From Briefing.com: There wasn't a lot of corporate news driving the S&P 500 information technology sector on Monday, yet there was a good bit of buying interest that drove it late. To wit, the sector was down 0.2% with an hour left to go in the session and it ended Monday's trading up 1.0%.
There wasn't a specific news item driving the late surge, yet all sector boats rose with the tide in what had the semblance of being program trading activity.
Notably, the late push was led by many of the cyclical sectors, which underperformed in January. The energy sector (+3.0%), which enjoyed continued gains in oil prices (+2.8% to $49.57/bbl) on Monday, led all sectors and was followed by the telecommunication services (+2.4%) and financial (+1.6%) sectors.
Some of the more notable news items from the S&P 500 information technology sector included:
Apple (AAPL 118.63, +1.47, +1.3%): Bolstered by strong demand, Apple boosted a debt offering from $5.0 billion to $6.5 billion. The company said it intends to use the net proceeds from sales of the notes for general corporate purposes, including repurchases of its common stock and payment of dividends under its program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt. Separately, Apple announced it is going spend $2 billion to build a global command center in Arizona, according to a CNBC report.
Electronic Arts (EA 54.97, +0.10, +0.2%): COO, CAO & EVP sold ~118K shares at $54.77-55.00 worth ~$6.50 mln
Fiserv (FISV 73.44, +0.91, +1.3%): announced that Citizens Bank has renewed its agreement with Fiserv for multiple digital payment capabilities, signing a seven-year extension for CheckFree RXP, Popmoney, and TransferNow, as well as the small business versions of each of these services.
Intel (INTC 33.65, +0.61, +1.9%): has signed a definitive agreement to acquire Lantiq, a supplier of broadband access and home networking technologies. The transaction is subject to customary closing conditions and regulatory approvals. The transaction is expected to close in approximately 90 days. Deal terms were not disclosed.Yahoo (YHOO 44.69, +0.69, +1.6%): Barron's profiled positive view on Yahoo and view that company may be takeover target.Elsewhere in the technology arena:
Advanced Micro Devices (AMD 2.67, +0.10, +3.9%): Barron's profiled positive view on company
Arrow Electronics (ARW 55.26, +0.22, +0.4%): has acquired RDC, a wholly owned subsidiary of Computacenter UK Ltd, for ~$84 mln
FireEye (FEYE 34.36, +0.55, +1.6%): Benefited along with some other IT security companies from news that President Obama's FY16 budget proposal calls for $14 billion for cybersecurity, up $1.0 billion from FY15
Analyst Action:
Alibaba (BABA 90.13, +1.05, +1.2%): Oppenheimer lowered its BABA target to $112 from $133 on lower estimates
MasterCard (MA 82.98, +0.95, +1.2%): target lowered to $108 at RBC Capital Markets... target lowered to $100 from $105 at Deutsche Bank; Buy... target lowered to $100 from $105 at Barclays; Overweight
Western Union (WU 17.41, +0.41, +2.4%): downgraded to Underweight from Equal Weight at Morgan Stanley (Disclosure: Briefing.com has a business relationship with Yahoo)
4:10 pm : The stock market began the new trading week on a higher note. The S&P 500 spiked 1.3% while the Nasdaq (+0.9%) and Russell 2000 (+0.9%) underperformed.
Overall, the Monday session was fairly quiet with the market spending some time on each side of its unchanged level. The S&P 500 began with a slim gain, but relative weakness among high-beta biotechnology and chipmaker names kept heavily-weighted health care (+0.6%) and technology (+1.0%) sectors on the defensive. The S&P 500 tried to overcome that weakness, but was rebuffed by its 100-day moving average in the 2,010 area. However, a second effort in the late afternoon sent the S&P 500 well above the 100-day average to end the day.
All ten sectors finished in the green with energy (+3.0%) spending the entire session in the lead. The sector benefitted from a 2.8% advance in crude oil ($49.59/bbl) while also drawing strength from ExxonMobil (XOM 89.58, +2.16). Shares of XOM jumped 2.5% in reaction to better than expected earnings thanks to a $1 billion non-cash windfall resulting from deferred tax items and a favorable ruling for expropriated Venezuela assets.
Elsewhere among cyclical sectors, financials (+1.6%) and industrials (+1.5%) displayed relative strength throughout the day after posting respective losses of 7.0% and 3.7% in January. Meanwhile, the top-weighted technology sector (+1.0%) spent the day behind the broader market, but narrowed the gap during afternoon action.
For the most part, large cap tech names fared well, but Google (GOOGL 532.20, -5.35) and Facebook (FB 74.99, -0.92) lost 1.0% and 1.2%, respectively. Similarly, chipmakers struggled as a group, which limited the PHLX Semiconductor Index to an uptick of 0.3%.
The underperformance of semiconductor names kept the Nasdaq behind the broader market, but so did biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 319.58, -2.07) lost 0.6% while the health care sector advanced 0.6%.
Similar to health care, the utilities sector (+0.4%) underperformed while consumer staples (+1.3%) and telecom services (+2.5%) fared well.
Treasuries registered modest losses with the 10-yr yield climbing three basis points to 1.68%.
Economic data included Personal Income/Spending data, ISM Index, and Construction Spending:
- Personal income increased 0.3% for a second consecutive month in December following a negative revision (from 0.4%) in November while the Briefing.com consensus expected personal income an increase of 0.3%
- Personal spending declined 0.3% after increasing a downwardly revised 0.5% (from 0.6%) in November while the consensus expected a decrease of 0.3%
- The ISM Manufacturing Index dropped to 53.5 in January from 55.1 in December while the Briefing.com consensus expected a decline to 54.7
- Production growth decelerated as the related index fell to 56.5 in January from 57.7 in December. The drop coincided with a decline in new orders (52.9 from 57.8) and a large contraction (46.0 from 52.5) in unfilled orders
- Construction spending increased 0.4% in December after declining an upwardly revised 0.2% (from -0.3%) in November while the Briefing.com consensus expected an increase of 0.8%
Tomorrow, the Factory Orders report for December will be released at 10:00 ET (Briefing.com consensus -2.0%).
- Nasdaq Composite -1.3% YTD
- S&P 500 -1.9% YTD
- Russell 2000 -2.4% YTD
- Dow Jones Industrial Average -2.6% YTD
DJ30 +196.09 NASDAQ +41.45 SP500 +25.86 NASDAQ Adv/Vol/Dec 1841/1.83 bln/1115 NYSE Adv/Vol/Dec 2284/886.2 mln/828 3:40 pm :
- WTI crude oil extended Friday's rally and is now up $5 or 11.1% in the last two trading sessions, getting a boost today from some refinery employees being on strike in the U.S.
- Natural gas was in the red today and finished the session $0.01 lower at $2.68/MMBtu
- Precious metals were largely flat today, with Feb gold falling $1.50 to $1277.40/oz and Mar silver gaining $0.04 to $17.25/oz
- Mar copper ended unchanged at $2.49/lb
4:12 pm Advanced Energy beats by $0.10, beats on revs; guides Q1 EPS above consensus, revs in-line ( AEIS) :
Reports Q4 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.40; revenues rose 0.1% year/year to $152.7 mln vs the $146.34 mln consensus.
Co sees Q1 EPS of $0.38-0.46 vs. $0.37 Capital IQ Consensus Estimate; sees Q1 revs of $137-147 mln vs. $142.95 mln Capital IQ Consensus Estimate.
"Our investment in new semiconductor products targeting key technology inflection points is enabling accelerated growth in existing and new applications, and drove record revenues for the quarter. Having made three strategic acquisitions in the last 12 months, we have entered several new and adjacent industrial markets, expanding our total available market and increasing our diversification. We are in the process of evaluating strategic alternatives for our solar inverter business given some of the near-term challenges facing the industry. With a strong pipeline of opportunities and choices for our business, we believe that we are well positioned for 2015."
4:10 pm Nanometrics beats by $0.03, beats on revs; guides Q1 EPS in-line, revs above consensus ( NANO) : Reports Q4 (Dec) loss of $0.12 per share, $0.03 better than the Capital IQ Consensus Estimate of ($0.15); revenues fell 13.9% year/year to $39.7 mln vs the $37.89 mln consensus.
Guidance: Co issues mixed guidance for Q1, sees EPS of $0.00-$0.09 vs. $0.05 Capital IQ Consensus Estimate; sees Q1 revs of $47-$51 mln vs. $46.65 mln Capital IQ Consensus Estimate.
4:08 pm Integrated Device beats by $0.03, beats on revs ( IDTI) : Reports Q3 (Dec) earnings of $0.25 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.22; revenues rose 21.3% year/year to $151.2 mln vs the $142.68 mln consensus.
Non-GAAP gross profit for the fiscal third quarter of 2015 was $93.0 million, or 61.5 percent, compared with non-GAAP gross profit of $83.9 million, or 61.2 percent last quarter, and $77.8 million, or 62.4 percent, reported in the same period one year ago.
4:06 pm Rudolph Tech beats by $0.07, beats on revs ( RTEC) : Reports Q4 (Dec) earnings of $0.13 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus Estimate of $0.06; revenues rose 11.5% year/year to $49.6 mln vs the $45.12 mln consensus.
4:03 pm Axcelis Tech announces closure of sale leaseback transaction ( ACLS) : Co announced that on January 30, 2015, it sold the Company's headquarter building at 108 Cherry Hill Drive, located on approximately 37 acres in Beverly, Massachusetts to Beverly Property Owner LLC, an affiliate of Middleton Partners, based in Northbrook, Illinois, for the purchase price of $49 million. Axcelis has entered into a 22 year lease of the property and will retain ownership of approximately 23 acres of adjacent property.
2:41 pm JDS Uniphase receives public letter from Sandell Asset Management ( JDSU) : Sandell Asset Management letter reads:
"As a result of last week's disappointment, shareholders have witnessed a dramatic decline in the Company's stock price, to $12.15 per share as of January 30, a price that is barely above its $12.10 per share closing price on September 10, the day when JDSU announced the proposed spin-off of its CCOP business. In our view, this performance is a consummate disgrace. While we believe that the proposed spin-off of the CCOP business was a positive development, we have made no secret of our belief that JDSU can and must do much more to enhance shareholder value, including and not limited to conducting a formal auction for the CCOP business in parallel to preparations for its spin-off CCOP must be structured in a manner that allows shareholders the right to have sufficient influence over the governance of the company as well as whether to accept an offer to purchase the company. In our view, this can best be accomplished by ensuring that the board of CCOP is not a classified board. While the quarterly results delivered on January 29 confirm our doubts as to the ability of Mr. Waechter to operate JDSU in a manner that delivers value to shareholders, we also have reservations as to many other Directors. The actions taken by the Board in the next few weeks, will likely guide the actions of shareholders in the future."
1:08 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers
CRH (25.54 +5.8%): Holcim (HCMLY) and Lafarge (LFRGY) announced a project to sell assets to CRH for an enterprise value of EUR 6.5 bln in the context of their planned merger.
CHK (20.15 +5.06%): Oil & gas companies outperforming as futures of WTI crude jump 2% on the day to $49.25/bbl (PXD, CNQ, APA also higher).
TTM (50.67 +2.74%): The co reported it saw strong growth in certain key segments, as passenger cars (excluding UV's) and M&HCV grew 38% year-on-year.
Large Cap Losers
WYN (80.72 -3.66%): Downgraded to Sell from Hold at Deutsche Bank.
MCO (88.4 -3.21%): Reports out that Moody's may be investigated by United States over financial crisis ratings.
TEF (14.56 -2.35%): Reports that Telefonica may consider EUR 4bln capital increase.
Mid Cap Gainers
SCTY (52.2 +7.38%): Solars enjoy strong gains on the day as oil rebounds, and reports out that President Obama may push for an extension of the investment tax credit for solar (FSLR , SUNE also higher).
FICO (75.86 +6.31%): Upgraded to Outperform at Wells Fargo.
DECK (69.95 +5.9%): Upgraded to Buy at Goldman.
Mid Cap Losers
PBI (22.15 -7.63%): Reported Q4 EPS in-line, missed on revs; guided FY15 below consensus including items/FX; announced $100 mln buyback.
AVY (51.02 -2.39%): Reported Q4 earnings that beat consensus EPS estimates by $0.10, missed on revs; guided FY15 EPS midpoint below consensus.
MDVN (105.7 -2.87%): Disclosed that net quarterly sales of XTANDI capsules were $230.2 mln for the quarter ended December 31, 2014.
11:46 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (146) outpacing new lows (135) (:SCANX) : Stocks that traded to 52 week highs: ABCD, AFB, AKP, APTS, BAF, BBF, BBK, BBN, BERY, BFK, BFZ, BKN, BLE, BLJ, BNJ, BNY, BPS, BSE, BSET, BTA, BTT, BX, BYM, CARB, CDXS, COMM, CRMD, CXE, CXH, DMB, DMF, DSM, EBSB, EIM, EIV, EOT, EVN, EVO, FFC, FISH, FPT, FRPH, GBAB, GFED, GFF, HAR, IQI, JHP, JPS, JTP, JYNT, KSM, KSM, LEO, LII, MCA, MEN, MFM, MFT, MHD, MHN, MIY, MJI, MMD, MNE, MQT, MQY, MUA, MUE, MUH, MUI, MUJ, MUS, MVF, MVT, MYC, MYD, MYJ, MYM, MYN, MZF, NAC, NAD, NAN, NCA, NCFT, NEA, NID, NIO, NIQ, NJ, NKG, NKX, NMO, NMT, NMY, NMZ, NNC, NNP, NPF, NPI, NPM, NPP, NPV, NQI, NQM, NQP, NQS, NQU, NRK, NTC, NUO, NUV, NVG, NVX, NXJ, NXK, NXN, NXP, NXQ, NXZ, NYV, NZF, NZH, OCUL, OPK, PCK, PCQ, PMF, PML, PMM, PMO, PMX, PNF, PSF, PYN, PZC, RAVE, RGCO, SBI, STON, VCV, VFL, VKI, VMC, VMO
Stocks that traded to 52 week lows: AEY, AGYS, AIXG, AMCC, AMSWA, ANF, ANGI, APPY, ARR, ASCMA, ATV, AWAY, AXE, BGC, BSAC, BWINB, BZH, CACQ, CALL, CCSC, CEL, CHMI, CLWT, CMO, CNSI, CPL, CX, DANG, DBD, DISCA, DISCK, ECPG, ELRC, ENBL, ERII, ETJ, FBC, FBRC, FCO, FIVN, FMY, FRD, FTEK, FUEL, GBCI, GBLI, GDOT, GES, GHL, GSM, GSOL, HDP, HSC, IMNP, IX, JMI, KEM, KEN, KEYW, KOF, KOP, LBRDA, LC, LF, MBI, MBVT, MNI, MOBI, MPET, MRIN, MRLN, MSA, MSL, MTGE, MYOS, NAV, NFG, NWY, PACD, PBI, PBY, PCOM, PDLI, PFBX, PIM, PNNT, PPHM, PPT, PT, PTNR, PTNT, QCOM, RCMT, RDEN, REE, RGSE, RIVR, RLOC, RMT, ROYL, RSH, SAN, SBS, SFUN, SFXE, SIM, SNAK, SNI, SNTA, SPE, SR, STRI, STRL, SVVC, SXC, SYMX, TESS, TRC, TRMR, TST, UCP, ULTR, UTEK, VECO, VIA, VIAB, VPCO, VVUS, WB, WHLR, WMGI, WRN, WTW, XCRA, YNDX
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: DBA, FXS, NIB, UNG, VNM |
