From Briefing.com: 4:39 pm Microchip follw up: Narrows/raises Q3 guidance (MCHP) : Narrows non-GAAP EPS to $0.87-0.94 from $0.85-0.95 vs. the $0.90 consensus; raises rev to down 1-4% (from flat to down 6%) to ~$839-865 mln vs. $848 mln consensus.
"Our business through the first eight weeks of the December 2016 quarter is tracking modestly above our November 7, 2016 guidance," said Steve Sanghi, Microchip's CEO. "Furthermore, the integration activities associated with our acquisitions of Atmel and Micrel continue to make significant progress. Micrel's 6-inch fab in San Jose is now closed which we expect to drive significant gross margin benefits after the higher cost inventory from that factory is sold through and our lower costs from our higher volume factories are realized.
The integration of Atmel continues to progress as we approach a major milestone of integrating business systems on January 1, 2017."
"With the continued execution of our integration activities and operational improvements for our business we are on track to realize our long term business model of 33% non-GAAP operating income by the fourth quarter of fiscal 2018."
4:07 pm Amazon announces its best-ever holiday shopping weekend for devices (AMZN) : Amazon today announced its best-ever holiday shopping weekend for devices-including a record-breaking Cyber Monday with Amazon device sales up more than 2x over last year and millions of devices sold. Echo Dot, Amazon Fire TV Stick with Alexa Voice Remote, Fire tablet, and Amazon Echo were not only the best-selling Amazon devices, but they were the best-selling products from any manufacturer in any category across all of Amazon.
4:06 pm Autodesk beats by $0.06, beats on revs; guides Q4 below consensus (ADSK) :
Reports Q3 (Oct) loss of $0.18 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of ($0.24); revenues fell 18.4% year/year to $489.6 mln vs the $476.78 mln Capital IQ Consensus; 16 percent on a constant currency basis. During Autodesk's business model transition, revenue is negatively impacted as more revenue is recognized ratably rather than up front and as new offerings generally have a lower initial purchase price.New model subscriptions increased 168,000 from the second quarter of fiscal 2017 to 861,000. Total subscriptions increased 134,000 from the second quarter of fiscal 2017 to 2.95 million at the end of the third quarter and include ~13,000 maintenance subscriptions related to the recent acquisition of Solid Angle. New model annualized recurring revenue (ARR) was $414 million and increased 88 percent compared to the third quarter last year as reported, and 91 percent on a constant currency basis.
"Record new model subscription additions and continued cost control contributed to our better than expected third quarter results and demonstrates solid progress on the business model transition."
Co issues downside guidance for Q4, sees EPS of ($0.39)-(0.32), excluding non-recurring items, vs. ($0.31) Capital IQ Consensus; sees Q4 revs of $460-480 mln vs. $488.50 mln Capital IQ Consensus.
4:02 pm Superconductor Tec awarded $4.5 mln DOE contract to improve HTS Wire for Next Generation Electric Machines program (SCON) : "In addition, the significant wire improvement goals for this program will address our customers' desire for increased infield magnetic performance and high performance/low cost wire for many applications, such as motors, generators, magnets, power cables and MRI machines. STI expects to transition from R&D to full scale production of motor- and generator-optimized wire during the three-year project plan, which will enable our superconducting technology to be introduced into Next Generation Electrical Machines utilizing high performance/low cost HTS wire."
4:10 pm : The stock market appeared to be on track for a swift recovery from a Monday dip, but a pullback during the final hour made the rebound appear not nearly as swift. The Nasdaq Composite displayed relative strength, adding 0.2% after an intraday probe of its record high from Friday. The S&P 500 underperformed, ticking up 0.1%.
Equity indices started the day on a flat note, but heavily-weighted sectors like health care (+0.7%), financials (+0.2%), and technology (+0.2%) saw buying interest from the start, which was enough to improve sentiment around other sectors. The energy space (-1.2%) was the only laggard of note, responding to headlines that cast doubt on the likelihood of an OPEC supply cut agreement.
Better than expected economic data was peppered into the pre-market mix that was pretty bland otherwise. Third-quarter GDP was revised up to 3.2% from 2.9% (Briefing.com consensus 3.0%), driven by an upward revision to personal expenditures growth. Separately, the November Consumer Confidence report (107.1; Briefing.com consensus 100.0) soared past estimates, even though the bulk of the survey was conducted amid pre-election uncertainty.
With no red flags on the economic front, stocks climbed in methodical fashion, overcoming weakness in the energy sector (-1.2%). The growth-sensitive group was down more than 2.0% at the start, briefly testing its 50-day moving average, as crude oil stumbled ahead of tomorrow's OPEC meeting in Vienna.
WTI crude settled lower by 3.9% at $45.27/bbl, retreating amid headlines with bearish implications. Iranian oil minister Bijan Zanganeh said that his country will not take part in any production cuts. Given similar reluctance among other oil producers, the market is adjusting to reduced hopes for a supply cut being announced after tomorrow's meeting.
On the upside, the health care sector (+0.7%) maintained its early strength, bolstered by biotech names and Dow component UnitedHealth (UNH 157.59, +5.48). The iShares Nasdaq Biotechnology ETF (IBB 280.40, +0.41) slipped into the close, adding just 0.2%, while UnitedHealth jumped 3.6% after guiding earnings and revenue for fiscal year 2017 ahead of market expectations.
Health care was edged out slightly by another countercyclical group-real estate (+0.7%)-which displayed strength even as Treasuries retreated during morning action. Moving down the leaderboard, utilities (+0.3%) held a modest gain throughout the day while financials (+0.2%) and technology (+0.2%) trimmed their gains during the final hour of action, causing a pullback in the broader market.
Elsewhere, the consumer discretionary sector (+0.2%) settled in line with the benchmark index, which masked a 3.2% spike in the shares of Tiffany (TIF 80.60, +2.46), brought on by better than expected results and reaffirmed guidance.
Treasuries dipped in morning action, but climbed throughout the session to end with gains. The benchmark 10-yr yield slipped one basis point to 2.30% while the 30-yr yield slid three basis points to 2.95%.
Intraday trading volume was below average, but final-hour selling brought the NYSE floor total up to 901 million.
Economic data included Q3 GDP, Case-Shiller 20-city Index, and Consumer Confidence:
The second estimate for third quarter GDP showed growth was revised up to an annual rate of 3.2% (Briefing.com consensus 3.0%) from 2.9% in the advance estimate while the GDP Deflator was revised down to 1.4% (Briefing.com consensus 1.5%) from 1.5%
The Case-Shiller 20-city Index for September showed an increase of 5.1% while the Briefing.com consensus expected a reading of 5.2%
The Conference Board's Consumer Confidence Index surged to 107.1 in November (Briefing.com consensus 100.0) from an upwardly revised 100.8 (from 98.6) in October
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while November ADP Employment Change (Briefing.com consensus 160K) will be reported at 8:15 ET. October Personal Income (Briefing.com consensus 0.4%), Personal Spending (Briefing.com consensus 0.5%), and Core PCE Price Index (Briefing.com consensus 0.1%) will be released at 8:30 ET while Chicago PMI for November (Briefing.com consensus 52.0) will cross the wires at 9:45 ET. October Pending Home Sales (Briefing.com consensus 0.7%) are expected at 10:00 ET, and the day's data will be topped off with the 14:00 ET release of the Federal Reserve's Beige Book for November.
Russell 2000 +16.9% YTD
Dow Jones Industrial Average +9.7% YTD
S&P 500 +7.9% YTD
Nasdaq Composite +7.4% YTD
After a less than stellar morning session, broader market action turned higher into the afternoon. Gains would not hold, though, and stocks faded into the closing bell. Leading the session in positive territory despite the afternoon weakness was the Nasdaq Composite which added 11.11 points (+0.21%) today to close 5379.92. The S&P 500 edged out the Dow, higher by 2.94 points (+0.13%) to 2204.66, and the Dow Jones Industrial Average gained 23.70 points (+0.12%) today, ending Tuesday at 19121.60.
Market data today included the second estimate for third quarter GDP showed growth was revised up to an annual rate of 3.2% from 2.9% in the advance estimate while the GDP Deflator was revised down to 1.4% from 1.5%. Additionally, the Case-Shiller 20-city Index for September showed an increase of 5.1%, and the Conference Board's Consumer Confidence Index surged to 107.1 in November from an upwardly revised 100.8 (from 98.6) in October.
The better than expected economic data was peppered into the pre-market mix that was pretty bland otherwise. With no red flags on the economic front, stocks climbed in methodical fashion, overcoming weakness in the energy sector (-1.2%). The growth-sensitive group was down more than 2.0% at the start, briefly testing its 50-day moving average, as crude oil stumbled ahead of tomorrow's OPEC meeting in Vienna.
WTI crude settled lower by 3.9% at $45.27/bbl, retreating amid headlines with bearish implications. Iranian oil minister Bijan Zanganeh said that his country will not take part in any production cuts. Given similar reluctance among other oil producers, the market is adjusting to reduced hopes for a supply cut being announced after tomorrow's meeting.
Markets faded into the close, and the Technology (XLK 48.07, +0.03 +0.06%) sector was no stranger to that action, ending the session barely on this side of flat lines. Component Micron (MU 19.42, -0.57 -2.85%) succumbed to broader market pressure into the close, in addition to weakness from the company's guidance update today at the Credit Suisse Tech Conference. Other sectors as measured by the S&P closed XLFS +2.19%, XLRE +0.70%, XLV +0.65%, XLU +0.42%, XLY +0.26%, XLP +0.14%, XLF +0.14%, XLB +0.10%, XLI +0.10%, IYZ -0.15%, XLE -1.23%.
In the S&P 500 Information Technology (805.24, +1.41 +0.18%) sector, trading again managed to stay above the $800-level despite the weakness into the bell. Component Electronic Arts (EA 81.37, +2.64 +3.35%) was the best performing name today following comments at the aforementioned Credit Suisse Conference. Other names in the space which closed higher today included PAYX +2.53%, RHT +2.07%, CSRA +1.95%, HPE +1.71%, AKAM +1.68%, CA +1.63%, ATVI +1.55%, JNPR +1.52%, XLNX +1.35%, AMAT +1.01%, MSFT +0.79%, LRCX +0.75%, HRS +0.64%, WDC +0.64%.
Elsewhere in the tech space:
The Australian Competition and Consumer Commission proposed to deny authorisation for banks to collectively bargain with and boycott Apple (AAPL 111.44, -0.12 -0.11%) on Apple Pay.
Microsoft (MSFT 61.09, +0.48 +0.79%) announced that Microsoft HoloLens will be available for preorder in Japan starting Dec. 2. Devices will begin to ship in early 2017.
Twitter (TWTR 18.19, -0.11 -0.60%) announced it is collaborating with Disney (DIS 99.67, +0.70 +0.71%) and People (TIME 16.30, +0.30 +1.88%) to live stream exclusively a special Rogue One: A Star Wars Story event.
Cognizant Tech (CTSH 55.62, -1.33 -2.34%) to acquire privately-held Mirabeau BV. Financial terms of the deal were not disclosed.
America Movil SA (AMX 11.93, +0.15 +1.27%) announced the acquisition of spectrum in Mexico -- its subsidiary Radiomvil Dipsa has entered into an agreement with Grupo MVS to indirectly acquire about 60 MHz of spectrum of which Grupo MVS owns in the 2.5 GHz band, in different regions of the country.
Booz Allen Hamilton (BAH 38.20, +1.00 +2.69%) to acquire eGov Holdings dba Aquilent for $250 million. The deal is expected to add about $30-35 million of revenues for the remainder of the BAH's FY17.
IBM (IBM 163.53, -0.99 -0.60%) announced a strategic partnership with American Airlines (AAL 46.89, +0.39 +0.84%), naming IBM as its cloud provider for greater enterprise flexibility, scalability and reliability.
Avast Software is working with Accenture (ACN 120.94, +0.18 +0.15%) to improve its HR document generation capabilities. Avast Software will be using the Accenture Document Composer software on SAP HANA Cloud Platform to extend the capabilities of document generation, updates and management across the SAP SuccessFactors Employee Central solution.
Also, ACN acquired Karmarama. Terms of the transaction were not disclosed.
Allot Comms's (ALLT 4.71, -0.13 -2.69%) CFO Shmuel Arvatz announced his departure. The company appointed Alberto Sessa as new CFO.
TiVo (TIVO 20.80, +0.05 +0.24%) and Netflix (NFLX 117.51, +0.58 +0.50%) entered into product and intellectual property agreements.
Rapid7 (RPD 11.76, -0.22 -1.84%) appointed Jeff Kalowski as CFO effective January 9, 2017.
Cellcom Israel (CEL 8.00, +0.07 +0.88%) to file liquidation request against Golan.
FireEye (FEYE 12.82, -0.10 -0.77%) introduced FireEye Helix, an intelligence-led platform that unifies network, endpoint and third-party product visibility with industry leading FireEye iSIGHT Intelligence and Mandiant expertise.
According to BNN, Amazon (AMZN 761.55, -5.22 -0.68%) Prime Canada might be introduced this week.
At the Credit Suisse Tech Conference, Micron (MU) increased its Q1 guidance: revenue expected to be in the range of $3.925-4.025 billion (prior guidance $3.55-3.85 billion); gross margin 25-26% (prior guidance 23.0-25.5%); EPS is expected to be about $0.28 (prior guidance $0.13-0.21).
In reaction to quarterly results:
ReneSola (SOL 0.73, -0.02 -2.40%) reported a worse than expected Q3 loss per share of $0.20 on worse than expected revenues which fell 49.2% compared to last year to $187 million. For Q4, the company sees revenues of $220-240 million.
21Vianet (VNET 7.82, +0.20 +2.62%) reported a better than expected Q3 loss per share of $0.02 on better than expected revenues of $145.2 million. For Q4, the company sees revenues of RMB 900-940 million.
Companies scheduled to report earnings tonight: ADSK, GWRE, NTNX, SPLK
Analyst actions:
SAIC was downgraded to Neutral from Buy at Citigroup,
QSII was downgraded to Mkt Perform from Outperform at Raymond James;
SHOP was initiated with a Buy at Mackie Research
