From Briefing.com: Weekly Recap - Week ending 10-May-13
Dow +35.87 at 15118.49, Nasdaq +27.41 at 3436.58, S&P +7.03 at 1633.7
After enduring a choppy session, the S&P 500 settled higher by 0.4% to end the week with a gain of 1.2%. The Nasdaq outperformed the benchmark average throughout the day as the tech-heavy index advanced 0.8%.
The outperformance of the Nasdaq was largely due to the relative strength of biotech as the iShares Nasdaq Biotechnology ETF (IBB 180.02, +5.13) settled higher by 2.9%. The sharp gains in biotech also provided support for the health care sector, which ended atop the leaderboard.
Meanwhile, other tech stocks traded in mixed fashion. The largest sector component, Apple (AAPL 452.97, -3.80), lost 0.8%, but many other large cap names ended with modest gains. Chipmakers also finished among the outperformers after NVIDIA (NVDA 14.54, +0.63) beat on earnings and revenue. The broader PHLX Semiconductor Index rose 0.7%.
While the Nasdaq spent the entire day in positive territory, the Dow and S&P 500 underperformed as commodity-related sectors lagged.
The energy space was the biggest laggard as the sector lost 0.5%. Lower price of crude oil contributed to the sector weakness as the energy component slipped 0.6% to $95.86 per barrel. Oil was down as much as 3.1% at the start of today's session, but was able to pare its losses intraday.
Similar to oil, metals sold off early, but regained some of their losses into the afternoon. Gold closed down 1.8% at $1442.80 per troy ounce while silver shed 0.7% to end at $23.75 per troy ounce. Copper also displayed losses early, but ended the session with a gain of 1.2% at $3.38 per pound.
The weakness in metals pressured the materials sector early on, but the group was able to climb off its lows to end flat.
Notably, the industrial sector underperformed despite the strength of transportation-related stocks. The Dow Jones Transportation Average added 0.6%.
Cyclical groups were led by the discretionary sector. Retailers outperformed notably after Gap (GPS 40.99, +2.18) reported better-than-expected April same store sales. The broader SPDR S&P Retail ETF (XRT 76.45, +1.08) settled higher by 1.4%.
Homebuilders also provided support for the discretionary sector as the SPDR S&P Homebuilders ETF (XHB 31.91, +0.44) ended higher by 1.4%.
Today's economic data was limited to the April Treasury Budget, which showed a surplus of $112.90 billion. This was better than the surplus of $112 billion expected by the Briefing.com consensus.
Week in Review: S&P 500 Climbs to New Record Highs
On Monday, April retail sales and retail sales ex-auto will be reported at 8:30 ET while March business inventories will be released at 10:00 ET. Week in Review: S&P 500 Climbs to New Record Highs On Monday, the major averages ended on a mixed note as the S&P 500 rose 0.2% while the Dow Jones Industrial Average shed five points. With no economic news of note and two major foreign markets closed (Japan and the United Kingdom), investors reacted to quarterly earnings. The now-familiar pattern of anemic top-line growth remained in effect as quarterly results from Sysco (SYY 34.20, +0.04) and Tyson Foods (TSN 24.75, -0.13) missed their marks. The results weighed on the third-best performing sector of the year as the SPDR Consumer Staples Select Sector ETF (XLP 41.16, +0.16) ended lower by 0.7%.
Tuesday saw equities settle with modest gains as the S&P 500 rose 0.5% to close at a new all-time high while the Dow notched its first close above 15,000. The energy sector charged out of the gate as EOG Resources (EOG 133.58, -2.50) displayed notable strength after beating on revenue. The growth-sensitive sector ended with a solid gain even as crude oil ended lower by 0.7% at $95.47. Most other cyclical sectors finished ahead of the broader market and the Dow Jones Transportation Average outperformed as well. The bellwether complex advanced 1.6% to a fresh record high as 18 of 20 components settled in the black.
On Wednesday, the S&P 500 settled higher by 0.4% to register its fifth consecutive gain. Cyclical sectors appeared weak during the opening minutes, but most economically-sensitive groups were able to rebound, and finish in the lead. The materials space displayed strength from the start as industrial metals traded higher after China reported a wider-than-expected trade surplus. Gains in copper were notable as the red metal advanced 1.7% to 3.361 per pound.
Thursday saw the S&P 500 register its first lower close of the week. The benchmark average sank to its lows amid afternoon speculation that a well-known reporter, who is considered to be a Fed-insider, may be hinting at changes to the Federal Reserve's quantitative easing program. Although equities fell after the rumors began making the rounds, the earlier gains were shaky at best as declining issues outpaced advancers. The CBOE Volatility Index (VIX 12.78, -0.35) settled higher after spending the entire day in positive territory, suggesting downside protection was in demand throughout the session. ..NYSE Adv/Dec 1900/1100.
| Index | Started Week | Ended Week | Change | % Change | YTD % | | DJIA | 14973.96 | 15118.49 | 144.53 | 1.0 | 15.4 | | Nasdaq | 3378.63 | 3436.58 | 57.95 | 1.7 | 13.8 | | S&P 500 | 1614.42 | 1633.70 | 19.28 | 1.2 | 14.5 | | Russell 2000 | 954.42 | 975.16 | 20.74 | 2.2 | 14.8 |
Amtech Systems (ASYS) reported second quarter loss of $0.22 per share, $0.11 better than the Capital IQ consensus of ($0.33), while revenues fell 62.4% year/year to $8.11 million versus the $9.77 million consensus.
Brooks Automation (BRKS) reported second quarter earnings of $0.01 per share, $0.03 better than the Capital IQ consensus of ($0.02), while revenues fell 16.3% year/year to $116.6 million versus the $107.95 million consensus. Revenues for the Brooks Product Solutions segment increased 36.2% sequentially due to overall industry recovery in the second quarter of fiscal 2013. Revenues for the Brooks Global Services segment increased 4.4% on a sequential basis compared to the fiscal first quarter of 2013. Revenues for the Brooks Life Science Systems segment declined sequentially to $9.1 million compared to $14.1 million for the prior quarter. Order bookings for the second quarter of fiscal 2013 increased sequentially 31.0% to $121.3 million, compared to order bookings in the fiscal first quarter of 2013 of $92.6 million. The company issued downside guidance for the third quarter with adjusted EPS $0.01-0.05 versus the $0.11 Capital IQ consensus and revenues of $116-124 million versus the$128.93 million Capital IQ consensus.
Universal Display (PANL) reported first quarter GAAP loss of $0.10 per share, $0.02 worse than the GAAP Capital IQ consensus of ($0.08), while revenues rose 18.9% year/year to $14.98 million versus the $14.35 million consensus. The company reaffirmed guidance for fiscal year 2013 with revenues of $100-125 million versus the$117.81 million Capital IQ consensus. "Commercial material revenues were up 40% in the first quarter as we began shipping production quantities of both green emitter and host materials...With two different color materials shipping at production volumes, we now have more than twice as much content in commercial products than at any previous point in the company's history. As we build our organization to capitalize on this emerging market, we believe we can achieve attractive gross margins and leverage our fixed infrastructure to create excellent returns for shareholders." FY13 Guidance Details: The company's arrangement with SDC provides a substantial amount of visibility into its potential future financial performance. Although the OLED industry is still at a stage where many variables can have a material effect on growth, in an effort to increase our transparency, Universal Display is providing the following financial guidance. Again with the caveat that the OLED industry is still in an early stage, the company believes that its revenues will be in the range of $110 million to $125 million for fiscal 2013.
NVIDIA (NVDA) reported first quarter earnings of $0.13 per share, $0.03 better than the Capital IQ consensus of $0.10;, while revenues rose 3.2% year/year to $954.7 million versus the $940.38 million consensus. The company issued downside guidance for the second quarter revenues of $955.6-994.5 million versus the $1 billion Capital IQ consensus Estimate; gross margin flat QoQ (54.3% GAAP). "The success of Kepler-based GPUs within and beyond the PC helped drive another quarter of record margins. Kepler is capturing share among gamers, strengthening our workstation and supercomputing segments, and will fuel new growth opportunities for our GRID server graphics solutions. With Tegra 4 devices and Tegra 4i certification on the way, we're gearing up to return to growth in the second half."
Priceline.com (PCLN) reported first quarter earnings of $5.76 per share, $0.47 better than the Capital IQ consensus of $5.29, while revenues rose 25.6% year/year to $1.3 billion versus the $1.28 billion consensus. Non-GAAP gross profit for the 1st quarter was $1.03 billion, a 38.6% increase from the prior year. Non-GAAP net income in the 1st quarter was $297 million, a 34.6% increase versus the prior year. "Unit growth in the Priceline Group's global hotel business held steady in the 1st quarter at 38% versus the prior year," said Jeffery H. Boyd, Chairman and CEO of The Priceline Group. "International gross bookings growth of 43% in the 1st quarter reflects continued strong performance of our international brands around the world. Domestic gross bookings growth accelerated in the quarter with improving results in our hotel and rental car businesses, aided by the roll out last year of our Express DealsSM semi-opaque service." The Priceline Group said it was targeting the following for 2nd quarter 2013: Year-over-year increase in total gross travel bookings of approximately 30% - 37% (an increase of approximately 27% - 34% on a local currency basis). Year-over-year increase in international gross travel bookings of approximately 36% - 43% (an increase of approximately 33% - 40% on a local currency basis). Year-over-year increase in domestic gross travel bookings of approximately 5% - 10%. Year-over-year increase in revenue of approximately 15% - 22% (Approxately $1.524-1.591 billion Capital IQ consensus $1.636 billion). Year-over-year increase in gross profit of approximately 26% - 33%. Adjusted EBITDA of approximately $560 million to $595 million. Non-GAAP net income per diluted share between $8.87 and $9.45, Capital IQ consensus $9.60
1:29 pm Tech Sector trading +0.4% and outpacing the broader market
The tech sector is trading higher today, just ahead of gains in the broader market. Semiconductors are showing relative strength with the SOX trading 0.6% higher. Within the chip index, NVDA (+3.2%) is a notable standout. Among other major indices, the SPY is trading 0.2% higher today, while the QQQ and the NASDAQ are trading 0.5% higher on the session. Among tech bellwethers, GOOG (+0.9%) is showing notable strength, while AAPL (-0.1%) is under slight pressure. |
