From Briefing.com: 4:55 pm Sierra Wireless beats by $0.02, reports revs in-line; guides Q4 EPS in-line, revs in-line (SWIR) :
Reports Q3 (Sep) earnings of $0.13 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.11; revenues fell 0.6% year/year to $153.6 mln vs the $152.16 mln Capital IQ Consensus.
Co issues in-line guidance for Q4, sees EPS of $0.13-0.19, excluding non-recurring items, vs. $0.16 Capital IQ Consensus Estimate; sees Q4 revs of $157-166 mln vs. $162.90 mln Capital IQ Consensus Estimate.
4:46 pm Skyworks beats by $0.04, reports revs in-line; guides Q1 EPS, revs above consensus (SWKS) :
Reports Q4 (Sep) earnings of $1.47 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.43; revenues fell 5.2% year/year to $835.4 mln vs the $831.31 mln Capital IQ Consensus.
Co issues upside guidance for Q1, sees EPS of $1.58 vs. $1.56 Capital IQ Consensus Estimate; sees Q1 revs of $894-911 mln (+7-9% Q/Q) vs. $893.01 mln Capital IQ Consensus Estimate.
4:45 pm Universal Display misses by $0.02, misses on revs; reaffirms FY16 revs guidance (OLED) :
Reports Q3 (Sep) loss of $0.03 per share, $0.02 worse than the Capital IQ Consensus of ($0.01); revenues fell 23.4% year/year to $30.2 mln vs the $32.9 mln Capital IQ Consensus.
Co reaffirms guidance for FY16, sees FY16 revs of $190-200 mln vs. $195.15 mln Capital IQ Consensus Estimate.
"As we anticipate resuming our growth trajectory in 2017, we continue to build up our core competencies. The display and lighting industries are evolving, and we believe we are well positioned to continue to play a pivotal role in the OLED market's future. We have expanded our global footprint, increased our headcount to approximately 200 employees, bolstered our IP portfolio to over 4,200 issued and pending patents worldwide, and continue to broaden our rich portfolio of proprietary OLED technologies and phosphorescent materials. These investments, in addition to our other strategic initiatives, buttress our committed path of continuous innovation and next-generation solutions, our strong leadership position in the OLED ecosystem, and our confidence in the long-term growth path of OLEDs."
4:18 pm Novatel Wireless to sell the Company's mobile broadband MiFi business to T.C.L. Industries Holdings for an undisclosed sum; plans to reorganize its business by creating a new holding company named Inseego (MIFI) : Inseego Corp. will replace Novatel Wireless as the publicly held corporation, effective November 9, 2016. The shares of Inseego Corp. will trade on the NASDAQ Global Select Market under the ticker symbol "INSG" at the beginning of trading on November 9, 2016.
4:14 pm Motorola Solutions beats by $0.17, beats on revs; guides Q4 EPS in-line, revs below consensus; announces dividend increase of 15% to $0.47/share (MSI) :
Reports Q3 (Sep) earnings of $1.37 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $1.20; revenues rose 7.7% year/year to $1.53 bln vs the $1.52 bln Capital IQ Consensus.
Co issues guidance for Q4, sees EPS of $1.82-1.87, excluding non-recurring items, vs. $1.87 Capital IQ Consensus Estimate; sees Q4 revs growth of 9-10%, which equates to ~$1.83-1.85 bln vs. $1.86 bln Capital IQ Consensus Estimate.
4:05 pm Applied Optoelectronics beats by $0.10, beats on revs; guides Q4 EPS above consensus, revs above consensus (AAOI) :
Reports Q3 (Sep) earnings of $0.38 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of $0.28; revenues rose 22.8% year/year to $70.1 mln vs the $64 mln Capital IQ Consensus. Non-GAAP gross margin was 33.1% compared with 31.7% in the third quarter 2015 and 31.4% in the second quarter of 2016.
Co issues upside guidance for Q4, sees EPS of $0.46-0.51 vs. $0.30 Capital IQ Consensus Estimate; sees Q4 revs of $75-79 mln vs. $67.39 mln Capital IQ Consensus Estimate.
4:15 pm : The stock market ended the Thursday affair on a lower note as the S&P 500 (-0.4%) retreated for the eighth consecutive session. Sellers remained more eager than buyers as falling oil prices, persistent political uncertainty, and weakness in the technology (-1.0%) and health care (-1.0%) sectors weighed on investor sentiment. The Nasdaq Composite (-0.9%) finished behind the benchmark index (-0.4%) and the Dow Jones Industrial Average (-0.2%).
Equity indices stumbled in the opening hour as a reversal in crude oil and weakness in the influential technology sector (-1.0%) weighed on the broader market.
Oil began the day on a modestly higher note, rebounding from its recent losing streak. The energy component has been under pressure in recent days as investors reassess the previously announced OPEC supply freeze agreement and mull over some disappointing weekly inventory data. WTI crude slipped below the $45.00/bbl in the opening hour, finishing down 2.0% ($44.45/bbl; -$0.89). Today's retreat has the energy component down 8.8% so far this week.
Social media name Facebook (FB 119.95, -7.22, -5.7%) also weighed on investor sentiment as a disappointing revenue growth outlook masked a bottom-line beat. The F.A.N.G. name weighed on fellow technology bellwethers with Apple (AAPL 109.83, -1.19) and Alphabet (GOOG 762.13, -6.57) falling 1.1% and 0.9%, respectively. Top-weighted Apple has now declined 7.1% since October 25 when the company released underwhelming quarterly results and guidance. Chipmaker Qualcomm (QCOM 66.98, -0.14) also finished down 0.2%.
The broader market extended its loss into midday as biotechnology tacked onto its recent losing streak. The iShares Nasdaq Biotechnology ETF (IBB 246.87, -7.46, -2.9%) extended its weekly loss to 5.2% as Allergan (AGN 188.82, -9.07, -4.6%) and Mylan (MYL 34.14, -2.53, -6.9%) weighed on the group. The two saw additional selling pressure when CNBC reported that the U.S. Department of Justice will be looking into the pricing practices of generic pharmaceutical companies.
The benchmark index carved out a session low in the final hour of trade as nine sectors ended in negative territory. Technology (-1.0%) and health care (-1.0%) finished at the bottom of the leaderboard while energy (+0.4%), utilities (+0.3%), and financials (+0.3%) finished with the only gains.
In the consumer discretionary space (-0.3%), 21st Century Fox (FOXA 27.74, +1.91) jumped 7.4% after beating bottom-line estimates for the quarter. The company bolstered the media sub-group, helping Dow component Disney (DIS 93.37, +1.46, +1.6%) finish at the top of the price-weighted average. On the flipside, Starbucks (SBUX 51.77, -1.21) fell 2.3% ahead of this evening's quarterly report.
The economically-sensitive financial sector (+0.3%) outperformed as life insurance names displayed relative strength. Prudential (PRU 86.67, +2.88) rallied 3.4% after topping analysts' estimates for the quarter. The space also gained on slight steepening in the yield curve. On the flipside, American International Group (AIG 58.15, -2.40) ended lower by 4.0% despite a bottom-line beat.
Treasuries finished on a mixed note as the long end of the curve underperformed. The yield on the 2-yr note finished flat (0.82%) while the yield on the 10-yr note finished the day up one basis point (1.81%).
Today's trading volume was above the average of 860 million as more than 880 million shares changed hands at the NYSE floor.
Today's economic data included October Challenger Job Cuts, Initial Claims, third quarter Productivity and Unit Labor Costs, Factory Orders for September, and ISM Services for October:
October Challenger Job Cuts were reported at 30,700, which compares to the prior month's reading of 44,300.
Initial claims for the week ending October 29 rose by 7,000 to 265,000 (Briefing.com consensus 256,000).
Continuing claims for the week ending October 22 decreased by 14,000 to 2.026 million.
Nonfarm business sector labor productivity increased at a 3.1% annual rate in the third quarter (Briefing.com consensus 1.8%).
This was the first increase after three consecutive quarterly declines and was further underpinned by an upward revision to second quarter productivity to -0.2% from -0.6%.
Unit labor costs increased 0.3% (Briefing.com consensus +1.2%) following a downwardly revised 3.9% increase (from 4.3%) in the second quarter.
New orders for manufactured goods increased 0.3% in September (Briefing.com consensus +0.2%) on top of an upwardly revised 0.4% increase (from 0.2%) in August.
The ISM Non-Manufacturing Index dropped to 54.8 in October (Briefing.com consensus 55.8) from 57.1 in September.
For more on these economic releases, be sure to visit Briefing.com's Economic Calendar page.
Tomorrow's economic data will include the 8:30 ET release of the September Trade Balance (Briefing.com consensus -$38.5 billion) and the Employment Situation Report for October. The Briefing.com consensus expects the jobs report to show an increase of 175,000 in nonfarm payrolls.DJ30 -28.97 NASDAQ -47.16 SP500 -9.28 NASDAQ Adv/Vol/Dec 1019/1.920 bln/1993 NYSE Adv/Vol/Dec 1171/880.7 mln/1783
3:30 pm :
The dollar index was -0.3% around the 97.11 level, not appearing to boost precious metals
Commodities, as measured by the Bloomberg Commodity Index, were -0.3% around the 83.61 level
Crude oil ended at a fresh 5-week low, finished near session lows for the fifth consecutive session ahead of tomorrow's rig count data
December crude oil futures fell $0.65 (-1.4%) to $44.66/barrel
The next official OPEC meeting will take place in Vienna, Austria on November 30.
Baker Hughes rig count data will be released tomorrow at 1 pm ET.
Monthly IEA data will be released November 10.
Reminder: yesterday, EIA reported the single largest crude inventory build in over 30 years
Natural gas gave up its initial gains despite EIA reporting a smaller-than-expected build compared to Consensus.
December natural gas closed $0.02 lower (-0.7%) at $2.77/MMBtu
EIA highlights:
Natural gas inventory showed a build of +54 bcf vs expectations for inventory to be a build of approximately +56 bcf
Working gas in storage was 3,963 Bcf as of Friday, October 28, 2016, according to EIA estimates.
Stocks were 48 Bcf higher than last year at this time and 173 Bcf above the five-year average of 3,790 Bcf.
At 3,963 Bcf, total working gas is above the five-year historical range.
In precious metals, gold & silver snap their 2-day streak, the dollar index resumed its slide
December gold ended today's session down $4.60 (-0.4%) to $1303.40/oz
December silver closed today's session $0.27 lower (-1.4%) at $18.42/oz
Base metal copper resumed Tuesday's climb after ending flat yesterday (closed higher for the previous 5 sessions leading up to yesterday)
December copper closed $0.02 higher (+0.9%) at $2.25/lb
Action today closed firmly in the red, albeit with a modest tick higher into the close. Leading the action lower today, the Nasdaq Composite shed 47.16 points (-0.92%) to 5058.41. The S&P 500 lost 9.28 points (-0.44%) to 2088.66, and the Dow Jones Industrial Average was lower by 28.97 points (-0.16%) to 17930.67. Pressuring the Nasdaq lower, top Nasdaq 100 components MYL -6.9%, INCY -4.5%, ESRX -3.7%, ULTA -3.2% and BMRN -2.8% all closed well lower.
Market data today included October Challenger Job Cuts reported in at 30,700, which compares to the prior month's reading of 44,300. Also, initial claims for the week ending October 29 rose by 7,000 to 265,000. Nonfarm business sector labor productivity increased at a 3.1% annual rate in the third quarter. Unit labor costs increased 0.3% following a downwardly revised 3.9% increase (from 4.3%) in the second quarter. New orders for manufactured goods increased 0.3% in September on top of an upwardly revised 0.4% increase (from 0.2%) in August. Lastly, the ISM Non-Manufacturing Index dropped to 54.8 in October from 57.1 in September.
As it were, the Technology (XLK 46.28, -0.43 -0.92%) sector was the second worst performer today, ending near lows. Component First Solar (FSLR 34.51, -6.07 -14.96%) was pressured today on the heels of a mixed Q3 print and mixed, but skewed to the downside, FY16 guidance; shares fell to the sub-33 level on their way to deeper than three-year lows. Other sectors as measured by the S&P ended Thursday XLE +0.40%, XLU +0.38%, XLF +0.10%, XLFS +0.07%, XLB +0.03%, XLI -0.16%, XLY -0.26%, XLRE -0.44%, XLP -0.69%, XLV -0.92%, IYZ -0.94% as Energy led the charge higher and Telecoms lagged.
In the S&P 500 Information Technology (780.84, -7.87 -1.00%) sector, trading ended an even -1% lower on the back of a weak broader market session. Bellwether Facebook (FB 119.95, -7.22 -5.68%) displayed weakness today despite reporting better than expected Q3 results but FY17 commentary came out a bit on the cautious side. Other names which closed lower today included XRX -1.68%, FLIR -1.68%, ADSK -1.56%, ACN -1.40%, INTC -1.22%, NVDA -1.16%, CRM -1.15%, AKAM -1.12%, AMAT -1.12%, YHOO -1.11%, AAPL -1.07%, HPE -1.00%.
Other notable news items among sector components:
Intel (INTC 33.92, -0.42 -1.22%) acquired VR startup VOKE for immersive sports. Financial terms of the deal were not disclosed.
Last night in a Bloomberg report, Skyworks (SWKS 74.67, -0.36 -0.48%) was rumored to be interested in
Microsemi (MSCC 47.99, +6.16 +14.73%).
Fiserv (FISV 98.11, -0.55 -0.56%) announced that BDO Unibank expanded their relationship with Fiserv to include Managed Services to support the IT initiatives of the bank.
Juniper Networks (JNPR 24.91, -0.24 -0.95%) was selected by MSMVIL to build a converged multi-service network for its next-generation network services.
Accenture's (ACN 116.95, -1.66 -1.40%) Mortgage Cadence announced an enhancement to its Partner Ecosystem designed to bring industry-leading mortgage technology together with top-tier third-party service providers and consulting firms.
Elsewhere in the tech space:
ManTech (MANT 37.30, -0.30 -0.80%) announced CFO Kevin Phillips has been promoted to president and COO.
Inteliquent (IQNT 22.60, +5.86 -35.01%) to be acquired by an affiliate of GTCR for $23.00 per share in cash or about $800 million.
Marvell (MRVL 12.63, -0.31 -2.40%) announces certain restructuring actions which include the elimination of about 900 positions, and expects that it will lower annual operating expenses from a current annualized run rate of $1.08 billion to the $820-840 million range.
Rubicon Project (RUBI 6.23, -1.17 -15.81%) announced a workforce reduction of 125 employees, or about 19%, of its workforce.
ANSYS (ANSS 83.49, -6.03 -6.74%) acquired Berlin-based KPIT medini Technologies AG. Financial terms of the deal were not disclosed.
In reaction to quarterly results:
Facebook (FB) reported better than expected Q3 EPS and revenues of $1.09 and $7.01 billion, respectively. For context, DAUs were up 17% year-over-year to 1.18 billion and MAUs were up 16% year-over-year to 1.79 billion.
Qualcomm (QCOM 66.95, -0.14 -0.21%) reported better than expected Q4 EPS and revenues of $1.28 and $9.17 billion, respectively. For Q1, the company sees EPS of $1.12-1.22 on revenues of $5.7-6.5 billion.
Gartner (IT 94.04, +7.83 +9.08%) reported better than expected Q3 EPS and revenues off $0.58 and $574.1 million. For FY16, the company sees EPS of $2.89-3.05 on revenues of $2.44-2.47 billion.
Genpact (G 23.57, +0.81 +3.56%) reported better than expected Q3 EPS of $0.37 on worse than expected revenues of $648.8 million. For FY16, the company raised EPS and lowered revenue guidance to $1.42-1.43 (from $1.40-1.42), and to $2.57-2.58 billion (from $2.59-2.62 billion), respectively.
First Solar (FSLR) reported better than expected Q3 EPS of $1.22 on worse than expected revenues of $688 million. For FY16, the company sees in-line EPS and worse than expected revenues of $4.30-4.50 and $2.8-2.9 billion.
GoDaddy (GDDY 33.28, -1.93 -5.48%) reported worse than expected Q3 EPS of $0.05 on in-line revenues of $472.1 million. For Q4, GDDY sees in-line revenues of $483-487 million.
Itron (ITRI 58.20, +6.30 +12.14%) reported better than expected Q3 EPS and revenues of $0.77 and $506.86 million, respectively.
Fitbit (FIT 8.51, -4.30 -33.57%) reported in-line Q3 EPS of $0.19 on in-line revenues of $503.8 million. For Q4, the company sees EPS and revenues worse than expected at $0.14-0.18 and $725-750 million, respectively.
Gogo (GOGO 9.75 +0.08 +0.83%) reported a better than expected Q3 loss per share of $0.43 on revenues which rose 16.5% compared to last year to $147.27 million. For FY16, the company sees revenues above the mid point of the prior range of $575-595 million.
Companies scheduled to report quarterly results tonight/tomorrow morning: TWOU ATVI MDRX AOSL AMBR AAOI ANET ABTL RATE BNFT WIFI CARB ECOM CPSI CSC CSOD FEYE GSAT GLUU GPRO GUID HDP IMMR IMPV PI SAAS ININ INAP INVN MELI MTD MSI NPTN UEPS EGOV OTEX PCTY PDVW QRVO QLYS RP SWIR SSNI SWKS SYMC TRMR TRUE TWLO UBNT OLED VRNS WEB/MOSY TDS TU USM
Analyst actions:
VMW was upgraded to Outperform from Mkt Perform at Raymond James,
ITRI was upgraded to Outperform from Perform at Oppenheimer,
ACIW was upgraded to Overweight from Equal Weight at a boutique firm,
WILN was upgraded to Buy at Canaccord Genuity;
FIT was downgraded at Morgan Stanley, Longbow, Citigroup, Piper Jaffray, BofA/Merrill and others,
BRCD was downgraded to Sector Perform from Outperform at RBC Capital Mkts, to Neutral at DA Davidson and to Sell at Wunderlich,
FSLR was downgraded to Perform from Outperform at Oppenheimer, to Neutral from Buy at Roth Capital and to Neutral from Buy at Janney,
RUBI was downgraded to Equal Weight from Overweight at a boutique firm,
LSCC was downgraded to Neutral at Robert W. Baird
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