From Briefing.com:
6:20 pm Adobe Systems updates guidance to reflect the inclusion TubeMogul (ADBE) :
Q1 Guidance:
Co sees Q1 EPS of ~$0.87 vs. $0.87 Capital IQ Consensus Estimate; sees Q1 (Feb) revs of ~$1.644 bln vs. $1.63 bln Capital IQ Consensus Estimate.
Expect to achieve approximately $225 million of net new Digital Media ARR, Digital Media segment year-over-year revenue growth of approximately 19%, Adobe Marketing Cloud year-over-year revenue growth of approximately 24%
FY17 Guidance:
FY17 (Nov) EPS of ~$3.75 vs. $3.83 Capital IQ Consensus Estimate; sees FY17 (Nov) revs of ~$7.09 bln vs. $6.99 bln Capital IQ Consensus Estimate.
Expect to add approximately $225 million of net new Digital Media ARR in Q1, followed by sequential growth of net new ARR in Q2; anticipate seasonally-driven sequential decline in Q3, followed by strong seasonal growth in Q4 to achieve approximately $1 billion of net new Digital Media ARR during the year. Expect revenue and earnings per share to grow sequentially each quarter, with the largest sequential increase in Q4.
Transcript.
4:25 pm : Equity indices closed Monday's session mixed. The Nasdaq (+0.2%) posted a modest gain, while the S&P 500 finished lower by 0.4%.
With news and economic data limited, the benchmark index remained within reach of its flat line throughout the session, only to dip a bit further in the final stretch.
There was a batch of earnings reports this morning, with Acuity Brands (AYI 202.51, -34.85), Commercial Metals (CMC 20.81, -1.79), and Global Payments (GPN 79.79, +5.34) all reporting before the opening bell. Acuity Brands and Commercial Metals lost 14.7% and 7.9%, respectively, after missing top and bottom line estimates while Global Payments added 7.2% after beating expectations and issuing positive guidance. The fourth-quarter earnings season will heat up this week with several banks set to report their results on Friday.
Eight out of eleven sectors finished the trading day in negative territory, with the energy sector (-1.5%) closing at the bottom of the leaderboard. The sector faced an uphill climb from the start as crude oil opened the day deep in negative territory amid growing concerns that the OPEC, non-OPEC supply cap has been implemented at slower-than-expected pace. In addition, reports indicated that the recent growth in U.S. production was also ruffling some investors' feathers. The commodity closed its trading day 3.8% lower at $51.94/bbl. Financials (-0.8%), industrials (-0.7%), and consumer discretionary (-0.1%) rounded out the cyclical underachievers.
On the countercyclical side, four out of five spaces finished in the red. Utilities (-1.3%) retreated the furthest, as telecom services (-1.1%), consumer staples (-0.7%), and real estate (-0.6%) performed slightly better. Heath care (+0.4%) was the lone non-cyclical representative in green territory, bucking the trend on the back of a solid showing from the biotechnology industry. The iShares Biotechnology ETF (IBB 284.07, +3.72) increased 1.4% on big gains from names like Amgen (AMGN 158.84, +2.06), Biogen (BIIB 299.02, +4.02), and Vertex Pharmaceuticals (VRTX 82.86, +3.47). The three names posted gains between 1.3% and 4.3%.
The top-weighted technology sector (+0.3%) also finished in positive territory after a solid showing from the sector's heaviest component, Apple (AAPL 118.99, +1.08), which closed higher by 0.9%. Chipmakers also aided the tech sector, evidenced by the 1.1% gain in the PHLX Semiconductor Index. The materials (unch) and consumer discretionary (-0.1%) sectors rounded out the day's outperformers.
U.S. Treasuries ended the day near their session high that was achieved early in the morning. The 10-yr yield closed five basis points lower at 2.37%. Also of note, the U.S. Dollar Index (101.95, -0.22) fell 0.2% while gold increased by 0.8%. The precious metal finished at $1,183.00/ozt.
Reviewing today's economic data:
Consumer Credit report for November
Showed an increase of $24.5 billion while the Briefing.com consensus expected growth of $18.0 billion.
The prior month's credit growth was revised to $16.2 billion from $16.0 billion.
The key takeaway from the report is that consumer credit -- both revolving and nonrevolving -- continues to expand, providing fuel for a potential increase in economic activity.
Tomorrow's economic data will include November Job Openings (JOLTS) and November Wholesale Inventories (Briefing.com consensus 0.9%). Both reports will be released at 10:00 am E.T.
Russell 2000 UNCH YTD
Dow Jones Industrial Average +0.6% YTD
S&P 500 +1.3% YTD
Nasdaq Composite +2.8% YTD
DJ30 -76.42 NASDAQ +10.76 SP500 -8.08 NASDAQ Adv/Vol/Dec 1269/1.72 bln/1700 NYSE Adv/Vol/Dec 1070/1.03 bln/1891
3:35 pm :
The dollar index slid lower in morning trade and remained in the red for the afternoon session, which helped give somewhat of a boost to some metals
However, this did nothing for the energy space
Oil and natural sold off notably today and closed near today's lows
Feb WTI crude oil finished the day -3.8% at $51.94/barrel, while, in other energy, Feb natural gas tanked -5.8% to end at $3.10/MMBtu
Precious metals held some gains
Feb gold rose 1% today to finish the session at $1184.80/oz, while Mar silver gained 1% to $16.68/oz
Meanwhile, in base metals, Mar copper lost 0.4% to end the day at $2.54/lb
Beginning the first full week of the year, the stock market was mixed yet all three major US indices fell significantly as the bell approached. Ultimately, only the Nasdaq Composite escaped with gains, adding only 10.76 points (+0.19%) to 5531.82. On the flip side of the coin, the Dow Jones Industrial Average was the worst performing index today, shedding 76.42 points (-0.38%) to 19887.38, while the S&P 500 closed about 8.08 points (-0.35%) lower to 2268.90.
In the Technology (XLK 49.39, -0.01 -0.02%) sector, sellers took hold in the final moments as the space dove into the red to close the session. Component Global Payments (GPN 79.79, +5.34 +7.17%) was the best performing name today after the company reported solid Q2 sales growth and beat earnings expectations. Other sectors as measured by the S&P closed Monday XLE -1.48%, XLU -1.31%, IYZ -1.04%, XLP -0.81%, XLI -0.78%, XLF -0.68%, XLRE -0.64%, XLY -0.10%, XLB -0.02%, XLV +0.42% with all but the Healthcare space ending in the red.
In the S&P 500 Information Technology (829.21, +1.61 +0.19%) space, trading was positive for the entirety of the session as a strong performance out of key names like AMAT +2.31%, WDC +2.10%, ORCL +1.51%, MU +1.36%, FB +1.21%, VRSN +1.20%, LRCX +1.17%, MCHP +1.16%, QRVO +0.95%, SWKS +0.92%, AAPL +0.91% pushing the action higher. Component NVIDIA (NVDA 107.28, +4.18 +4.05%) outperformed today on the back of some bullish analyst commentary which helped push the name higher, bucking the recent down/flat trend.
Other notable news items among sector components:
CenturyLink (CTL 25.23, -0.15 -0.59%) acquired SEAL Consulting. Financial details of the deal were not disclosed.
Genpact (G 24.66, +0.01 +0.04%) unveiled the Global Center of Excellence in Jaipur as part of Cisco's (CSCO 30.18, -0.05 -0.17%) Lighthouse City project, a global initiative designed to deploy next-generation technologies to impact citizens and society.
Amazon (AMZN 796.86, +0.87 +0.11%) has acquired cyber security firm harvest.ai, according to TechCrunch.
Atlassian (TEAM 25.03, +0.31 +1.25%) to acquire Trello for about $425 million, which is comprised of about $360 million in cash and the remainder in its restricted shares, restricted share units and options to acquire its shares.
Accenture (ACN 115.00, -1.30 -1.12%) acquired Altitude. Financial terms of the deal were not disclosed.
Citrix Systems (CTXS 90.79, -0.22 -0.24%) detailed the anticipated completion of spin-off and subsequent merger of its GoTo family of service offerings; expected to be completed January 31.
CTXS also announced the acquisition of Unidesk. Financial terms of the deal were not disclosed.
LogMeIn (LOGM 100.20, +1.85 +1.88%) also announced new Board of Directors for combined company following CTXS's GoTo Business merger; vote will be Jan 25.
Arista Networks' (ANET 99.52, -1.76 -1.74%) Senior VP Worldwide Sales Operations Mark Smith will voluntarily resign his position effective on February 6, 2017.
Harris (HRS 102.14, -2.41 -2.31%) was awarded an approximate $403 million IDIQ contract.
Iridium Communications (IRDM 10.75, +0.05 +0.47%) confirmed the first launch of IridiumNEXT (via SpaceX) will be delayed until Jan 14 due to weather.
Following quarterly results:
Global Payments (GPN) reported better than expected Q2 EPS and revenues of $0.89 and $941.8 million, respectively. For FY17, the company raised its earnings and revenue outlook to $3.70-3.90 from $3.45-3.55 and to $3.35-3.45 billion from $3.2-3.3 billion.
Analyst actions:
NTES was upgraded to Buy from Hold at Standpoint Research,
BABA was upgraded to Accumulate from Hold at Standpoint Research,
TXN was upgraded to Outperform from Neutral at Credit Suisse,
BRKS was upgraded to Neutral from Underperform at Credit Suisse,
BIDU was upgraded to Neutral from Underweight at JP Morgan,
TRUE was upgraded to Mkt Outperform from Mkt Perform at JMP Securities,
CEB was upgraded to Equal Weight from Underweight at Barclays,
NMBL was upgraded to Overweight from Sector Weight at Pacific Crest;
RCI and BCE were downgraded to Sector Perform from Outperform at RBC Capital Mkts,
VMW was downgraded to Neutral from Buy at UBS,
JNPR was downgraded to Mkt Perform from Outperform at Bernstein,
RTEC was downgraded to Neutral from Outperform at Credit Suisse,
NTCT was downgraded to Sector Weight from Overweight at Pacific Crest,
HIMX was downgraded to Market Perform from Outperform at Northland Capital,
MANH was downgraded to Mkt Perform from Outperform at Raymond James;
ACN was initiated with an Outperform at William Blair
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