From Briefing.com: Weekly Recap - Week ending 20-Mar-15Dow +168.62 at 18127.65, Nasdaq +34.04 at 5026.42, S&P +18.79 at 2108.06
The major averages ended the week on an upbeat note with the Dow Jones Industrial Average (+0.9%) in the lead. The price-weighted index ended the week higher by 2.1% while the S&P 500 (+0.9%) gained 2.7% for the week.
Equity indices climbed throughout the session with trading volume running well above average due to today's quadruple witching. As a result, more than two billion shares changed hands at the NYSE floor.
Meanwhile, the Dollar Index (97.89, -1.37), which was a point of focus throughout the week, fell 1.4% to narrow its March gain to 2.5%. Notably, the euro gained 1.3%, climbing to 1.0800 against the greenback with the move partially supported by upbeat comments from the Eurogroup. Specifically, Greece has agreed to present a new reform plan within the next few days in order to receive funds needed to prevent a liquidity shortage.
Today's pullback in the dollar was a supportive factor for the commodity market. Crude oil settled higher by 2.4% at $46.58/bbl, but backed off its best level of the session after the latest Baker Hughes rig count registered its 15th consecutive weekly decline (-56 to 1069). Meanwhile, the energy sector (+1.4%) finished well ahead of other groups.
Elsewhere among cyclical sectors, financials (+1.3%) and consumer discretionary (+1.1%) outperformed with the discretionary sector rallying behind homebuilders after KB Home (KBH 15.26, +1.19) reported better than expected results. Shares of KBH jumped 8.4% while the broader iShares Dow Jones US Home Construction ETF (ITB 27.82, +0.54) gained 2.0%. Meanwhile, apparel and luxury retailers were a bit more mixed. Dow component Nike (NKE 101.98, +3.66) spiked 3.7% after beating bottom-line estimates while Tiffany & Co (TIF 82.99, -3.38) lost 3.9% after below-consensus revenue and light guidance overshadowed in-line earnings.
Also of note, the technology sector (+0.5%) slumped to the bottom of the leaderboard during the final minutes as Apple (AAPL 126.05, -1.45) fell to a fresh session low.
Over on the countercyclical side, the consumer staples sector (+1.2%) outperformed while health care (+0.8%) lagged. Despite today's underperformance, health care gained 4.5% for the week, ending ahead of other sectors. Volatility in the biotech space pressured the sector from its early high as the iShares Nasdaq Biotechnology ETF (IBB 366.52, +1.27) narrowed its gain to 0.4% after being up near 2.0% at the start. The early strength stemmed from a 9.8% spike in the shares of Biogen Idec (BIIB 475.98, +42.33) after the company issued an encouraging report on a developmental drug for the treatment of Alzheimer's disease. For its part, the biotechnology ETF logged a 5.7% gain for the week.
Treasuries climbed throughout the morning, ending on their highs with the 10-yr yield lower by five basis points at 1.93%.
Monday's economic data will be limited to the Existing Home Sales report for February, which will be released at 10:00 ET.
Week in Review: Fed in Focus
The stock market rebounded from the previous week's decline with a Monday rally that sent the S&P 500 (+1.3%) back above its 50-day moving average (2,060). The benchmark index narrowed its March loss to 1.1% while the Nasdaq (+1.2%) and Russell 2000 (+0.6%) underperformed, but still logged solid gains to start the week. Unperturbed by disappointing economic data, equity indices rallied out of the gate and registered the bulk of their gains during the first hour of action. Countercyclical health care (+2.2%) and utilities (+1.7%) held the lead throughout the session, but most other sectors also posted solid gains. The only group that couldn't make it out of the red was the materials sector (-0.1%) as Dow component DuPont (DD) weighed after Bank of America/Merrill Lynch downgraded the stock to 'Underperform' from 'Buy.'
The market ended Tuesday on a mixed note ahead of Wednesday's release of the latest policy directive from the Federal Reserve. The Nasdaq Composite added 0.2% while the S&P 500 and Dow Jones Industrial Average lost 0.3% and 0.7%, respectively. Equity indices endured some selling in the early going, but the Nasdaq spent the day ahead of the broader market thanks to relative strength in the technology sector (+0.1%). Specifically, shares of Apple (AAPL) climbed 1.7%, which underpinned the sector and the Nasdaq. Meanwhile, most large cap components struggled, which was also the case with high-beta chipmakers. The PHLX Semiconductor Index fell 0.7%. That being said, the daylong strength within the technology sector helped the broader market erase the bulk of its early decline. The Nasdaq received another measure of support from biotechnology with the iShares Nasdaq Biotechnology ETF (IBB) climbing 0.6% to a new record.
Equities spent the first half of the Wednesday session in the red, but surged into the green following the latest policy statement from the Federal Open Market Committee. The S&P 500 settled higher by 1.2% with all ten sectors ending in the green. Over the past few days, much of the discussion centered around Wednesday's FOMC Statement with participants speculating whether the central bank was going to remove its call for patience. Although the Fed took out "patient," the statement remained quite dovish as the Fed lowered its 2015 GDP forecast range to 2.3%-2.7% from 2.6%-3.0% that was expected in December. Furthermore, the central bank lowered its inflation forecast range to 0.6%-0.8% from 1.0%-1.6%. Staying on the inflation theme, the committee noted that it needs to be "reasonably confident" that inflation will move back towards the 2.0% objective before hiking rates. The S&P 500 spiked about 20 points immediately following the statement and continued its advance as the afternoon progressed. Similarly, Treasuries surged in reaction to the diminished likelihood of June rate hike with the 10-yr yield falling 10 basis points to 1.95%. The benchmark note continued its advance during electronic trading, pressuring its yield to the lowest level since early February (1.92%).
Thursday ended on a mixed note. The S&P 500 lost 0.5% after spending the entire session in negative territory while the Nasdaq Composite added 0.2%. The tech-heavy Nasdaq extended its week-to-date gain to 2.5% while the S&P 500 extended its weekly advance to 1.7%. Wednesday's dovish FOMC policy statement pressured the greenback, but the Dollar Index (99.23, +0.67) wasted no time, stringing together a swift comeback. The index added 0.7% on Thursday and returned to Tuesday's low. Notably, the euro retraced the bulk of Wednesday's move, returning below 1.0650 versus the dollar. Likewise, the dollar strength weighed on crude oil, sending the energy component lower by 2.5% to $45.50/bbl. In turn, this kept the energy sector (-1.7%) near the bottom of the barrel while the other commodity-related sector-materials (-1.7%)-finished just behind energy.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 17749.31 | 18127.65 | 378.34 | 2.1 | 1.7 | | Nasdaq | 4871.76 | 5026.42 | 154.66 | 3.2 | 6.1 | | S&P 500 | 2053.40 | 2108.06 | 54.66 | 2.7 | 2.4 | | Russell 2000 | 1232.14 | 1266.37 | 34.23 | 2.8 | 5.1 |
It was off to the races on Friday after Thursday's lack of movement, with all major indices moving higher into the weekend. The week ended on a rather quiet note news wise, although Fed news earlier in the week regarding the economic outlook and interest rates was plenty. Today's rally however, had more to do with a falling dollar index (-1.3%), which has served as headwind to the earnings of companies with multi-national operations.
All sectors closed in the green today. Surprisingly enough, the energy sector led the way (+1.5%), driven by a rally in crude (+1.8%), which also benefited in part from the weakening dollar.
The S&P 500 information technology sector (+0.5%) underperformed the broader market, with Apple (AAPL 126.05, -1.45, -1.1%) and Salesforce.com (CRM 67.69, -1.19, -1.7%) bucking the broader market trend higher. Top performers in the sector were Teradata Corp (TDC 43.96, +1.23, +2.9%), Sandisk (SNDK 87.07, +2.35, +2.8%), Broadcom (BRCM 46.00, +1.12, +2.5%), Xerox (XRX 13.18, +0.34, +2.7%), and Electronic Arts (EA 57.28, 1.33, +2.4%).
Notable news items from sector components included the following:
Yahoo (YHOO 45.04, +0.06, +0.1%): Announced a new local initiative to engage mobile developers through monthly meetups called Yodel Meetups. Starting March 26, Yodel Meetups will be held once a month in Yahoo's San Francisco office.Facebook (FB 83.80, +1.05, +1.3%): TechCrunch details possible upgrades to Facebook's messaging application.
Apple (AAPL 125.05, -1.45, +1.1%): Digitimes discusses that smartphone shipments this year may reach 1.401 bln. (Also related: Microsoft (MSFT 42.76, +0.48, +1.1%), Blackberry (BBRY 9.53, -0.18, -1.8%), Samsung (SSNLF), and Nokia (NOK 7.86, +0.08, +1%))
Elsewhere in the technology space:
Zillow (Z 107.15, -1.82, -1.7%): Announced it expects existing home sales to rise 1.3% to 4.88 million units in February (report due out Monday at 10:00 ET)
Cheetah Mobile (CMCM 17.53, -1.10, -5.9%): Reports Q4 (Dec) earnings of RMB 0.59 per share, RMB 0.06 better than estimates. Revenues for the quarter rose 118.8% year/year to RMB 588.9 million, also above consensus.
SAP AG (SAP 72.76, +2.45, +3.5%): Disclosed that it sees FY15 on-IFRS operating profit to be in a range of EUR 5.6-5.9 billion at constant currencies. Additionally, it reaffirmed FY17 guidance (reported Q4/FY14 on 1/20).
Youku Tudou (YOKU 13.50, -1.65, -10.9%): Missed Q4 consensus EPS estimates by $0.10, beat on revenues. The Company noted that it sees Q1 revenuess in-line with consensus. Additionally, YOKU announced an SEC inquiry into its accounting on revenue recognition, nonmonetary exchanges of licensed content, and applications of ASC 920.
Analyst Action:
STMicroelectronics (STM 9.93, +0.35, +3.7%): upgraded to Equal-Weight from Underweight at Morgan Stanley
Ultra Clean Holdings (UCTT 7.80, -0.68, -8%): downgraded to Hold from Buy at Needham
Tech Data (TECD 57.60, +0.20, +0.4%): downgraded to Hold from Buy at Needham... target lowered to $63 from $73 at Brean Capital; Buy
Extreme Networks (EXTR 3.33, -0.15, -4.3%): downgraded to Market Perform from Outperform at Raymond James
LM Ericsson (ERIC 12.99, -0.02, -0.2%): downgraded to Equal-Weight from Overweight at Morgan Stanley
WEX (WEX 107.22, +3.31, +3.2%): price target set to $120 at Oppenheimer; Outperform
Trimble Navigation (TRMB 25.92, +0.73, +2.9%): price target set to $29 at Goldman; Neutral
Cavium Networks (CAVM 73.81, +1.33, +1.8%): target raised to $80 from $67 at Wedbush; Outperform
Lam Research (LRCX 79.23, +0.28, +0.4%): target lowered to $93 from $95 at Needham; Buy
Youku (YOKU 13.50, -1.64, -10.9%): target lowered to $20 from $24 at Brean Capital; Buy
4:47 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).
This week's top 20 % gainers
Healthcare:RTRX (22.34 +51.36%),ESPR (112.33 +51%),CORT (5.6 +40%),PRTA (38.66 +34.84%),INO (9.09 +29.12%),FOLD (11.61 +25.51%),JUNO (61.53 +24.33%),ATRA (38.78 +23.42%),AKRX (49.03 +18.77%),ITCI (27.64 +17.72%)
Materials:GFI (4.36 +18.16%)
Industrials:VLCCF (4.98 +20.29%)
Consumer Discretionary:CTRP (57.58 +31.31%),QUNR (36.71 +28.76%),TLYS (16.7 +27.09%),CNV (6.65 +18.54%)
Information Technology:VTSS (5.34 +37.28%),RALY (12.93 +17.65%)
Energy:EXXI (3.83 +25.57%),WLB (29.25 +19.34%)
This week's top 20 % losers
Healthcare:RDNT (7.54 -16.13%),PGNX (6.06 -14.53%),EPZM (19.91 -13.51%),NKTR (12.02 -13.46%),AMRN (2.52 -13.1%)
Materials:MTL (1.15 -25.32%),SQM (18.86 -15.88%),CLF (4.3 -12.96%)
Industrials:CVEO (2.41 -17.47%),NMM (9.75 -17.16%)
Consumer Discretionary:VNCE (16.77 -19.14%),WTW (8.6 -17.86%)
Information Technology:DSKY (7.02 -35.12%),YOKU (13.5 -15.04%),MTSN (3.99 -14.38%),HIMX (6.85 -14.16%)
Financials:ASPS (13.33 -25.15%),EJ (5.1 -14.72%)
Energy:WG (3.07 -45.18%),HGT (5.79 -13.71%)
3:36 pm Earnings Preview for the week of March 23 - 27 (:SUMRX) : Of the companies reporting earnings for the week of March 23 - 27 some of the bigger names include:
Monday:
Pre Market - FMSA
After Hours - FLXN
Tuesday:
Pre Market - HDS, MKC, IHS, GIII
After Hours - SCS, TRQ, SONC, CBK, AMPH, INGN, HQY
Wednesday:
Pre Market - LDOS, PAYX, YGE, APOL, LNN, DXLG, FRAN
After Hours - PVH, WOR, RHT, FIVE, PSUN, FNV, TGB, USDP, OTIV
Thursday:
Pre Market - ACN, CAG, SIG, CMC, LULU, FRED, CMGE, DANG, SCHL, WGO, CVGW, MEA, NEOG, SPCB
After Hours - GME, RH, OXM, SPKE, UPLD, CARA
Friday:
Pre Market - BBRY, FINL
12:26 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
BIIB (467.32 +7.76%): Announced data from a pre-specified interim analysis of PRIME in which aducanumab demonstrated an acceptable safety profile and positive results on radiologic and clinical measurements in patients with prodromal or mild Alzheimer's disease; Price target raised at Barclays, Piper Jaffray, Cowen, others.
NKE (102.7 +4.45%): Reported Q3 (Feb) earnings of $0.89 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.84; revenues rose 7.0% year/year to $7.46 bln vs the $7.62 bln consensus; Worldwide futures orders up 2%, 11% growth excluding FX; Price tgt raised at Cowen, Credit Suisse, others.
Large Cap Losers
MAC (90.21 -3.52%): Confirmed it has received a revised, unsolicited proposal from Simon Property Group (SPG) for $95.50 per share in cash and stock; says its Board will review the Revised Proposal with its financial and legal advisors; SPG noted the bid was its 'best and final offer'.
TIF (83.07 -3.82%): Reported Q4 EPS in-line, missed on revs; guided Q1 and FY16 EPS below consensus; Price tgt lowered at Sterne Agee.
Mid Cap Gainers
CTRP (56.38 +22.19%): Missed Q4 consensus EPS estimates by $0.02, reported revs in-line; guided Q1 revs above consensus; Price tgt raised at Brean Capital.
SQM (19.46 +8.9%): Reports out that Israel Chemicals (ICL) may consider a bid for Sociedad Quimica y Minera.
OC (42.26 +6.39%): Upgraded to Overweight from Equal Weight at Barclays.
Mid Cap Losers
YOKU (13.88 -8.38%): Missed Q4 consensus EPS estimates by $0.10, beat on revs; sees Q1 revs in-line with consensus; announced SEC inquiry into its accounting on revenue recognition, nonmonetary exchanges of licensed content, and applications of ASC 920; Downgraded to Sell at Deutsche Bank.
THRX (16.43 -8.57%): FDA Advisory Committee voted against safety and efficacy of Theravance's BREO ELLIPTA (fluticasone furoate/vilanterol) for the treatment of asthma in children 12-17 years of age.
ARG (108.37 -4.11%): Lowered its fourth quarter ending March 31, 2015 revenue and EPS guidance; sees EPS in the range of $1.13 to $1.16 vs. previous guidance of $1.25 to $1.30 and the Capital IQ consensus of $1.27.
11:49 am Stocks/ETFs that traded to new 52 week highs/lows this session- New highs (100) outpacing new lows (2) (:SCANX) : Stocks that traded to 52 week highs: ABC, ACT, ADI, AET, AKAM, ANTM, AVGO, BERY, BIIB, BMRN, BMY, BSX, CAH, CBG, CDK, CELG, CERN, CHKP, CI, CLNY, CME, CNC, CTSH, DG, DGX, DIS, DKS, DRI, DVA, ENDP, EQR, EVHC, EXPD, EXPE, FB, FISV, FL, FSL, FTNT, GM, HAIN, HBI, HCBK, HLT, HOLX, HON, HZNP, IBB, INCY, INTU, ISIS, JBL, JUNO, JWN, KSS, LEN, LLY, LQ, MAR, MCO, MHFI, MTG, NBIX, NCLH, NKE, NVAX, NVDA, NVO, NXPI, PAYX, RAX, ROST, RTN, RYL, SBH, SCI, SERV, SPF, SPR, ST, SUNE, SUSQ, SWKS, TEL, TGT, TMO, TOL, TRV, TWO, UA, UNH, URBN, VIPS, VNTV, VRSN, VRTX, WBA, WNR, XHR, ZTS
Stocks that traded to 52 week lows: TSU, YOKU
ETFs that traded to 52 week highs: EWJ, IBB, IHF, IHI, ITA, IWC, IWF, IWM, IYH, PPH, RTH, UWM, VTI, XBI, XLV, XRT
ETFs that traded to 52 week lows: SGG, VXX
Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume.
7:00 am JinkoSolar Holding and Dupont ( DD) sign collaboration agreement ( JKS) : Areas of potential collaboration include technical development efforts to support continued improvements in the efficiency, durability and reliability of solar cells and panels, including through development and supply of advanced materials including DuPont (Areas of potential collaboration include technical development efforts to support continued improvements in the efficiency, durability and reliability of solar cells and panels, including through development and supply of advanced materials including DuPont Solamet PV19x series photovoltaic metallization pastes and DuPont Tedlar polyvinyl fluoride films, as well as co-marketing collaborations) Solamet PV19x series photovoltaic metallization pastes and DuPont Tedlar polyvinyl fluoride films, as well as co-marketing collaborations |
