From Briefing.com: The technology sector continued its YTD underperformance of the broader market on Monday, falling 1.34% versus the S&P 500, which fell just 0.81%. Technology Hardware, Storage & Periperals led all declining industry groups on the day, plummeting nearly 3% to begin the week. Apple (AAPL 109.25 -2.76), EMC Corp (EMC 28.94 -0.74), 3D Systems (DDD 31.36 -1.27), and Seagate Technology (STX 65.04 -1.41) were some of the worst performing large caps in the group.
Taking a look at the second worst performing industry group on Monday, the Philadelphia SOX Index closed down 2% as Semiconductors took a hit. Sandisk (SNDK 83.57 -13.47), dove 13.9% after it lowered Q4 revenue guidance to $1.73 billion. The lower revenue was primarily due to weaker than expected sales of retail and iNAND products. Non-GAAP gross margin for the fourth fiscal quarter is expected to be approximately 45% compared to the previously guided range of 47% to 49%.
Other laggards in the group include Micron Technology (MU 31.66 -1.87), Kla-Tenor (KLAC 67.09 -2.08), and Lam Research (LRCX 77.31 -2.42).
While many stocks in the Technology sector closed in the red today, there were a few bright spots worth noting. VMWare (VMW 80.74 +1.84), ASML Holding (ASML 103.45 +1.36), Cisco Systems (CSCO 28.05 +0.26) all closed higher.
SAP SE (SAP 67.70 +2.67) soared 4.1% following its preannouncement of its fiscal fourth quarter financial results. The company noted it sees Q4 non-IFRS revenue of EUR 5.46 billion vs. EUR 5.37 billion analyst consensus. Additionally, SAP reported operating margin was 32.1% in the quarter, primarily a result of non-IFRS cloud subscriptions and support revenue increasing 59% year/year). The annual cloud revenue run rate now exceeds 1.7 billion or $2.0 bln.
On to analyst actions, Teradyne (TERP 29.96 +0.21) was downgraded to Neutral from Outperform at Credit Suisse.
Google (GOOG 492.55 -3.62) was downgraded to Neutral from Overweight at Atlantic Equities.
Juniper Networks (JNPR 22.45 -0.60) was downgraded to Neutral from Buy at Buckingham Research.
Radware (RDWR 21.44 -0.11) was upgraded to Buy from Neutral at Buckingham Research.
Finally, Solera (SLH 51.69 +1.37) was upgraded to Buy from Neutral at Goldman
4:31 pm Cree announces it has filed complaints with the U.S. International Trade Commission and the U.S. District Court against Feit Electric Company (CREE) : Co filed a complaint against Feit Electric and its Asian supplier, Unity Opto Technology Co., Ltd., to curb infringement on Cree's patented technologies and to address Feit's false and misleading advertising claims that certain of its products meet ENERGY STAR specifications. The suits allege infringement of 10 patents related to LED lighting.
4:10 pm : The stock market began the new week on the defensive with the Nasdaq (-0.8%) and S&P 500 (-0.8%) pacing the slide. The Dow (-0.5%) and Russell 2000 (-0.3%) outperformed, but the two indices also spent the bulk of the day in negative territory.
Equity indices opened the trading day with slim gains that evaporated during the first few minutes of the session. The S&P 500 slumped back below its 50-day moving average (2046) at the start and spent the rest of the day well below that level as influential sectors weighed.
Most notably, the energy sector (-2.8%) was the weakest performer with crude oil contributing to the pressure after Goldman Sachs lowered its short-term forecast for the commodity. WTI crude ended the pit session on its low, down 4.9% at $46.07/bbl.
Meanwhile, the remaining cyclical groups registered slimmer losses, but heavily-weighted financials (-0.9%) and technology (-1.3%) kept the market under pressure throughout the session.
The top-weighted tech sector spent the day in a steady retreat as components of all sizes registered losses. Large cap names like Apple (AAPL 109.25, -2.76), Google (GOOGL 497.06, -3.66), and Microsoft (MSFT 46.60, -0.59) lost between 0.7% and 2.5%, while chipmakers also lagged with the PHLX Semiconductor Index falling 2.0%.
To be fair, a small pocket of relative strength could be found among cybersecurity names after President Obama spoke about online safety, and is expected to touch on the subject once again during the State of the Union Address on January 20. Cyber-Ark Software (CYBR 38.37, +1.31) and FireEye (FEYE 35.29, +1.61) gained 3.5% and 4.8%, respectively.
Elsewhere, biotechnology names also found themselves among the outperformers, thanks in large part to Celgene (CELG 117.00, +3.33). The stock soared 2.9% after the company issued guidance for 2015 at the JP Morgan Healthcare Conference. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 315.06, +1.74) gained 0.6% while the health care sector (-0.1%) could not stay above its flat line.
Similar to health care, countercyclical consumer staples (-0.3%) and utilities (-0.3%) outperformed while the telecom services sector (+0.6%) spent the day in the green.
Treasuries slumped overnight, but spent the day in a steady advance. The benchmark 10-yr yield fell four basis points to 1.91%.
Today's participation was roughly in-line with average as nearly 760 million shares changed hands at the NYSE floor.
Tomorrow, the Job Openings and Labor Turnover Survey will be released at 10:00 ET while the Treasury Budget for December (Briefing.com consensus $3.00 billion) will be reported at 14:00 ET.
Dow Jones Industrial Average -1.0% YTD
S&P 500 -1.5% YTD
Nasdaq Composite -1.5% YTD
Russell 2000 -2.0% YTD
DJ30 -96.53 NASDAQ -39.36 SP500 -16.55 NASDAQ Adv/Vol/Dec 1076/1.73 bln/1878 NYSE Adv/Vol/Dec 1163/758.9 mln/1939 3:40 pm :
Oil crashed again after Goldman Sachs lowered its price forecast for WTI and Brent crude oil, falling to new lows seen since the recent collapse
At the end of today's session, Feb crude closed $2.33 lower at $46.07/barrel
Natural gas futures tanked on a mild weather outlook, leaving Feb nat gas closed $15 cents lower at $2.80/MMBtu
Feb gold rose $12.60 to $1228.0/oz, while Mar silver gained $0.11 to $16.52/oz
4:09 pm Alcoa beats by $0.06, beats on revs; co reports record quarter cash from operations of $1.5 billion (AA) : Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 14.2% year/year to $6.38 bln vs the $6.03 bln consensus.
Some key highlights:
Global Rolled Products after-tax operating income more than triples year-over-year, auto growth continuesUpstream business improves performance for 13th consecutive quarterAlumina after-tax operating income up more than twofold year-over-yearPrimary Metals adjusted EBITDA per metric ton strongest since second quarter 2008Record quarter cash from operations of $1.5 billion Free cash flow of $989 million, highest since fourth quarter 2010 Alcoa projects 7% global aluminum demand growth in 201512:52 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
BMY (63.15 +4.69%): Announced that its Phase 3 study of Opdivo compared to docetaxel in patients with second-line squamous cell non-small cell lung cancer was stopped early; met its endpoint; price target raised to $70 from $62 at Argus, Buy rating maintained.
SAP (67.65 +4.03%): Preannounced Q4 rev above consensus; non-IFRS cloud subscription and support revenue accelerated to 72%.
BBY (39.28 +3.21%): Positive view profiled in Barron's over the weekend.
Large Cap Losers
SNDK (83.86 -13.58%): Lowered Q4 revenue guidance to $1.73 bln vs $1.83 bln Capital IQ Consensus Est, down from $1.80-1.85 bln.
TIF (89.19 -13.78%): Reported holiday comps flat; lowered FY15 EPS guidance; sees low-to-mid single-digit sales and earnings growth in 2015, below estimates; price target lowered earlier to $110 from $121 at Sterne Agee.
TRIP (71.45 -4.13%): Cautious view profiled in Barron's over the weekend.
Mid Cap Gainers
LULU (63.52 +8.34%): Guided Q4 EPS & revs above consensus, sees Q4 (Jan) EPS of 0.71-0.73 vs. $0.69 Capital IQ Consensus Estimate; upgraded to Neutral from Underperform at Sterne Agee.
NPSP (45.4 +8.32%): Announced it will be acquired by Shire (SHPG) for $46.00 per share.
DRII (30.08 +7.12%): Upgraded to Buy from Neutral at Goldman; tgt raised to $34.50 from $27.
Mid Cap Losers
RICE (17.35 -10.1%): Downgraded to Sell from Neutral at Citigroup.
THC (47.45 -8.13%): Preannounces Q4 results; sees FY14 EBITDA toward the top of its previous range; guided FY15 below consensus.
EXAS (27.54 -5.56%): Co estimated that revenue during Q4 from Cologuard was ~$1.5 mln.
11:53 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (220) outpacing new highs (204) (:SCANX) : Stocks that traded to 52 week highs: AAT, ABC, ACAD, ACC, ACT, ADXS, AEC, AFFX, AGEN, AGIO, AGN, AIV, AKR, AMBA, ANW, APTS, ARE, ARKR, ARMK, ASPX, AVB, AVID, AYI, BABY, BBC, BBN, BBW, BFK, BFY, BKE, BLCM, BLE, BLUE, BMR, BMY, BNDX, BNY, BPY, BR, BRX, BSET, BSX, BTA, BTT, BTX, BURL, BWLD, BXP, CAH, CCL, CEMP, CENTA, CHKP, CPHD, CPT, CRL, CUBE, CUK, CUTR, CVD, CXH, DEI, DEPO, DFT, DHT, DMB, DOC, DPZ, DRAD, DRII, DXCM, EDR, EDUC, EPR, ESS, ETH, EVLV, EW, FMI, FRT, G, GFI, GGP, GNCMA, HCA, HCN, HCT, HELE, HIW, HME, HOLI, HOLX, HPF, HPP, HR, HSIC, IBCA, IDT, IMH, INCR, IPXL, IRF, IRMD, JACK, JRS, JUNO, KIM, KIRK, KITE, KR, KTF, KTF, LBY, LEG, LH, LJPC, LULU, MAA, MAC, MANH, MCA, MCUR, MFT, MIFI, MQY, MRGE, MRK, MSCI, MUA, MUC, MUS, MVT, MWIV, MYJ, MYM, NAC, NAN, NATH, NAZ, NBB, NEA, NEV, NHI, NIO, NKX, NLS, NMO, NNP, NPSP, NQI, NQM, NQP, NQS, NRO, NUV, NVR, NVSL, NVX, NXP, NXPI, NXZ, NYV, OFC, OPK, PDCO, PFPT, PHM, PLD, PLKI, PMO, PNI, PPS, PSA, PYN, PZZA, REG, RMD, ROIC, RPI, SBRA, SCSS, SCYX, SKT, SLG, SPG, SRT, SSS, SUI, TA, TCO, TNK, TSRI, UDR, UHT, VFL, VKQ, VNO, VTR, WHR, WK, WOOF, WSO, XNCR, ZIOP
Stocks that traded to 52 week lows: ABB, ACFN, ACMP, ACY, AEG, AEGN, AIMC, AIT, AIXG, AKS, ALJ, AM, AMFW, AMID, ANGI, ANR, AOI, ARR, ASCMA, ASNA, ASPS, ASTI, ATU, ATW, AVP, BBCN, BBEP, BIS, BKU, BNS, BOKF, BOOM, BPI, BRS, BTU, BWEN, BXC, BXE, CAM, CAS, CBRX, CCLP, CEL, CFR, CIG, CIG.C, CIR, CJES, CKH, CLB, CLD, CMA, CMC, CNNX, CNQ, CNSI, CNX, COMT, CS, CSLT, CSUN, CVCY, DB, DBD, DMD, DRQ, DWCH, E, EAC, ELRC, ENRJ, EVEP, EXH, FC, FES, FET, FFIN, FI, FMSA, FTEK, FTGC, FTI, FXEN, GDP, GHM, GME, GMLP, GOOG, GOOGL, GTLS, GWR, HBHC, HEES, HERO, HFC, HK, HLX, HP, HSC, HSOL, HY, IBKC, IBTX, ICD, IMO, ING, IOC, IX, JOY, KMT, KNM, LAS, LC, LDR, LF, LOCM, LXFR, MCF, MCP, MEA, MFG, MHR, MR, MRC, MT, MTRX, MWE, MXC, NADL, NBL, NEFF, NES, NFX, NGS, NMIH, NMR, NNVC, NOV, NRIM, NUAN, NWPX, OCN, OIBR, OII, OKE, ONP, ORIG, PACD, PANL, PCOM, PDS, PED, PGI, PQ, PRGN, PSIX, PTBI, PTEN, PTNR, PWE, PZN, RCON, RELL, RES, RESI, REXX, RGP, RICE, RIG, RNET, RS, RSO, RYI, SB, SCHN, SD, SDPI, SDRL, SGM, SJT, SLB, SMFG, SMT, SODA, SRF, SRPT, STN, STRS, SWN, TAT, TCBI, TDW, TEX, THR, THRX, TIVO, TPRE, TRCH, TRN, TS, TSI, TZOO, UBS, UG, UMBF, UPI, UPL, USAP, VRTS, WB, WFT, WHLR, WIRE, WNR, WOR, WPCS, WPZ, WTW, YUMA, ZHNE
ETFs that traded to 52 week highs: ICF, ITB, IYR, URE, VNQ, XBI, XHB
ETFs that traded to 52 week lows: BNO, DBC, DJP, EWI, FXC, FXS, GSG, JJC, KOL, OIH, OIL, SLX, UGA, UNG, USCI, USO, XES, XME
9:05 am Amtech Systems announces total orders for the quarter ended December 31, 2014, were $30 mln, including $21 mln of solar orders (ASYS) : The orders are expected to ship within the next three to nine months.
8:02 am SanDisk lowers Q4 revenue guidance to $1.73 bln vs $1.83 bln Capital IQ Consensus ESt, down from $1.80-1.85 bln (SNDK) :
The lower revenue was primarily due to weaker than expected sales of retail and iNAND products. Non-GAAP gross margin for the fourth fiscal quarter is expected to be approximately 45% compared to the previously guided range of 47% to 49%.
Stock immediately dropped 7 pts to $90/share following this news, now at $90.94/share.6:40 am SunEdison and Adani to invest $4 bln in solar PV manufacturing facility in Gujarat (SUNE) : Adani Enterprises and SunEdison announced that they have signed a Memorandum of Understanding to establish a Joint Venture to build the largest, vertically integrated solar photovoltaic manufacturing facility in India with an investment of around $4 bln.
The new $4 billion facility will be constructed in Mundra, Gujarat, India, over a three to four year period. This facility will vertically integrate all aspects of solar panel production on site, including Polysilicon refining, ingots, wafers, cells and panels production with a broader ecosystem involving extended supply chain for raw materials and consumables.6:04 am Integrated Silicon narrows Q1 rev guidance; below consensus (ISSI) : Co issues downside guidance for Q1 (Dec), sees Q1 (Dec) revs of $80.5-81.0 mln vs. $82.49 mln Capital IQ Consensus Estimate, narrowed from $80.0-85.0 million provided on October 29, 2014
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