From Briefing.com: 4:10 pm : The S&P 500 settled higher by 0.4% despite enduring a first-hour selloff.
Equities began the session with modest gains after upbeat data from China helped ease some concerns regarding the pace of global growth. The Middle Kingdom reported an increase in exports (+5.1% actual, +3.0% expected) and imports (+10.9% actual, +2.1% forecast) while its trade surplus narrowed to $17.82 billion from $27.10 billion.
Shortly after the start of the session, the S&P notched a high of 1,700.20 before aggressive selling pressured the benchmark index back to its flat line. The slide coincided with notable dollar/yen weakness that sent the pair below 96.00 for the first time since June 19.
The slide in equities and dollar/yen was halted shortly after the first hour of action. Stocks then returned to their highs but the S&P was unable to reclaim the 1,700 level.
The rebound took place as most cyclical sectors outperformed with materials in the lead. The sector advanced 1.5% as the Chinese data underpinned steelmakers and miners. The Market Vectors Steel ETF (SLX 42.29, +1.20) jumped 2.9% and the Market Vectors Gold Miners ETF (GDX 26.00, +2.06) surged 8.6%. On a related note, gold futures rose 2.1% to $1311.80 per troy ounce and copper futures added 2.8% to $3.263 per pound.
Other commodity-related sectors also rallied. Industrials settled higher by 0.4% and Dow component Caterpillar (CAT 83.96, +1.53), which does a good portion of its business in China, climbed 1.9%.
Elsewhere, the energy sector ended with a gain of 0.6% even as crude oil slumped 0.5% to $103.85 per barrel.
Discretionary shares also contributed to the rebound as retailers outperformed. The SPDR S&P Retail ETF (XRT 81.53, +0.75) posted a gain of 0.9% after retailers reported their same store sales for July. L Brands (LTD 60.25, +2.95) added 5.2% after surpassing estimates while Costco (COST 117.39, -1.95) slipped 1.6% after missing expectations.
Although most cyclical sectors registered gains, financials trailed behind the broader market. JPMorgan Chase (JPM 54.83, -0.47) shed 0.9% after the company said it is being investigated by the U.S. Attorney's Office for Eastern District of California over its mortgage-backed securities offerings.
Treasuries were trapped inside of a narrow range and the benchmark 10-yr yield shed two basis points to 2.59%.
In today's economic data, the initial claims level increased from an upwardly revised 328,000 (from 326,000) for the week ending July 27 to 333,000 for the week ending August 3. The Briefing.com consensus expected the initial claims level to increase to 340,000. Even though the claims level increased this week, the headline number is actually a strong positive sign for the labor market.
Throughout July, the initial claims data were distorted by seasonal adjustment problems from the motor vehicle industry. The Department of Labor announced that this week's claims data were unaffected by seasonal biases. That means the initial claims, which were around 350,000 prior to the distortions, actually improved throughout July.
Tomorrow, June wholesale inventories will be reported at 10:00 ET.DJ30 +27.65 NASDAQ +15.12 SP500 +6.57 NASDAQ Adv/Vol/Dec 1494/1.73 bln/1023 NYSE Adv/Vol/Dec 1965/689.4 mln/1035
3:30 pm :
- Sep crude oil fell for a fifth consecutive session, dipping below the $103.00 per barrel in morning action. The energy component retreated from its session high of $103.71 per barrel and brushed a session low of $102.22 per barrel. It eventually settled 0.9% lower at $103.40 per barrel.
- Sep natural gas slid to a session low of $3.13 per MMBtu following weaker-than-anticipated inventory data that showed a build of 96 bcf when a smaller build of 74-77 bcf was expected. However, natural gas reversed the loss as prices reversed into positive territory. It touched a session high of $3.32 per MMBtu just before settling with a 1.5% gain at $3.30 per MMBtu
- Precious metals registered gains as the dollar index fell deeper into negative territory. Furthermore, China reported better-than-expected export and import data while narrowing its trade surplus
- Dec gold rose above the $1300 per ounce level after climbing off its session low of $1287.70 per ounce. It touched a session high of $1313.80 per ounce and settled with a 2.0% gain at $1309.90 per ounce
- Sep silver rose for the first time in four sessions, touching a session high of $20.30 per ounce. It settled with a solid 3.6% gain at $20.20 per ounce after trading as low as $19.68 per ounce in early morning floor trade
4:33PM Multi-Fineline misses by $0.21, reports revs in-line; expects to return to profitability in Q1 ( MFLX) 15.19 +0.09 : Reports Q3 (Jun) loss of $0.77 per share, excluding non-recurring items, $0.21 worse than the Capital IQ Consensus Estimate of ($0.56); revenues fell 19.9% year/year to $136.1 mln vs the $135.93 mln consensus.
"We believe our third quarter results will serve as an inflection point as we anticipate a meaningful sequential improvement in revenue in the fourth quarter with continued momentum into fiscal 2014. As a result, we expect to return to profitability in the first quarter of fiscal 2014, as well as on a full year basis in fiscal 2014. Our customer relationships are strong and we are aggressively pursuing new customer and product opportunities to diversify our revenue streams and support our longer-term growth objectives."
4:26PM Universal Display beats by $0.07, beats on revs; guides FY13 revs in-line ( OLED) 29.37 +1.08 : Reports Q2 (Jun) earnings of $0.33 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.26; revenues rose 64.6% year/year to $49.36 mln vs the $37.9 mln consensus.
"Given the rate at which the market is adopting our energy efficient, high-performance UniversalPHOLED materials and technology, we believe the market has achieved a level of sustainable commercial technology adoption that can drive strong top line growth."
Co issues in-line guidance for FY13, sees FY13 revs at high end of $110-125 vs. $118.14 mln Capital IQ Consensus Estimate.
4:12PM Rackspace beats by $0.05, beats on revs ( RAX) 46.13 +1.06 : Reports Q2 (Jun) earnings of $0.18 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 17.9% year/year to $376 mln vs the $372.15 mln consensus..
- Total server count increased to 98,884, up from 94,122 servers at the end of the previous quarter
- Adjusted EBITDA of $123 million grew 10% year-over-year and declined 1.5% from Q1 2013
- Achieved Adjusted EBITDA margin of 32.8%, compared to 35.1% in Q2 2012 and 34.5% in Q1 2013
- Net income of $22 million declined 11% year-over-year and 18.0% from Q1 2013
4:12PM Priceline.com beats by $0.28, reports revs in-line; guides Q3 EPS in-line ( PCLN) 933.75 +6.17 :
- Reports Q2 (Jun) earnings of $9.70 per share, $0.28 better than the Capital IQ Consensus Estimate of $9.42; revenues rose 26.7% year/year to $1.68 bln vs the $1.66 bln consensus.
- The Group's gross profit for the 2nd quarter was $1.38 billion, a 37.8% increase from the prior year.
- International operations contributed gross profit in the 2nd quarter of $1.2 billion, a 39.7% increase versus a year ago (approximately 39% on a local currency basis).
- Second quarter gross travel bookings for the Group, which refers to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers, were $10.1 billion, an increase of 38.0% over a year ago
Co issues in-line guidance for Q3, sees EPS of $15.30-16.30 vs. $15.81 Capital IQ Consensus Estimate.
- Year-over-year increase in total gross travel bookings of approximately 27% - 34% (an increase of approximately 25% - 32% on a local currency basis).
- Year-over-year increase in international gross travel bookings of approximately 32% - 39% (an increase of approximately 30% - 37% on a local currency basis).
- Year-over-year increase in domestic gross travel bookings of approximately 5% - 10%.
- Year-over-year increase in revenue of approximately 23% - 30% (approx $2.09-2.217 bln, Capital IQ consensus $2.217 bln)
- Year-over-year increase in gross profit of approximately 32% - 39%.
- Adjusted EBITDA of approximately $990 million to $1,055 million.
4:01PM Vishay announces amended and restated $640 mln credit facility ( VSH) 13.74 -0.14 :
Co announced that it has entered into an amended and restated $640 mln credit facility. The senior secured facility matures on August 8, 2018. The Company's original $528 mln revolving credit facility was scheduled to mature on December 1, 2015. Borrowings under the amended and restated facility will bear interest at LIBOR plus an interest margin. The applicable interest margin is based on Vishay's leverage ratio. Based on Vishay's current leverage ratio, borrowings bear interest at LIBOR plus 1.75%; Vishay is also required to pay a facility fee of 0.35% per annum on the entire commitment amount for a total borrowing cost, also based on current leverage, of LIBOR plus 2.10% for the outstanding amount under the amended and restated credit facility. The interest rate under the original facility was at LIBOR plus 2.25% plus a facility commitment fee of 0.35% per annum on the entire commitment amount for a total of LIBOR plus 2.60% for the outstanding amount.
3:22PM Emulex beats by $0.03, reports revs in-line; guides Q1 EPS, revs below consensus ( ELX) 7.82 -0.11 : Reports Q4 (Jun) earnings of $0.15 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.12; revenues fell 6.7% year/year to $120.4 mln vs the $119.83 mln consensus. Network Connectivity Products (NCP) net revenues of $82.9 million, representing ~69% of total net revenues; Network Visibility Products (NVP), net revenues of $8.3 million, representing 7% of total net revenues; Storage Connectivity Products (SCP) net revenues of $23.0 million, representing 19% of total net revenues; Advanced Technology and other Products (ATP) net revenues of $6.1 million, representing 5% of total net revenues; Non-GAAP gross margins of 65% and GAAP gross margins of 58%
Co issues downside guidance for Q1, sees EPS of $0.09-0.11, excluding non-recurring items, vs. $0.15 Capital IQ Consensus Estimate; sees Q1 revs of $109-113 mln vs. $120.98 mln Capital IQ Consensus Estimate.
Large Cap Gainers
- TSLA (157.01 +16.97%): Beat on EPS by $0.22, beat on revs; co will be non-GAAP profitable/will generate positive FCF from ops. in Q3/4; tgt to $160 from $130 at Jefferies; downgraded to Equal Weight from Overweight at Barclays.
- TCK (25.32 +7.98%): Strength in metals/miners (NEM, ABX, GG).
- LTD (60.17 +5.01%): Reported Jul same store sales +3.0% vs +1.5% Retail Metrics consensus; raised Q2 EPS guidance and reported prelim sales above consensus; tgt raised to $48 from $43 at Canaccord Genuity.
Large Cap Losers - CTL (34.6 -4.92%): Beat on EPS by $0.02, reported revs in-line; guided Q3 EPS in-line, revs in-line; guided FY13 EPS below consensus, revs in-line.
- AEG (7.72 -2.46%): Reported that Q2 underlying earnings increased to EUR 478 mln; Q2 Net income of EUR 243 mln impacted by fair value losses.
- COST (116.65 -2.25%): Reported July same store sales +4% vs +4.8% Retail Metrics consensus.
Mid Cap Gainers - GRPN (11.12 +27.52%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus, revs in-line; authorized a $300 mln share repurchase program; appointed Eric Lefkofsky as CEO; tgt to $15 from $9 at Piper Jaffray, to $10 from $7 at JPMorgan; upgraded to Neutral from Sell at UBS; tgt raised to $11; upgraded to Mkt Perform at Raymond James; tgt to $17 from $10 at Deutsche Bank; heard was upgraded to Neutral at BofA/Merrill.
- TRQ (4.96 +13.7%): Received a $235 mln advance payment for the Altynalmas Gold transaction and signed a binding term sheet with majority shareholder Rio Tinto (RIO).
- SSYS (95.13 +10.41%): Beat on EPS by $0.01, reported revs in-line; guided FY13 EPS below consensus, revs above consensus.
Mid Cap Losers - HK (5.23 -10.9%): Priced 38 mln share offering at $5.10 per share; announced offering of $300 mln senior unsecured notes due 2022.
- DF (10.11 -8.26%): Missed on EPS by $0.01, reported revs in-line; guided Q3 EPS below consensus; guided FY13 EPS below consensus.
- HSC (24.18 -8.1%): Missed on EPS by $0.04, beat on revs; guided Q3 EPS below consensus; downgraded to Mkt Perform at Raymond James.
12:18PM Microsoft extends to minor new session high in recent trade ( MSFT) 33.01 +0.94 : Stock broke above its late July/early Aug range top with the recent upside extension nearing its 50 day ema at 33.10 (session high 33.06). Its 50 sma does not come into play until 33.90.
ANADIGICS (ANAD) announced that the co's AWT6751 and AWT6755 dual-band ProEficient-Plus WCDMA power amplifiers enable wireless connectivity in the new Galaxy Mega by Samsung Electronics (SSNLF)
7:32AM Canadian Solar misses by $0.09, misses on revs ( CSIQ) 14.31 :
- Reports Q2 (Jun) loss of $0.29 per share, $0.09 worse than the Capital IQ Consensus Estimate of ($0.20); revenues rose 9.2% year/year to $380.4 mln vs the $419.67 mln consensus.
- Solar module shipments were 455 MW, compared to 340 MW in the first quarter of 2013. Net revenue from total solutions was 25.7% of total revenue, compared to 19.2% in the first quarter of 2013.
- Gross margin was 12.8%, compared to 9.7% in the first quarter of 2013.
- Cash, cash equivalents and restricted cash balances at the end of the quarter were $540.6 million, compared to $606.1 million at the end of the first quarter of 2013. Cash flow from operations totaled $40.7 million.
- Solar module shipments to Japan were 35.7% of total module shipments, up 95.0% from the first quarter of 2013.
- Geography: sales to European markets represented 10.6% of net revenue, sales to America represented 37.8% of net revenue, and sales to Asia and all other markets represented 51.6% of net revenue, compared to 24.7%, 17.9% and 57.4%, respectively, in the first quarter of 2013 and 69.4%, 15.7% and 14.9%, respectively, in the second quarter of 2012.
- Accounts receivable turnover was 73 days in the second quarter of 2013 compared to 102 days in the first quarter of 2013. Inventories at the end of the second quarter of 2013 were $218.5 million, compared to $291.3 million at the end of the first quarter of 2013. Inventory turnover was 75 days in the second quarter of 2013 compared to 117 days in the first quarter of 2013.
- Outlook: The Company's business outlook is based on management's current views with respect to operating and market conditions, its current order book, and the challenging global financing environment, which continues to result in customer demand uncertainty. Management's views and estimates are subject to change without notice. For the third quarter of 2013, module shipments are expected to be in the range of approximately 410 MW to 430 MW. Gross margin for the quarter is expected to be between 10% and 12%.
- For the full year 2013, the Company expects module shipments to be in the range of approximately 1.6 GW to 1.8 GW. The Company expects module shipments to Japan to account for approximately 35%-40% of total module shipments in the third quarter of 2013. The Company expects its module shipments to Europe will remain at the same level as in the second quarter of 2013, as it continues to adopt a conservative approach in response to the uncertainty in trade and solar energy feed-in-tariff policy in that region. The Company views the recent resolution of the trade dispute between the European Union (EU) and China as positive. The Company is in the process of concluding its own undertaking agreement with the EU and is reviewing its business strategy in that region.
6:29AM Trina Solar estimates solar module shipments in 2Q13 to be between 630 MW and 660 MW, compared to the co's previous guidance of 500 MW to 530 MW ( TSL) 6.60 : Additionally, for the second quarter of 2013, the co estimates overall gross margin to be between 11.0% and 12.0%, compared to the co's previous guidance of middle single digits in percentage terms. The co further expects its bottom line results in the second quarter of 2013 to be impacted by:
- An incremental accounts receivables provision of between $8.0 million and $9.0 million.
- A charge between $8.5 million and $9.5 million for certain assets that were ceased to be used during the quarter.
Silicon Graphics (SGI) reported fourth quarter earnings of $0.17 per share, excluding non-recurring items, which is better than expected, while revenues fell 5.0% year/year to $170.5 million which is below expectations. The company issued guidance for the first quarter with EPS of $0.07-0.14, excluding non-recurring items which is below expectations, with revenues of $160-170 million which is below expectations.
iPass (IPAS) announced that it will supply Skype Communications S.a.r.l., Luxembourg-based subsidiary of MSFT with network infrastructure to expand the reach of Skype WiFi services. In addition, co announced that TTNET, a subsidiary of Turk Telekom Group now offers unlimited international Wi-Fi roaming services powered by the iPass Open Mobile Exchange platform.
Fusion-io (FIO) reported fourth quarter loss of $0.03 per share, which is higher than expected, while revenues fell 0.5% year/year to $106.05 million which is below expectations. The company issued guidance for the first quarter with revenues of $80-90 million which is below expectations. Non-GAAP gross margin of approximately 56% to 58%. Non-GAAP operating margin of approximately negative 15% to 25%. The company sees FY14 revenue growth of approximately 20% (calcs to ~$518.88 million which is below consensus). Non-GAAP gross margin in the range of 52% to 54%. Non-GAAP operating margin in the range of 2% to 5%, which includes the full effect of the acquisition of NexGen Storage Systems, Inc."To continue to maintain our market leadership, we will increase our focus on our go-to-market strategy, product portfolio and our partnerships as we help customers around the world unlock the business value in real-time information intelligence."
RealD (RLD) reported first quarter loss of $0.03 per share, which is better than expected, while revenues fell 13.2% year/year to $59.2 million which is better than expected. Estimated box office generated on RealD-enabled screens(1) for the first quarter of fiscal 2014 was $838 million ($431 million domestic, $407 million international). In the first quarter of fiscal 2013, estimated box office generated on RealD-enabled screens was $933 million ($444 million domestic, $489 million international). Eight 3D films were released in the first quarter of fiscal 2014, compared to 10 3D films in the first quarter of fiscal 2013. These figures reflect the number of 3D films released domestically during the periods.International markets generated 55% of license revenue and 27% of product and other revenue in the first quarter of fiscal 2014.
Good luck Jerome! I hope you make a mint. I personally would be scared stiff of playing anything long term in this market unless I knew I could hold it as long as it takes to make me money. We are overbought, maybe not entirely over loved, but pretty close and while the market could rise for years on end I consider that likelihood unlikely. I have also been wrong about that for months already. RtS |
