From Briefing.com: 4:10 pm : Stocks began today's session on a higher note. However, the S&P 500 followed the early strength with a slide into the red. After hovering near its lows for little over an hour, the index staged a steady climb towards fresh session highs. The benchmark average followed the early afternoon strength with another slide towards its flat line, where it remained until the end of the day. Today's volume was well below average and the bond market was closed in observance of Veterans Day.
High-yielding telecom stocks have been under pressure during the past week. Today, the sector was the top performer. Within the space, Telephone & Data Systems (TDS 23.38, +0.81) advanced 3.6% after Citigroup upgraded the stock to ‘buy' from ‘neutral.'
Elsewhere in telecommunications, AT&T (T 33.87, +0.33) added 1.0% after announcing the company will subsidize the Apple (AAPL 542.83, -4.23) iPad. Meanwhile, Sprint Nextel (S 5.61, +0.06) also saw relative strength as the stock settled higher by 1.1%.
On the downside, Inteliquent (IQNT 2.96, -0.55) fell 15.7% after Morgan Stanley downgraded the stock to ‘equal-weight' from ‘overweight.'
Looking at today's M&A activity, Jefferies Group (JEF 16.27, +2.00) gained 14.0% after confirming plans to merge with Leucadia National (LUK 21.14, -0.66). Per the agreement, Jefferies stockholders will receive 0.81 of a share of LUK for each share of JEF owned. Following the transaction, Jefferies shareholders will hold 35.3% of Leucadia common stock.
In the materials sector, Titanium Metals (TIE 16.50, +4.93) surged 42.6% after being acquired by Precision Castparts (PCP 179.48, +8.15) for $16.50 per share. The purchase price represents a 42.6% premium to TIE's Friday closing price, and the total transaction is valued at approximately $2.9 billion.
In the health care space, biotechnology names led the group higher following positive trial data. Celgene (CELG 75.66, +4.16) surged 5.8% after its Phase III trial of Abraxane in the treatment of pancreatic cancer showed a statistically significant survival benefit.
Meanwhile, Gilead Sciences (GILD 73.92, +8.91) spiked 13.7% after reporting a 100% sustained virologic response rate for an Interferon-free regimen of Sofosbuvir and Ribavirin in treatment of Hepatitis C patients.
Homebuilders were broadly weaker and the SPDR S&P Homebuilders ETF (XHB 25.29, -0.38) shed 1.5%. Earlier, DR Horton (DHI 19.40, -1.20) reported mixed quarterly results. During the fourth quarter, the homebuilder earned $0.30 on $1.3 billion in revenue. The company's bottom line exceeded the Capital IQ consensus estimate by $0.01, while its revenue fell short of expectations. In addition, DHI reported a 61.0% increase in the value of its backlog. The account is currently valued at $1.7 billion, up from $1.0 billion during the same period last year. Shares of DR Horton slid 5.8% after trading higher at the start of the session.
Elsewhere, Beazer Homes (BZH 13.77, -2.87) slumped 17.3% after reporting a fourth quarter loss of $2.57 on $370.9 million in revenue. The company management commented on the quarter by saying, "Operationally, we generated significant growth in orders, closings and backlog, while seeing improving trends in gross margins. From a balance sheet perspective, we added liquidity, improved our book value, extended debt maturities and reduced interest expense. While our community count will likely decrease for much of the year, we are actively investing in a substantial number of new communities, which we expect to deliver closings starting in fiscal year 2014."
The Dow Jones Transportation Average outperformed the remaining industrials. The bellwether complex rose by 0.8% and 17 group components saw gains. Trucking stocks outperformed as Con-way (CNW 28.32, +0.62) and JB Hunt (JBHT 60.04, +1.38) settled higher by 2.2% and 2.4%, respectively. Railroads were also notably stronger. Kansas City Southern (KSU 77.31, +0.40) advanced 0.5% and Union Pacific (UNP 121.77, +1.52) gained 1.3%.
Tomorrow's economic data is limited to the October Treasury Budget, which will be released at 14:00 ET.DJ30 -0.23 NASDAQ -0.61 SP500 +0.15 NASDAQ Adv/Vol/Dec 1122/1.33 bln/1306 NYSE Adv/Vol/Dec 1419/291.9 mln/1549
3:30 pm : Commodities were mixed between the energy, metals and agriculture sectors today.
Dec crude oil was choppy today and traded in an approx. $1 range (~$85.40-86.40). The actual LoD in crude was at $85.33 and by the end of the day crude rose modestly higher from there, ending the day $0.47 higher at $85.56/barrel.
Dec natural gas basically gained steam in early morning trade and continued to extend its gains throughout the day. Dec nat gas ultimately rose as high as $3.59/MMBtu.
Gold pulled-back off its session high of $1738.00 and inched lower into negative territory. It brushed a session low of $1725.20 in early afternoon action but then trended higher for the remainder of floor trade. It managed to erase most of its loss and settled just 10 cents below the unchanged level. Silver followed suit as it fell off its pit session high of $32.67 and brushed a session low of $32.17. Buyers stepped in ahead of the session close and pushed prices back towards the breakeven level such that silver closed just 0.2% lower.
In the ag space, grains fell sharply, led by wheat. Dec corn ended the day 2.7% lower at $7.17/bushel, Dec wheat ended 3.3% lower at $8.58/bu and Jan soybeans finished 3.2% lower at $14.05/buDJ30 +6.68 NASDAQ -0.11 SP500 +0.58 NASDAQ Adv/Vol/Dec 1143/1131.3 mln/1260 NYSE Adv/Vol/Dec 1364/182 mln/1566
4:08PM Verizon announces $8.5 billion in distributions to Verizon and Vodafone by Year-End 2012 ( VZ) 42.56 -0.08 :
- Co announced that its Board of Representatives has declared distributions aggregating $8.5 billion to its owners, which are payable on or prior to December 31, 2012. The distributions will be paid in one or more tranches, with each tranche paid in proportion to the owners' partnership interests on the payment date.
- Verizon Wireless is a joint venture between Verizon Communications Inc., which owns 55 percent of the partnership, and Vodafone Group Plc (VOD), which owns 45 percent of the partnership.
HTC and Apple (AAPL $550.80 +3.76) have reached a global settlement that includes the dismissal of all current lawsuits and a ten-year license agreement. The license extends to current and future patents held by both parties. The terms of the settlement are confidential.
Trina Solar (TSL $3.65 +0.00) announced today the following updates to its previous guidance for the quarter ended September 30, 2012. The Company estimates its solar module shipments in the third quarter of 2012 to be between 375 MW and 385 MW, compared to the Company's previous guidance of between 450 MW and 480 MW. Additionally, for the third quarter of 2012, the Company estimates that overall gross margin, including the impact of a provision for a non-cash inventory write-down and a reversal of prior provisions for anti-dumping and countervailing duties in the United States, to be between 0% and 1.5%, compared to the Company's previous guidance of middle-single digits in percentage terms. The Company will confirm or revise its previous shipment guidance of between 1.75 to 1.8 GW for the full year 2012 during its third quarter 2012 earnings conference call. "Our third quarter sales were adversely impacted by a continued supply-demand imbalance in the global PV industry, high inventory levels and irrational pricing practices by some competitors in the market," said Mr. Jifan Gao, Chairman and CEO of Trina Solar.
Red Hat (RHT $48.34 +0.00) target lowered to $60 from $65 at BMO Capital Markets. The firm notes they worry about the overall weak IT spending backdrop, and they are concerned that continued weakness in the underlying server market could skim off several points of billings growth for co in the coming quarters.
08:48 am Trina Solar shares little changed following lowered shipment guidance
Trina Solar (TSL $3.65 +0.00) announced the following updates to its previous guidance for the quarter ended September 30, 2012. The Company estimates its solar module shipments in the third quarter of 2012 to be between 375 MW and 385 MW, compared to the Company's previous guidance of between 450 MW and 480 MW. Additionally, for the third quarter of 2012, the Company estimates that overall gross margin, including the impact of a provision for a non-cash inventory write-down and a reversal of prior provisions for anti-dumping and countervailing duties (ADCVD) in the United States, to be between 0% and 1.5%, compared to the Company's previous guidance of middle-single digits in percentage terms. The Company will confirm or revise its previous shipment guidance of between 1.75 to 1.8 GW for the full year 2012 during its third quarter 2012 earnings conference call. "Our third quarter sales were adversely impacted by a continued supply-demand imbalance in the global PV industry, high inventory levels and irrational pricing practices by some competitors in the market," said Mr. Jifan Gao, Chairman and CEO of Trina Solar.
08:40 am Apple shares little changed following settlement with HTC
HTC and Apple (AAPL $550.86 +3.80) have reached a global settlement that includes the dismissal of all current lawsuits and a ten-year license agreement. The license extends to current and future patents held by both parties. The terms of the settlement are confidential. |
