From Briefing.com: 4:10 pm : The major market averages ended with solid gains, finishing at their best levels of the session. Early strength was attributed to news of Germany leading a second bailout for Greece. Overseas strength continued into the U.S. session with markets opening higher by more than 1.0%. Shares were knocked off their opening levels after disappointing Chicago PMI, and Consumer Confidence numbers were released, but rallied to their best levels in the final 30 minutes of trading.
Energy stocks were among the early leaders, but struggled over the course of the session before rallying into the close. As a whole, the S&P 500 Energy Index gained 1.0% to finish on pace with the broader market. Massey Energy (MEE 65.98, +1.96) was one of the best performing stocks in the space all session long.
Financials also saw a quick start, and finished on par with the S&P 500. Franklin Resources (BEN 129.60, +2.84) outperformed the sector after receiving a broker upgrade. Goldman Sachs (GS 140.66, +2.07) was one of the best performing stocks in the sector early on after receiving a buy recommendation, but faded as the day wore on. Shares of American International Group (AIG 28.50, -0.38) continue to underperform following last week's re-IPO.
Conglomerate Siemens (SI 133.85, +5.66) added 4.4% after Germany announced it would cease the use of all nuclear energy by 2022. The company saw gains because the news was beneficial to its wind turbine business. Alternative energy names such as First Solar (FSLR 124.25, +2.88) also traded higher.
Industrials were among the best performing sectors today thanks in part to a 4.2% gain by General Dynamics (GD 74.24, +2.98). The stock saw gains in pre-market trade after receiving a broker upgrade, and then moved to its best levels of the day after the company announced it had won a $744 mln contract to build landing strips for the U.S. Navy. An option can increase the contract value to $1.3 billion.
Treasuries spent the overnight session holding small losses, but turned positive following the disappointing S&P/Case Shiller 20-city Index reading, and continued moving higher after poor Chicago PMI and Consumer Confidence numbers. Buying pushed the 10-yr yield to 3.04%, its lowest level since early December while the 2-10-yr spread tightened to almost 258.
The dollar index spent the entire session in negative territory, trading in a tight range between 74.60 and 74.70 for most of the day. After hitting a session high of 1.4424 the euro will end the day with a gain of close to 100 pips at 1.4390. Dollar/yen saw some heavy selling off this morning's highs, but regained most of the sell off, ending higher by 55 pips near 81.50.
Economic data is heavy tomorrow with the MBA Mortgage Index (7 a.m. ET), Challenger Job Cuts (7:30 a.m. ET), ADP Employment Change (8:15 a.m. ET), ISM Index (10 a.m. ET), Construction Spending (10 a.m. ET), and Auto/Truck Sales (3 p.m. ET).DJ30 +128.21 NASDAQ +38.44 SP500 +14.10 NASDAQ Adv/Vol/Dec 1817/1.79 bln/785 NYSE Adv/Vol/Dec 2269/698.7 mln/755
O2Micro International (OIIM) was issued 12 claims under United States patent number 7,936,151 for its Battery State Monitoring circuitry; a continuation of the invention issued July 2010 under United States patent number 7,683,577.
* Veeco Instruments (VECO) announced that Taiwan based Genesis Photonics Inc. has placed a multi-unit order for Veeco's recently released TurboDisc MaxBright Multi-reactor MOCVD System.
8:13AM Nokia lowers Devices & Services second quarter 2011 outlook and updates full year 2011 outlook (NOK) 8.20 : Co now expects Devices & Services net sales to be substantially below its previously expected range of EUR 6.1-6.6 billion for the second quarter 2011. This update is primarily due to lower than previously expected average selling prices and mobile device volumes. Co now expects Devices & Services non-IFRS operating margin to be substantially below its previously expected range of 6% to 9% for the second quarter 2011. This update is primarily due to lower than previously expected net sales. While visibility is very limited, Nokia's current view is that second quarter 2011 Devices & Services non-IFRS operating margin could be around breakeven... Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011. However, Nokia expects to continue to provide short-term quarterly forecasts in its interim reports as well as annual targets when circumstances allow it to do so... Nokia remains pleased with its progress on its Windows Phone strategy, and has increased confidence that the first Nokia product with Windows Phone will ship in the fourth quarter 2011.
NVIDIA (NVDA) announced a new addition to the NVIDIA 3D Vision product family: NVIDIA 3D Vision wired glasses. GAZ Group, part of Oleg Deripaska's Basic Element, and Terex (TEX) announced they have entered into an agreement to form a joint venture company for the manufacture of construction and roadbuilding equipment in Russia.
Western Digital (WDC) said it was informed by the European Commission that the EC would enter a Phase II review of WD's previously announced acquisition of Hitachi Global Storage Technologies' holding company, Viviti Technologies, a wholly owned subsidiary of Hitachi (HIT). The company is co-operating fully with the EC in the Phase II review.
# The first device in Freescale Semiconductor's (FSL) MC1323x family optimized for consumer applications using ZigBee RF4CE technology is now available in production quantities.
# Silicon Image (SIMG) announced its upcoming third-generation WirelessHD 60GHz chipsets, the SiI6300 family consisting of the SiI6320 HRTX Network Processor, SiI6321 HRRX Network Processor and SiI6310 HRTR RF Transceiver.
1:05AM Nam Tai Electronics provides Further Update on the Impact From Natural Disasters in Japan on co's Business; expects minimal impact on Q2 or FY reusults (NTE) 5.93 : Co updates its assessment of the impact on the Company's business from the Tohoku earthquake and tsunami. Mgmt has recently again reviewed the situation and announces that various actions taken by suppliers, customers, and the co appear to have successfully mitigated the effects of any supply chain interruptions or component shortages resulting from the earthquake. Therefore, at this time mgmt anticipates minimal unfavorable impact on second quarter financial performance and no significant impact on year 2011.
07:17 am NVIDIA resumed with a Buy at Auriga; tgt raised to $24: . Auriga resumes coverage of NVDA with a Buy from Hold and raises their tgt to $24 from $19 saying they see potential for strong growth in Tegra, which may more than offset its flattish GPU business. Firm says their analysis leads them to conclude that Tegra remains at an early phase of growth and could reach $3 bln per year by 2016 by leveraging sharp growth in Android/Windows tablets and also by increasing its market share in mid- to high-end smart phones.
11:39 am S&P 500 Tech Sector +0.7%; BRCM, NVDA, NVTL, TZOO Upgraded
The tech sector is trading up +0.70% today, slightly under performing the S&P 500 +0.6%. Semiconductors are showing relative strength in the tech space, +1% so far. A few solar names FSLR +1.9% and WFR +3.5% are up today following Germany's annoucement they will discontinue using all nuclear energy by 2022.
In earnings Kingston Wirelessinfo (KONE) -33% following lowered guidance, Nokia (NOK) -17% lowered their outlook for their Devices and Services segment, RADA -3.3% after reporting Q1 results. ELTK is up 35% following Q1 earnings.
In news, Agilysys (AGYS) +33.3% after announcing sale of Tech solutions group to OnX Enterprise solutions, MAGS +8% following announced $35.5 mln contract, Funtalk China (FTLK) +13% being acquired for $7.20/share, Nam Tai (NTE) +3.2% expects minimal impact on Q2 and FY results from Japan's natural disaster, GIB +2% following announced $45 mln contract award, PWRD -2.7% after announcing it would acquire Cryptic Studios for EUR35 mln, AVGO -4% after announcing sale of 25 mln shares by selling shareholders.
Among the more notable analyst upgrades this morning, BRCM -2.2% upgraded at BMO Capital, EBAY +1.5% upgraded at ThinkEquity, NVDA +1.4% resumed with a Buy at Auriga, FIRE +5.3% initiated with a Buy at Citigroup, NVTL +5.6% upgraded at JP Morgan, TZOO +10.2% upgraded at Morgan Keegan.
09:52 am NOK Lowers Devices and Services Outlook for Q2 (NOK)
Nokia (NOK $7.10 -1.10) now expects Devices & Services net sales to be substantially below its previously expected range of EUR 6.1 billion to EUR6.6 billion for the second quarter 2011.
This update is primarily due to lower than previously expected average selling prices and mobile device volumes. Co now expects Devices & Services non-IFRS operating margin to be substantially below its previously expected range of 6% to 9% for the second quarter 2011. This update is primarily due to lower than previously expected net sales.
While visibility is very limited, Nokia's current view is that second quarter 2011 Devices & Services non-IFRS operating margin could be around breakeven... Given the unexpected change in our outlook for the second quarter, Nokia believes it is no longer appropriate to provide annual targets for 2011. However, Nokia expects to continue to provide short-term quarterly forecasts in its interim reports as well as annual targets when circumstances allow it to do so.
Nokia remains pleased with its progress on its Windows Phone strategy, and has increased confidence that the first Nokia product with Windows Phone will ship in the fourth quarter 2011. |
