From Briefing.com: 4:21 pm Marvell announces Jean Hu as new CFO effective August 22, 2016 (MRVL) : Ms. Hu joins Marvell from QLogic Corporation, where she was SVP and CFO. She also held the Acting CEO role at QLogic since August 2015.
4:05 pm Applied Materials beats by $0.02, reports revs in-line; guides Q4 well above consensus (AMAT) :
Reports Q3 (Jul) earnings of $0.50 per share, $0.02 better than the Capital IQ Consensus of $0.48; revenues rose 13.3% year/year to $2.82 bln vs the $2.84 bln Capital IQ Consensus.
Co issues upside guidance for Q4, sees EPS of $0.61-0.69 vs. $0.48 Capital IQ Consensus Estimate; sees Q4 revs of $3.2-3.36 bln vs. $2.86 bln Capital IQ Consensus Estimate.
"With earnings and orders at an all-time high, Applied is performing better than ever and in a great position to sustainably outperform our markets," said Gary Dickerson, president and CEO. "We are in the early stages of large, multi-year industry inflections that are driving our business today and creating new opportunities for future growth."
4:15 pm : The stock market ended a range-bound day on a flat note as caution prevailed despite yesterday's dovish FOMC minutes from the July meeting. The S&P 500 (+0.2%) maintained a seven-point range, crossing into positive territory for the week (week-to-date:+0.1%).
Equity indices struggled for direction as investors continued to adjust rate hike expectations for the year. Yesterday's release of the FOMC minutes for July indicated that Fed officials were divided on whether or not an interest rate hike would be appropriate in coming months. Specifically, concerns about the sustainability of recent hiring trends and consistently weak inflation readings compelled some members to hold off on raising rates.
New York Fed President and FOMC voter William Dudley, however, maintained a somewhat hawkish tone. The Fed President stated that a rate hike remains in the cards at the September FOMC meeting. Mr. Dudley also indicated that two strong employment reports helped offset his prior concerns regarding U.S. labor markets. Participants shrugged off the commentary as it mirrored comments from earlier in the week. Investors will hear from San Francisco Fed President Williams (non-FOMC voter) and Dallas Fed President Kaplan (non-FOMC voter) at 16:00 ET and 20:00 ET, respectively.
The market inched higher in the early going, but reversed from its morning high after CNBC reported that influential hedge fund manager Paul Singer warned his investors that the bond market appears "broken" and that a loss of confidence in central bank policy could facilitate a broader market downturn. Mr. Singer's concerns come after other influential investors like George Soros and Carl Icahn have complained about market participants being in the dark due to low/negative interest rates in most sovereign bonds.
The S&P 500 (+0.2%) at its session high, testing resistance near the 2186/2188 price level. Seven sectors ended in the green with materials (+0.7%), utilities (+1.2%), and energy (+1.8%) leading the advance. Conversely, consumer discretionary (-0.1%) and telecom services (-0.8%) lagged the broader market.
The influential technology sector (+0.1%) finished roughly in-line with the market as strength in high-beta chipmakers outweighed a downturn in Dow component Cisco Systems (CSCO 30.48, -0.24). The stock ended lower by 0.8% as disappointing first-quarter revenue guidance masked a bottom-line beat.
In the consumer discretionary space (-0.1%), home improvement retailers underperformed, marking a weak sport in the broader retail sub-group. The SPDR S&P Retail ETF (XRT 45.75, +0.41) finished higher by 0.9% as better-than-expected bottom-line results from L Brands (LB 77.87, +3.81) bolstered the group. The ETF also benefited from above-consensus bottom-line results from Dow component Wal-Mart (WMT 74.30, +1.37).
The commodity-sensitive energy space (+1.8%) buttressed the broader market as the energy component finished higher by 3.0% ($48.21/bbl; +$1.40). Dow components Exxon Mobil (XOM 88.91, +0.80) and Chevron (CVX 103.55, +1.33) ended with gains of 0.9% and 1.3%, respectively.
The Dow Jones Transportation Average (+0.5%) settled ahead of the broader market as rail names outperformed. In the group, Union Pacific (UNP 95.83, +1.26) and Norfolk Southern (NSC 91.67, +1.85) ended higher by 1.3% and 2.1%, respectively.
Treasuries ended the day on a higher note as the short-end of the curve enjoyed a decent bid. The yield on the 2-yr note settled lower by two basis points (0.71%) while the yield on the benchmark 10-yr note slipped one basis point to 1.53%.
Today's participation was below the recent average as fewer than 737 million shares changed hands at the NYSE floor.
Today's economic data included weekly initial claims, the Philadelphia Fed Survey for August, and Leading Indicators for July:
Initial claims for the week ending August 13 slipped to 262,000 (Briefing.com consensus 265,000) from last week's unrevised level of 266,000.
The key takeaway from the report is that it will feed expectations for another month of strong nonfarm payrolls gains.
Continuing claims for the week ending August 6 jumped 15,000 to 2.175 million.
The Philadelphia Fed Index for August produced a positive surprise, checking in at 2.0 (Briefing.com consensus +0.6) after a negative 2.9 reading in July.
The report wasn't as positive as it appears at first blush considering higher prices, versus new order activity, drove the strength.
The Conference Board's Leading Economic Index for July increased 0.4%, as expected by the Briefing.com consensus estimate, on top of an unrevised 0.3% increase in June.
The increase was a broad-based affair. Only one index component -- average consumer expectations for business conditions -- made a negative contribution (-0.05 percentage points).
For further details on these economic releases, be sure to visit Briefing.com's Economic Calendar page.
There is no economic data of note scheduled to be released tomorrow. DJ30 +23.76 NASDAQ +11.49 SP500 +4.80 NASDAQ Adv/Vol/Dec 1980/1.485 bln/904 NYSE Adv/Vol/Dec 2094/736.1 mln/882
3:30 pm :
The dollar index was down -0.6% around the 94.16 level, boosting commodities
Commodities, as measured by the Bloomberg Commodity Index, +1.0% around the 86.74 level
Crude oil closed at fresh 5-week highs, gaining for the sixth consecutive session ahead of tomorrow's rig count data
September crude oil futures rose $1.40 (+3.0%) to $48.21/barrel
The next OPEC meeting will be in Algeria on Sept 26-28
Natural gas rallied for the fifth consecutive session, seeing gains after EIA data showed a smaller-than-exected build compared to Consensus
September natural gas closed $0.05 higher (+1.9%) at $2.67/MMBtu
Natural gas inventory showed a build of +22 bcf vs expectations for inventory to be a build of +27 bcf.
Working gas in storage was 3,339 Bcf as of Friday, Aug 12, 2016, according to EIA estimates.
Stocks were 327 Bcf higher than last year at this time and 405 Bcf above the five-year average of 2,934 Bcf.
At 3,339 Bcf, total working gas is above the five-year historical range.
In precious metals, gold & silver gained as the dollar index saw notable losses
December gold ended today's session up $8.70 (+0.7%) to $1357.10/oz
September silver closed today's session $0.10 higher (+0.5%) at $19.74/oz
Base metal copper erases yesterday's decline in afternoon pit trading
September copper closed $0.02 higher (+0.9%) at $2.17/lb
The major averages began the day on a choppy note as mixed economic readings from overseas resulted in split performances from global markets. Japan's Nikkei (-1.6%) underperformed after Japan's trade balance report for July disappointed. The report featured a 14.0% year-over-year decline in exports and a 24.7% year-over-year decline in imports. Conversely, a stronger-than-expected reading of July retail sales out of the U.K. contributed to an advance in European bourses and a bid in the pound.
The U.S. Dollar Index (94.32, -0.40, -0.43%) trades near a session low as investors continue to dial back rate hike expectations after yesterday's dovish interpretation of the FOMC minutes from the July meeting. The minutes indicated that Federal Reserve officials were split on whether or not an interest rate hike would be appropriate in coming months. The committee agreed that economic data and labor markets showed improvements, but the potential sustainability of hiring and consistently weak inflation readings worried some members.
New York Fed President and FOMC voter William Dudley was unable to spur forward rate hike expectations when he echoed somewhat hawkish remarks from earlier in the week. The Fed President stated that two strong months of employment data helped offset prior concerns regarding the labor market. Investors will hear from San Francisco Fed President Williams (non-FOMC voter) and Dallas Fed President Kaplan (non-FOMC voter) at 16:00 ET and 20:00 ET, respectively.
Additionally, market data that crossed the wires today included initial claims, which for the week ending August 13 slipped to 262,000 from last week's unrevised level of 266,000. Also, the Philadelphia Fed Index for August produced a positive surprise, checking in at 2.0 after a negative 2.9 reading in July. Lastly, the Conference Board's Leading Economic Index for July increased 0.4% on top of an unrevised 0.3% increase in June.
Stocks made it back to back sessions in the green, as the broader market was led higher today by the S&P 500 which added 4.80 points (+0.22%) to 2187.02. The Nasdaq Composite was not far behind, advancing 11.49 points (+0.22%) to 5240.15 on Thursday, and the Dow Jones Industrial Average gained 23.76 points (+0.13%) to 18597.70.
Sellers kept the Technology (XLK 46.96, -0.01 -0.02%) sector lower for a third straight session, but just barely. Component NetApp (NTAP 33.88, +5.03 +17.44%) was among the best performers today in the sector following a better than expected Q1 report. Other sectors as measured by the S&P ended the day XLE +2.06, XLU +1.23%, XLB +0.64%, IYZ +0.53%, XLP +0.35%, XLI +0.31%, XLV +0.04%, XLY -0.06%, XLF -0.08% as Energy led all other sectors on the back of a strong session in crude oil; September crude oil futures rose $1.40 (+3.0%) to $48.21/barrel.
In the S&P 500 Information Technology (781.79, +0.60 +0.08%) sector, managed to withstand the selling pressure today and ended modestly above flat lines. Component Cisco Systems (CSCO 30.48, -0.24 -0.78%) managed a tepid session following the Q4 results and Q1 guidance. Other names in the space which grabbed gains today included WDC +2.41% SWKS +2.29% FSLR +1.71% MU +1.61% XLNX +1.57% NVDA +1.55% EA +1.52% AMAT +1.43% QCOM +1.22% QRVO +1.17% SYMC +1.16% ADSK +1.13% MCHP +1.06% CTXS +1.03% HPE +1.02%.
Other notable news items among sector components:
In addition to reporting quarterly results, Cisco Systems (CSCO) disclosed a restructuring plan which would eliminate up to 5,500 positions, or about 7% of its global workforce.
In addition to reporting quarterly results, NetApp (NTAP) appointed former IBM (IBM 161.36, +0.92 +0.57%) VP, Jean English, as Chief Marketing Officer.
Accenture (ACN 112.35, -0.58 -0.51%) extended its contract with Dixons Carphone (DSITF 4.60, flat). Under the agreed multi-year agreement, ACN will extend its provision of application development and maintenance services to the business. It will also help grow the group's Connected World Services platform "honeyBee," an industry-leading guided sales and customer experience platform that Dixons Carphone has developed in collaboration with ACN.
Analog Devices (ADI 64.13, -0.07 -0.11%) acquired the Cyber Security Solutions business of Sypris Electronics. Financial terms of the deal were not disclosed.
At the IDF Investor Day, Intel (INTC 34.97, -0.05 -0.14%) announced plans to accelerate autonomous driving vision. INTC and Baidu (BIDU 175.40, +2.67 +1.55%) are evaluating and developing new computing technologies.
Elsewhere in the tech sector:
SunEdison Semiconductor (SEMI 11.51, +3.23 +39.01%) to be acquired by GlobalWafers for $12.00 per share.
YY's (YY 50.74, +1.66 +3.38%) Chairman, Jun Lei, resigned effective immediately; David Xueling Li to succeed Lei as the Chairman and resign as CEO.
TerraForm Power (TERP 11.59, -0.06 -0.52%) disclosed that it and its advisors have been engaged in confidential discussions regarding potential revisions to the Consent Solicitation with a steering committee of Holders representing about 40% of the outstanding principal amount of the 2023 Notes and 25% of the outstanding principal amount of the 2025 Notes.
SolarCity (SCTY 23.42, -0.17 -0.72%) adopted and began implementing initiatives to realign operating expenses to match the reduced guidance for Megawatts Installed.
In addition to reporting quarterly results, Photronics (PLAB 9.03, -1.07 -10.59%) announced plans to invest in China through the IC photomask market. Through the next five years, the company will invest $160 million.
Unisys (UIS 10.48, +0.08 +0.77%) was awarded a contract by the USDA Rural Development agency with a ceiling value of about $232 million over the base period and seven option years.
Momo (MOMO 16.01, +0.43 +2.76%) received a letter from its Chairman and CEO stating that his buyer group would like to withdraw the non-binding going private proposal dated June 23.
In reaction to quarterly results:
Cisco Systems (CSCO) reported better than expected Q4 EPS of $0.63 on in-line revenues which fell 1.6% compared to a year ago to $12.64 billion. The company also guided Q1 EPS in-line at $0.58-0.60 and revenues worse than expected at -1% to +1% (which equates to about $12.15-12.39 billion).
NetApp (NTAP) reported better than expected Q1 EPS and revenues of $0.46 and $1.29 billion, respectively. For Q2, the company sees in-line EPS of $0.51-0.56 and in-line revenues of $1.265-1.415 billion.
Netease.com (NTES 207.62, -5.71 -2.68%) reported better than expected Q2 EPS and revenues of $3.10 and $1.35 billion, respectively.
Agilent (A 46.72, -1.71 -3.53%) reported better than expected Q3 EPS of $0.49 on in-line revenues of $1.04 billion. For Q4, the company sees EPS and revenues worse than expectations at $0.50-0.52 and $1.05-1.07 billion, respectively.
Canadian Solar (CSIQ 14.35, +2.14 +17.53%) reported better than expected Q2 EPS and revenues of $0.68 and $805.9 million. For Q3, CSIQ expects revenues of $660-710 million, and the company reaffirmed FY16 revenue guidance of $3.0-3.2 billion.
Photronics (PLAB) reported worse than expected Q3 EPS of $0.12 on revenues which fell 6.5% compared to a year ago to $123.2 million. For Q4, PLAB sees in-line EPS and revenues of $0.09-0.17 and $118-128 million, respectively.
Companies scheduled to report quarterly results tonight/ tomorrow morning: AMAT, MENT/CMCM
Analyst actions:
NTAP was upgraded to Positive from Neutral at Susquehanna and to Neutral from Underweight at JP Morgan,
SEMI was upgraded to Neutral from Sell at Citigroup,
CHU was upgraded to Outperform from Mkt Perform at Bernstein;
TWTR was downgraded to Sell from Hold at Evercore ISI,
GOGO was downgraded to Hold from Buy at Standpoint Research;
DGLY was initiated with a Buy at Maxim Group,
IDTI was initiated with an Overweight at JP Morgan
