From Briefing.com: 4:10 pm : Briefing.com covered more than 150 earnings reports between the prior session's close and this morning's open. The vast majority of those announcements featured upside earnings surprises, but market participants were generally unimpressed, such that stocks ultimately succumbed to a broad selling effort that left the major averages to settle lower between 0.4% and 1.0%.
Managed care providers Aetna (AET 27.56, -0.80) and WellPoint (WLP 50.82, -1.98) both produced better-than-expected earnings for the latest quarter and even increased their forecasts, but the pair was dropped markedly, such that shares of managed care stocks sank a collective 2.5%.
Such weakness weighed on the overall health care sector for the entire session. As a result, health care stocks shed 1.4% this session. That made them the worst performing sector of the day.
Telecom traded with relative strength for the entire session and settled with a 0.4% gain. That made it the only sector to stage a gain this session. Wireless services provider Sprint Nextel (S 4.84, +0.01) was a primary leader after it posted an upside earnings surprise. However, integrated giant AT&T (T 26.20, +0.05) lagged after it was placed on Standard & Poor's ratings watch list.
Boeing (BA 67.32, -1.30) was one of the worst performing blue chips this session. Investors ignored the company's better-than-expected bottom line since it came amid a light revenue figure and failed to lead to an increased forecast.
In other earnings news, Las Vegas Sands (LVS 26.69, +1.41), Comcast (CMCSA 19.56, +0.23), Broadcom (BRCM 37.47, -0.06), and Aflac (AFL 49.52, -1.19) each exceeded earnings expectations for the latest quarter. CVS (CVS 31.54, +0.94) had in-line results, but Newmont Mining (NEM 55.40, -0.38) missed.
Data did nothing to inspire traders this session. That was largely because durable goods orders for June made a surprise 1.0% decline when a 1.0% increase had been anticipated. Orders less transportation fell 0.6%, which contrasted with the 0.6% increase that had been widely expected. Both total orders and orders less transportation for the prior moth were revised downward to reflect a 0.8% decline a 1.2% increase, respectively.
The Fed's latest Beige Book saw a muted response since it failed to provide any new insight into economic conditions. In step with recent comments from Fed Chairman Bernanke at his semiannual testimonies to the Senate and House, the Beige Book stated that the economic recovery has slowed in some areas.
Treasuries were flat for most of the session, but a bid surfaced in the afternoon to take the yield on the benchmark 10-year Note back below 3.0%. The move came as stocks encountered increased selling and market participants digested results from an auction of 5-year Notes. The auction produced a bid-to-cover ratio of almost 3.1 and had an indirect bidder participation rate of 47.3%. Dollar demand for the auction totaled $113.2 billion. Each measure was above that of the prior session.
In the commodity pits, oil prices settled with a 0.7% loss at $76.99 per barrel after they had been as low as $75.90 per barrel amid news that oil inventories for the week ended July 23 had increased by 7.31 million barrels, which was far more bearish than the draw of 1.73 million barrels that had been expected.
In contrast, natural gas prices staged a 1.4% gain to settle at $4.71 per MMBtu.
Precious metals prices diverged as gold gained 0.2% to close pit trade at $1160.40 per ounce and silver prices extended their slide from the prior session to settle with a 1.0% loss at $17.44 per ounce. DJ30 -39.81 NASDAQ -23.69 SP500 -7.72 NASDAQ Adv/Vol/Dec 762/1.84 bln/1841 NYSE Adv/Vol/Dec 995/1.00 bln/2013
6:41PM Teradyne beats by $0.22, beats on revs; guides Q3 EPS above consensus, revs above consensus (TER) 10.21 -0.29 : Reports Q2 (Jun) earnings of $0.69 per share, excluding non-recurring items, $0.22 better than the Thomson Reuters consensus of $0.47; revenues rose 168.2% year/year to $454.8 mln vs the $408.3 mln consensus. Co issues upside guidance for Q3, sees EPS of $0.75-0.83 vs. $0.45 Thomson Reuters consensus; sees Q3 revs of $490-520 mln vs. $416.80 mln Thomson Reuters consensus.
4:41PM Monolithic Power beats by $0.02, reports revs in-line; guides Q3 revs above consensus (MPWR) 19.17 -0.52 : Reports Q2 (Jun) earnings of $0.31 per share, $0.02 better than the Thomson Reuters consensus of $0.29; revenues rose 35.2% year/year to $55.7 mln vs the $55.6 mln consensus. Co issues upside guidance for Q3, sees Q3 revs of $66-70 mln vs. $59.65 mln Thomson Reuters consensus.
4:41PM Newport beats by $0.08, beats on revs; guides FY10 EPS above consensus, revs above consensus (NEWP) 10.83 -0.08 : Reports Q2 (Jun) earnings of $0.22 per share, $0.08 better than the Thomson Reuters consensus of $0.14; revenues rose 31.0% year/year to $114.6 mln vs the $108.5 mln consensus. Co issues upside guidance for FY10, sees EPS of $0.80-0.90 vs. $0.64 Thomson Reuters consensus; sees FY10 revs of $460-470 mln vs. $441.44 mln Thomson Reuters consensus.
4:37PM Cadence Design beats by $0.04, beats on revs; guides Q3 EPS below consensus, revs in-line; guides FY10 EPS in-line, revs above consensus (CDNS) 6.45 -0.17 : Reports Q2 (Jun) earnings of $0.07 per share, $0.04 better than the Thomson Reuters consensus of $0.03; revenues rose 8.1% year/year to $227 mln vs the $220.9 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.01-0.03 vs. $0.05 Thomson Reuters consensus; sees Q3 revs of $225-235 mln vs. $225.52 mln Thomson Reuters consensus. Co issues mixed guidance for FY10, sees EPS of $0.12-0.16 vs. $0.15 Thomson Reuters consensus; sees FY10 revs of $900-925 mln vs. $897.13 mln Thomson Reuters consensus.
4:29PM TriQuint Semi beats by $0.05, reports revs in-line; guides Q3 EPS above consensus, revs in-line (TQNT) 7.33 +0.02 : Reports Q2 (Jun) earnings of $0.20 per share, $0.05 better than the Thomson Reuters consensus of $0.15; revenues rose 14.8% year/year to $207.5 mln vs the $205.9 mln consensus. Co issues mixed guidance for Q3, sees EPS of $0.20 vs. $0.18 Thomson Reuters consensus; sees Q3 revs of $215-225 mln vs. $216.88 mln Thomson Reuters consensus. Co expects strong growth in their mobile devices market will lead to a non-GAAP gross margin between 40% and 41%.
4:23PM NVIDIA guides well below consensus (NVDA) 10.13 -0.33 : Co now sees Q2 revs $800-820 mln vs $955.03 mln Thomson Reuters consensus; down from $950-970 mln prior guidance. The revenue shortfall occurred primarily in the consumer GPU business, resulting from increased memory costs and economic weakness in Europe and China. The increased solution cost of discrete GPUs led to a greater-than-expected shift to lower-priced GPUs and PCs with integrated graphics. No conference call will be held in conjunction with this business update.
4:13PM LSI Logic reports EPS in-line, misses on revs; guides Q3 EPS in-line, revs below consensus (LSI) 4.74 -0.23 : Reports Q2 (Jun) earnings of $0.11 per share, excluding non-recurring items, in-line with the Thomson Reuters consensus of $0.11; revenues rose 0.3% year/year to $639.4 mln vs the $654.4 mln consensus. Co issues guidance for Q3, sees EPS of $0.08-0.14, excluding non-recurring items, vs. $0.13 Thomson Reuters consensus; sees Q3 revs of $625-655 mln vs. $694.97 mln Thomson Reuters consensus.
4:08PM Monolithic Power announces $50 million stock repurchase program (MPWR) 19.50 -0.19 :
4:02PM Lam Research beats by $0.20, beats on revs (LRCX) 41.66 -0.98 : Reports Q4 (Jun) earnings of $1.17 per share, $0.20 better than the Thomson Reuters consensus of $0.97; revenues rose 219.2% year/year to $695.3 mln vs the $656.5 mln consensus. Q4 operating margin of 22.4% vs consensus of 23.9%
8:04AM Silicon Labs beats by $0.08, reports revs in-line (SLAB) 42.78 : Reports Q2 (Jun) earnings of $0.72 per share, $0.08 better than the Thomson Reuters consensus of $0.64; revenues rose 29.1% year/year to $134.6 mln vs the $133.8 mln consensus.
07:20 am RF Micro Device downgraded to Mkt Perform at Charter Equity: . Charter Equity downgrades RFMD to Mkt Perform from Buy saying while they are increasing estimates to reflect an improved margin profile, they are reducing their rating to reflect the more difficult environment for equities in general and semiconductors in particular. |
