From Briefing.com: 4:25 pm ON Semiconductor to redeem all remaining outstanding 2.625% Convertible Senior Subordinated Notes due 2026, Series B amounting to $356.93 mln (ON) : ON Semiconductor expects to fund the payment of this redemption using available liquidity.
4:21 pm Nuance Communications beats by $0.02, beats on revs; guides Q1 below consensus; guides FY17 EPS just below consensus, revs in-line; CEO Paul Ricci will retire after FY1H18 (NUAN) :
Reports Q4 (Sep) earnings of $0.41 per share, $0.02 better than the Capital IQ Consensus of $0.39; revenues fell 0.2% year/year to $512.4 mln vs the $505.06 mln Capital IQ Consensus.
"We delivered record net new bookings in Q4 16 of $516.9 million, resulting in 42% sequential and 45% year over year growth, exceeding our expectations for the quarter. This growth was broadbased across our businesses, especially in Healthcare and Mobile. In particular, we saw a significant increase in multi-year Dragon Medical cloud bookings."
Co issues downside guidance for Q1, sees EPS of $0.32-0.35, excluding non-recurring items, vs. $0.40 Capital IQ Consensus Estimate; sees Q1 revs of $483-497 mln, excluding non-recurring items, vs. $505.06 mln Capital IQ Consensus Estimate.
Co issues guidance for FY17, sees EPS of $1.53-1.63, excluding non-recurring items, vs. $1.64 Capital IQ Consensus Estimate; sees FY17 revs of $2.02-2.07 bln vs. $2.04 bln Capital IQ Consensus Estimate. Co expect organic revenue growth in FY17 of ~1%, representing a 300 basis point improvement over FY16's organic growth rate. This is consistent with guidance communicated previously of a 100 to 200 basis point improvement in organic growth rate in FY17 and an incremental 100 basis points of organic revenue growth from TouchCommerce. Net new bookings +2-6%.
Board of Directors has extended Nuance Chairman and CEO Paul Ricci's employment agreement through the first half of fiscal 2018. Mr. Ricci has advised the Board that he intends to retire at the end of this term. The Board of Directors will undertake a search process to choose Mr. Ricci's successor during the term.
Nuance also announced that Bill Robbins, executive vice president, Worldwide Sales, will be leaving the company for another role and as part of a planned transition of sales responsibilities into Nuance's four business divisions.
4:14 pm Marvell beats by $0.08, beats on revs; guides Q4 ex-discontinued operations; announces $1 bln buyback (MRVL) :
Reports Q3 (Oct) earnings of $0.20 per share, excluding non-recurring items, $0.08 better than the Capital IQ Consensus of $0.12; revenues -3% year/year to $654 mln vs the $615.76 mln Capital IQ Consensus.
Co issues guidance for Q4 ex-the estimated results of certain non-strategic businesses that have a first half of fiscal 2017 annualized run rate of ~$100 million in revenue and $60 million in operating expenses (discontinued operations following Nov 2 restructuring announcement -- sees adj. EPS of $0.17-0.21, may not be comparable to $0.13 Capital IQ Consensus; sees Q4 revs of $553.7-576.3 mln, may not be comparable to $594.03 mln Capital IQ Consensus Estimate.
Marvell's fourth quarter of fiscal 2017 financial outlook also excludes These businesses will be classified as discontinued operations beginning in the fourth quarter of fiscal 2017.
"Our core businesses performed very well, with data storage and network infrastructure growing double digits year-over-year."
The Board of Directors has authorized a $1 billion share buyback program. This newly authorized stock repurchase program replaces in its entirety the prior $3.25 billion stock repurchase program, which had ~$115 million of repurchase authority remaining. The Company currently intends to repurchase approximately $500 million worth of shares over the next 12 months.
4:06 pm Applied Materials beats by $0.01, reports revs in-line; backlog -7% from prior quarter, guides Q1 EPS above consensus, revs above consensus (AMAT) :
Reports Q4 (Oct) earnings of $0.66 per share, $0.01 better than the Capital IQ Consensus of $0.65; revenues rose 39.2% year/year to $3.3 bln vs the $3.31 bln Capital IQ Consensus.
Applied's backlog decreased 7% from the prior quarter to $4.58 billion and included negative adjustments of $106 mln, primarily due to changes in expected timing of shipments and other adjustments, partially offset by favorable foreign currency impacts.
Co issues upside guidance for Q1, sees EPS of $0.62-0.70 vs. $0.58 Capital IQ Consensus Estimate; sees Q1 revs of $3.20-3.34 bln vs. $3.12 bln Capital IQ Consensus Estimate.
"As we look to 2017 and beyond, we see sustainable growth as new demand drivers layer on top of our traditional end markets in computing, mobility and consumer electronics," said Bob Halliday, Senior Vice President and CFO. "The industries we serve are bigger and more attractive, our opportunity set is larger, our customer relationships are stronger, and we're excited about our new product pipeline."
4:00 pm Intel confirms cloud alliance with Alphabet's (GOOG) Google (INTC) : The collaboration includes technology integrations focused on Kubernetes (containers), machine learning, security and IoT.
4:10 pm : The stock market ended the Thursday affair on a modestly higher note as investors assessed the latest battery of economic data. The Nasdaq Composite (+0.7%) finished ahead of both the S&P 500 (+0.5%) and the Dow Jones Industrial Average (+0.2%).
Participants expanded their bets on an improving economy as increased inflation concerns had investors rotating out of the bond market in favor of more growth-oriented positions.
The Consumer Price Index (CPI) increased 0.4% (Briefing.com consensus +0.4%) in October while core CPI, which excludes food and energy, ticked up by 0.1% (Briefing. com consensus +0.2%). The data showed a firming inflation trend with the headline index rising to 1.6% year-over-year. Meanwhile, the core reading is up 2.1% year-over-year.
The latest housing data also helped pro-growth positioning as housing starts rose to an annualized rate of 1.323 million (Briefing.com consensus 1178k) in October. This will figure positively into fourth quarter GDP estimates and also marks the strongest reading since 2007. Building permits increased 0.3% to a seasonally adjusted rate of 1.229 million (Briefing.com consensus 1.200 million).
Federal Reserve Chair Janet Yellen highlighted recent economic growth when she stated that economic data since the November Fed meeting has been consistent with expectations. Chair Yellen also indicated that a policy rate increase may be appropriate relatively soon. According to the CME's FedWatch Tool, the implied probability of a December interest rate hike registers at 90.6%, unchanged from yesterday.
The tech-heavy Nasdaq (+0.7%; month-to-date: +2.8%) outperformed, narrowing this month's performance gap. The Dow Jones Industrial Average (+0.2%; month-to-date: +4.2%) and S&P 500 (+0.5%; month-to-date: +2.9%) ended closer to their flat lines. The modest advance in the benchmark index was underpinned by gains in six sectors.
The heavily-weighted financial (+1.3%), consumer discretionary (+1.2%), and technology (+0.7%) sectors led while real estate (-0.9%) and energy (-0.7%) underperformed.
The economically-sensitive financial sector (+1.3%) outperformed amid rising market rates and positive economic data. Banking names led the advance as steepening in the yield curve improved the industry's earnings potential. The SPDR S&P Bank ETF (KBE 40.17, +0.53) finished higher by 1.3%. Separately, Dow component JPMorgan Chase (JPM 78.02, +0.62, +0.8%) ended behind its peers after settling a hiring probe for approximately $265 million.
In the consumer discretionary space (+1.2%), homebuilders outperformed on the heels of the better-than-expected housing data. The iShares Dow Jones US Home Construction ETF (ITB 27.34, +0.57) rallied 2.1%. Meanwhile, electronics retailer Best Buy (BBY 45.99, +5.54) spiked 13.7% after topping consensus estimates for the quarter and issuing upbeat guidance for the fourth quarter.
The technology sector (+0.7%) continued playing catch up with the broader market. Dow component Microsoft (MSFT 60.64, +0.99) outperformed after an upgrade to "Buy" from "Neutral" at Goldman. Conversely, shares of Cisco Systems (CSCO 30.05, -1.52) fell 4.8% after the company issued some cautious guidance. The tech giant did, however, beat bottom-line estimates for the quarter.
The energy sector (-0.7%) ended on a lower note as crude oil surrendered an intraday gain, sliding into negative territory. WTI crude settled down 1.1% ($45.38/bbl; -$0.19).
The Treasury complex finished on a lower note with the long-end of the curve underperforming. The yield on the 2-yr note finished higher by two basis points (1.03%) while the yield on the benchmark 10-yr note rose six basis points to 2.29%.
Today's trading volume was below the average of 895 million as fewer than 831 million shares changed hands at the NYSE floor.
Today's economic data included CPI for October, October Housing Starts and Building Permits, weekly initial claims, and the Philadelphia Fed Survey for November:
CPI increased 0.4%, as expected, in October while core CPI, which excludes food and energy, rose 0.1% (Briefing.com consensus +0.2%).
On a year-over-year basis, total CPI is up 1.6% -- its largest 12-month increase since October 2014 -- and core CPI is up 2.1%
October housing starts surged 25.5% to a seasonally adjusted annual rate of 1.323 million (Briefing.com consensus 1.178 million).
Building permits rose 0.3% to a seasonally adjusted annual rate of 1.229 million (Briefing.com consensus 1.200 million)
Initial claims for the week ending November 12 dropped by 19,000 to 235,000 (Briefing.com consensus 258,000).
Continuing claims decreased by 66,000 to 1.977 million, which is the lowest level since April 15, 2000.
The Philadelphia Fed Index dipped to 7.6 in November (Briefing.com consensus 8.5) from 9.7 in October, although the new orders index ticked up to 18.6 from 16.3.
For more 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 +35.68 NASDAQ +39.39 SP500 +10.18 NASDAQ Adv/Vol/Dec 1788/1.916 bln/1107 NYSE Adv/Vol/Dec 1565/830.6 mln/1409
3:40 pm :
Strength in the dollar index continued to weigh on commodities today, helping many close in the red
Dec WTI crude oil finished today's session -1.1% at $45.38/barrel
In other energy, Dec nat gas recovered some, ending 0.1% lower at $2.70/MMBtu
Looking over at metals...
Dec gold slipped 0.5% today to close at $1217.10/oz, while Dec silver lost 1% to close at $16.76/oz
In base metals, Dec copper rose 1% to $2.49/lb
When the bell rang on Thursday, the broader market was at highs. Leading the pack, the Nasdaq Composite added 39.39 points (+0.74%) to 5333.97. The S&P 500 was up 10.18 points (+0.47%) to 2187.12, and the Dow Jones Industrial Average rounded out the trio higher by 35.68 points (+0.19%) to 18903.82. Aiding today's advance, top Nasdaq 100 components INCY +4.8%, AAL +3.1%, ROST +2.6%, TSLA +2.6%, LRCX +2.5% and CELG +2.0% all finished firmly in the green.
Participants expanded their bets on an improving economy as increased inflation concerns had investors rotating out of the bond market in favor of more growth-oriented positions.
The Consumer Price Index (CPI) increased 0.4% in October while core CPI, which excludes food and energy, ticked up by 0.1%. The data showed a firming inflation trend with the headline index rising to 1.6% year-over-year. Meanwhile, the core reading is up 2.1% year-over-year.
The latest housing data also helped pro-growth positioning as housing starts rose to an annualized rate of 1.323 million in October. This will figure positively into fourth quarter GDP estimates and also marks the strongest reading since 2007. Building permits increased 0.3% to a seasonally adjusted rate of 1.229 million.
Federal Reserve Chair Janet Yellen highlighted recent economic growth when she stated that economic data since the November Fed meeting has been consistent with expectations. Chair Yellen also indicated that a policy rate increase may be appropriate relatively soon. According to the CME's FedWatch Tool, the implied probability of a December interest rate hike registers at 90.6%, unchanged from yesterday.
Among the winning sectors in the S&P today, the Technology (XLK 47.40, +0.30 +0.64%) space finished near highs again. Component NetApp (NTAP 36.90, +2.17 +6.25%) was the best performer in the space today following the company's reported better than expected Q2 earnings last night. Also in the news, Cisco Systems (CSCO 30.05, -1.52 -4.81%) reported better than expected earnings last night, but gave some tepid guidance. Other sectors as measured by the S&P closed the session XLFS +2.19%, XLF +1.37%, XLY +1.18%, XLV +0.40%, XLI +0.21%, IYZ +0.19%, XLB +0.04%, XLU +0.02%, XLP -0.18%, XLE -0.67%, XLRE -0.94% with Financials again leading the charge.
In the S&P 500 Information Technology (798.10, +5.50 +0.69%) sector, trading finished at highs as broader market strength carried through. Component First Solar (FSLR) was the worst performing name in the space today on the back of last night's guidance. Other names in the space which outperformed today included MU +5.15%, ADS +3.25%, INTU +2.65%, CRM +2.56%, LRCX +2.55%, STX +2.54%, ATVI +2.49%, SWKS +2.40%, AMAT +2.37%, QRVO +2.11%, PYPL +2.07%, CSRA +2.04%, EBAY +1.91%, CTSH +1.90%.
Other notable news items among sector components:
Vuzix (VUZI 6.75, -1.45 -17.68%) received a letter from Intel (INTC 35.02, +0.18 +0.52%) stating that INTC no longer desired to pursue a strategic relationship with VUZI. The company commented that during the last two years, the relationship with INTC has not generated material revenue.
Analog Devices (ADI 68.21, +0.33 +0.49%) acquired a solid-state laser beam steering technology from Vescent Photonics. Financial terms of the deal were not disclosed.
Fiserv (FISV 105.06, +1.85 +1.79%) added 15 million shares to its repurchase authorization.
Applied Materials (AMAT 30.73, +0.71 +2.37%) thin-film deposition equipment was selected by Chinese semiconductor display product manufacturer BOE Technology for use in the Gen 10.5 TFT-LCD production line to accelerate production of large LCD TVs.
First Solar (FSLR) raised 2016 EPS guidance; also gave initial 2017 EPS, revenue and shipment guidance worse than market expectations.
Qualcomm's (QCOM 66.67, +0.37 +0.56%) Qualcomm Technologies, and Samsung Electronics (SSNLF 1250.00, flat) extended their decade-long strategic foundry collaboration to manufacture Qualcomm Technologies' latest Snapdragon premium processor, Qualcomm Snapdragon 835, with Samsung's 10-nanometer FinFET process technology.
Samsung Electronics (SSNLF) announced a collaboration with Microsoft (MSFT 60.64, +0.99 +1.66%) on open source projects, such as .NET Core and Xamarin.Forms, to enable .NET support for Tizen. Tizen is an open source operating system based on Linux, hosted by the Linux Foundation, and open to all developers. The operating system powers 50 million Samsung devices.
Facebook (FB 117.79, +6.75 +0.88%) acquired CrowdTangle, the porfolio company of Tsai Ventures. Financial terms off the deal were not disclosed.
FB also acquired FacioMetrics. Financial details of that deal were also not disclosed.
Alphabet (GOOG 771.23, +6.75 +0.88%) and Intel (INTC 35.02, +0.18 +0.52%) expanded their cloud alliance.
Elsewhere in the tech space:
Gogo (GOGO 8.97, -0.07 -0.77%) signed an agreement for services on the Intelsat (I) 29e satellite.
CGI Group (GIB 47.39, +0.06 +0.13%) announced a new 10-year IT outsourcing agreement valued at $160 million.
Kratos Defense and Security (KTOS 6.85, -0.09 -1.30%) received a $17.75 million contract award from a new International customer to provide full operational capability for the BQM-167i high performance unmanned aerial target drone system.
Vishay Intertechnology's (VSH 15.25, +0.05 +0.33%) COO Dieter Wunderlich to retire effective December 31, 2016. VSH will not replace the COO role.
Semtech (SMTC 26.90, -0.35 -1.28%) amended and restated its existing $400 million credit facility.
TerraForm Power (TERP 13.01, +0.02 +0.15%) and TerraForm Global (GLBL 3.75, -0.05 -1.32%) announced extensions until March 2017 to regain Nasdaq compliance.
According to the NYPost, Vista Equity Partners has gained clearance for its pending Cvent (CVT 35.72, +5.09 +16.62%) acquisition.
In reaction to quarterly results:
Cisco Systems (CSCO) reported better than expected Q1 EPS of $0.61 on in-line revenues which fell 2.6% compared to last year to $12.35 billion. For Q2, the company guided EPS and revenues below market expectations at about $0.55-0.57 and revenues growth down 2-4% to about $11.27-11.51 billion, respectively.
NetApp (NTAP 36.90, +2.17 +6.25%) reported better than expected Q2 EPS of $0.60 on slightly worse than expected revenues of $1.34 billion. For Q3, the company sees EPS ahead of market expectations at $0.72-0.77 on in-line revenues of $1.325-1.475 billion.
JA Solar (JASO 5.60, +0.02 +0.36%) reported better than expected Q3 EPS and revenues of $0.13 and $624.3 million, respectively.
Companies scheduled to report tonight: ASYS, AMAT, INTU, MRVL, NUAN, CRM
Analyst actions:
MSFT was upgraded to Buy from Neutral at Goldman,
FSLR was upgraded to Mkt Perform from Mkt Underperform at JMP Securities;
ELLI was downgraded to Sector Perform from Outperform at RBC Capital Mkts,
SPWR was downgraded to Neutral from Outperform at Robert W. Baird,
FSLR was downgraded to Mkt Underperform from Mkt Perform at Avondale,
NTAP was downgraded to Hold from Buy at Maxim Group;
IRBT was initiated with a Buy at Dougherty,
ADS was initiated with a Buy at Guggenheim,
SHOP and BV were initiated with a Buy ratings at BTIG Research,
ADBE and ECOM were initiated with a Neutral ratings at BTIG Research
