From Briefing.com: Weekly Recap - Week ending 03-May-13
Dow +142.38 at 14973.96, Nasdaq +38.01 at 3378.63, S&P +16.83 at 1614.42
The major averages registered strong gains as the April jobs report boosted stocks at the open. The S&P 500 jumped 1.0% and notched a fresh record close at 1,614.40 while the Dow added 0.9% after peeking above 15,000 in morning action.
On the surface, the employment report for April looked good. Payroll growth surprised to the upside, increasing by 165,000. That was 10,000 more than the 155,000 expected by the Briefing.com consensus. Revisions in March, to 138,000 from 88,000, and February, to 332,000 from 268,000, were strongly positive.
Yet, the underlying details point toward weaker consumption levels as the average workweek dropped to 34.4 hours in April from 34.6 and average hourly earnings increased 0.2%.
The decline in workweek more than offset the increase in payrolls and earnings. Altogether, aggregate wages declined 0.3% in April. That would be the first decline in wages since January.
Cyclical sectors led stocks higher and two recent underperformers, industrials and materials, finished atop the leaderboard.
The industrial space displayed all-around strength, but transportation-related stocks outperformed notably. The Dow Jones Transportation Average ended higher by 2.1% as 18 of 20 components registered gains. Although the index traded ahead of the broader market, it remains 1.0% away from its all-time best.
Elsewhere, the materials sector benefitted from a notable rise in basic metals. Copper made its biggest advance in more than a year by surging 6.5% to $3.306. Steelmakers also contributed to the outperformance of the growth-sensitive sector as the Market Vectors Steel ETF (SLX 42.59, +1.19) gained 2.9%. Meanwhile, the SPDR Materials Select Sector ETF (XLB 39.82, +0.69) ended higher by 1.8%.
The energy space also outperformed as crude oil extended its recent strength and rose 1.6% to $95.47. Since April 17, the energy component has added almost $10.
While most cyclical groups registered gains in excess of 1.0%, the financial sector underperformed. JPMorgan Chase (JPM 47.57, -0.51) slipped 1.1% after the New York Times gained access to confidential government documents alleging the bank engaged in 'manipulative schemes' in the energy market and that its executives gave 'misleading statements' while testifying under oath.
In notable sector earnings, American International Group (AIG 44.52, +2.39) added 5.7% after reporting a bottom-line beat.
Although the April jobs report received most of today's attention, some noteworthy quarterly reports crossed the wires as well. LinkedIn (LNKD 175.59, -26.08) slumped 12.9% after its better-than-expected earnings report included cautious full-year revenue guidance.
On the downside, the defensively-geared telecom and utilities sectors ended with respective losses of 0.2% and 0.4%.
Reviewing today's remaining data, the ISM Non-manufacturing Index declined from 54.4 in March to 53.1 in April. The Briefing.com consensus expected the index to fall to 54.0.
Total factory orders fell 4.0% in March after increasing a downwardly revised 1.9% (from 3.0%) in February. The Briefing.com consensus expected factory orders to fall 2.5%.
Durable goods orders fell 5.8% (from a previously released -5.7%) after increasing 4.3% in March.
There is no notable economic news set to be released on Monday. On Tuesday, March consumer credit will be announced at 15:00 ET.
Week in Review: Technology Leads Stocks Higher
Monday proved to be a one-sided affair as equities climbed throughout the session. As a result, the S&P 500 settled higher by 0.7% while the Nasdaq rose 0.9%. The Nasdaq displayed relative strength from the onset as technology stocks paced today's advance. Major sector components Apple (AAPL 449.98, +4.46), Google (GOOG 845.72, +16.11), and Microsoft (MSFT 33.49, +0.33) all settled with gains of at least 2.5%.
On Tuesday, stocks ended the session on a modestly higher note as the Nasdaq rose 0.7% while the S&P 500 added 0.3%. The Dow Jones Industrial Average, for its part, tacked on 0.1%. The major averages spent the day climbing off their lows after it was revealed that manufacturing activity in the Chicago region in April contracted for the first time since September 2009, falling from 52.4 in March to 49.0. The Briefing.com consensus expected the Chicago PMI to decline to 52.0. Technology stocks paced the late-morning rebound as the sector displayed strength amid reports indicating Apple's $17 billion debt offering received significant investor interest.
Stocks ended Wednesday's session on their lows as global growth concerns reemerged. The three major indices all lost 0.9%, but the underperformance of small cap stocks was notable as the Russell 2000 slid 2.5%. China reminded investors of its importance to the global economy as the decline in the country's Manufacturing PMI (50.6 actual, 50.9 prior, 51.0 consensus) along with a disappointing U.S. ISM Index (50.7 actual, 51.3 prior, 51.0 consensus) pressured commodities and commodity-related sectors. The materials space declined throughout the day as related metals sold off.
Thursday saw the S&P 500 erase all of Wednesday's losses. The benchmark average rose 0.9% while the Nasdaq outperformed with a gain of 1.3%. In addition to earnings reaction, investors welcomed further easing from the European Central Bank as the ECB cut its key interest rate by 25 basis points to a record low of 0.50%. Visa (V 179.54, +4.14) jumped 5.7% after beating on earnings and revenue.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 14712.55 | 14973.96 | 261.41 | 1.8 | 14.3 | | Nasdaq | 3279.26 | 3378.63 | 99.37 | 3.0 | 11.9 | | S&P 500 | 1582.24 | 1614.42 | 32.18 | 2.0 | 13.2 | | Russell 2000 | 935.27 | 954.42 | 19.15 | 2.0 | 12.4 |
This week's top 20 % gainers - Technology: AMD (3.6 +27.24%), YELP (31.13 +26.75%), SPWR (14.9 +25.74%), MDSO (67.59 +24.79%), LOGM (22.1 +22.06%), RATE (15.9 +18.1%), TSL (4.97 +18.04%)
- Services: BGFV (19.46 +23.45%), MGAM (24.64 +21.5%), RPXC (15.27 +18.33%), MDCA (17.74 +17.88%)
- Healthcare: TXMD (2.94 +27.27%), STAA (8.56 +26.77%), TSRO (29.62 +18.81%), QCOR (34.26 +17.66%)
- Consumer Goods: MTOR (6.01 +26.06%)
- Basic Materials: NR (10.87 +24.42%), OIS (93.67 +22.98%), CENX (8.68 +17.96%), REGI (11.83 +16.77%)
This week's top 20 % losers - Technology: NTE (8.57 -31.99%), GWAY (12.34 -22.93%), NIHD (7.2 -21.1%), CRAY (16.6 -18%), ACCL (8.37 -16.22%), NUAN (19.65 -14.73%)
- Services: DXPE (57.34 -16.96%), KFRC (13.19 -13.65%), CHH (39.79 -12.75%), KKD (12.65 -12.75%)
- Industrial Goods: RBC (65.76 -15.39%)
- Healthcare: LXRX (2.01 -13.1%), ASTX (5.8 -12.78%)
- Financial: MBI (9.8 -14.74%)
- Consumer Goods: COT (9.03 -16.16%)
- Basic Materials: NBL (113.06 -72.68%), KEG (6.24 -14.39%), ANV (10 -14.36%), HK (6.26 -14.09%), PBF (28.53 -13.42%)
9:01AM Flextronics announces departure of Chief Financial Officer ( FLEX) 6.83 : Co announced that effective today, Paul Read, chief financial officer, has decided to leave the co to pursue new opportunities, but will remain available for any necessary transitional activities through the end of the current quarter. Christopher Collier, who has served as an officer of the co since 2005, and chief accounting officer since 2007, has been appointed chief financial officer effective immediately.
07:46 am AIG shares rise 3% following beat on earnings
American Intl (AIG $43.30 +1.17) reported first quarter earnings of $1.34 per share, $0.46 better than the Capital IQ consensus of $0.88. Book value per share, excluding Accumulated other comprehensive income (AOCI), of $59.39, up 12 percent from the prior-year first quarter. AIG Parent liquidity sources amounted to approximately $15.0 billion at March 31, 2013, including $5.5 billion allocated toward future maturities of liabilities and contingent liquidity stress needs of the Direct Investment book and Global Capital Markets. 07:45 am Digital River shares fall 3% following downside guidance
Digital River (DRIV) reported first quarter earnings of $0.33 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus Estimate of $0.20; revenues rose 11.0% year/year to $113.7 million versus the $102.61 million consensus. The company issued downside guidance for Q2, sees EPS of $0.01-0.04, excluding non-recurring items, versus the $0.13 Capital IQ Consensus Estimate; sees Q2 revs of $89-92 million vs. $93.35 million Capital IQ Consensus Estimate. The company issued mixed guidance for fiscal year 2013 wit EPS of $0.55-0.65, excluding non-recurring items, versus the $0.78 Capital IQ Consensus Estimate; sees FY13 revenue growth of 2-5%, equates to ~$394-406 million vs. $395.50 million Capital IQ Consensus Estimate. 07:44 am OpenTable shares fall 2% despite better than expected earnings
OpenTable (OPEN $56.70 -0.96) reported first quarter earnings of $0.45 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.43; revenues rose 15.5% year/year to $45.5 million vs the $45.57 million consensus. Installed restaurant base as of March 31, 2013, totaled 20,128, a 13% increase over March 31, 2012. Seated diners totaled 34.3 million, a 24% increase over Q1 2012. Guidance: The company issued in-line guidance for the second quarter with EPS of $0.45-0.49 versus the. $0.47 Capital IQ Consensus Estimate; sees Q2 revs of $44.9-46.2 million vs. $46.66 million Capital IQ Consensus Estimate The company issued in-line guidance for FY13, sees EPS of $1.88-2.02 versus the $1.90 Capital IQ Consensus Estimate; sees FY13 revs of $185.3-190.9 million vs. $189.43 million Capital IQ Consensus Estimate "We're pleased with seated diner growth during the first quarter in both our North America and International business segments," said Matt Roberts, President and CEO of OpenTable. "More than one third of the 34 million diners we seated in North America during the quarter were attributable to mobile, and we're continuing to optimize our mobile products around the globe to further capitalize on the opportunity." 07:43 am LinkedIn shares plunge 9% following downside guidance
LinkedIn (LNKD $180.00 -19.67) reported first quarter earnings of $0.45 per share, excluding non-recurring items, $0.14 better than the Capital IQ consensus of $0.31, while revenues rose 72.3% year/year to $324.7 million versus the $318.04 million consensus; adj. EBITDA $83.4 million vs. $67-69 million vs. $71 million consensus. The company issued downside guidance for Q2, sees Q2 revs of $342-347 million versus the $359.89 million Capital IQ Consensus Estimate; sees Q2 adjusted EBITDA of $77-79 million vs. the approximately $85 million consensus.
The company raised fiscal year 2013 guidance below consensus, raises FY13 rev to $1.43-1.46 billion from $1.41-1.44 vs. $1.50 billion Capital IQ Consensus Estimate; raised FY13 adjusted EBITDA to $330-345 million from $315-330 million vs. the $357 million consensus. Talent Solutions: Revenue from Talent Solutions products totaled $161.0 million, an increase of 90% compared to the fourth quarter of 2011. Talent Solutions revenue represented 53% of total revenue in the fourth quarter of 2012, compared to 51% in the fourth quarter of 2011. Marketing Solutions: Revenue from Marketing Solutions products totaled $83.2 million, an increase of 68% compared to the fourth quarter of 2011. Marketing Solutions revenue represented 27% of total revenue in the fourth quarter of 2012, compared to 30% in the fourth quarter of 2011. Premium Subscriptions: Revenue from Premium Subscriptions products totaled $59.4 million, an increase of 79% compared to the fourth quarter of 2011. Premium Subscriptions represented 20% of total revenue in the fourth quarter of 2012 and 2011.
ON Semiconductor (ONNN) reported first quarter earnings of $0.10 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.07; revenues fell 11.2% year/year to $661 million vs the $665.69 million consensus. The company issued in-line guidance for Q2, sees Q2 revs of $675-715 million vs. $702.60 million Capital IQ Consensus Estimate. "Backlog levels for the second quarter of 2013 represent ~80 to 85 percent of our anticipated second quarter 2013 revenues. We expect that average selling prices for the second quarter of 2013 will be down ~one to two percent when compared to the first quarter of 2013. The outlook for the second quarter of 2013 includes stock-based compensation expense of ~$10 to $12 million." |
