From Briefing.com: 4:30 pm : Stocks spent most of the session plodding along the neutral line amid an absence of catalysts.
Stocks concluded the prior on a strong note as participants responded positively to gains abroad and a better-than-expected jobs report. However, there was neither strong buying abroad nor any key piece of data to provide cues for participants this morning. That kept many traders on the sidelines and left stocks to spend the session stuck in a sideways slog along the flat line.
Materials stocks managed to attract buyers, but the sector's leadership was limited by its lack of market weight. Nonetheless, the materials sector scored a 0.7% gain for the session.
Tech stocks traded with relative weakness all session long. The sector settled with a 0.5% gain as several large-cap tech plays encountered selling pressure. Semiconductors were among the sector's hardest hit issues, but only minutes after the close it was announced that Texas Instruments (TXN 34.11, -0.12) has offered to acquire National Semiconductor (NSM 14.07, -0.16) for $6.5 billion.
In other transaction-related news, Pfizer (PFE 20.54, +0.16) sold its Capsugel business to investment firm KKR (KKR 17.14, +0.23), prompting the pharmaceutical giant to pare its forecast.
Vivendi announced that it will acquire from Vodafone (VOD 29.07, -0.01) a 44% stake in French telecom play SFR for about $11.3 billion.
Outside of equities, oil prices extended their climb to a new two-year high of $108.78 per barrel in overnight trade. The commodity pulled back during pit trade, but made a late push so that it secured its best settling price, $108.47 per barrel, in more than two years.
Advancing Sectors: Materials (+0.7%), Health Care (+0.6%), Consumer Staples (+0.2%), Telecom (+0.2%), Industrials (+0.1%), Consumer Discretionary (+0.1%)
Unchanged: Energy
Declining Sectors: Tech (-0.5%), Financials (-0.1%), Utilities (-0.1%)DJ30 +23.31 NASDAQ -0.41 NQ100 -0.4% R2K +0.3% SP400 +0.1% SP500 +0.46 NASDAQ Adv/Vol/Dec 1387/1.71 bln/1230 NYSE Adv/Vol/Dec 1602/770 mln/1344
5:01PM JA Solar announces strategic partnership With Jabil (JBL) (JASO) 6.57 -0.20 : JA Solar Holdings Co., Ltd. (JASO), one of the world's largest manufacturers of high-performance solar cells and solar power products, announced that it has entered into a two-year strategic partnership with Jabil Circuit (JBL), a global electronic product solutions company headquartered in St. Petersburg, Florida. Under the partnership framework, JA Solar expects to supply Jabil with up to 400MW of solar cells over two years, as well as certified module designs to Jabil for the manufacturing of up to 200MW per year of modules with JA Solar cells. JA Solar intends to provide solar cells and additionally grant Jabil the right to manufacture JA Solar's portfolio of OEM modules at Jabil's solar facilities, including those in Mexico, Poland and China. The companies will further collaborate on marketing and selling JA Solar modules to customers, especially in the U.S. The duration of the alliance is for two years. Module production is expected to commence in Q3 of 2011.
4:18PM NVIDIA has named Bob Worrall, a Sun Microsystems executive, as its Chief Information Officer (NVDA) 17.55 -0.65 :
4:05PM National Semi to be acquired by Texas Instruments (TXN) for for $25 per share in an all-cash transaction of about $6.5 billion (NSM) 14.07 -0.16 : Texas Instruments (TXN) and NSM announced they have signed a definitive agreement under which TXN will acquire National for $25 per share in an all-cash transaction of about $6.5 billion. Under terms of the agreement, National stockholders will receive $25 in cash for each share of National common stock they hold at the time of closing. TXN expects to fund the transaction with a combination of existing cash balances and debt. The acquisition is subject to customary closing conditions, including review by U.S. and international regulators and approval by National's shareholders. The transaction is expected to close in six to nine months. Today at 5:30 p.m. EDT, TXN and National will hold a live audio webcast.
Cree, Inc. (CREE) and Osram GmbH announced the signing of a comprehensive, worldwide patent cross-license agreement. The agreement underscores each company's commitment to speeding the adoption of LED lighting while respecting the value and importance of each company's intellectual property. The cross-license agreement covers patents from both parties in the fields of blue LED chip technology, white LEDs and phosphors, packaging, LED luminaires and lamps, and LED lighting control systems.
6:04AM Advanced Micro amends wafer supply agreement with GLOBALFOUNDRIES; discloses GLOBALFOUNDRIES investment-related noncash gain of $492 mln (AMD) 8.36 : Co announces that it amended its Wafer Supply Agreement with GLOBALFOUNDRIES Inc. The primary purpose of the amendment was to revise the pricing methodology applicable to wafers delivered in 2011 for co's microprocessor and accelerated processing unit products. GLOBALFOUNDRIES has committed to provide co with, and co has committed to purchase, a fixed number of 45nm and 32nm wafers per quarter in 2011. Co currently estimates that it will pay GLOBALFOUNDRIES ~$1.1-1.5 bln in 2011 and $1.5-1.9 bln in 2012 for wafer purchases under the amended WSA. As a result of this contribution co will recognize a noncash gain in its first fiscal quarter 2011 financial results of ~$492 mln.
LDK Solar (LDK) announced the addition of one new cell manufacturing site in Hefei City, Anhui Province. The new cell plant expands LDK Solar's cell capacity to 570 MW per annum.
3:31AM Tower Semicon expects to nearly double production capacity with proposed acquisition of Micron Technology (MU) Wafer Manufacturing Plant in Japan (TSEM) 1.35 : Co announces it has signed a non-binding term sheet contemplating its purchase of Micron Technology's (MU) fabrication facility in Nishiwaki City, Hyogo, Japan. The total value of the proposed transaction, including assumed liabilities, is anticipated to ~$140 mln, of which $40 mln would be paid in cash, ~20 mln of TSEM ordinary shares would be issued to MU or its Japanese subsidiary and the remainder is assumed long-term retirement liabilities that would be payable incrementally upon employee retirements. The proposed purchase would nearly double co's current internal manufacturing capacity, cost-effectively increasing production by 60,000 wafers per month. This is expected to help position co to achieve its expressed $1 bln annual revenue run rate by 2014. |
