From Briefing.com: 4:30 pm : A strong, steady ascent gave the stock market another big gain. In turn, the S&P 500 has advanced more than 7% in just five sessions.
The stock market's upward momentum in recent days has been helped along by improved sentiment in Europe, where the major bourses have been fighting to overcome concerns about fiscal and financial instability among countries in the region's periphery. That said, reports of consolidation in Greece's banking industry were widely regarded as a step toward stabilizing the country's banking system, so most of Europe's major bourses bounced by more than 2%.
Strength abroad made it easier for the stock market to resume the upward climb that it began last week, when the S&P 500 finished in positive territory in four out of five sessions for a cumulative gain of almost 5% -- its first weekly advance in five weeks.
The most recent effort favored financials the most; they swung to a gain of more than 4%. Insurers were among the sector's top performers as traders regarded Hurricane Irene's damage to the Northeast as less severe than what had been feared potential. Banks were back in favor as they resumed their rally from the beat downs that were repeatedly suffered in recent weeks.
Although they weren't the day's top performers, pharmaceutical plays Pfizer (PFE 18.88, +0.67) and Bristol Myers Squibb (BMY 29.29, +0.57) staged impressive gains following positive results from a joint Phase III drug trial.
With stocks looking so strong and participants showing an increased tolerance for risk, small-cap stocks swung sharply higher. Collectively, small-cap stocks advanced almost 5%, as measured by the Russell 2000.
An increased preference for risk put pressure on safe havens like gold. Gold prices had started pit trade with a gain of more than 1%, but reversed course to close with a 0.3% loss at $1791.60 per ounce.
Treasuries were also pressured, but the benchmark 10-year Note managed to limit its loss. As a result, its yield remains below 2.30%.
Economic data neither added to nor detracted from the market's upward momentum. According to the latest numbers, personal income increased in July by 0.3%, which is slightly less than the 0.4% increase that had been broadly expected. However, spending spiked 0.8%, which bested the 0.5% increase that had been anticipated. Separately, pending home sales fell in June by 1.3%, which is slightly less than the 1.4% decline that had been generally expected.
Advancing Sectors: Financials +4.2%, Industrials +3.2%, Materials +3.0%, Tech 2.8%, Consumer Discretionary +2.9%, Energy +2.9%, Health Care +2.6%, Utilities +1.9%, Consumer Staples +1.8%, Telecom +1.2%
Declining Sectors: (None)DJ30 +254.71 NASDAQ +82.26 NQ100 +2.9% R2K +4.8% SP400 +3.9% SP500 +33.28 NASDAQ Adv/Vol/Dec 2267/1.62 bln/342 NYSE Adv/Vol/Dec 2820/912 mln/271
4:01PM Universal Display announces agreement with Panasonic (PC) Idemitsu OLED lighting for OLED lighting products (PANL) 51.10 -0.61 : Co announced that it has entered into a technology license agreement with Panasonic Idemitsu OLED Lighting Co, a joint venture between Panasonic Electric Works and Idemitsu Kosan. Under the new agreement, Panasonic Idemitsu OLED Lighting will be licensed to integrate Universal Display's proprietary UniversalPHOLED phosphorescent and other OLED technologies and materials into OLED lighting products.
4:01PM Amkor and GLOBALFOUNDRIES to collaborate on advanced assembly and test solutions (AMKR) 4.20 +0.22 : The companies plan to collaborate to co-develop and commercialize integrated fab-bump-probe-assembly-test solutions aimed at multiple customers and end-market applications and expand theSunPower (SPWRA, SPWRB) announced that Akuo Solar, a subsidiary of Paris-based Akuo Energy, has ordered 75,000 high efficiency SunPower solar panels for Akuo's planned 24-megawatt solar development.
MEMC Electronic Materials (WFR) announced that it has commenced an offer to exchange any and all of its outstanding $550 mln aggregate principal amount of 7.750% Senior Notes due 2019 for a like principal amount of new 7.750%.
6:31AM Integrated Device intends to sell Its Hillsboro, Oregon Wafer Fabrication Facility to Alpha and Omega Semiconductor (AOSL) for ~$26 mln (IDTI) 5.60 : Co announces that it intends to sell its Hillsboro, Oregon wafer fabrication facility and related assets to Alpha and Omega Semiconductor (AOSL). Under a foundry service arrangement with IDT, AOSL has the option to acquire the wafer fabrication facility and related assets for $26 mln. The anticipated sale is subject to the execution of a definitive asset purchase agreement with customary closing conditions between AOSL and IDT.
11:23 am S&P Tech Sector Almost Two Percent Higher, Beating Broader Market
The tech sector is trading higher today, and topping gains in the broader market. Semiconductors are showing strength in the tech space with the Philly Semi Index trading 1.9% higher. Among chips in the index, MU (+5.8%) is a notable leader. Among other major indices, the S&P 500 is trading 1.6% higher, while the NASDAQ is trading 2.0% higher. The QQQ, meanwhile, is trading 1.8% higher. Among tech bellwethers, ORCL (+3.1%) is showing relative strength, while VZ (+0.3%) is lagging.
In news, YOKU (+6.9%) and DreamWorks Animation entered an online distribution agreement for KungFu Panda Films in China. Also, Facebook plans to shut down online deal programs.
In rumors, we are hearing CVG (+3.2%) M&A potential making the rounds. Separately, there's AAPL (+1.6%) for EK (+4.5%) chatter.
There were few notable analyst calls this morning in tech. Of note, Barrington Research initiated SQI (-1.1%) with an Outperform.
There are no notable tech names set to report results today after the close.
10:06 am Bank of America Sells 13.1 Billion Shares Of China Construction Bank (BAC)
Bank of America (BAC $8.03 +0.27) agrees to sell 13.1 billion shares of China Construction Bank; sale expected to generate $8.3 billion in cash The sale is expected to generate approx. $8.3 billion in cash proceeds and an after-tax gain on sale of approx. $3.3 billion.
The sale should improve Tier 1 Common Capital Under Basel I by $3.5 billion. Co retains a 5% stake in CCB.
09:48 am LDK Solar Reaffirms Fiscal Year 2011 Guidance (LDK)
LDK Solar (LDK $5.93 +0.09) reported second quarter loss of ($0.62) per share, $0.29 worse than the Capital IQ Consensus Estimate of ($0.33).
Revenues fell 11.7% year/year to $499.4 million versus the $478.8 million consensus.
For the third quarter, the company expects to see upside revenue guidance of $630 million to $680 million versus the $584.70 million Capital IQ Consensus Estimate.
The company reaffirmed its fiscal year 2011 revenue guidance at $2.5 billion to $2.7 billion versus the $2.45 billion Capital IQ Consensus Estimate.
"In recent weeks, we have seen average selling prices begin to stabilize and improvement to order patterns. We have continued to gain traction in expanding our presence in key markets such as North America and China. In the U.S., our recently established sales and marketing operation has already begun to gain traction in winning large module contracts. In China, we are encouraged by the announcement of the unified national feed-in-tariff program. We have an established, strong market position in our domestic market and see significant long-term growth opportunities... Going forward, based on our current pipeline of business, we believe |
