From Briefing.com: 4:20 pm : Stocks began today's session on a negative note, and finished on their lows. Overnight reports from Europe indicated the International Monetary Fund and the Eurozone finance ministers agreed on the terms of the next installment of Greek aid. As part of the agreement, the country's debt-to-GDP ratio is expected to decline from 190% in 2014 to 124% in 2020. The news did little to inspire investor confidence as the markets are beginning to doubt the sovereign's ability to reach the lofty goals. Instead, market participants remained focused on Washington where Senator Harry Reid said little progress has been made in budget negotiations. After the Senate majority leader's comments, the S&P 500 fell to session lows from its flat line. The index declined further when a final round of selling pressured it to a loss of 0.5%.
The utilities sector appears poised for a rebound after enduring a rough month. Yesterday, utility stocks gained 1.3% on the strength of electricity providers after Deutsche Bank upgraded Exelon (EXC 29.76, +0.44). Today, the story repeated as the sector registered gains after ISI Group upgraded Exelon to ‘buy' from ‘neutral.' Exelon added 1.5% and other electricity providers caught a bid as well. NV Energy (NVE 18.31, +0.25), UNS Energy (UNS 41.30, +0.76), and PPL (PPL 28.81, +0.37) all gained between 1.4% and 1.9%.
Technology stocks performed largely in-line with the broader market, but Apple (AAPL 584.78, -4.75) underperformed with a loss of 0.8%. Earlier, the company fired the manager responsible for the issues with its map service.
Also of note, Seagate (STX 25.95, -1.39) slid 5.1% after company insiders exercised their options and sold stock. The news was a negative for Seagate as the company was seen as a potential takeover target. Stock sales by insiders suggest a deal is far from being completed. Western Digital (WDC 34.69, -1.12) fell 3.1% in sympathy.
The consumer staples sector outperformed the broader market, and the SPDR Consumer Staples Select Sector ETF (XLP 35.38, -0.03) shed 0.1%. Among food producers, ConAgra (CAG 29.63, +1.34) rose by 4.7% after announcing plans to acquire Ralcorp (RAH 88.80, +18.57) for $90 per share. This represented a 28.2% premium to RAH's Monday closing price.
Elsewhere, Monster Beverage (MNST 51.96, +6.09) advanced 13.3%. Earlier, a letter sent from the Federal Drug Administration to Illinois Senator Dick Durbin indicated the regulatory body is conducting an investigation into the potential danger of Monster products as well as the possible need for increased regulation. However, the FDA said it does not see a problem with taurine and guarana, which are the two main additives in energy drinks.
A handful of footwear manufacturers saw strength after Goldman initiated coverage on two stocks. Crocs (CROX 13.49, +1.14) gained 9.2% after being assigned a ‘buy' rating. Meanwhile, Deckers Outdoor (DECK 36.27, +1.02) settled higher by 2.9% after receiving a ‘neutral' grade.
Elsewhere, Skechers (SKX 19.70, +0.64) rose by 3.4% while K-Swiss (KSWS 3.09, +0.11) surged 3.7%.
Looking at notable names which reported earnings since yesterday's close, ADT (ADT 43.57, +0.47) added 1.1% despite delivering disappointing quarterly results. The security company's earnings missed the Capital IQ consensus estimate by $0.01, while its revenue of $812 million fell short of the expected $819.85 million.
Separately, Thor (THO 38.60, -5.00) sank 11.5% after reporting first quarter earnings of $0.60 on $875.6 million in revenue. The company's bottom line fell short of analyst estimates by $0.03 while its revenue was reported in-line with expectations. Peer Winnebago (WGO 13.90, -0.13) slipped 0.9%.
Reviewing today's economic news, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected by the Briefing.com consensus. This followed the previous month's increase of 2.0%.
The latest consumer confidence reading for November came in at 73.7, while economists polled by Briefing.com expected a reading of 73.0. Today's figure follows last month's reading of 72.2.
Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month.
Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected among economists polled by Briefing.com. This follows the downwardly revised prior month increase of 9.2%. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.
In tomorrow's economic data, the weekly MBA Mortgage Index will be reported at 7:00 ET. In addition, October new home sales and the October Beige Book will be released at 10:00 ET and 14:00 ET, respectively.
The U.S. Treasury will auction off $35 billion in 5-yr notes.DJ30 -89.24 NASDAQ -8.99 SP500 -7.35 NASDAQ Adv/Vol/Dec 1114/1.69 bln/1342 NYSE Adv/Vol/Dec 1339/689.4 mln/1711
3:30 pm : Crude oil struggled in negative territory as a stronger dollar following better-than-anticipated U.S. economic data put pressure on prices. It broke into positive territory after dipping as low as $86.86 per barrel in morning pit action. However, the effort was short lived, and the energy component settled 0.6% lower at $87.19 per barrel.
Precious metals were also under pressure from the stronger dollar index. Gold trended lower into the red after it retreated from its session high of $1749.20 per ounce set moments after floor trade opened. It brushed a session low of $1741.20 per ounce moments before settling with a 0.4% loss at $1743.30 per ounce. Despite touching a session high of $34.16 per ounce in early morning pit action, silver fell into negative territory and struggled there for the remainder of its session. It dipped to a session low of $33.91 per ounce and like gold, settled 0.4% lower at $33.99 per ounce.
Natural gas slid off its session high of $3.91 per MMBtu into the red where it chopped around in morning pit action. However, buyers stepped in and took prices back above the break-even level. Natural gas managed to sustain the gain and eventually settled 0.5% higher at $3.89 per MMBtu.DJ30 -50.01 NASDAQ -0.24 SP500 -3.06 NASDAQ Adv/Vol/Dec 1209/1419.7 mln/1229 NYSE Adv/Vol/Dec 1505/460 mln/1492
1:42PM Hewlett-Packard issues statement regarding open letter from Mike Lynch: Co has initiated an intense internal investigation ( HPQ) 12.55 -0.19 : Co issued the following statement in response to Mike Lynch's open letter to the HP board:
"HP has initiated an intense internal investigation into a series of accounting improprieties, disclosure failures and outright misrepresentations that occurred prior to HP's acquisition of Autonomy. We believe we have uncovered extensive evidence of a willful effort on behalf of certain former Autonomy employees to inflate the underlying financial metrics of the company in order to mislead investors and potential buyers. The matter is in the hands of the authorities, including the UK Serious Fraud Office, the US Securities and Exchange Commission's Enforcement Division and the US Department of Justice, and we will defer to them as to how they wish to engage with Dr. Lynch. In addition, HP will take legal action against the parties involved at the appropriate time. While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders. In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury."
LTX-Credence (LTXC) announced that Giga Solution Tech. has purchased multiple PAx testers for volume production testing of RF components including multiband and multimode RF power amplifiers, advanced front end modules and 802.11ac devices.
Riverbed Technology (RVBD) announced that Riverbed and Amazon (AMZN) Web Services have collaborated to deliver cloud performance and data protection solutions to enterprise customers.
8:05AM Corning sees fourth-quarter outlook for LCD glass volume approaching $1 billion ( GLW) 11.35 : Senior Vice President and Corporate Controller Tony Tripeny will update investors at the Credit Suisse Annual Technology Conference on the company's fourth-quarter performance expectations. Highlights of Tripeny's presentation will include:
- Expectations for "stronger-than-forecasted" fourth-quarter LCD glass volume and full-year sales of Corning Gorilla Glass approaching $1 billion.
- Tripeny will tell investors that stronger-than-expected retail demand for LCD televisions and other consumer electronics devices in North America and China are resulting in an improved view of the LCD glass supply chain. "
- We now expect glass market volume to be up in the low single digits this quarter, versus our previous expectation of down low-to-mid single digits,"
- "Corning's total LCD glass volume at its wholly owned business and Samsung Corning Precision Materials Co., Ltd., should be up in the mid-single digits sequentially."
- Tripeny will explain that North American TV sales are stronger than the company expected in the fourth quarter, the Chinese market continues to experience good demand, and the supply chain is preparing for the upcoming Chinese New Year holiday.
- He will reaffirm that Corning expects LCD glass price declines in the fourth quarter to be slightly higher than those in the third quarter, a result of the company's new agreements with key customers.
- Looking forward, Tripeny will tell investors, "We expect our share of the LCD glass market to remain stable at quarter four levels as a result of the long-term supply agreements we entered into last quarter, and we anticipate price declines will be moderate in the first quarter."
Rudolph Technologies (RTEC) announced the sale of its Genesis Enterprise yield management software to a manufacturer of high definition displays for hand-held devices.
Still doing my part to aid the economy. All the younger generation was discussing was Apple this and "i" that at Thanksgiving. No one even glanced twice at my new laptop. So what... I ordered and additional AC adapter and the 16 GB of memory. This box runs ultra cool. I almost miss the old laptop on these cool winter days. LOL
RtS |
