From Briefing.com: 4:39 pm Extreme Networks beats by $0.01, misses on revs; guides Q2 EPS in-line, revs in-line (EXTR) :
Reports Q1 (Sep) earnings of $0.07 per share, $0.01 better than the Capital IQ Consensus of $0.06; revenues fell 1.6% year/year to $122.6 mln vs the $125.38 mln Capital IQ Consensus.
Co issues in-line guidance for Q2, sees EPS of $0.05-0.09 vs. $0.08 Capital IQ Consensus Estimate; sees Q2 revs of $148.0-158.0 vs. $148.08 mln Capital IQ Consensus Estimate.
4:23 pm Sanmina beats by $0.06, misses on revs; guides Q1 EPS in-line, revs in-line (SANM) :
Reports Q4 (Sep) earnings of $0.72 per share, $0.06 better than the Capital IQ Consensus of $0.66; revenues rose 1.8% year/year to $1.67 bln vs the $1.71 bln Capital IQ Consensus.
Co issues in-line guidance for Q1, sees EPS of $0.65-0.70 vs. $0.67 Capital IQ Consensus Estimate; sees Q1 revs of $1.675-1.725 bln vs. $1.67 bln Capital IQ Consensus Estimate.
4:20 pm Veeco Instruments beats by $0.10, beats on revs; guides Q4 EPS in-line, revs in-line (VECO) :
Reports Q3 (Sep) loss of $0.05 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of ($0.15); revenues fell 39.2% year/year to $85.5 mln vs the $84.07 mln Capital IQ Consensus.
Company said on Oct. 3 that it expected Q3 revenue at high end of prior range of $70-85 mln
Co issues in-line guidance for Q4, sees EPS of ($0.07)-0.07 vs. ($0.02) Capital IQ Consensus Estimate; sees Q4 revs of $85-110 mln vs. $92.35 mln Capital IQ Consensus Estimate.
"Veeco executed well in the third quarter, delivering revenue above the top end of our guidance range and generating positive adjusted EBITDA and cash flows from operations," commented John R. Peeler, Chairman and Chief Executive Officer. "We are seeing a clear improvement in LED industry conditions and solid demand for our MOCVD products."We remain focused on improving the Company's through-cycle profitability. We are executing against our cost reduction initiatives, including our recently announced plans to significantly reduce investments in Atomic Layer Deposition ("ALD") technology development. These actions are expected to lower our quarterly adjusted EBITDA breakeven level to approximately $75 million in revenue, starting in the first quarter of 2017. Overall, I'm pleased with our ongoing execution and the positive momentum of our business looking ahead," Mr. Peeler concluded.
4:13 pm Ixia beats by $0.07, beats on revs (XXIA) :
Reports Q3 (Sep) earnings of $0.18 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.11; revenues fell 1.6% year/year to $123.9 mln vs the $118.59 mln Capital IQ Consensus.
4:15 pm : The stock market ended the Tuesday affair on a lower note as equities endured a broad-based selloff. The downturn was stoked by rising political uncertainty, further losses in crude oil, volatility in the Treasury market, and weakness in the heavily-weighted technology (-0.8%) and consumer discretionary (-0.8%) sectors. The Russell 2000 ended down 1.0% while the Nasdaq Composite (-0.7%) and the S&P 500 (-0.7%) each finished with narrower losses. Equity indices stumbled in the first hour of trade as a move higher in bond yields and shifting U.S. polling data derailed an initial move higher. Mixed U.S. economic data halted a retreat in the Treasury complex this morning. The October ISM Index registered at 51.9 (Briefing.com consensus 51.7), signaling continued expansion. Meanwhile, September Construction Spending fell 0.4% (Briefing.com consensus +0.5%) after declining 0.5% in the prior month.
The Treasury complex carved out a session low in the opening hour of trade, pressuring defensively-oriented real estate (-2.0%), utilities (-1.8%), and telecom services (-1.0%). The yield on the benchmark 10-yr note rose to 1.88% in the opening hour before backpedaling from that level.
The U.S. presidential race was also in focus today after a new joint poll conducted by ABC News and the Washington Post showed that Republican nominee Donald Trump is leading Democratic nominee Hillary Clinton. The reversal of fortune comes on the heels of last Friday's announcement that the FBI is investigating Mrs. Clinton regarding recently-discovered emails.
The poll unnerved participants who had previously priced in a Clinton presidency. Accordingly, the CBOE Volatility Index (VIX 18.58, +1.52) rose more than one point.
The broader market narrowed its loss in the final hour, but ten sectors finished in negative territory. The heavily-weighted consumer discretionary (-0.8%) and the technology (-0.8%) sectors finished behind the broader market.
Retail names underperformed in the consumer discretionary space (-0.8%) as L Brands (LB 66.50, -5.69) plunged 7.9%. The company issued an earnings warning, stating that it sees third-quarter earnings in the lower end of previously issued guidance. The company also estimated that October same-store sales would be short of consensus estimates, rising just 1.0%. The broader SPDR S&P Retail ETF (XRT 41.53, -0.70) fell 1.7%.
The technology sector (-0.9%) displayed relative weakness as top-weighted Apple (AAPL 111.47, -2.07) fell by 1.8%. The name was under pressure after a UBS Survey indicated that demand in China remains weak. The stock has declined 5.7% since the company reported underwhelming quarterly results and guidance last Tuesday. Elsewhere, the PHLX Semiconductor Index fell 0.9%.
In the health care sector (-0.5%), Dow component Pfizer (PFE 31.07, -0.64, -2.0%) finished at the bottom of the price-weighted average. The pharmaceutical name reported weaker-than-expect bottom line results and narrowed its full-year guidance. Separately, the biotechnology sub-group outperformed as the iShares Nasdaq Biotechnology ETF (IBB 259.09, +2.41) gained 0.9%.
The commodity-sensitive energy space (+0.1%) eked out a slim gain as crude erased the bulk of an intraday loss, shedding 0.3% to $46.68/bbl. Investors will receive the latest inventory data from the American Petroleum Institute this evening while the Department of Energy will release its more influential inventory data tomorrow morning at 10:30 ET.
Bond prices jumped in the late afternoon as extended losses in equities and some short covering pushed yields lower. The yield on the 10-yr note finished the day up one basis point (1.84%).
Today's trading volume was above the average of 850 million as more than one billion shares changed hands at the NYSE floor.
Today's economic data was limited to September Construction Spending and the October ISM Index:
The ISM Manufacturing Index for October checked in at 51.9 (Briefing.com consensus 51.7), up from 51.5 in September.
Construction spending declined 0.4% in September (Briefing.com consensus +0.5%) on the heels of an upwardly revised 0.5% decline (from -0.7%) for August.
For more on these economic releases, be sure to visit Briefing.com's Economic Calendar page.
Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index and the 8:15 ET release of the ADP Employment Change Report for October (Briefing.com consensus 165k). Separately, the Fed will issue its November Policy Statement at 14:00 ET. DJ30 -105.32 NASDAQ -35.56 SP500 -14.43 NASDAQ Adv/Vol/Dec 879/1.718 bln/2288 NYSE Adv/Vol/Dec 708/1.0534 bln/2249
3:30 pm :
The dollar index fell -0.7% around the 97.78 level, boosting precious metals
Commodities, as measured by the Bloomberg Commodity Index, were -0.5% around the 84.51 level
Crude oil ended at a 1-month low for the second session in a row ahead of today's API data
December crude oil futures fell $0.16 (-0.3%) to $46.68/barrel
Data reminders:
Weekly EIA petroleum data will be released at 10:30 am ET on Wednesday
Baker Hughes rig count data will be released this Friday at 1 pm ET.
Monthly IEA data will be released on November 10.
API data will be released today after the bell.
Natural gas closed at its lowest level of the session ahead of Thursday's inventory number
December natural gas closed $0.12 lower (-4.0%) at $2.90/MMBtu
Weekly EIA natural gas inventory data will be released Thursday at 10:30 am ET
In precious metals, gold & silver traded sharply higher on a weakened dollar
December gold ended today's session up $14.10 (+1.1%) to $1287.40/oz
December silver closed today's session $0.60 higher (+3.4%) at $18.41/oz
Base metal copper doubled yesterday's gains & closed higher for the 4th consecutive session
December copper closed $0.02 higher (+0.9%) at $2.23/lb
The first session of November came to a close with modest weakness, albeit well off opening levels. The Nasdaq Composite was the worst performer, shedding 35.56 points (-0.69%) today to end 5153.58. The S&P 500 was close behind, down 14.43 points (-0.68%) to 2111.72, and the Dow Jones Industrial Average lost 105.32 points (-0.58%) to 18037.10
Equity indices briefly rose at the start of the session as upbeat manufacturing activity data out of China and largely in-line policy decisions from the Bank of Japan and the Reserve Bank of Australia bolstered sentiment. However, the uptick proved to be short-lived as rising bond yields pressured high-yielding sectors and the broader market. Furthermore, a new joint poll conducted by ABC News and the Washington Post has Mr. Trump leading Mrs. Clinton following last Friday's revelations about a new FBI investigation into Mrs. Clinton's emails. The market had prepared for a Clinton presidency, so the shift in polls is leading to re-positioning.
The poll unnerved participants who had previously priced in a Clinton presidency. Accordingly, the CBOE Volatility Index (VIX 18.58, +1.52) rose more than one point.
The Treasury complex trades on a lower note at midday following mixed data. The ISM Manufacturing Index for October registered at 51.9, denoting a continued expansion. Meanwhile, Construction Spending fell 0.4% in September. The data is some of the last the market will receive ahead of tomorrow's policy decision from the Fed. The central bank is not expected to raise rates at tomorrow's meeting, but is expected to prepare the market for a hike before the end of the year. Per the CME's FedWatch Tool, the implied probability of an interest rate hike at tomorrow's meeting is a paltry 7.2% while the probability of a December hike registers at 78.0%.
10 of the 11 S&P sectors closed the session in the red with Technology (XLK 47.01, -0.41 -0.86%) further down the list in terms of losses as yet closed higher off daily lows. Component Fidelity Nat'l Info (FIS 76.85, +2.93 +3.96%) outperformed following the company's mixed Q3. Other sectors as measured by the S&P closed out the day IYZ -2.20%, XLRE -1.97%, XLU -1.82%, XLI -0.86%, XLY -0.70%, XLB -0.58%, XLP -0.44%, XLV -0.43%, XLF -0.41%, XLFS -0.26%, XLE +0.09% as Energy was the lone outperformer.
In the S&P 500 Information Technology (794.08, -6.56 -0.82%) sector, trading finally returned to sub-$800, yet ended the day off lows. Component Harris (HRS 92.73, +3.52 +3.95%) performed well today on the back of a better than expected Q1 and the announcement of the divestiture of the company's CapRock Communications business to SpeedCast International for $425 million. Other names in the space which closed lower included ADSK -3.02%, NVDA -2.94%, XRX -2.76%, NTAP -2.50%, WDC -2.05%, TXN -1.99%, AKAM -1.97%, MA -1.92%, JNPR -1.86%, AAPL -1.82%.
Other notable news items among sector components:
In addition to reporting quarterly results, Harris (HRS) announced it will divest its CapRock Communications business to SpeedCast International for $425 million.
Accenture (ACN 116.14, -0.10 -0.09%) acquired 2nd Road. Financial terms were not disclosed.
Accenture (ACN) acquired Realworld OO Systems B.V., a Netherlands-based division of Realworld Holding B.V. that specializes in geographic information system (GIS) solutions.
Accenture (ACN) also announced that BP (BP) has extended an agreement by two years for Accenture to serve as its global provider of finance and accounting (F&A) business process services through 2021.
IBM (IBM 152.79, -0.90 -0.59%) announced it acquired the Expert Personal Shopper (XPS) division of Fluid.
Symantec (SYMC 25.21, +0.18 +0.74%) announced Symantec Endpoint Protection 14, the next evolution in endpoint innovation from the leader in endpoint security.
Microchip (MCHP 60.18, -0.37 -0.61%) announced the signing of an agreement to sell certain Mobile Touch business assets to Solomon Systech Limited, a Hong Kong based semiconductor company. The transaction included the sale of certain semiconductor products, equipment and patents; and a license to certain other intellectual property and patents related to Microchip's Mobile Touch product line. Microchip Technology also agreed to provide certain transition services to Solomon Systech. This transaction is expected to close within approximately two weeks upon the satisfaction of certain customary closing conditions.
Global Payments (GPN 71.75, -0.77 -1.06%) successfully closed an amendment to its credit facility agreement on October 31, 2016. Under the terms of the amendment, the company increased its aggregate term loan A facilities by $750 million with the proceeds being used to reduce a portion of the term loan B facility and outstanding revolving credit facility borrowings.
First Solar (FSLR 41.04, +0.55 +1.36%) and MCE announced that MCE has entered into a Power Purchase Agreement (PPA) for electricity generated from 40MWAC of First Solar's Little Bear Solar Project in Fresno County, CA. The project, designed to be built out eventually to 160MWAC, is anticipated to begin construction in 2019, with commissioning expected in 2020.
Avnet (AVT 41.68, -0.27 -0.64%) will now offer HGST-branded products and solutions in China.
Elsewhere in the tech space:
BlackBerry (BBRY 7.07, +0.02 +0.28%) signed an agreement with Ford (F 11.61, -0.13 -1.11%) for expanded use of QNX and security software. Financial details were not disclosed.
Net Element (NETE 1.10, -0.04 -3.51%) disclosed that it, Paystar, and Nexcharge have terminated the binding letter of intent dated July 21, 2016.
CACI Intl (CACI 99.45, +1.60 +1.64%) was awarded $1.77 billion Joint Improvised-Threat Defeat Organization ceiling cost-plus-award-fee task order.
Ciber (CBR 0.89, -0.12 -12.25%) disclosed that its Board has engaged a strategic adviser to assist in exploring strategic alternatives.
EXFO (EXFO 4.30, -0.10 -2.27%) acquired Optical RF test technology from Absolute Analysis for about $8.25 million, including $5 million in cash and the remaining amount in EXFO shares.
The Communications Workers of America has notified AT&T (T 36.56, -0.23 -0.63%) that former DIRECTV field services employees have voted to ratify two agreements between the CWA and the company.
Ingram Micro (IM 38.21, +1.01 +2.72%) announced in connection with its pending acquisition by Tianjin Tianhai Investment Company, Ltd., that the parties have received clearance from the Committee on Foreign Investment in the United States (CFIUS) to proceed with the transaction.
China Unicom (CHU 11.62, -0.10 -0.85%) announced that due to change of job arrangement, Zhang Junan and Xiong Yu will no longer assume the positions of senior vice presidents of the company.
Photronics (PLAB 9.85, +0.15 +1.55%) has acquired manufacturing assets and certain intellectual property of Infinite Graphics Incorporated (IGI). Terms of the agreement were not disclosed.
In reaction to quarterly results:
Fidelity Nat'l Info (FIS) reported better than expected Q3 EPS of $1.00 and worse than expected revenues of $2.31 billion. The company also guided FY16 EPS in-line at $3.80-3.85.
Harris (HRS) reported better than expected Q1 EPS and revenues of $1.39 and $1.75 billion, respectively. For FY17, the company sees EPS of $5.70-5.90.
Cognex (CGNX 51.57, -0.03 +0.06%) reported better than expected Q3 EPS and revenues of $0.61 and $147.95 million, respectively. For Q4, the company sees revenues ahead of expectations at $115-118 million.
Integrated Device (IDTI 22.87, +2.16 +10.43%) reported better than expected Q2 EPS of $0.34 on in-line revenues of $184.05 million. Guided Q3 EPS of $0.34 on revenues of $171-181 million.
Monolithic Power (MPWR 76.49, -2.32 -2.94%) reported better than expected Q3 EPS of $0.66 on revenues which rose 16.7% compared to last year to $106.46 million. For Q4, MPWR sees revenues of $101-105 million.
Instructure (INST 20.30, -5.15 -20.24%) reported a better than expected Q3 loss per share of $0.34 on revenues of $30.15 million. The company also guided Q4 mixed with EPS ahead of expectations at a loss of $0.44-0.42 on revenues worse than expected revenues of $30.4-31.0 million.
Companies scheduled to report quarterly results tonight/tomorrow morning: BBOX BLKB CALX CALD CAVM ESIO EA ENPH EXTR FARO FIVN FTR IPHI IVAC XXIA JCOM JIVE MTCH MXWL OCLR PAYC PLT PRO QUMU SANM SBAC SQ DATA TNAV TSRA TRMB TNET ULTI VECO VIAV WBMD WSTC WU ZEN ZG/ADP BAH CDK CEVA CBB CRTO INXN KVHI NVMI OIIM ORBC ORBK SHOP TEL YELP
Analyst actions:
BRCD was upgraded to Outperform from Sector Perform at RBC Capital Mkts,
VMW was upgraded to Buy from Hold at Summit Redstone;
JNPR was downgraded to Underweight from Equal Weight at Morgan Stanley,
MA was downgraded to Neutral from Buy at Guggenheim,
GDDY was downgraded to Neutral from Buy at Monness Crespi & Hardt,
LVLT was downgraded at RBC Capital Mkts, Jefferies, Goldman,
INST was downgraded to Outperform from Strong Buy at Raymond James,
NXPI was downgraded to Sector Weight from Overweight at Pacific Crest,
SPCB was downgraded to Hold from Buy at Feltl & Co.;
TWLO was initiated with an Outperform at Oppenheimer
