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From Briefing.com: As the holiday weekend closes, U.S equity markets opened today with many investors cautious about global economic growth. China released PMI numbers portraying a slowing manufacturing sector. In addition, many believe that while early Black Friday numbers were impressive, store traffic slowed later in the day, leading to potentially disappointing sales numbers. The real test comes today though as more and more people decide to spend their money on Cyber Monday rather than wait in line for doorbusters on Black Friday.

While the S&P lost 0.68%, the tech sector gave up 1.14% on the day, making it one of the worst performing sectors to begin December.

Alibaba (BABA 105.99 -5.65) was one of the major losers in the space today amid slowing economic growth in China. The company relies heavily on the Chinese market and any slow down would directly affect the company's revenues.

Twitter (TWTR 39.04 -2.70) also sold off today even though Wunderlich reiterated their Hold rating on Friday. Wunderlich noted that TWTR has been ramping up its e-commerce capabilities in time for the holidays. TWTR is planning to enable a new feature that allows users to get offers from retailers through their timeline and redeem the discount either in store or online. Since reporting earnings results last month, the stock has sold off amid concerns of slowing user growth and an inability to monetize its user base.

In brighter news, Integrated Silicon (ISSI 15.28 +0.81) rose 5.6% after Staboard Group delivered a letter to its CEO stating that substantial opportunities exist to create shareholder value. Starboard believes that the ISSI is currently undervalued due to a number of non-core acquisition initiatives that are distracting the company from its most profitible business segments. ISSI has developed a strong niche in selling DRAM and SRAM, specialty memory products, which account for roughly 75% of the company's revenue.

Overall, the tech sector followed the broad market down, but it's worth noting that stocks were close to all time highs and a pullback can be healthy when prices become too far extended. As more light gets shed on Black Friday and Cyber Monday numbers we should know the real picture, at least in the U.S.

4:02 pm Spansion: CY and CODE to merge in $4 bln all-stock transaction; expected to achieve more than $135 million in cost synergies on an annualized basis within three years and to be accretive to non-GAAP earnings within the first full year after the transaction closes (CY is halted) (CODE) : Cypress Semiconductor (CY) and Spansion (CODE) announced a definitive agreement to merge in an all-stock, tax-free transaction valued at approximately $4 billion. The post-merger company will generate more than $2 billion in revenue annually

Under the terms of the agreement, Spansion shareholders will receive 2.457 Cypress shares for each Spansion share they own. The shareholders of each company will own approximately 50 percent of the post-merger company. The merger is expected to achieve more than $135 million in cost synergies on an annualized basis within three years and to be accretive to non-GAAP earnings within the first full year after the transaction closes. The combined company will continue to pay $0.11 per share in quarterly dividends to shareholders.Cypress and Spansion expect the deal to close in the first half of 2015. Jefferies LLC and Morgan Stanley & Co. LLC served as financial advisors and Fenwick & West and Latham & Watkins acted as legal counsel to Spansion. Qatalyst Partners acted as financial advisor and Wilson Sonsini Goodrich & Rosati acted as legal counsel to Cypress.4:10 pm : The major averages began December on a lower note with relative weakness among cyclical sectors keeping the market under pressure throughout the day. The Nasdaq Composite (-1.3%) and Russell 2000 (-1.6%) paced the slide while the S&P 500 settled lower by 0.7% with eight sectors ending in the red.

Equities faced selling pressure from the opening bell after the overnight session reminded investors about persistent growth concerns around the globe. In Asia, China's HSBC Manufacturing PMI fell to an eight-month low (50.3; expected 50.5) while Japan's debt rating was lowered to A1 from Aa3 at Moody's. Making matters worse, Germany's Manufacturing PMI slid into contraction (49.5; expected 50.0) while the eurozone Manufacturing PMI narrowly avoided the same fate (50.1; expected 50.4).

Accordingly, the concerns about major economies kept cyclical sectors under pressure with five of six growth-sensitive groups ending behind the broader market. The industrial sector (-1.3%) slumped to the bottom of the leaderboard at the start and remained in that spot until the close. Transport stocks were largely responsible for the weakness with the Dow Jones Transportation Average ending lower by 2.7%.

Elsewhere among cyclical sectors, the top-weighted technology space (-1.1%) endured a late-morning plunge in the shares of Apple (AAPL 115.05, -3.88). The largest sector component was down as much 6.3% during the opening hour, but narrowed its loss to 3.3%. Chipmakers fared a bit better than Apple, but worse than the sector as evidenced by a 1.3% decline in the PHLX Semiconductor Index.

The energy sector (+0.8%) was the only cyclical group that finished ahead of the market thanks to a rebound in crude oil. The energy component rallied 4.1% to $69.02/bbl after marking an overnight low at $64.00/bbl. As for the energy sector, the group was underpinned by some of its main components like Chevron (CVX 111.73, +2.86) and ExxonMobil (XOM 92.35, +1.81). The two Dow components gained 2.6% and 2.0%, respectively, to help the price-weighted Dow (-0.3%) finish ahead of the broader market.

Over on the countercyclical side, the utilities sector (+0.2%) spent the bulk of the day in the green while other defensively-oriented sectors ended mixed. Health care (-0.2%) and consumer staples (-0.6%) settled ahead of the S&P 500 while the telecom services sector (-1.0%) lagged.

Treasuries notched their highs shortly after the opening bell and spent the remainder of the day in a steady retreat. The 10-yr yield climbed five basis points to 2.22%.

Today's participation was ahead of average with more than 850 million shares changing hands at the NYSE floor.

Economic data was limited to the ISM Index, which fell to 58.7 from 59.0 while the Briefing.com consensus expected a decline to 58.0. The Production Index fell to 64.4 from 64.8, which resulted from manufacturers delaying production until a later time. New orders improved as the related index increased to 66.0 from 65.8. Meanwhile, order backlogs increased to 55.0 from 53.0 in October.

Tomorrow, the Construction Spending report for October will be released at 10:00 ET (Briefing.com consensus 0.6%).


Nasdaq Composite +13.2% YTD
S&P 500 +11.1% YTD
Dow Jones Industrial Average +7.2% YTD
Russell 2000 -0.7% YTD

3:46 pm Arch Coal filed comments today expressing concerns about the EPA's proposed Clean Power Plan (ACI) : "Already promulgated regulations are expected to drive the shut-down of as much as 20% of America's coal-based fleet, which is the primary source of base-load power generation in the United States. That's an unprecedented change to America's power system in what constitutes the blink of an eye in energy markets -- creating enormous potential for market disruptions, supply shortages and rate spikes."

11:53 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (351) outpacing new highs (138) (:SCANX) : Stocks that traded to 52 week highs: AAL, ACG, ACN, AFMD, AIRT, AMAG, AMGN, AMOT, AON, ARDX, ASH, AUPH, AVB, AXTA, BAH, BAM, BCR, BDL, BF.A, BF.B, BFO, BMY, BOOT, BRK.A, BRK.B, CAG, CEA, CELG, CIM, CLDT, CMS, COST, DAX, DBL, DDC, DENN, DFP, DGRW, DGX, DIS, DNP, DPZ, DRH, DRI, DWAT, EIX, ENL, ENR, ESRX, ETR, EVN, FDP, FFC, FLC, FMS, FNF, FOXA, FRF, HA, HAIN, HCKT, HCN, HCP, HQY, HWBK, IIF, IMAX, INCR, INFY, INGR, IRM, JBLU, JKHY, JRS, KIM, KRC, LBRDA, LEAF, LHO, LLY, LMCB, LNT, LQ, LUV, MAC, MCRL, MO, MOCO, NEWM, NMO, NPT, NU, NUW, NVR, ODFL, ORAN, PERY, PG, PLAY, PNW, PPS, PSF, PSG, QQQX, RAI, RDY, RIT, RJET, RLJ, RMAX, RUK, RVP, SAVE, SCG, SCOR, SFS, SNE, SO, SPB, SRT, STOR, SWFT, SYMC, TRI, TRK, UPS, USAK, V, VNO, VONG, VRNT, VTHR, VTR, VWR, WLDN, XEL, ZNH, ZTS

Stocks that traded to 52 week lows: AAOI, AGCO, ALLT, AMDA, AMID, AMRS, AMZG, AOI, APA, APDN, APRI, ARP, ASPS, AVAL, AVAV, AVH, AXX, BALT, BAS, BBEP, BBG, BBL, BCEI, BGH, BHP, BIRT, BKEP, BOOM, BP, BPI, BPZ, BRN, BRS, BRSS, BTE, BTU, CALL, CAM, CBT, CELP, CEO, CFD, CGIX, CHKR, CIE, CJES, CLNE, CLR, CNCO, CNSI, COHR, COMT, CPE, CPG, CRK, CRR, CRT, CRVP, CRZO, CSUN, CTHR, CU, CVE, CVEO, CWEI, CXO, CYNI, DAKP, DATE, DCTH, DLNG, DMLP, DNOW, DNR, DO, DRD, DRYS, DSE, DSX, DWSN, DXPE, E, EAC, EC, ECA, ECR, ECT, EDD, EGY, EMEY, ENBL, EOX, EPE, EPM, ERF, EROC, ESEA, ESV, EVEP, EXLP, EXXI, EYES, FAM, FCX, FDUS, FF, FLR, FLS, FMD, FMSA, FRPT, FTGC, FTI, FTK, FWLT, FXEN, GALT, GDP, GEOS, GER, GGB, GGN, GLMD, GLRI, GMO, GMZ, GNBC, GNT, GOMO, GST, GTE, GTLS, HAL, HERO, HES, HIX, HK, HMLP, HNR, HNW, HP, HSOL, HSON, HTWR, HYGS, IBTX, ICA, ICD, ICL, IKGH, INS, IO, ISH, IVAN, JMEI, JMLP, JONE, JPEP, KBAL, KBR, KMT, KOG, KOP, KOS, LALT, LEI, LEU, LGCY, LINE, LNCO, LOOK, LPG, LPI, LQDT, LRE, LRN, MBT, MCEP, MCP, MDGN, MDR, MDU, MEMP, MEOH, MILL, MIND, MOLG, MPET, MPO, MRO, MRTX, MSM, MTDR, MTRX, MTSL, MUR, MVO, MXF, NADL, NBL, NBR, NBY, NCQ, NDRO, NE, NEFF, NEOT, NOA, NOG, NOV, NPD, NR, NRP, NRT, NSLP, NSPH, NTLS, NTP, NVFY, NVGS, OAS, OCIP, OCLS, OIS, OKS, OPB, ORIG, ORMP, PACD, PBT, PDCE, PE, PED, PEO, PES, PFMT, PGH, PGN, PHMD, PICO, PKD, PLG, PQ, PRIM, PRKR, PRSS, PSCE, PSIX, PSTI, PTEN, PVA, PWE, PWR, QEP, QRM, QTWW, RCON, REE, REI, REN, RENN, RES, RIG, RLOC, RNE, RNO, ROSE, ROYT, RPXC, RTK, RVLT, SALT, SARA, SB, SBLK, SCL, SD, SDLP, SDR, SDRL, SFUN, SFY, SGY, SHOS, SID, SIM, SINA, SLB, SM, SN, SOL, SPKE, SPN, SR, SRF, SSE, SSL, SSN, STXS, SU, SWSH, TAHO, TAXI, TBI, TC, TCAP, TDW, TESO, TESS, TGA, TGB, TGE, TMST, TOPS, TPLM, TRF, TRUP, TRXC, TS, TTI, UAN, UBNT, ULTR, UNT, UPL, UQM, USAC, USAP, USDP, USEG, VET, VIEW, VII, VIP, VJET, VLCCF, VOC, VPFG, VRTS, VSLR, WAIR, WFT, WG, WGA, WHZ, WLL, WPRT, WPX, WRES, WTI, ZEUS

ETFs that traded to 52 week highs: PPH, PSK

ETFs that traded to 52 week lows: AFK, BNO, DBC, DJP, EWM, FXA, GSG, IGE, IXC, JJC, OIH, OIL, REMX, RSX, SLX, UGA, UHN, USCI, USO, XES, XOP

10:08 am Ingram Micro announced that it acquired a majority interest in Armada; terms not disclosed (IM) : Armada is the largest value-added technology distributor in Turkey with 2013 sales of over $280 million. The co plans to make a mandatory tender offer for the remaining shares in accordance with Turkish capital markets regulations.

Materialise (MTLS) announced that last Thursday marked the signing of a franchise agreement between it and UCT (UCTT), which will enable UCT to bring the i.materialise 3D Printing platform to South East Asia and further expand the reach of 3D printing into traditional manufacturing markets. The partnership enables both companies to expand the reach of 3D printing into the traditional outsource manufacturing sector.