Sector Investing

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From Briefing.com: 4:10 pm : The stock market finished the Tuesday session on a modestly lower note, but small-cap stocks underperformed once again. The Russell 2000 slipped 0.2%, while the S&P 500 snapped its three-day win streak, shedding less than a point.

Equity indices faced an uphill climb from the opening bell, but the S&P 500 was able to cut the bulk of its losses during the initial 45 minutes of action; however, the early rebound attempt was stonewalled by the underperformance of small-caps. With high-beta names unable to gain any significant traction, the benchmark index returned to its earlier low. The S&P 500 then staged another recovery, which placed it right below its flat line by the close.

To be sure, the (nearly) flat finish reflected a lack of concerted sector leadership during the trading day. On the cyclical side, energy (+0.3%) and financials (+0.1%) posted modest gains, while the remaining four sectors lost between 0.1% and 0.3%.

Interestingly, the industrial sector (-0.2%) settled just behind the broader market, masking the relative weakness among transport stocks. The Dow Jones Transportation Average fell 0.8%, but that was likely a function of some profit taking after the bellwether complex surged 3.1% over the past two weeks. Airlines were able to withstand the selling pressure as four of five carriers posted gains with JetBlue Airways (JBLU 10.05, +0.23) leading the way. The stock advanced 2.3%.

Elsewhere, the four countercyclical groups finished mixed with health care (+0.2%) and utilities (+0.3%) posting slim gains, while consumer staples (-0.3%) and telecom services (-1.0%) ended in the red.

The somewhat sloppy session lured some investors into demanding portfolio insurance, which sent the CBOE Volatility Index (VIX 11.79, +0.21) higher by 1.8%. Despite the uptick, the near-term volatility measure ended the day not far above its 2014 low (11.29%), which was notched yesterday.

Even though volatility protection was in demand, the safety of the Treasury market was not. On that note, the 10-yr note spent the session in a steady retreat, falling 19 ticks, which sent its yield higher by seven basis points to 2.60%.

Today's participation marked an improvement from recent days, but remained below average as 644 million shares changed hands at the NYSE floor.

Economic data was limited to April factory orders, which increased 0.7% following an upwardly revised 1.5% (from 1.1%) increase in March. The Briefing.com consensus expected an increase of 0.5%.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for May (Briefing.com consensus 200,000) will cross the wires at 8:15 ET. The April Trade Balance (consensus -$41.30 billion) and Q1 Productivity (consensus -2.5%) and Unit Labor Costs (consensus 4.8%) will be reported at 8:30 ET, while the May ISM Services Index (consensus 55.5) will be released at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Fed's Beige Book for June.

S&P 500 +4.1% YTD
Dow Jones Industrial Average +0.9% YTD
Nasdaq Composite +1.4% YTD
Russell 2000 -3.1% YTD

DJ30 -21.29 NASDAQ -3.12 SP500 -0.73 NASDAQ Adv/Vol/Dec 1017/1.58 bln/1657 NYSE Adv/Vol/Dec 1166/644.4 mln/1893

3:30 pm :

Aug gold chopped around near the unchanged level for most of today's floor trade. It dipped to a session low of $1240.20 per ounce in morning action and eventually settled with a 60 cent gain at $1244.60 per ounce.
July silver pulled back from its session high of $18.88 per ounce set at pit trade open and touched a session low of $18.71 per ounce. It then consolidated near the unchanged level and settled at $18.76 per ounce, or 0.1% higher.
July crude oil touched a session low of $102.26 per barrel in morning pit trade but recovered into positive territory. It settled 0.2% higher at $102.68 per barrel.
July natural gas pulled back to a session low of $4.61 per MMBtu after trading as high as $4.66 per MMBtu in morning action. It settled at $4.62 per MMBtu, booking a gain of 0.2%.

12:06 pm Notable movers of interest (:SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

SSLT (19.87 +5.36%): Trading higher following strength in overseas trading.
AMAT (21.29 +3.75%): Initiated with a Buy at Jefferies; tgt $28.
DG (56.72 +4.46%): Missed on EPS by $0.01, reported revs in-line with comps below guidance; reaffirmed FY15 guidance.

Large Cap Losers

MPEL (33.51 -5.88%): Macau Gaming Inspection and Coordination Bureau reported May gross gaming rev (:GGR) +9.3% y/y to 32.4 bln patacas (~$4.05 bln), vs. +13.5% in May 2013 and below most ests (WYNN, LVS, MGM also lower); co disclosed studio city project development update.
NTAP (36.61 -2.4%): Priced $500 mln in aggregate principal amount of its 3.375% senior notes due 2021.
AGN (168.15 -2.38%): Downgraded to Neutral from Outperform at Credit Suisse.

Mid Cap Gainers

ACHC (46.85 +11.44%): Co signed definitive agreement to purchase partnerships in care for ~ $660 mln; Transaction expected to be accretive to 2014 earnings by ~$0.17 to $0.20 per diluted share and provide opportunities for organic growth and acquisitions in the UK.
HSH (58.35 +8.92%): Pilgrim's Pride (PPC) confirmed revised proposal to acquire Hillshire Brands at $55.00 per share in cash; HSH confirmed Board authorized discussions with Pilgrim's Pride (PPC) and Tyson Foods (TSN).
SWKS (44.94 +4.34%): Raised Q3 EPS and rev guidance above ests; target raised to $54 from $48 at Topeka Capital Markets; target raised to $55 from $47 at Northland Capital.

Mid Cap Losers

THRX (23.15 -19.2%): Co and Theravance Biopharma (:TBPH) announced completion of separation of Theravance Biopharma from Theravance, to form two, independent, publicly traded cos.
CMCM (16.16 -6.59%): Reported Q1 adj. EPS per ADS of $0.04; revs 132% y/y to RMB 315.7 mln (no ests).
WAIR (20.33 -5.62%): Priced public offering of 6 mln shares of its common stock by an affiliate of Carlyle Group (CG) at $20.50 per share.

11:41 am Relative sector weakness (:TECHX) : Sector underperforming the S&P in recent trade include: Software IGV (CRM, ADBE, CA, CTXS, ADSK, INTU), Internet FDN, Technology XLK, Biotech IBB, Telecom IYZ, Industrial XLI, Transports IYT, Rail, Casino,

11:41 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (131) outpacing new lows (71) (:SCANX) : Stocks that traded to 52 week highs: AAL, ABG, AEC, AET, AGRX, AGX, AL, ALB, ALDR, ALK, AMAT, AMKR, AN, ARE, AVB, AVGO, AVIV, BMA, BMR, CAR, CE, CHC, CHSP, CRZO, CSCD, DAL, DEI, DFZ, DKL, DOM, DOW, DVN, DYN, EMES, EMN, ENSG, EPD, EQM, ERF, ETE, ETR, EXC, FGP, FLEX, GBX, GD, GIII, GLOP, GPK, HA, HCLP, HDB, HDS, HRL, HSH, HTZ, HUN, IFN, IHS, IMOS, INGR, INT, INTC, IRS, ISIL, JBLU, JNJ, LAD, LAZ, LEA, LLL, LQ, LRCX, LUV, LYB, MCK, MGA, MGPI, MJN, MMC, MMP, MWRX, MWV, NGLS, NI, NNBR, NRG, NTT, NYRT, PAHC, PE, PKY, PSXP, ROL, SAFM, SAH, SBR, SDPI, SE, SGBK, SIAL, SKX, SLCA, SLG, SNDK, SPCB, SSLT, SWHC, SWKS, SYA, TAP, TD, TDG, TEN, TEO, TKR, TLP, TMH, TNET, TRGP, TRIV, TRNS, TRUE, TSM, UGI, UHS, VLCCF, VTL, WES, WLDN, WLK

Stocks that traded to 52 week lows: ACI, ADAT, AEPI, ALLY, AMCO, AMWD, ANR, ANV, AOI, AVD, AXGN, BAA, BAXS, BEBE, BIND, BOTA, CAS, CDE, CLVS, COCO, COH, COVS, CRMB, END, ESI, ESP, ETH, FHCO, FMBH, FMD, FRAN, FSYS, GLPI, GMAN, GOOD, GRVY, IMN, JE, JMBA, KOSS, LAND, LXRX, MCP, MEIP, MFLX, MICT, NAUH, NCQ, NIHD, NRP, OGXI, OXF, PERI, PIR, RFIL, SPHS, SPLK, SQI, SVM, SWSH, TBIO, TCCO, UNTK, VHI, WFM, WH, WHZ, WLT, XXIA, YUME, ZQK

ETFs that traded to 52 week highs: AMJ, EWH, IYT, SMH, SOXX

ETFs that traded to 52 week lows: none


11:16 am Agilent and Cascade Microtech (CSCD) announce alliance to streamline wafer-level measurements (A) : Co and Cascade Microtech (CSCD) announced a strategic alliance to provide fully configured and validated RF measurement solutions that streamline wafer-level semiconductor measurements while delivering guaranteed configuration, installation and support.

Peregrine Semiconductor (PSMI) announced the availability of UltraCMOS PE45140 and PE45450 RF power limiters

Mentor Graphics (MENT) and Intel (INTC) announced that Mentor's circuit simulation and sign-off tools are fully enabled for Intel's 14nm Tri-Gate process technology for customers of Intel Custom Foundry.

9:21 am Intel and Synopsys (SNPS) collaborate to enable 14-nm Tri-Gate Design platform for use by customers of Intel custom foundry (INTC) : Co announced broad SoC design enablement for Intel's 14-nm Tri-Gate process technology for use by customers of Intel Custom Foundry. The Intel Custom Foundry 14-nm design platform supports Synopsys' Galaxy Design Platform tools and RTL-to-GDSII methodology, DesignWare Memory Compiler intellectual property, and interface IP. Extending the companies' production-proven design enablement for Intel's 22-nm foundry process design platform, the design tools and IP are now ready for Intel's 14-nm foundry process technology.

Synopsys and Intel have worked together at 22-nm to deliver silicon-proven advanced IP. The most recent collaboration expands to Intel Custom Foundry's 14-nm Tri-Gate technology by providing tuned DesignWare Memory Compilers that offer very high performance while still keeping a low power profile.
Intel and Synopsys collaborated closely in developing this enablement to ensure that the tools meet Tri-Gate requirements and model the complexities involved.

Intersil (ISIL) announced the ISL6388, a 6-phase pulse-width modulation controller with non-volatile memory that is compliant with Intel's (INTC) VR12/12.5 specification.

8:24 am Skyworks re-opens for trading after guiding higher..currently at 45.68 (SWKS) :

8:05 am Skyworks (halted) raises Q3 EPS and rev guidance (SWKS) : Co issues upside guidance for Q3 (Jun), raises EPS to $0.80, excluding non-recurring items, from $0.73 vs. $0.73 Capital IQ Consensus; raises Q3 (Jun) revs to $570 mln from $535 mln vs. $535.33 mln Capital IQ Consensus.

"As our upwardly revised outlook reflects, Skyworks is capitalizing on the growing opportunity within the Internet of Things as well as increasing analog complexity associated with higher data rate connectivity standards, both of which are enabling us to substantially outpace the growth of the broader semiconductor market. These macro trends continue to validate our investments in highly differentiated, custom solutions that are facilitating an expanding set of end markets. Based on our design win traction and order visibility, we anticipate continued strength beyond the June quarter as our products continue to gain momentum."

"We also expect our recently announced joint venture with Panasonic to further enrich our systems capabilities, broaden our technology portfolio and enhance our financial returns," said Donald W. Palette, executive vice president and chief financial officer of Skyworks. "In fact, we anticipate the Panasonic transaction will provide at least 100 basis points of gross margin accretion in fiscal 2015, paving the way for continued top- and bottom-line outperformance for the foreseeable future."

6:07 am Interdigital Comm announces patent license agreement with Samsung (SSNLF) (IDCC) : InterDigital (IDCC) announces that the company's patent licensing subsidiaries have entered into a patent license agreement with Samsung Electronics (SSNLF).

The multi-year agreement also resolves all pending litigation between the companies.
The royalty-bearing license agreement sets forth terms covering the sale by Samsung of 3G, 4G and certain future generation wireless products.

Vitesse Semiconductor (VTSS), a leading provider of advanced IC solutions for Carrier, Enterprise and Internet of Things networks introduced the latest generation of its SparX-IIIEthernet switches -- VSC7420-04, VSC7421-04 and VSC7422-04 -- optimized for industrial IoT applications, including building automation, manufacturing automation, intelligent transportation, smart energy, and video surveillance/security.

SanDisk Corporation (SNDK) announced the availability of its new SanDisk Extreme PRO SSD-a drive designed for gamers, PC enthusiasts and media professionals who demand the highest possible consistent, real-world performance