From Briefing.com: Weekly Recap - Week ending 02-May-14Dow -45.98 at 16512.89, Nasdaq -3.55 at 4123.90, S&P -2.54 at 1881.14
The stock market finished an upbeat week on a cautious note as the major averages settled near their flat lines. The S&P 500 (-0.1%) shed less than three points, while the Russell 2000 (+0.1%) outperformed slightly. Interestingly, the bulk of today's trading activity took place before 11:00 ET, while the key indices spent the afternoon within a striking distance of their unchanged levels.
One hour ahead of the opening bell, the April Nonfarm Payrolls report pointed to the addition of 288,000 jobs (Briefing.com consensus 210,000), but the release was a bit mystifying as a sharp drop in the labor force pressured the unemployment rate to 6.3% from 6.7%.
On one hand, the surprise jump in payrolls suggests a release of pent-up demand following weather-related delays; however, there was nothing in the job creation data that pointed toward a weather-delayed shock. Sectors that were most affected by the weather, such as construction and mining, saw solid growth but nothing different than what was reported during the worst of the weather problems in February. On the other hand, the unemployment rate plunged from 6.7% to 6.3%, which resulted entirely from an 806,000 drop in the civilian labor force. Had the labor force stayed constant, the unemployment rate would have increased to 6.8%.
The enigmatic report was met with an initial spike in index futures and the Dollar Index, while gold and Treasuries slumped; however, those moves were short-lived as futures returned to unchanged by the opening bell, while the dollar, gold, and Treasuries also reversed their post-data moves. As a result, Treasuries settled near their highs, with the benchmark 10-yr yield down three basis points at 2.59%. Also of note, the 30-yr bond posted its third consecutive gain, pressuring its yield to 3.37%, a level that was last seen in June of last year.
With regard to gold futures, the yellow metal rose 1.1% to $1297.60/ozt. This put in a floor under miners (GDX +2.2%), which in turn gave support to the materials (+0.5%) sector.
The materials space ended in the lead and was followed closely by the energy sector (+0.3%), which was able to overcome a disappointing quarterly report from Chevron (CVX 124.72, -0.22). Crude oil, meanwhile, added 0.4% to $99.80/bbl.
Outside of the two commodity-linked sectors, the discretionary space (+0.3%) was the only other advancer. Homebuilders took part in the move higher as the iShares Dow Jones US Home Construction ETF (ITB 23.95, +0.34) gained 1.4%.
On the flip side, seven sectors registered losses, with utilities (-2.0%) leading the retreat, which was a bit peculiar considering the rate-sensitive sector tends to benefit from lower Treasury yields. To be fair, the selling may have been a function of some profit taking inside of a sector that remains well ahead of the other groups so far in 2014. Today's loss narrowed the sector's year-to-date gain to 11.7%, while the second-best performer of the year-energy-ended the session with a 5.3% advance so far this year.
Trading volume was below average as less than 685 million shares changed hands at the NYSE. This was likely a result of unwillingness among some participants to step in ahead of the weekend as the next couple days could change the state of affairs in Ukraine. Earlier today, Ukraine's military stormed the town of Slavyansk in an attempt to recapture a city that has been described as a stronghold for pro-Russian separatists. In response to the developments, Russia has called an emergency meeting of the United Nations Security Council.
Reviewing today's remaining data:
- Factory orders increased 1.1% in March after increasing a downwardly revised 1.5% (from 1.6%) in February. The Briefing.com consensus expected factory orders to increase 1.6%. Durable goods orders were revised up, increasing 2.9% from an originally reported 2.6%. Orders increased 2.3% in February. Excluding transportation, durable goods orders increased 2.4%, up from an originally reported 2.0%.
On Monday, the ISM Services report for April will be released at 10:00 ET (Briefing.com consensus 54.0).
Week in Review: Large Caps Outperform
The stock market began the new week on a mixed note despite showing early strength. Weakness among small-cap names resulted in the underperformance of the Russell 2000 (-0.6%) and the Nasdaq Composite (-0.03%), while the S&P 500 settled higher by 0.3%. Equity indices climbed out of the gate, emboldened by M&A activity in the heavily-weighted health care sector (+0.6%). The third-largest group served as an early leader with help from Pfizer, which jumped 4.2% after confirming its interest in AstraZeneca. Also of note, Forest Laboratories agreed to acquire Furiex Pharmaceuticals for $1.1 billion. Even though the health care sector rallied at the open, the broader market was unable to build on the strength as weakness in momentum names-including biotechnology-outweighed the early optimism. The iShares Nasdaq Biotechnology ETF spent the entire session between its 20- and 200-day moving averages before settling just above the 200-day average.
On Tuesday, equity indices rallied, with the S&P 500 (+0.5%) posting its second consecutive gain as eight sectors ended in the green. Momentum names, meanwhile, rebounded from Monday's relative weakness, which allowed the Nasdaq Composite (+0.7%) to finish ahead of the benchmark index. Stock indices began the session on an upbeat note, slowly building on their early gains throughout the afternoon. The energy sector (+0.4%) powered the opening advance thanks to better than expected earnings from BP and Valero Energy. BP surged 2.6%, while Valero displayed early strength, but spent the session in a steady retreat from its opening high, which mirrored the price action of the entire sector.
The major averages spent some time on either side of their respective flat lines on Wednesday, but when the dust settled, they ended with modest gains. The Dow Jones Industrial Average, S&P 500, and Nasdaq all added 0.3%, with the Dow registering its first green close for the year. The session featured another heavy dose of earnings and a full slate of economic data. Prior to the open, index futures jumped in reaction to a better-than-expected ADP Employment report, but promptly surrendered those gains when it was reported that GDP increased a puny 0.1% in the first quarter (Briefing.com consensus 1.0%). The disappointing report ensured a lower start for the major averages, but they only took one more step down before forging a rebound on the back of the industrial sector (+0.5%), which drew strength from transports. The Dow Jones Transportation Average jumped 0.7%, bolstered by above-consensus earnings reported by C.H. Robinson.
The stock market ended on a cautious note after enduring a sloppy session that lacked concerted sector leadership. The S&P 500 settled right below its flat line, while the Russell 2000 lost 0.5% after displaying intraday volatility. Equities began the first session of May near their flat lines amid the lack of leadership from overseas as most global markets were closed for Labor Day. Despite the quiet open, small caps were active from the get-go as the Russell 2000 retreated as much as 1.1% during the first hour of action. The index halted its slide at the 200-day moving average (1113.73), which has been acting as an area of support since mid-April. Meanwhile, the S&P 500 spent the bulk of the afternoon within four points of its flat line as individual sectors traded in mixed fashion. Most notably, consumer discretionary (+0.4%) and utilities (+0.3%) outperformed throughout the session, with the utilities sector extending its 2014 advance to 14.0%.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 16361.46 | 16512.89 | 151.43 | 0.9 | -0.4 | | Nasdaq | 4075.56 | 4123.90 | 48.34 | 1.2 | -1.3 | | S&P 500 | 1863.40 | 1881.14 | 17.74 | 1.0 | 1.8 | | Russell 2000 | 1123.03 | 1128.80 | 5.77 | 0.5 | -3.0 |
5:14PM 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).
This week's top 20 % gainers
Utilities: POM (26.98 +23.48%)Technology: AMKR (8.48 +18.44%), JIVE (8.42 +17.6%), LVLT (43 +17.39%)Services: SUSS (78.72 +38.03%), NTRI (16.8 +20.26%), CTCT (29.07 +18.32%), GOL (6.84 +17.73%)Healthcare: MACK (6.43 +43.85%), AVNR (4.63 +40.3%), FURX (103.2 +28.76%), ADMS (20.01 +27.53%), AZN (81.02 +18%)Financial: FUR (14.54 +27.21%), BSBR (6.67 +16.4%), AFSI (43 +16.03%)Consumer Goods: WPRT (16.07 +24.19%), MERC (8.97 +18.49%), MTOR (13.83 +17.4%), ENR (115.76 +17.28%)This week's top 20 % losersTechnology: ELX (4.68 -35.63%), SREV (4.2 -32.48%), GOGO (13.42 -26.47%), RUBI (14.76 -24.27%), SQI (19.25 -21.3%), POWI (49.06 -20.15%), SGI (9.65 -19.78%), QLGC (9.9 -16.53%), JDSU (10.96 -16.4%), PLUG (4.5 -16.2%)Services: NGVC (23.15 -36.09%), EDMC (2.96 -23.12%), VPRT (39.22 -18.29%)Industrial Goods: CPST (1.7 -22.6%), TASR (14.13 -20.21%)Healthcare: PRTA (21.44 -44.43%), ISIS (25.87 -20.98%), AUXL (21.48 -20.09%), ASPX (18.92 -19.08%)Basic Materials: AVD (15.47 -18.58%)12:25PM Notable movers of interest ( SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
RBS (11.17 +7.51%): Reported Q1 operating profit of GBP 1.64 bln vs GBP 538 mln estimate; Common Equity Tier 1 ratio 9.4%, co is on track to achieve its capital target SBAC (96.19 +6.22%): Beat quarterly AFFO estimate by $0.07 ($1.18 vs $1.11 estimate), revs rose 10.3% yoy to $345.5 mln vs $334.6 mln estimate; sees Q2 revs of $365-375 mln vs $356.11 mln estimate; sees FY14 revs of $1447-1487 mln vs $1430 mln estimate WYNN (218.14 +5.57%): Beat quarterly EPS by $0.26 ($2.32 vs $2.06 estimate), revs rose 9.8% yoy to $1.51 bln vs $1.49 bln estimate; upgraded to Buy from Neutral at Sterne Agee, target raised to $260 from $225 Large Cap Losers LNKD (151 -6.34%): Beat quarterly EPS by $0.04 ($0.38 ex items vs $0.34 estimate), revs rose 45.7% yoy to $473 mln vs $466.34 mln estimate and $455-460 mln guidance; sees Q2 revs of $500-505 mln vs $504.81 mln estimate; sees FY14 revs of $2.06-2.08 bln vs $2.11 bln estimate; target lowered at Canaccord Genuity, Morgan Stanley, Cantor Fitzgerald, Telsey Advisory Group DVA (67.5 -3.47%): Missed quarterly EPS by $0.01 ($0.85 ex items vs $0.86 estimate), revs rose 7.5% yoy to $3.04 bln vs $3.02 bln estimate PSA (170.93 -2.99%): Missed quarterly FFO estimate by $0.06 ($1.80 ex items vs $1.86 estimate), revs rose 10.3% yoy to $519.62 mln vs $513.87 mln estimate Mid Cap Gainers ACHC (45.08 +8.73%): Reported Q1 EPS of $0.28 ex items (in-line), revs rose 24.4% yoy to $206.1 mln vs $194.21 mln estimate; sees FY14 EPS of $1.26-1.29 ex items vs $1.33 estimate DGI (32.67 +8.39%): Beat quarterly EPS by $0.05 (-$0.01 vs -$0.06 estimate), revs rose 22.6% yoy to $156.5 mln vs $149.78 mln estimate; reaffirmed FY14 rev guidance of $630-660 mln vs $641.27 mln estimateAEM (31.92 +7.87%): Beat quarterly EPS by $0.39 ($0.61 vs $0.22 estimate), revs rose 16.8% yoy to $491 mln vs $450.56 mln estimate Mid Cap Losers PCYC (84.76 -10.98%): Beat quarterly EPS by $0.18 ($0.40 ex items vs $0.22 estimate), revs rose 4164% yoy to $119.4 mln vs $104.4 mln estimate; sees Q2 net product revs of $76-84 mln vs estimate for total revs of $75.89 mln; sees FY14 net product revs of $280-310 mln vs estimate for total revs of $417.41 mln MTW (29.32 -9.17%): Missed quarterly EPS by $0.03 ($0.17 ex items vs $0.20 estimate), revs fell 5.0% yoy to $850 mln vs $908.89 mln estimate BYI (60.07 -8.44%): Missed quarterly EPS by $0.02 ($1.10 ex items vs $1.12 estimate), revs rose 30.6% yoy to $338.4 mln vs $334.13 mln estimate; sees Q4 EPS of $1.14-1.29 ex items vs $1.20 estimate 11:39AM Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (122) outpacing new lows (51) ( SCANX) : Stocks that traded to 52 week highs: AA, ABG, AER, AFG, AFSI, ALL, AMKR, AMT, ARLP, ASH, ASX, ATI, AWK, BAH, BBW, BEE, BKH, BRK.A, BRK.B, BXE, CE, CENX, CHDX, CHSP, COMM, COP, CP, CRESY, CRZO, CUZ, CXP, DDS, DLX, DPS, DYN, ECOL, EGY, EL, ENOC, ENR, ESRT, ESS, FCH, FISV, FRT, FWLT, GEL, GMK, GOL, GTIM, H, HCC, HNRG, HST, IHG, IPXL, IRS, IT, ITUB, JOSB, KEP, KR, KRC, LAD, LAZ, LDL, LHO, LNT, LSI, MAR, MIC, MKL, MMM, MTOR, MWV, MXWL, NRG, NSIT, NVS, ODFL, ORAN, OSHC, PAC, PAG, PEB, PF, PMC, PPC, PPL, PRE, RAD, RDS.B, RNR, RTIX, SAFM, SAIA, SAL, SEM, SEP, SHO, SKX, SLG, SSL, STO, SU, SWHC, SXI, SYA, TI, TI.A, TMK, TPC, TRN, TRV, UG, UHAL, VET, VLO, VNO, WIN, WNR, XOM
Stocks that traded to 52 week lows: AHS, ATEN, AVD, BGFV, BIRT, CERS, DRL, ECYT, ELX, ENTR, GORO, GYRO, HE, HTCH, IKAN, IMPV, INTG, ISNS, JOEZ, JOUT, LUB, MCGC, MFLX, MGT, MITK, MSG, NAK, NCQ, NETE, NEWL, NEWS, NGVC, NIHD, PKT, PLPC, RELL, RITT, SABR, SEAC, SEB, SFM, SGA, SGI, SPU, SQI, SREV, TEAR, TOPS, VHI, XNPT, ZAZA
ETFs that traded to 52 week highs: AFK, ENZL, EWC, EWU, IXC, IYK, OEF, PALL, SDY
ETFs that traded to 52 week lows: VXX
8:00AM JinkoSolar Holding to supply 100 mw solar pv modules for two projects in Chile ( JKS) 27.35 :
Co announced that it signed contracts to supply 100 MW of PV modules for two PV projects in Chile. Both projects are located in Chile's Atacama Desert region, which has one of the highest irradiation levels in the world. The Lalackama PV plant, the first of the two projects, will consist of 60 MW and will include 197,000 JinkoSolar high-efficiency PV Solar modules. The project is expected to generate approximately 132 millions of kWh of electricity annually. The second of the two projects will consist of 40 MW and is located in the Municipality of Diego De Almagro, the plant is expected to generate approximately 88 millions of kWh of electricity power annually.5:01AM Canadian Solar receives C$115.5 mln loan from National Bank of Canada ( CSIQ) 27.51 : Co announces that the National Bank of Canada will provide the Company with C$115.5 million, in short-term construction financing. The credit facility will be used to support the construction of three solar power projects in Ontario, Canada, totaling 30 MWac.
LinkedIn (LNKD) reported first quarter earnings of $0.38 per share, which is higher than expected, while revenues rose 45.7% year/year to $473 million which is higher than expected and $455-460 million guidance; EBITDA $116.7 million $106-108 million guidance. Talent Solutions: Revenue from Talent Solutions products totaled $275.9 million, an increase of 50% compared to the first quarter of 2013. Talent Solutions revenue represented 58% of total revenue in the first quarter of 2014, compared to 57% in the first quarter of 2013. Marketing Solutions: Revenue from Marketing Solutions products totaled $101.8 million, an increase of 36% compared to the first quarter of 2013. Marketing Solutions revenue represented 22% of total revenue in the first quarter of 2014, compared to 23% in the first quarter of 2013. Premium Subscriptions: Revenue from Premium Subscriptions products totaled $95.5 million, an increase of 46% compared to the first quarter of 2013. Premium Subscriptions represented 20% of total revenue in the first quarter of 2014 and 2013. The company issued guidance for the second quarter with revenues of $500-505 million which is line with estimates and EBITDA $118-120 million. The company raised guidance EBITDA to $505-510 million; raises revs to $2.06-2.08 billon $2.02-2.05 billion which is below estimates.Akamai Tech (AKAM) reported first quarter earnings of $0.58 per share, excluding non-recurring items, which is higher than expected, while revenues rose 23.4% year/year to $454 million. Cash from operations for the first quarter of 2014 was $89 million, or 20% of revenue. Reflecting the closing of the Prolexic acquisition and the issuance of convertible senior notes in February 2014, the Company had $1.4 billion of cash, cash equivalents and marketable securities at the end of the first quarter. The company expected second quarter in the range of $0.53-0.57 which is in line with estimates and revenues of $464-478 million which his higher than expected.Elli Mae (ELLI) reported first quarter earnings of $0.16 per share, which is higher tha expected, while revenues rose 4.2% year/year to $32.2 million which is higher than expected. The company issued guidance for the second quarter with EPS of $0.20-0.22 & revenues of $36-37 million which is below estimates The company issued guidance for t he fiscal year 2014 with EPS of $0.98-1.01 vs previous guidance of $1.08-1.11 and is below estimates; sees FY14 revs of $150-153.5 million which his higher than expected. 'We have strong business momentum and a robust sales pipeline. So despite the recent forecasts of further declines in mortgage origination volume this year, we are maintaining our revenue guidance for the full year," continued Mr. Anderman. "However, following the outage we experienced on March 31, we incurred forensic and consulting fees, and have decided to accelerate our investments to bolster our infrastructure and enhance our system capacity, reliability and security. With the additional expenses anticipated in the second quarter and for the remainder of the year, we are lowering our GAAP and non-GAAP earnings guidance for the year.OpenTable (OPEN) reported first quarter earnings of $0.45 per share, which is higher than expected, while revenues rose 18.2% year/year to $53.8 million which is below estimates. The company issued guidance for the second quarter with EPS 0.43-0.48 & revenues of 54.7-56.3 million which is line with estimates. The company issued guidance for the fiscal year 2014 with EPS of $1.81-1.96 & revenues of $221.9-228.1 million which is in line with estimates. |
