From Briefing.com: 4:36 pm Texas Instruments: Rafael Lizardi named next CFO; Current CFO, Kevin March, to retire in October 2017 (TXN) : Co names Rafael Lizardi as its next CFO, effective February 1, 2017. Lizardi follows current CFO Kevin March, who plans to retire in October 2017. Lizardi, 44, joined TXN in 2001 and was named vice president in 2010 followed by corporate controller in 2012.
4:15 pm Juniper Networks to acquire AppFormix; terms not disclosed (JNPR) :
AppFormix's platform for cloud operations is built on big-data analytics and machine learning.
The acquisition is expected to close in 4Q16, subject to customary closing conditions.
4:15 pm : The stock market ended Thursday on a mixed note ahead of Friday's Employment Situation report for November (Briefing.com consensus 180,000). The Dow Jones Industrial Average (+0.4%) continued its recent outperformance while the S&P 500 (-0.4%) and Nasdaq (-1.4%) ended in negative territory for the second consecutive day. The Nasdaq extended its weekly decline to 2.7%, settling just below its 50-day moving average (5264) for the first time since November 14.
Equity indices started above their flat lines, but countercyclical sectors and the top-weighted technology group displayed relative weakness from the start. The underperformance in the tech sector took a toll on the Nasdaq Composite while the broader S&P 500 benefited from solid gains in three cyclical groups.
The technology sector (-2.3%), which accounts for nearly 21.0% of the S&P 500, was pressured by daylong selling among high-beta chipmakers. The PHLX Semiconductor Index lost 4.9% with Apple (AAPL 109.47, -1.05) suppliers leading the decline after reports that the tech giant was reducing orders for the iPhone 7 due to weak demand. Apple fell 1.0% while Broadcom (AVGO 162.79, -7.70), Cirrus Logic (CRUS 49.32, -5.68), Qualcomm (QCOM 64.16, -3.97), and Skyworks (SWKS 71.78, -5.07) lost between 4.5% and 10.3%. Following today's profit taking, the PHLX Semiconductor Index remains up 26.1% for the year.
The Nasdaq also had to contend with daylong weakness in biotechnology, which sent the iShares Nasdaq Biotechnology ETF (IBB 269.49, -4.58) lower by 1.7%. However, the broader health care sector (-0.8%) settled a bit closer to its flat line.
Similar to health care, three of the remaining four countercyclical groups spent the day in negative territory. The real estate sector (-1.6%) extended its fourth-quarter loss to 10.2% while utilities (-0.9%) and consumer staples (-0.7%) struggled as yields remained on the rise. The benchmark 10-yr yield rose six basis points to 2.44% while the 2-yr yield increased two basis points to 1.14%.
Besides pressuring defensively-oriented groups, the increase in yields was a supportive factor for the financial sector (+1.7%), which is now up 18.1% in the fourth quarter due to sharp steepening in the yield curve. Sector heavyweights Bank of America (BAC 21.50, +0.38) and JPMorgan Chase (JPM 81.79, +1.62) gained 1.8% and 2.0%, respectively.
Elsewhere on the cyclical side, energy (+0.3%) and industrials (+0.8%) continued their recent outperformance, but the energy sector slid from its high into the close. Crude oil also backed away from its best level of the day, but still settled higher by 3.3% at $51.06/bbl. The energy component is now within striking distance of its 2016 high ($51.93/bbl).
For the second day in a row, the industrial sector (+0.8%) received support from transport stocks. The Dow Jones Transportation Average climbed 0.6% with CSX (CSX 36.62, +0.81) ending among the leaders. Recall that the rail carrier raised its fourth-quarter guidance yesterday.
Today's NYSE floor volume was above the 200-day average of 926 million, as 1.1 billion shares changed hands.
Economic data included Initial Claims, Construction Spending, and ISM:
Initial claims for the week ending November 26 increased 17,000 to 268,000 (Briefing.com consensus 253,000), marking the 91st straight week they have been below 300,000
Continuing claims for the week ending November 19 jumped by 38,000 to 2.081 million
Construction spending increased 0.5% in October (Briefing.com consensus +0.6%) following an upwardly revised unchanged reading (from -0.4%) for September. This will be a positive input when computing Q4 GDP
The ISM Manufacturing Index rose to 53.2 in November (Briefing.com consensus 52.1) from 51.9 in October
This was the third straight month that manufacturing activity has expanded and it is the highest reading since June 2016
Tomorrow, the Employment Situation report for November (Briefing.com consensus 180,000) will be released at 8:30 ET.
Russell 2000 +16.3% YTD
Dow Jones Industrial Average +10.1% YTD
S&P 500 +7.2% YTD
Nasdaq Composite +4.9% YTD
DJ30 +68.35 NASDAQ -72.57 SP500 -7.73 NASDAQ Adv/Vol/Dec 1092/2.03 bln/1845 NYSE Adv/Vol/Dec 1116/1.13 bln/1863
3:45 pm :
WTI oil futures extended yesterday's OPEC-fueled gains, rising another $1.62/barrel today to close at $51.02/barrel
In other energy, Jan natural gas futures rallied nicely as well today, climbing 5% to end the session at $3.51/MMBtu
Metals, on the other hand, were more mixed
Feb gold slipped -0.4% today to $1169.40/oz, while Mar silver gained 0.2% to $16.52/oz
Mar copper popped once cent to finish at $2.64/lb
On the first trading day of December, trading ended split with the Dow leading the charge higher ahead of Friday's Employment Situation report for November. The Dow Jones Industrial Average gained 68.35 points (+0.36%) today to 19191.93 on a session when its peers were firmly in the red. The Nasdaq Composite was the worst performer today, shedding 72.57 points (-1.36%) to 5251.11, and the S&P 500 lost 7.73 points (-0.35%) to 2191.08.
Equity indices started above their flat lines, but countercyclical sectors and the top-weighted technology group displayed relative weakness from the start. The underperformance in the tech sector took a toll on the Nasdaq Composite while the broader S&P 500 benefited from solid gains in three cyclical groups.
Market data today included the initial claims reading for the week ending November 26 increased 17,000 to 268,000, marking the 91st straight week they have been below 300,000. Also, construction spending increased 0.5% in October following an upwardly revised unchanged reading (from -0.4%) for September. This will be a positive input when computing Q4 GDP. The ISM Manufacturing Index rose to 53.2 in November from 51.9 in October.
Following a weak session yesterday, the Technology (XLK 46.52, -0.98 -2.06%) space again turned in some steep losses. Components across the board were lower, but MCHP -7.48%, ADI -7.04%, LRCX -6.96% were by far the worst performers as semiconductors (SOX 836.80, -42.67 -4.85%) as a whole were weak. Other sectors as measured by the S&P closed the day XLFS +2.19%, XLF +1.69%, XLI +0.66%, XLE +0.26%, XLY +0.05%, XLB +0.02%, IYZ -0.25%, XLP -0.65%, XLV -0.73%, XLU -0.81%, XLRE -1.53% as Financials were again among the best performers and Utilities lagged.
In the S&P 500 Information Technology (777.69, -18.20 -2.29%) sector, trading finished just barely off lows in an overall weaker session. Component CA Tech (CA 30.41, -1.55 -4.85%) was weak today despite the announcement of the acquisition of Automic Holding GmbH for about EUR 600 million. Other names in the space which underperformed today included SWKS -6.60%, AMAT -6.54%, QRVO -6.33%, QCOM -5.83%, MU -5.35%, STX -4.96%, RHT -4.96%, NVDA -4.95%, CRM -4.92%, KLAC -4.90%, AKAM -4.78%, TXN -4.76%, ADSK -4.64%, EA -4.62%.
Other news items in the tech space:
IBM (IBM 159.82, -2.40 -1.48%) Watson Health and Pfizer (PFE 31.46, -0.68 -2.12%) announced a collaboration that will utilize IBM Watson for Drug Discovery to help accelerate Pfizer's research in immuno-oncology, an approach to cancer treatment that uses the body's immune system to help fight cancer.
Visa (V 75.43, -1.89 -2.44%) to acquire CardinalCommerce. Financial terms of the deal were not disclosed.
Cognizant (CTSH 54.08, -1.00 -1.82%) was selected by German-based Klckner & Co as a strategic partner for IT services to support Klckner & Co's IT strategy and digitization of operations across Europe.
Avnet (AVT 45.69, -0.20 -0.44%) priced an offering of $300 million of 3.750% Notes due 2021.
CA Tech (CA) to acquire Automic Holding GmbH for approximately EUR 600 million.
The European Commission and DIGITALEUROPE launched the Digital Skills and Jobs Coalition, a multi-stakeholder partnership to bolster computer science (CS) and coding proficiency at all levels within Europe's workforce pipeline. In conjunction, Oracle (ORCL 38.70, -1.49 -3.71%) announced a three-year investment totaling $1.4 billion in direct and in-kind support of CS education throughout the European Union (EU) member states.
Alliance Data (ADS 228.18, -0.60 -0.26%) announced its Columbus, Ohio-based card services business signed a long-term agreement to continue providing private label credit card services for J.Jill (www.jjill.com).
Analog Devices (ADI 69.01, -5.23 -7.04%) announced an offering and pricing of certain senior notes.
China Unicom (CHU 12.57, +0.54 +4.49%) issued statement noting that there has been media coverage stating that the Reform Implementation Plan has been confirmed. The Company would like to clarify that, as at the date of this announcement, neither the Reform Implementation Plan nor the selection of Unicom Group for the first batch of pilot-run on mixed-ownership reform has obtained final approval, which is uncertain while the concrete Reform Implementation Plan is still under discussion.
Nokia (NOK 4.25, -0.085 -1.16%) confirmed that the strategic agreement covering branding rights and intellectual property licensing with HMD Global Oy (HMD), originally announced on May 18, 2016 has come into force. HMD has today announced the completion of transactions between HMD, FIH Mobile Limited (a subsidiary of Hon Hai Precision Industries trading as Foxconn Technology Group) and Microsoft (MSFT 59.19, -1.07 -1.77%), which means that HMD can begin operations as the new home of Nokia phones, under an exclusive global brand license for the next ten years. Under the agreement, Nokia will receive royalty payments from HMD for sales of every Nokia branded mobile phone and tablet, covering both brand and intellectual property rights. Nokia is not an investor or shareholder in HMD.
In reaction to quarterly results:
Synopsys (SNPS 56.84, -3.64 -6.02%) reported in-line Q4 EPS and revenues on $0.77 and $633.7 million, respectively. For Q1, the company sees EPS and revenues ahead of expectations at $0.77-0.80 and $630-645 million, respectively.
Pure Storage (PSTG 12.60, -1.35 -9.68%) reported a better than expected Q3 loss per share of $0.10 on better than expected revenues which rose 49.9% compared to last year to $197 million. For Q4, the company sees in-line revenues of $219-227 million.
Semtech (SMTC 29.10, +1.00 +3.56%) reported better than expected Q3 EPS and revenues of $0.37 and $140.9 million, respectively. For Q4, the company sees better than expected EPS of $0.33-0.37 on in-line revenues of $134-142 million.
Box (BOX 15.06, -0.16 -1.05%) reported a better than expected Q3 loss per share of $0.14 on revenues which also came in ahead of market expectations at $102.8 million. The company also guided Q4 EPS ahead of expectations at ($0.14)-($0.13) on revenues of $108-109 million.
Companies scheduled to report tonight: AMBA, WDAY
Analyst actions:
SMTC was upgraded to Outperform from Perform at Oppenheimer,
INST was upgraded to Strong Buy from Buy at Needham;
LFUS was initiated with a Buy at CL King,
MBLY was initiated with a Buy at Needham,
XTLY was initiated with an Overweight at First Analysis Sec
