From Briefing.com: Weekly Recap - Week ending 01-Feb-13
Dow +149.21 at 14009.79, Nasdaq +36.97 at 3179.1, S&P +15.06 at 1513.17
Stocks saw broad gains during today's session and the S&P 500 ended higher by 1.0%. Meanwhile, the Dow climbed 1.1% and settled above 14,000 for the first time since October 2007. The day was busy with economic data, most of which surprised to the upside. Overseas, China's HSBC manufacturing PMI signaled continued expansion while readings in Europe were better-than-feared.
Domestically, investors received a full slate of data with the headline report coming in the form of January nonfarm payrolls. During the first month of 2013, the economy added 157,000 nonfarm jobs, which fell short of the 180,000 expected by the Briefing.com consensus. In addition, the unemployment rate ticked up to 7.9%. The immediate reaction sent equity futures higher as the rise in unemployment signals the Federal Reserve will not be removing its support from the markets in the near future.
The morning sentiment was aided by a strong January ISM index, upbeat December construction spending, as well as the positive revision to the final January Michigan Consumer Sentiment Survey.
All ten S&P 500 sectors ended in the black and five added at least 1.0%.
Financials rallied broadly and the SPDR Financial Select Sector ETF (XLF 17.61, +0.23) notched a fresh 52-week high. Bank of America (BAC 11.71, +0.39) and Morgan Stanley (MS 23.51, +0.71) outperformed their peers and settled with respective gains of 3.5% and 3.1%.
Elsewhere, the materials sector rallied on the strength of steel producers. The industry tends to show elevated sensitivity to Chinese economic data, and today's manufacturing PMI beat suggested Chinese steel demand will remain strong. The Market Vectors Steel ETF (SLX 49.61, +0.77) advanced 1.6%.
The tech sector underperformed earlier in the week, but did its best to catch up to the broader market today. Interestingly, technology stocks rallied without the participation of Apple (AAPL 453.62, -1.87). However, microprocessor manufacturers picked up the slack and the PHLX Semiconductor Index gained 1.9%.
The CBOE Volatility Index (VIX 12.92, -1.36) fell almost 10.0%, and ended near its 52-week low of 12.29.
Today's volume was strong with more than 750 million shares changing hands on the floor of the New York Stock Exchange.
Next week shapes up to be pretty light in terms of economic data. On Monday, December factory orders will be reported at 10:00 ET.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 13895.98 | 14009.79 | 113.81 | 0.8 | 6.9 | | Nasdaq | 3149.71 | 3179.10 | 29.39 | 0.9 | 5.3 | | S&P 500 | 1502.96 | 1513.17 | 10.21 | 0.7 | 6.1 | | Russell 2000 | 905.24 | 911.19 | 5.95 | 0.7 | 7.3 |
4:17PM TTM Tech signs letter of intent for SYE and DMC plants ( TTMI) 7.94 -0.03 : Co announced that it has signed a letter of intent with its minority partner, Shengyi Technology Co., to dispose of TTM's 70.2 percent equity interest in the SYE plant and to acquire Sytech's 20 percent equity interest in the DMC plant. Both the SYE and DMC plants manufacture conventional PCBs and are located in Dongguan, China. Subject to conclusion of a formal sale and purchase agreement between the parties, the transaction is expected to close by the end of the second quarter of 2013. A condition for closing is that the parties value all of SYE at 1 billion RMB (about $161 million) and all of DMC at 900 million RMB (about $145 million).
4:09PM 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).
Today's top 20 % gainers
- Technology: UIS (23.17 +22.5%), SGI (14.64 +21.37%), FSL (14.83 +19.82%), FTNT (23.65 +18.25%), LSCC (4.61 +14.1%)
- Services: WMS (24.67 +44.06%), RSH (3.16 +42.42%), HHS (7.98 +23.72%), MGAM (18.43 +16.51%), TUES (8.61 +15.7%), EDMC (4 +14.55%)
- Industrial Goods: TEX (32.91 +13.89%)
- Healthcare: KERX (7.18 +152.92%)
- Financial: PGR (22.69 +115.83%), ALEX (33.63 +14.09%)
- Consumer Goods: PBI (13.81 +18.6%)
- Basic Materials: CPNO (38.64 +19.29%), VLO (44.89 +15.2%), HES (68.24 +14.92%), AZC (2.79 +14.54%)
Today's top 20 % losers - Technology: RIMM (13.04 -26.83%), VMW (78.89 -20.08%), SANM (9.74 -19.46%), FIO (17 -17.86%), EGHT (7 -16.62%), VIPS (18.9 -15.78%), LXK (23.68 -14.89%), CEVA (15.21 -13.65%), ELLI (20.98 -13.4%)
- Services: LQDT (33.23 -22.63%), OSTK (13.31 -18.55%)
- Industrial Goods: DDD (58.66 -16.95%)
- Healthcare: HALO (6.54 -19.4%), HLF (35.16 -16.02%), STSI (2.15 -13.58%), CADX (4.87 -13.21%)
- Consumer Goods: SCSS (22.7 -21.91%), RDEN (39.98 -19.9%), STZ (32.69 -14.32%)
- Basic Materials: CBT (37.52 -12.93%)
10:29AM Hewlett-Packard announces restructuring plan for Enterprise Services in Germany ( HPQ) 18.63 +0.12 : The plan is part of HP's global multiyear restructuring plan that was announced on May 23, 2012, and further detailed at its Securities Analyst Meeting on Oct. 3, 2012.
- Under the proposal presented today to the German Supervisory Board, the planned changes in Germany will affect ~1,100 positions.
- Co will also close its site in Russelsheim, Germany, by the end of October. As part of the upcoming closure of the Russelsheim site, ~850 positions will be eliminated due to efficiency gains, local partner outsourcing and consolidation with other HP global service delivery hubs. Employees affected by the changes will have the opportunity to apply for open positions at other HP sites. The approximately 250 employees that remain at the site will have the opportunity to transfer to HP partners or clients.
- The HP Enterprise Services restructuring will not impact any of HP's other major sites in Germany, and co will continue to employ ~10,000 people in the country.
08:48 am Oracle upgraded to Outperform at BMO Capital Markets; tgt raised to $43: . BMO Capital Markets upgrades ORCL to Outperform from Market Perform and raises their tgt to $43 from $36 on a belief that the top-line growth outlook has improved materially. On Wednesday, the firm hosted Oracle for a day of investor meetings. They conclude that enterprise data software spending is improving after a rough 2012 and that demand for engineered data appliances is now broad enough that Exadata sales will have a discernable impact on Oracle's overall growth rate in 2013.
11:05 am Tech Sector trading higher by 0.8% and ahead of the broader market
The tech sector is trading higher today, inline with gains in the broader market. Semiconductors are showing relative strength as well with the SOX trading 1.1% higher. Within the chip index, STM (+4.6%) is a notable standout. Among other major indices, the SPY is trading 0.9% higher today, while the QQQ and the NASDAQ are trading 0.8% higher on the session. Among tech bellwethers, VZ (+2.3%) is showing notable strength, while FB (-1.8%) is under pressure.
In tech earnings, ADNC (+25.9%) posted a beat and raise, whereas N (+6.2%) and CAVM (+7.2%) reported beats and offered relatively inline guidance. Also, CTCT (-1.7%) posted a beat but guided lower. In news, CLWR (+0.6%) filed a preliminary statement in connection with its definitive agreement with S (+0.8%) for S to acquire the ~ 50% stake in CLWR that it does not already own for $2.97 per share. Among rumors, SPLK (+1.6%) and NTAP (+0.8%) may be possible takeover targets by IBM (+1.0%), according to reports. Also, DELL (+3.6%) LBO buyout between $15-16/share could be announced by early next week, according to reports. Among notable analyst upgrades this morning in the tech space, VZ (+2.3%) was upgraded to Overweight at Piper, IFNNY (+3.4%) was upgraded to Buy at Jefferies, BMO upgraded ORCL (+1.7%) to Outperform, and ADNC (+25.9%) was upgraded to Hold at Deutsche Bank. Also, ERIC (+4.7%) was added to the Conviction Buy list at Goldman. Among downgrades, BCOV (-23.3%) was downgraded to Outperform at RBC and GLUU (-2.3%) was downgraded to Market Perform at Northland. |
