From Briefing.com: 4:06 pm Micron beats by $0.06, reports revs in-line (MU) : Reports Q4 (Aug) loss of $0.05 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of ($0.11); revenues fell 10.6% year/year to $3.22 bln vs the $3.19 bln Capital IQ Consensus.
"We are seeing improving market conditions in terms of both slowing supply growth and improving demand across a number of key segments," said Micron CEO Mark Durcan.
Revenues for the fourth quarter of fiscal 2016 were 11 percent higher compared to the third quarter of fiscal 2016.
DRAM sales volumes were up approximately 20 percent, while NAND sales volumes were up approximately 12 percent.
DRAM average selling prices declined approximately 6 percent, while NAND average selling prices were relatively unchanged.
The company's overall consolidated gross margin of 18 percent for the fourth quarter of fiscal 2016 was slightly higher compared to the third quarter due to increases in gross margin of DRAM products.
4:01 pm Aehr Test Systems regains compliance with the Nasdaq $2.5 mln minimum stockholders' equity requirement for continued listing (AEHR) :
4:15 pm : The stock market ended the Tuesday affair on a lower note as rising interest rates and a stronger dollar pressured the major averages. The S&P 500 (-0.5%) finished in-line with the Dow Jones Industrial Average (-0.5%) and behind the Nasdaq Composite (-0.2%).
Equity indices began the day on a choppy note as renewed Brexit concerns continued to plague the foreign exchange market. Sterling fell 0.9% against the greenback (1.2726) after UK Prime Minister Theresa May reminded investors that the UK remains on course to invoke Article 50 of the Lisbon Treaty by the end of March 2017. The pound notched a new 31-year low (1.2720) against the dollar, which in turn helped support the UK's FTSE (+1.2%). Weakness in cable also led to an early downturn in the euro, which contributed to gains in European bourses.
The single currency reversed course near midday when reports indicated that the European Central Bank is nearing a consensus on tapering its quantitative easing program ahead of its planned conclusion. Recall that the ECB contributed to rate jitters in September when President Mario Draghi indicated that an extension of the asset purchase program past March 2017 was not discussed at the most recent policy meeting. The euro/dollar pair rallied to the 1.1240 price level before erasing its gain. The single currency ended lower by 0.1% against the dollar (1.1202).
The news of potential tapering on the horizon led to a downturn in sovereign bonds, which boosted rates globally. Defensively-oriented sectors extended early losses as participants unwound some crowded trades in real estate (-1.6%), telecom services (-1.7%), and utilities (-2.2%). The benchmark index rallied in the final hour of trade, narrowing its loss to 0.5%. Heavily-weighted financials (+0.3%) finished with the only gain.
The financial sector (+0.3%) led the advance as steepening in the yield curve boosted earnings prospects for the group. Richmond Fed President Jeffrey Lacker, who is not an FOMC voter, kept the rate hike conversation alive, saying that the fed funds rate should be higher given current inflation and unemployment rates. Mr. Lacker also advocated pre-emptive rate hikes in order to sustain economic stability. The SPDR S&P Bank ETF (KBE 33.54, +0.31) finished higher by 0.9%. Conversely, Wells Fargo (WFC 43.75, -0.08) ended behind the group after reports indicated that fraudulent account activity may have impacted small business owners in addition to consumer banking customers.
In the technology sector (-0.2%), Dow component Apple (AAPL 113.00, +0.48) displayed relative strength, advancing 0.4%. Fellow heavyweight Alphabet (GOOG 776.43, +3.87) also outperformed after its recent hardware launch event. The tech giant unveiled a number of devices including new smartphones and a smart home hub. The high-beta chipmakers finished slightly behind the broader sector, evidenced by the 0.3% loss in the PHLX Semiconductor Index. Micron (MU 17.80, +0.07) finished ahead of the price-weighted index as participants looked forward to the company's earnings release this evening.
The consumer staples sector (-0.9%) underperformed as defensively-oriented groups remained pressured by rising rates. Dollar Tree (DLTR 76.43, -3.10) declined 3.9% after being downgraded to "Neutral" from "Buy" at Cleveland Research. Meanwhile, Dr Pepper Snapple (DPS 86.86, -3.90) fell 4.3% after being downgraded to "Hold" from "Buy" at Evercore ISI. The broader sector extended its weekly loss to 1.5%.
Treasuries finished near their worst levels as yields rose through the curve. The yield on the 2-yr note increased two basis points (0.82%) while the yield on the benchmark 10-yr note rose six basis points (1.69%).
Today's participation was above the recent average as more than 876 million shares changed hands on the NYSE floor.
There was no economic data of note released today.
Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index. Meanwhile, the ADP Employment Change Report for September (Briefing.com consensus 171k) and the August Trade Balance (Briefing.com consensus -39.1 billion) will be released at 8:15 ET and 8:30 ET, respectively. The day's data will be capped off with Factory Orders for August (Briefing.com consensus 0.1%) and ISM Services for September (Briefing.com consensus 52.8), which will cross the wires at 10:00 ET.
Russell 2000: +9.1% YTD
Nasdaq: +5.6% YTD
S&P 500: +5.2% YTD
Dow Jones: +4.3% YTD
DJ30 -85.40 NASDAQ -11.22 SP500 -10.71 NASDAQ Adv/Vol/Dec 1093/1.563 bln/1761 NYSE Adv/Vol/Dec 834/876.1 mln/2142 3:30 pm :
The dollar index surged +0.4% around the 96.11 level, weighing on precious metals in particular
Commodities, as measured by the Bloomberg Commodity Index, were -0.5% around the 85.14 level
Crude oil snapped its 4-day OPEC-fueled streak & retreated from fresh 1-month highs hit earlier in the session ahead of a slurry of data including API and EIA
November crude oil futures fell $0.13 (-0.3%) to $48.68/barrel
Crude took a hit this morning after headlines crossed about Iran & Lybia increasing production. These two countries are exempt from last week's OPEC production cut and are seeking to further ramp up production in the near future.
Reminder: Last week in Algiers on the sidelines of the International Energy Forum, OPEC unexpectedly announced they would reduce output to 32.5 mln barrels/day, compared to July's production levels of around 33.1 mln barrels/day.
The next official OPEC meeting will take place in Vienna, Austria on November 30, where details of the recently annouced production cut are expected to be released.
Weekly EIA data will be released tomorrow at 10:30 am ET
API data will be released after the bell today
Baker Hughes rig count data will be released Friday at 1 pm ET
Monthly IEA data will be released on Oct 11
Natural gas extended yesterday's modest rally ahead of Thursday's inventory data
November natural gas closed $0.04 higher (+1.4%) at $2.96/MMBtu
Weekly EIA inventory data is scheduled to be released this Thursday at 10:30 am ET
In precious metals, gold dropped to its lowest level since mid-June, saw its losses outpaced by the decline in silver; The gold:silver ratio extended yesterday's gains
December gold ended today's session down $42.80 (-3.3%) to $1269.90/oz
December silver closed today's session $1.05 lower (-5.6%) at $17.78/oz
The gold:silver ratio was at ~71.4, compared to yesterday's pit trading closing ratio of ~69.7
Base metal copper inched lower in afternoon pit trading
December copper closed $0.02 lower (-0.9%) at $2.17/lb
Equity indices began the day on a choppy note, shrugging off a positive bias in global markets. Japan's Nikkei (+0.8%) extended its winning streak amid softening in the yen and upbeat commentary from Bank of Japan Governor Haruhiko Kuroda. Meanwhile, the UK's FTSE (+1.2%) paced the advance in Europe as the pound extended its recent loss. Sterling slipped to a 31-year low (1.2720) against the dollar overnight after UK Prime Minister Theresa May stated yesterday that the country will trigger Article 50 of the Lisbon Treaty by the end of March 2017.
The benchmark index maintained a narrow 12-point trading range through the first half as rising rates, a stronger dollar, and developments in Europe restricted risk appetite. The U.S. Dollar Index (96.11, +0.37 +0.38%) floated off its session high after the euro narrowed its loss against the greenback. The move was prompted by reports that the European Central Bank is nearing a consensus on tapering its quantitative easing program before the anticipated end. ECB President Draghi stated during his most recent press conference that there was no discussion of extending the asset purchase program beyond March 2017. Furthermore, it makes sense to taper purchases in a way similar to what the Federal Reserve did in 2014.
While there was no economic data announced today, the World Trade Organization recently cut its global trade forecast for 2016, citing in part a reduced level of imports to the U.S. On Wednesday market participants will catch a glimpse of how U.S. trade fared in August with the release of the Trade Balance report.
When the day was done, the three major US indices were lower again. Starting the week off with back to back losing sessions, the S&P 500 shed 10.71 points (-0.50%) to 2150.49. The Dow Jones Industrial Average lost 85.40 points (-0.47%) to 18168.45, and the Nasdaq Composite was down 11.22 (-0.21%) to 5289.66. The highlight of the day was Alphabet (GOOGL 802.79, +2.41 +0.30%) company Google's live streamed smartphone unveiling event. The company announced a $649 phone called Pixel, along with a Wifi solution and VR headset. Only time will tell if the Pixel can break into the historically Apple-centric (AAPL 113.00, +0.48 +0.43%) smartphone market.
Technology (XLK 47.47, -0.17 -0.36%) again finished middle of the ladder among other S&P sectors, and was modestly off lows. Component Akamai Tech (AKAM 54.64, +0.93 +1.73%) was among the best performers today in a weaker sector as the company announced the acquisition of Soha Systems for an undisclosed sum. Other sectors as measured by the S&P closed Tuesday XLU -2.09%, XLRE -1.52%, XLB -1.36%, XLE -1.02%, XLP -0.85%, XLI -0.84%, IYZ -0.78%, XLY -0.34%, XLV -0.19%, XLFS +0.40%, XLF +0.42%.
In the S&P 500 Information Technology (797.34, -1.30 -0.16%) sector, ended just below flat lines as midday weakness took the sector off gains. Component Salesforce.com (CRM 72.63, +2.11 +2.99%) was the best performing name across the space as the company's Investor Day got underway today and will run through the week; additionally, the company announced the acquisition of data management platform Krux. Names in the space which underperformed today included XRX -2.77%, FLIR -2.53%, ACN -2.17%, ADS -1.93%, HPQ -1.85%, XLNX -1.61%, NTAP -1.44%, WU -1.36%, TSS -1.32%.
Other notable news items among sector components:
At the company's live streaming event today, Alphabet (GOOGL 802.79, +2.41 +0.30%) announced its new smartphone, Pixel, which will be available for pre-order starting at $649 in two sizes, 5' and 5.5' exclusively from Verizon (VZ 51.26, -0.62 -1.20%). The company also announced the new Daydream VR headset starting at $79. Lastly, the company unveiled its new Google Wifi system, the next step after the OnHub platform from a year ago; built to enable easy, no-lag streaming throughout the home, Google Wifi will be available for pre-order in November for $129 for a single pack or $229 for a three-pack at select retail stores.
Salesforce.com (CRM) to acquire data management platform Krux. CRM expects the deal to close in the fourth fiscal quarter ending January 31, 2017.
Xactly (XTLY 15.73, +0.07 +0.45%) announces pre-built integrations with Salesforce (CRM) through the Xactly Connect Open Platform. Enabling a seamless flow of data and extending functionality between Salesforce and Xactly, customers can get the intelligence they need to power better selling.
Daimler (DDAIF 71.40, +1.75 +2.51%) announces AT&T (T 39.90, -0.87 -2.13%) will provide cellular service for the new Detroit Connect Truck Data Center. Co will also collaborate with Microsoft (MSFT 57.24, -0.18 -0.31%) to establish a new cloud-based back office environment for all Detroit Connect services, including new features, such as Detroit Connect Remote Updates.
ABB (ABB 22.57, +0.05 +0.22%) and Microsoft (MSFT) announced a strategic partnership to help industrial customers create new value with digital solutions. Customers will benefit from the unique combination of the Microsoft Azure intelligent cloud and ABB's deep domain knowledge and extensive portfolio of industrial solutions.
Jack Henry & Associates (JKHY 83.95, -1.45 -1.70%) Payment Solutions group has partnered with Visa (V 82.73, -0.13 -0.16%) to deliver faster P2P (person-to-person) payments to a recipient's Visa debit card.
ZAGG (ZAGG 8.12, +0.11 +1.37%) introduces the Slim Book Pro and Rugged Book Pro keyboard cases for the 9.7-inch Apple (AAPL) iPad Pro.
Veeva Systems (VEEV 40.31, -0.91 -2.21%) announces the integration of Veeva Vault with Microsoft Office Online (MSFT) delivering real-time, collaborative authoring in a compliant way.
Akamai Tech (AKAM) acquired Soha Systems. Financial terms of the deal were not disclosed.
Intel Security (INTC 37.54, -0.12 -0..32%) launched its 2017 consumer security lineup featuring security innovations to better protect the devices people use every day against the latest threats. The centerpiece of the new portfolio is a next-generation anti-malware engine that offers more efficient and effective detection by offloading analysis to the cloud.
IBM (IBM 156.46, -1.15 -0.73%) unveiled a $200 million investment in the new global headquarters for its Watson Internet of Things business in Munich, new IoT capabilities around Blockchain and security and an array of clients that are driving real outcomes by using Watson IoT technologies to draw insights from billions of sensors embedded in machines, cars, drones, ball bearings, pieces of equipment and even hospitals.
Western Union (WU 20.33, -0.28 -1.36%) filed a debt securities shelf offering for an undisclosed amount.
Elsewhere in the tech space:
Ericsson (ERIC 7.16, -0.01 -0.14%) confirmed changes to operations in Sweden, including the intentions to reduce 3,000 positions in production, research and development and sales and administration.
Criteo (CRTO 36.63, +0.87 +2.43%) provided additional information on its acquisition of HookLogic. The purchase price was $250 million, and the company sees positive financial impact from said deal in midterm.
Cypress Semi (CY 11.88, -0.12 -1.00%) adopted a restructuring plan on September 27 and expects to eliminate about 500 positions from its global workforce. The company will take charges related to the restructuring plan in the range of about $40-50 million, primarily in the third and fourth quarters of 2016.
FORM Holdings (FH 3.00, -0.07 -2.28%) partnered with Digital Ally (DGLY 5.74, -0.07 -1.20%) as the exclusive third party supplier of DGLY's Fleet Vu solution. Financial terms of the deal were not disclosed.
Elephant Talk (ETAK 0.16, +0.00 +3.24%) announced the divestiture of its ValidSoft subsidiary.
Marchex's (MCHX 2.59, -0.16 -5.82%) CEO Pete Christothoulou resigned effective immediately and Anne Devereux-Mills assumed responsibilities as Chairman. The company also reaffirmed Q3 revenue guidance.
Monotype Imaging (TYPE 20.69, -1.12 -5.14%) updated guidance following acquisition of Olapic.
Analyst actions:
FISV was upgraded to Buy from Neutral at Monness Crespi & Hardt,
SWKS was upgraded to Buy from Mkt Perform at Charter Equity,
TSM was upgraded to Neutral from Negative at Susquehanna,
AVT was upgraded to Strong Buy at Raymond James;
GRUB was downgraded to Hold from Buy at Stifel,
CUDA was downgraded to Underperform from In-Line at Imperial Capital,
PHI was downgraded to Sell from Neutral at Citigroup,
SPLK was downgraded to Neutral from Buy at Guggenheim;
BRCD and HUBS were initiated with Buy ratings at DA Davidson,
PFPT was initiated with a Neutral at DA Davidson,
GWRE, HUBS and VEEV were initiated with Neutral ratings at Goldman,
SHOP was initiated with a Buy at Goldman,
IQNT was initiated with a Buy at Drexel Hamilton
