From Briefing.com: 4:35 pm : Despite mediocre data, the Dow and the S&P 500 made their way to fractionally improved 52-week highs amid modest support. Stocks were generally flat in the early going.
Participants showed little reaction to news that advance retail sales for December decreased 0.3%, which was weaker than the 0.5% increase that had been expected. Sales less autos decreased 0.2%, but that was also worse than the 0.3% increase that many had forecast. The figures were underwhelming, but many attributed the drop to the previous month's 1.8% spike in retail sales and 1.9% jump in sales less autos.
Still, the reversal in retail sales suggests that all isn't well in the economic recovery. To that point, the latest initial jobless claims tally increased 11,000 from the previous week to 444,000. That was balanced by a larger-than-expected drop by continuing claims to 4.60 million, though lower continuing claims have stemmed from the expiration of jobless benefits.
In other economic news, the Import Price Index for December was flat month-over-month, as expected.
Despite lackluster action in the early going, Intel (INTC 21.48, +0.52) provided leadership to the tech sector ahead of its latest quarterly report. Tech finished the session with a 0.7% gain, but other semiconductor stocks slipped 0.6%, collectively.
Regional bank stocks climbed 2.4% to help the financial sector finish with a 0.6% gain. Support for regional lenders came amid speculation that proposals to slap banks with fees for risk taking would be focused on larger lenders.
Upward momentum from the previous session helped health care stocks finish with a 0.8% gain, which made for the best performance of any major sector.
Continued weakness in AT&T (T 26.19, -0.45) and Verizon (VZ 31.22, -0.65) took telecom down 1.8%. That came in addition to the sector's 0.4% slip in the previous session, when it was the only sector to log a loss. Telecom stocks are now down 5.1% since the start of the year, worse than any other sector.
Materials stocks were also weak this session, though. The sector shed 1.0% as Monsanto (MON 82.79, -1.16) moved lower amid confirmation that the Justice Dept. has confirmed that it is investigating the possibility of anticompetitive practices in the seed industry.
Still, strength among health care, tech, and financials, the three largest sectors by market weight, lifted the broader market to a modest gain, which marked its seventh advance in eight sessions.
Despite that accomplishment, conviction appears questionable as fewer than 1 billion shares traded hands on the NYSE once again.
Advancing Sectors: Health care (+0.8%), Tech (+0.7%), Financials (+0.6%), Energy (+0.2%)
Declining Sectors: Telecom (-1.8%), Materials (-1.0%), Utilities (-0.3%), Industrials (-0.1%), Consumer Staples (-0.1%)
Unchanged: Consumer StaplesDJ30 +29.78 NASDAQ +8.84 NQ100 +0.0% R2K +0.5% SP400 +0.2% SP500 +2.78 NASDAQ Adv/Vol/Dec 1561/2.29 bln/1105 NYSE Adv/Vol/Dec 1727/888 mln/1290
4:32PM STMicroelectronics announces the repurchase of a portion of its zero coupon senior convertible bonds due 2016 (STM) 9.12 +0.02 : The co announces that it has completed a program to repurchase a portion of its outstanding Zero Coupon Senior Convertible Bonds due 2016 ("2016 Bonds"). A total of $298,174,000 nominal value of 2016 Bonds were repurchased representing approximately 30.6% of the total amount originally issued. Beginning in December 2009, the 2016 Bonds were purchased in off market transactions by financial intermediaries, acting as agents for ST. The Company paid $314.6 million from outstanding cash to repurchase 2016 Bonds with an accreted value of $316.0 million. The repurchased Bonds will be cancelled in accordance with their terms.
4:20PM Intel beats by $0.10, beats on revs; guides Q1 revs and margins; midpoint of guidance above consensus (INTC) 21.48 +0.52 : Reports Q4 (Dec) earnings of $0.40 per share, $0.10 better than the First Call consensus of $0.30; revenues rose 28.5% year/year to $10.57 bln vs the $10.17 bln consensus. Reports Q4 gross margin of 65% vs 62.2% consensus. Co issues guidance for Q1, sees Q1 revs of $9.3-10.1 bln vs. $9.35 bln consensus. INTC sees Q1 gross margins in the range of 59-63% vs 58.8% consensus; guides FY10 gross margins of 58-64% vs 59.7% First Call consensus. FY10 Capital spending is expected to be $4.8 billion, plus or minus $100 million. "Intel's strong 2009 results reflect our investment in industry-leading manufacturing and product innovation... This strategy has enabled us to generate unprecedented operating efficiencies while growing our traditional businesses and creating exciting new market opportunities, even in difficult economic times. Our ability to weather this business cycle demonstrates that microprocessors are indispensable in our modern world. Looking forward, we plan to deliver the benefits of computing to an expanding set of products, markets and customers."
4:20PM Intel testing $22 after reporting earings, pushing further into 52-week highs (INTC) 21.48 +0.52 : There is resistance from 2006 at 22.30-$22.50
4:15PM Integrated Device acquires Mobius Microsystems (IDTI) 6.76 +0.07 : The co announces announced it has acquired Mobius Microsystems, the leader in precision all-silicon oscillator technology . The transaction, which closed today, January 14, 2010, is an all-cash agreement for the outstanding Mobius shares. The agreement has already received appropriate board approvals.
1:14PM Solars getting hit here -- FSLR, YGE, STP, CSIQ, CSUN, JASO, SOLF (FSLR) 128.69 -3.36 : Solars have been weaker this morning due to stories making the rounds that Germany will implement its Feed In tariff sooner than expected (April against mid June) and also at a higher level (16-17% discussed against 10% expected).
Skyworks Solutions, Inc. (SWKS) announced that Google (GOOG) Nexus One mobile phone is leveraging several of its highly integrated power amplifier modules. These 3G solutions were incorporated in the Google platform as part of HTC Corporation's reference design.
8:06AM Canadian Solar announces joint venture and distribution deal with West Holding of Japan (CSIQ) 30.74 : The co announces a joint venture and an 18 MW distribution deal with West Holding Ltd of Japan. The agreement stipulates a transfer of 14% of the shares in Canadian Solar Japan, which is the Japanese subsidiary of Canadian Solar Inc., to West Holding Ltd. Canadian Solar retains the remaining 86%. West Holding Ltd will distribute and sell solar residential rooftop systems designed by Canadian Solar Japan. The sales target for 2010 is approximately 18 MW. Deliveries began in December 2009.
6:01AM Ixia Inside raises Q4 revenue guidance and announces cost reduction initiative following N2X acquisition (XXIA) 7.44 : Co raises guidance for Q4 (Dec), sees Q4 (Dec) revs of $54-56 mln vs. $52.93 mln First Call consensus. This is up from $50 mln to $54 mln. The co also announced today a company-wide restructuring initiative estimated to yield annual cost savings of approx $11 mln. The cost savings announced today result mainly from the elimination of duplicate resources that arose from the October N2X product line acquisition. In addition to these direct cost savings, the company expects to realize scale efficiencies in its supply chain and administrative functions from the N2X acquisition and the acquisition of Catapult Communications. The restructuring plan includes a reduction in staffing that commenced in the first quarter of 2010 and should be complete by June 30, 2010. The company will record a charge for severance and other related costs of approx $3 to $4 mln on a pre-tax basis to reflect the impact of this restructuring. Approximately 80 positions will be eliminated.
09:38 am Advanced Micro upgraded to Buy at Broadpoint AmTech Research; tgt raised to $10: . Broadpoint AmTech Research upgrades AMD to Buy from Neutral and raises their tgt to $10 from $5.80 as the recent positive events (Analyst Day/INTC settlement/capital structure) lead the firm to believe that AMD's risk/reward is now compelling. The firm notes that AMD's capital structure improved as a result of INTC's $1.25 bln settlement and yesterday's announcement of debt restructuring actions. The firm believes that AMD's debt of ~$3.7 bln will be reduced by ~25%, while also lowering interest expense slightly less, ~20%. Should Global Foundries and ATIC's chartered purchase be consolidated, the firm believes that they could see deconsolidation in the following 3-6 months. Furthermore, the firm feels that revenue growth in the coming quarters will prove to be stronger than the Street is modeling, driven by: a healthy Win7 cycle; leadership in the Evergreen GPU platform; more focused marketing; and possible tailwind from INTC settlement headlines entering the selling season. |
