September quarter." |
