From Briefing.com: 4:25 pm : It was a good start for the stock market today and that was about it. The major indices hit their best levels of the session within fifteen minutes of the opening bell and then spent the rest of the morning retracing those gains. The afternoon session produced a half-hearted rebound try, yet the major indices couldn't stake a position on positive ground when the closing bell rang.
Overall losses were modest in scope, which isn't bad given the scope of Friday's gains. However, with the presumed buying catalyst of a weakening dollar in place, more M&A activity, and a surprise announcement from Hewlett-Packard (HPQ 36.87, +1.67) that it is going to split into two companies in an effort to bolster shareholder value, there was likely some disappointment that the stock market didn't do any better than it did.
The quick inclination to sell into the opening strength left buyers on guard that the de-risking move seen at the end of the third quarter may not have yet run its course.
The latter consideration along with technical resistance for the S&P 500 at the 1980 level, a stunning bankruptcy protection filing from GT Advanced Technologies (GTAT 0.80, -10.25), which supplies sapphire glass to Apple (AAPL 99.62, unch), and the underperformance once again of the Russell 2000 (-0.9%) helped keep buying interest in check.
The main pockets of weakness in the market were found in the biotech, transport, and semiconductor spaces. Word from Sunesis Pharmaceuticals (SNSS 1.46, -5.18) that a Phase 3 trial it was conducting failed to meet its primary endpoint sucked the momentum out of the biotech space; Ebola concerns once again weighed on the transports; and a 4.0% drop in Micron (MU 32.57, -1.37) after reports said Samsung is planning to invest close to $15 billion in a new semiconductor plant pressured the Philadelphia Semiconductor Index (-0.8%).
Separately, the energy sector (+0.1%) had a roller-coaster day of trading, vacillating with oil prices, which dipped below $89/bbl before finishing the day at $90.57/bbl. The rebound in oil prices coincided with a break lower in the U.S. Dollar Index (85.71, -0.98) in afternoon trading. The greenback was weak throughout the session, yet its losses accelerated in the afternoon action on what was considered to be a profit-taking move following a huge run in the third quarter.
Stock sector moves were pretty limited in scope to both the upside and the downside. The biggest winner was the telecom services sector (+0.4%) while the biggest loser was the consumer discretionary sector (-0.6%). The limited moves fit the standing of the S&P 500 at the closing bell.
There wasn't any economic data out of the U.S. today, but resonating in the background was a report that the World Bank cut its 2014 and 2015 GDP views for China and news that German factory orders declined 5.7% in August.
Notwithstanding the limited change in the S&P 500, the CBOE Volatility Index (VIX 15.29, +0.74) jumped 5.1% on Monday.
Nasdaq Composite +6.7% YTD
S&P 500 +6.3% YTD
Dow Jones Industrial Average +2.5% YTD
Russell 2000 -5.9% YTD
DJ30 -17.78 NASDAQ -20.82 SP500 -3.08 NASDAQ Adv/Vol/Dec 902/1.71 bln/1909 NYSE Adv/Vol/Dec 1542/681 mln/1553 3:40 pm :
Gold fell overnight, only to rally strongly after the pit session opened, breaking back above the important $1,200 level closing 1.2% higher and testing levels from last Friday where the metal began its sell-off following jobs data that topped consensus estimates.
Silver rose from last Friday's fresh 4+ year lows, halting recent declines in the metal and closing 2.3% higher, currently holding in the upper range of Thursday's trading session.
Crude oil traded in a mixed range throughout the pit session, falling as low as $88.76 before eventually rallying and closing up 0.65% near the HoD. That said. oil remains near its lowest levels since last April.
Natural gas trended lower throughout the session, falling 3.5%, based on forecasts that call for milder weather, which could put a dent in heating demand, accelerating stockpile gains.
$0.21 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.19; revenues rose 0.7% year/year to $59.2 mln vs the $59.09 mln consensus.
Wireless Datacom revenue increased to $50.2 million from $47.2 million in the same period last year, while Satellite revenue was $9.0 million in the latest quarter compared to $11.6 million in the second quarter last year due to normal demand fluctuations in this business.Co issues guidance for Q3, sees EPS of $0.21-0.25, excluding non-recurring items, vs. $0.24 Capital IQ Consensus; sees Q3 revs of $61-65 mln vs. $64.99 mln Capital IQ Consensus Estimate.
Co issues in-line guidance for FY15, sees EPS of $0.88-0.94, excluding non-recurring items, vs. $0.91 Capital IQ Consensus; sees FY15 revs of $250-255 mln vs. $252.70 mln Capital IQ Consensus Estimate.
"For fiscal 2015 as a whole, we expect consolidated revenues to gain momentum as the year progresses with revenue from our key heavy equipment OEM customer likely exceeding $10 million in the second half of this fiscal year... We are pleased with the momentum we are experiencing across our core portfolio, and anticipate that continued execution and investments in new applications and geographic expansion will drive growth into fiscal 2016 and beyond."
12:42 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
PBR (15.86 +13.53%): Brazilian stocks notably higher following encouraging election results for pro-business candidate Neves (BBD, ITUB also higher); Was also upgraded to Buy at UBS.
BDX (123.99 +7.04%): Announced plans to buy CareFusion (CFN) for $12.2 bln; Positive reactions from analysts seen at Stifel, others.
LINTA (29.86 +6.15%): Co announced that its Board approved the change in attribution from the Liberty Interactive Group to the Liberty Ventures Group of its digital commerce companies; Tgt raised to $35 at Topeka, Buy reiterated.
Large Cap Losers
MBLY (54.17 -6.12%): Downgraded to Mkt Perform from Outperform at Raymond James.
MU (32.19 -5.15%): Samsung, one of its largest DRAM competitors, announced they are spending $14.7 bln to build a new chip plant.
TEVA (54 -1.69%): Announced results of strategic review of core specialty therapeutic areas; identified 14 pipeline projects for discontinuation or divestment.
Mid Cap Gainers
CFN (56.74 +22.89%): To be acquired by Becton Dickinson (BDX) for $58 per share.
PAH (28.06 +3.89%): Priced a private placement of ~25.465 mln shares of its common stock common stock at $25.59/share.
AU (11.60 +3.66%): Gold companies seeing early bid following strength in gold as spot prices reclaim $1200
Mid Cap Losers
GSAT (2.67 -11.3%): Confirmed as next short idea at Kerrisdale Capital, tgt $0.
HRB (29.58 -6.55%): Confirmed regulatory approval to acquire assets from Bofi Holdings (BOFI) is not expected this year.
DECK (88.24 -6.49%): Downgraded to Neutral from Overweight at Piper Jaffray.
11:50 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (143) outpacing new highs (53) (:SCANX) : Stocks that traded to 52 week highs: ADP, ARDX, BABY, BDX, BLE, BLJ, CALM, CCI, CFN, CLDT, CMRX, DRTX, DTSI, ETP, EW, FDX, FNHC, GPN, GS, HBI, HD, HEP, HNH, HNNA, ICLR, IMDZ, INFU, JACK, KITE, KO, KR, LNBB, MNK, MNRK, MO, NKE, NSC, OMAB, OVAS, PMBC, PPC, RLGT, SAGE, THS, TTGT, TTPH, UNP, VDSI, WM, WRB, WTM, XRS, ZTS
Stocks that traded to 52 week lows: ABY, ACI, ADHD, AE, AEY, AG, ALEX, AMDA, AMZG, APPY, ASEI, AUY, AVD, AVL, AXU, AXX, BAMM, BBG, BCO, BLIN, BTU, CALI, CANF, CBMX, CCSC, CGIX, CHFC, CHK, CIEN, CLD, CLF, CLFD, CLNE, CLRX, CMCO, CMLS, CREE, CRRS, CRS, CVGI, CVO, DAR, DARA, DCIX, DRYS, DSX, DXR, EARS, EDAP, EGAN, EGI, EGLT, ELY, END, EOX, EPM, ESP, EZCH, FOMX, FPP, FRD, GBR, GEOS, GEVO, GIFI, GIGM, GLOW, GLPW, GMO, GSS, GTAT, GTXI, HAYN, HOS, IAG, IIVI, IMGN, IMRS, INNL, IO, ISSC, KN, KOP, KRO, KTOS, MBII, MCHX, MEIL, MIL, MILL, MRKT, MUR, MXC, MYE, NBG, NRP, OGXI, OII, OREX, ORIT, OXF, PE, PLPM, PRGN, PWE, PZG, RBCN, REN, REXX, RFIL, RRC, RVNC, SALE, SCL, SD, SDT, SFY, SGY, SIR, SLW, SMT, SNOW, SNSS, SPA, SPDC, SVBL, SZMK, TCK, TEAR, TEU, TORM, TRUP, TWI, URRE, VNR, VOC, VSR, WDR, WGBS, WPRT, XNY, YUMA, ZAZA
ETFs that traded to 52 week highs: none
ETFs that traded to 52 week lows: BNO, EWG, GREK, UHN, XME
10:09 am GT Advanced Tech. files for bankruptcy court protection under Chapter 11 (shares halted) (GTAT) :
Co announced that it had, together with certain of its direct and indirect subsidiaries (collectively, GT), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan. GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations. "Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet."
OmniVision Technologies (OVTI) announced the OV13860, a new 13-megapixel camera solution.
8:33 am Riverbed Technology: Elliott Management reaffirms $21/share offer to acquire riverbed, challenges board to justify inaction (RVBD) :
Elliott Management launched RepairRiverbed.com as a platform for raising awareness of the long history of "broken promises and inconsistent results that have destroyed shareholder value at Riverbed Technology." Elliott also reaffirmed its $21 per share offer to acquire Riverbed and renewed its call for the Board to engage with Elliott and other interested acquirers and pursue a value-maximizing sale.8:05 am Axcelis Tech announces sale and leaseback transaction (ACLS) : Co has signed an agreement with Middleton Partners for the sale of its headquarter building for the purchase price of $50 million. At the closing of the sale, which will occur after the completion of a due diligence period of up to 45 days and on the satisfaction of customary closing conditions, Axcelis will enter into a 22 year lease of the property. The transaction is expected to generate net proceeds of ~ $35 mln, after the discharge of the existing mortgage and expenses. The Company will retain ownership of approximately 23 acres of adjacent property.
6:31 am HP confirms it will separate into two public companies; reiterates fiscal 2014 non-GAAP diluted net EPS outlook of $3.70 to $3.74 and updates GAAP diluted net EPS outlook to $2.60 to $2.64 (HPQ) : The co announced plans to separate into two new publicly traded Fortune 50 companies: one comprising HP's market-leading enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise HP's market-leading personal systems and printing businesses, which will do business as HP Inc. and retain the current logo. Immediately following the transaction, which is expected to be completed by the end of fiscal 2015, HP shareholders will own shares of both Hewlett-Packard Enterprise and HP Inc. The transaction is intended to be tax-free to HP's shareholders for federal income tax purposes.
Meg Whitman to be President and Chief Executive Officer of Hewlett-Packard Enterprise; Pat Russo to be Chairman of Hewlett-Packard Enterprise Board Dion Weisler to be President and Chief Executive Officer of HP Inc.; Meg Whitman to be Chairman of the HP Inc. Board For fiscal 2014, HP reaffirms its non-GAAP diluted net EPS outlook range of $3.70 to $3.74, and updates its fiscal 2014 GAAP diluted net EPS outlook to be in the range of $2.60 to $2.64.For fiscal 2015, HP estimates non-GAAP diluted net EPS outlook to be in the range of $3.83 to $4.03 and GAAP diluted net EPS outlook to be in the range of $3.23 to $3.43.
The company disclosed that their FY15 outlook includes flat Y/Y growth in revenues
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