From Briefing.com:
finance.yahoo.com
Super Bowl 50 slump...curse...whatever you want to call it, today was tough. A day out of the big game, the Nasdaq Composite touched its worst level since the Fall of 2014. Action was decidedly to the downside today as the market spent the entirety of the session on the defense. Winners were hard to come by, especially in the technology sector where action was led lower today by the likes of bellwether names like FB -4.2%, MSFT -1.5%, VZ -0.5%, QCOM -0.3%, GOOG -0.1%. Upon further review, the ruling at the start of the session was reversed as the markets posted a late-session comeback (albeit still ending lower). Able to close the gap, the late-day comeback was led by the Dow Jones Industrial Average which shed 177.92 points (-1.10%) today to end 16027.05. The S&P 500 was down 26.61 points (-1.42%) to 1853.44. Leading the way lower today was the Nasdaq, which lost 79.39 points (-1.82%) to 4283.75.
Technology (XLK 38.93, -0.57 -1.44%) again was an underperformer, but finished well off the daily lows. Tech name Yelp (YELP 16.06, -2.04 -11.27%) was volatile in the afternoon session as early an earnings leak too the stock on a wild ride as the session progressed into afternoon trade. Other sectors closed the session IYZ -3.26%, XLB -2.63%, XLF -2.53%, XLY -1.94%, XLV -1.37%, XLI -0.84%, XLE -0.52%, XLU -0.34%, XLP -0.26% with Telecom ending the worst performer.
Software (IGV 83.83, -3.07 -3.53%) names were pressured today by component Cognizant Tech's (CTSH 54.05, -4.49 -7.867%) worse than expected guidance. The company reported better than expected Q4 results, but the tepid Q1 and FY16 guidance pressured the stock and more broadly the sector. Other IGV components which displayed weakness included PCTY -17.7%, SPLK -11.9%, ZEN -11.6%, N -10.3%, PFPT -10.3%.
The S&P 500 Information Technology sector (638.73, -10.61 -1.63%) also displayed relative weakness, albeit ending well off daily lows. Component Cisco Systems (CSCO 22.93, +0.04 +0.17%) was upgraded this morning to a Neutral rating from an Underperform at Macquarie. Shares outperformed the broader market and the broader sector today, ending as one of the only four other components which were in the green. Other components which were weak today included WDC -8.61%, CTSH -7.67%, CRM -7.62%, MU -7.55%, ADSK -5.89%, HPQ -5.45%, ADBE -5.38%, V -5.27%, VRSN -5.15%, AKAM -5.14%, AVGO -5.06%.
Other notable news items among sector components:
In conjunction with an early earnings release, Yelp (YELP) reported that CFO Rob Krolik will be stepping down and departing the company in the coming months. Krolik will continue to serve as the CFO until a replacement is found.
GoPro (GPRO 10.99, +1.03 +10.34%) entered into a new collaborative patent licensing agreement with Microsoft's (MSFT 49.41, -0.75 -1.50%) licensing unit.
The Board of OzForex Group Limited announced that it has terminated discussions with Western Union (WU 17.41, -0.15 -0.85%) in relation to the preliminary, non-binding, indicative conditional proposal to acquire 100% of the shares of OFX via scheme of arrangement previously announced on 19 November 2015.
Royal DSM announced a new, multi-year agreement between Corning (GLW 17.96, -0.38 -2.05%) that will provide fiber solutions to the telecommunications industry.
eBay's (EBAY 22.48, -0.72 -3.10%) StubHub announced the upcoming launch of its new ticketing platform, which offers partners a reimagined rightsholder branded experience, full market visibility, data ownership and the listing of primary and secondary ticket inventory in a single marketplace.
Microchip (MCHP 41.22, -1.00 -2.37%) announced the introduction of automotive-grade NOR Flash products with wider voltage and a larger temperature range.
Elsewhere in the technology space:
BroadSoft (BSFT 28.87, -2.24 -7.20%) acquired Transera. For 2016, BSFT expects the acquisition to contribute about $7-8 million in revenue and be about $0.02 to $0.03 dilutive to our non-GAAP earnings.
Orange (ORAN 16.65, -0.23 -1.36%) to acquire Millicom International Cellular (MIICF 42.73, -0.97 -2.22%) subsidiary in the Democratic Republic of the Congo.
Trimble (TRMB 19.03, -0.28 -1.45%) announced the acquisition of London/New York based Sefaira Ltd., expanding TRMB's Design-Build-Operate (DBO) portfolio to include tools for designing high-performing buildings early in the conceptual phase of a project. Financial terms of the transaction were not disclosed.
In reaction to quarterly results:
During the session, social media name Yelp (YELP) reported Q4 EPS of $0.11 on revenues which rose 39.9% year-over-year to $153.7 million. The company also guided Q1 revenues better than expected at $154-157 million and FY16 revenues better than expected at $685-700 million.
Cognizant Tech (CTSH) reported better than expected Q4 EPS of $0.80 on revenues which rose 17.9% year-over-year to $3.23 billion. The company also guided Q1 EPS and revenues worse than expected at $0.79-0.80 and $3.18-3.24 billion, respectively. Also, CTSH issued worse than expected FY16 EPS guidance of $3.32-3.44 on in-line revenues of $13.65-14.20 billion.
ON Semiconductor (ON 7.40, -0.65 -8.07%) reported better than expected Q4 EPS of $0.19 on revenues which fell 2.8% year-over-year to $840.3 million. The company also guided Q1 revenues in-line at $800-840 million.
WEX (WEX 60.14, -7.41 -10.97%) reported better than expected Q4 EPS and revenues of $1.15 and $212.6 million, respectively. WEX also reported worse than expected Q1 EPS and revenue guidance of $0.80-0.88 and $190-200 million, respectively. For FY16, WEX also sees worse than expected EPS and revenue of $3.80-4.10 and $860-890 million, respectively.
Virtusa (VRTU 37.39, -5.35 -12.52%) reported Q3 EPS of $0.54 and revenues which rose 22.4% year-over-year to $150.6 million. The company also issued worse than expected guidance for Q4 EPS and revenues of $0.44-0.46 and $172-175 million, respectively.
Companies reporting quarterly results tonight/tomorrow morning: GIG, MXL, MODN, QLYS/ALLT, BHE, ENTG, FIS, VSH
Analyst actions:
CSCO was upgraded to Neutral from Underperform at Macquarie,
GLOB was upgraded to Buy from Neutral at Citigroup,
PLUS was upgraded to Buy from Neutral at Sidoti,
ULTI was upgraded to Outperform from Mkt Perform at FBR Capital;
DATA was downgraded to Equal Weight from Overweight at Morgan Stanley
finance.yahoo.com
4:06 pm Advanced Energy appoints Grant Beard as Chairman ( AEIS) :
Co announces that Terry Hudgens has decided to retire and not stand for re-election to the board.Beard has been a director of the company since 2014 and is the chair of the board's nominating & governance committee.4:20 pm : The stock market ended its first session of the week with moderate losses despite strong buying interest in the final hour of trade. Today's trade was dominated by concerns regarding slowing global growth, a decline in oil, and the ability to sustain further fed funds rate hikes. Trade saw a flight from risk assets to safe-haven investments amid growing uncertainty. The Nasdaq Composite (-1.8%) ended its day behind both the S&P 500 (-1.4%) and the Dow Jones Industrial Average (-1.1%).
Over the weekend, China released data that showed a $100 billion decline in its foreign exchange reserves, moving the reserves to their lowest level since May 2012. This weighed on global markets as they began to question how much longer the People's Bank of China can prop up the yuan. On a related note, China's Shanghai Composite is closed for the week for the Lunar New Year.
Ahead of today's session European regional indices responded to growing uncertainty of the future of the fed funds rate, which was blurred after the January Employment Situation Report revealed misses in headline metrics but could still be used to justify rate increases due to shrinking unemployment and wage growth. European markets followed our rout with a day-long decline of their own. European banks led the decline with Deutsche Bank (DB 15.54, -1.35) falling 8.0% amid concerns over the state of the bank's balance sheet and derivative exposure. The decline widened Deutsche Bank's 2016 dive to 38.7% and was so jarring that the bank came out with a press release defending its capital position, saying it has roughly EUR1 billion in 2016 payment capacity, enough to pay EUR350 million in Tier 1 coupons that will mature in April.
Oil succumbed to early selling pressure from the European session and surrendered the $30.00/bbl during U.S. pre-market trading. WTI crude was able to reclaim this level during today's session but was unable to close its pit session above that mark. WTI crude settled lower by 3.8% at $29.94/bbl. Elsewhere in commodities, gold remained on a torrid pace, extending its 2016 gain to 6.7% amid growing fears that the Fed may have committed a policy error. Today, the yellow metal climbed 3.5% to $1,197.50/ozt.
The commodity-sensitive materials sector (-2.7%) ended its day behind the other groups with financials (-2.6%) and consumer discretionary (-2.0%) following. The countercyclicals led throughout the day with telecom services (-0.4%) and consumer staples (-0.3%) showing the slimmest losses.
The financial sector mirrored concerns in Europe as the economically-sensitive group retreated following the decline in European banks. Money center banks Bank of America (BAC 12.27, -0.68) and Citigroup (C 37.81, -2.05) showed relative weakness with respective losses of 5.3% and 5.1%. Including today's performance, the group has declined 6.2% in February and 14.6% since the end of 2015.
The heavyweight technology space (-1.6%) recovered from early weakness with market cornerstones leading a rally during the final hour. Facebook (FB 99.75, -4.32), and Microsoft (MSFT 49.41, -0.75) climbed off their worst levels, but still ended lower by 4.2% and 1.5%, respectively. Yelp (YELP 16.06, -2.04) surrendered 11.3% after releasing its Q4 earnings during the session. The company reported an EPS miss on in-line revenue. Yelp also announced that CFO Rob Krolik will be stepping down by December 15 or when a replacement is found.
Biotechnology continued to show relative weakness in the health care space (-1.4%), evidenced by the 3.2% decline in the iShares Nasdaq Biotechnology ETF (IBB 248.12, -8.12).
In the commodity sensitive energy space, Chesapeake Energy (CHK 2.21, -0.85) plunged 27.8% after early reports stated that the company hired attorneys for restructuring measures. The stock rebounded slightly after the company announced that they will not be pursuing bankruptcy and that Kirkland & Ellis will advise them on ways to strengthen its balance sheet.
On the currency front, the yen rallied 0.9% against the dollar in safe-haven trade. The pair traded at 115.70 at the close of U.S. trade.
Safe-haven investments outperformed today with gold and bonds rallying. The yield on the 10-yr ended the session lower by eight basis points at 1.76%
Today's participation was true to recent form with more than a billion shares changing hands at the NYSE floor.
Investors did not receive any noteworthy data today and tomorrow's economic news will be limited to the 10:00 ET release of the Wholesale Inventories report for December (Briefing.com consensus 0.0%).
- Russell 2000 -14.7% YTD
- Nasdaq -14.5% YTD
- S&P 500 -9.3% YTD
- Dow Jones -8.0% YTD
DJ30 -177.92 NASDAQ -79.39 SP500 -26.61 NASDAQ Adv/Vol/Dec 808/2.147 bln/2294 NYSE Adv/Vol/Dec 624/1.315 bln/2476 3:40 pm :
- The dollar index continued to slide lower today, which helped give a boost to some commodities
- However, oil prices sold off back below $30/barrel today following news that the meeting with Saudi Arabia and Venezuela didn't result in much
- Ultimately, Mar crude closed the day -3.8% at $29.71/barrel
- Nat gas rallied today, closing with gains of +4% to $2.14/MMBtu (Mar)
- Precious metals showed impressive gains today, closing near today's highs
- Mar silver rallied +4% to $15.44/oz while Apr gold ran +3.5% to $1197.90/oz
6:23 am Taiwan Semi comments on the February 6 earthquake in Taiwan, expects minimal impact ( TSM) :
The co announced that the earthquake of 6.4 magnitude which struck southern Taiwan at 3:57 am on February 6, 2016 did not cause any serious personnel injuries nor any structural or facility damage to the Company's Fab 14 and Fab 6 manufacturing sites in the Tainan Science Park. The earthquake also did not cause equipment to shift position.
Damage to wafers in progress remains under assessment, but TSMC's initial estimate is that more than 95 percent of the tools can be fully restored to normal in two to three days. The company is deploying personnel from Hsinchu and Taichung sites to support recovery in Tainan, and does not expect the earthquake to affect first quarter 2016 wafer shipment by more than 1 percent. ChipMOS Technologies (IMOS) confirmed that none of its employees were harmed by an earthquake that occurred at 3:57 AM local time Saturday in Southern Taiwan. Co reports only very minor impact.
3:10 am ON Semiconductor beats by $0.01, reports revs in-line; guides Q1 revs in-line ( ON) :
Reports Q4 (Dec) earnings of $0.19 per share, $0.01 better than the Capital IQ Consensus of $0.18; revenues fell 2.8% year/year to $840.3 mln vs the $839.45 mln Capital IQ Consensus. Co issues in-line guidance for Q1, sees Q1 revs of $800-840 mln vs. $839.45 mln Capital IQ Consensus Estimate.Backlog levels for the first quarter of 2016 represent approximately 80 to 85 percent of our anticipated first quarter 2016 revenue. Average selling prices for the first quarter of 2016 are expected to be down approximately two percent when compared to the fourth quarter of 2015. |
