From Briefing.com: Tuesday produced a mixed day of trading on Wall Street following some disappointing retail sales data and some mixed earnings news that included better than expected results from JPMorgan Chase (JPM 63.06, +0.99, +1.6%), Wells Fargo (WFC 54.19, -0.40, -0.7%), and Johnson & Johnson (JNJ 100.52, -0.03, -0.03%), as well as warnings of earnings and/or sales shortfalls from Norfolk Southern (NSC 100.53, -4.34, -4.1%), Ethan Allen (ETH 25.64, -0.85, -3.2%), and Zillow (Z 91.65, -1.29, -1.4%).
The S&P 500 information technology sector (-0.4%) was the worst-performing sector on Tuesday as it fell prone to selling interest in front of Intel's (INTC 31.49, -0.24, -0.8%) report after the close and perhaps some tax-related selling in front of the deadline for filing 2014 individual tax returns.
The semiconductor stocks were among the market's weakest performers, evidenced by the 1.0% decline in the Philadelphia Semiconductor Index.
Notable news items from sector components included the following:
Akamai Technologies (AKAM 71.15, -0.19, -0.3%): Announced the integration of Adobe Primetime ad insertion capabilities into its network
Altera (ALTR 42.55, -1.31, -3.0%): Canadian Capital Management and TIG Advisors pressing company to pursue a sale to Intel, according to media reports
Apple (AAPL 126.36, -0.49, -0.5%): The Wall Street Journal reported that Apple purchased Linx, a camera technology company
F5 Networks (FFIV 113.35, -0.29, -0.3%): Announced a new cloud-delivered managed service to defend against web application attacks called The Silverline Web Application Firewall
Hewlett-Packard (HPQ 32.52, -0.18, -0.6%): Announced a contract with the Arkansas Department of Human Services worth $190 mln to implement its interChange Medicaid Management Information System. The seven-year contract includes one base year with six one-year options and extends HP's nearly 30-year relationship in supporting the state of Arkansas. HP will continue to manage the state's legacy system until the new MMIS goes live.
IBM (IBM 162.30, -0.08, -0.1%): Company and Apple expand partnership in field of medical research; IBM also announced partnership with Medtronic, saying it will work together to combine powerful analytics and cognitive computing with diabetes medical devices and health data to develop a new generation of personalized diabetes management solutions. Separately, it was reported that IBM is going to acquire Phytel, a provider of integrated population health management software, and Explorys, a healthcare intelligence cloud company.
Intel (INTC 31.47, -0.26, -0.8%): After Tuesday's close, reported Q1 earnings of $0.41 per share, in-line with estimates. Revenues rose 0.1% year/year to $12.78 bln, which was just shy of analysts' average expectation. Intel said the PC business was down, offset by growth in data center, Internet of Things (IoT) and non-volatile memory businesses. For Q2, sees revenues of $12.7-13.7 bln, the midpoint of which is below analysts' average expectation. Gross margin expected to be 62 percent, plus or minus a couple of percentage points. For FY15, sees revenues flat year-over-year, which is in-line with estimates. Gross margin expected to be 61 percent, plus or minus a couple of percentage points; cuts capital expenditures to $8.2-9.2 bln from $9.5-10.5 bln; R&D plus MG&A spending ~$19.7 billion, plus or minus $400 million.
Linear Technology (LLTC 45.41, -0.60, -1.3%): Company was scheduled to report its quarterly results after Tuesday's close, but had not done so as of this posting.
Microchip Technology (MCHP 48.77, -0.76, -1.5%): Announced that the BMW Group is continuing to broaden the proliferation of MOST technology in its vehicle infotainment networks, using Microchip's Intelligent Network Interface Controllers
Microsoft (MSFT 41.64, -0.12, -0.3%): Company confirmed that it has acquired Datazen Software, which offers mobile business intelligence and data virtualization on Windows, iOS and Android devices; terms were not disclosed
Oracle (ORCL 42.73, -0.35, -0.8%): Announced that The Ministry of Health Brazil deployed Oracle Healthcare Master Person Index running on Oracle engineered systems to advance nationwide e-health initiatives
Elsewhere in the technology space:
Alcatel-Lucent (ALU 4.93, +0.58, +13.3%): Company and Nokia (NOK 7.96, -0.34, -4.2%) confirm that they are in advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent. It was noted that there can be no certainty at this stage that these discussions will result in any agreement or transaction.
Zillow (Z 91.70, -1.24, -1.2%): On conference call, said it sees FY15 revenues of $690 mln, which is below analysts' average expectation
Analyst Action:
Amazon.com (AMZN 385.21, +2.85, +0.8%): target raised to $465 from $400 at Jefferies; Buy
Apple (AAPL 126.36, -0.49, -0.5%): target raised to $145 from $135 at Argus; Buy
Brocade (BRCD 11.84, -0.36, -3.0%): initiated with a Neutral at Wedbush; target $14
Computer Sciences (CSC 64.59, -0.81, -1.2%): downgraded to Neutral from Buy at Goldman
Qualcomm (QCOM 68.97, +0.24, +0.4%): upgraded to Buy from Neutral at Bank of America/Merrill Lynch
Seagate Technology (STX 55.76, +0.35, +0.6%): upgraded to Neutral from Underperform at Bank of America/Merrill Lynch; target $60
Western Digital (WDC 96.20, +0.70, +0.7%): upgraded to Buy from Neutral at Bank of America/Merrill Lynch(Disclosure: Briefing.com has a business relationship with Microsoft)
5:04 pm Linear Tech beats by $0.02, reports revs in-line; guides Q4 revs in-line (LLTC) : Reports Q3 (Mar) earnings of $0.55 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 6.9% year/year to $372.02 mln vs the $371.91 mln consensus.
Cash, cash equivalents and marketable securities increased by $62.4 million over the second quarter of fiscal year 2015 to $1,135 million.
Operating margin as a percent of sales was 46.7% up from 44.9% reported last quarter; the book to bill ratio was positive for the quarter and bookings increased sequentially in all of co's major end markets with its largest end markets, industrial and automotive, showing the most gains
Co issues in-line guidance for Q4, sees Q4 revs of +2-5% sequentially (~$379.5-390.6 mln) vs. $387.78 mln Capital IQ Consensus Estimate. "We expect growth to continue in the June quarter although moderately tempered by worldwide macroeconomic conditions."
4:31 pm Rambus announces that its Cryptography Research division has licensed security technologies to Thales e-Security; agreement financial terms not disclosed (RMBS) : In this agreement, Thales will integrate DPA Countermeasure technologies developed by Cryptography Research into its line of hardware security modules to protect against side-channel and related attacks
4:10 pm Closing Market Summary: Stocks End Mixed as Q1 Earnings Trickle In (:WRAPX) : The major averages ended Tuesday on a mixed note after spending the day near their flat lines. The S&P 500 added 0.2% while the Nasdaq settled lower by 0.2%.
Equity indices slipped during the opening hour after the March Retail Sales report (+0.9%; Briefing.com consensus +1.0%) came in below expectations. In addition to pressuring equities, the report weighed on the greenback, knocking the Dollar Index (98.81, -0.68) to a session low. The index climbed off its worst level, but still ended the day lower by 0.7%.
As for equities, the S&P 500 found support just above its 50-day moving average (2,081) and made a swift return into the green. The index received significant support from the energy sector (+1.8%), which ended well ahead of other groups. Crude oil contributed to the considerable strength, climbing 2.7% to $53.31/bbl.
Similar to energy, six other sectors finished in the green, but only two groups added more than 0.4%. Furthermore, the two outperformers-materials (+0.4%) and utilities (+0.6%)-account for less than 7.0% of the market.
Meanwhile, the top-weighted technology sector (-0.3%) spent the day in negative territory, largely due to weakness among chipmakers. The PHLX Semiconductor Index lost 1.0% ahead of earnings results from Intel (INTC 31.49, -0.24) and Linear Technology (LLTC 45.42, -0.59).
Elsewhere among cyclical groups, the financial sector (unch) spent the day near the broader market after two major components reported earnings. JPMorgan Chase (JPM 63.04, +0.97) spiked 1.6% after beating bottom-line estimates on light revenue while Wells Fargo (WFC 54.19, -0.40) lost 0.7% despite its better than expected earnings.
Similar to financials, the health care sector (+0.2%) settled near the broader market after Johnson & Johnson (JNJ 100.52, -0.03) reported a two-cent beat, but lowered its guidance, citing currency headwinds.
Also of note, industrials (-0.1%) ended little changed even though transport stocks displayed intraday weakness after Norfolk Southern (NSC 100.53, -4.34) lowered its guidance. The stock fell 4.1% while the Dow Jones Transportation Average narrowed its decline to 0.1% by the close.
Switching gears, Treasuries spiked following today's Retail Sales report, but surrendered the bulk of their gains during the session. The 10-yr note ended modestly higher with its yield down three basis points at 1.90%.
Today's trading volume was comparable to that observed in recent days with more than 675 million shares changing hands at the NYSE floor.
Economic data included retail sales, PPI, and business inventories:
Retail sales increased 0.9% in March after declining an upwardly revised 0.5% (from -0.6%) in February while the Briefing.com consensus expected an increase of 1.0% A significant portion of the increase resulted from a rebound in motor vehicle demand as sales at motor vehicle and parts dealers increased 2.7% in March after declining 2.1% in February
Excluding motor vehicle sales, retail sales increased 0.4% in March after an upward revision left sales flat (from -0.1%) in February while the consensus expected an increase of 0.7% Producer prices increased 0.2% in March after declining 0.5% in February, representing the first increase since October 2014 while the Briefing.com consensus expected an increase of 0.2% Energy prices increased 1.5% in March after being flat in February. That was the first increase in energy prices since June 2014. Gasoline prices increased 7.2% in March and were the main contributor to the overall increase in energy costs. Food prices declined 0.8% in March after declining 1.6% in February. These prices haven't increased on a month-over-month basis since November 2014. Excluding food and energy, core PPI increased 0.2% in March after declining 0.5% in February while the consensus expected an increase of 0.1% Business inventories increased 0.3% in February after being flat in January, which is what the Briefing.com consensus expected
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Empire Manufacturing report for April will cross the wires at 8:30 ET (Briefing.com consensus 7.3). The Industrial Production report for March will be released at 9:15 (consensus -0.3%) while the NAHB Housing Market Index for April will be reported at 10:00 ET (consensus 55). Also of note, the Federal Reserve will release its April Beige Book at 14:00 ET.
Nasdaq Composite +5.1% YTD Russell 2000 +5.0% YTD S&P 500 +1.8% YTD Dow Jones Industrial Average +1.2% YTD
4:10 pm Intel reports EPS in-line, revs in-line with lowered expectations; guides Q2 and FY15 revs in-line (INTC) : Reports Q1 (Mar) earnings of $0.41 per share, in-line with the Capital IQ Consensus of $0.41; revenues rose 0.1% year/year to $12.78 bln vs the $12.83 bln consensus. PC business down, offset by growth in data center, Internet of Things (IoT) and non-volatile memory businesses
On March 12, co lowered rev guidance to $12.5-13.1 bln from $13.2-14.2 bln citing weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain.
Gross margin 60.5% vs. '60% plus or minus a couple percent' guidanceCo issues in-line guidance for Q2, sees Q2 revs of $12.7-13.7 bln vs. $13.45 bln Capital IQ Consensus.
Gross margin percentage: 62 percent, plus or minus a couple of percentage points.Co issues in-line guidance for FY15, sees FY15 revs of flat YoY, in-line with Capital IQ Consensus.
Gross margin percentage: 61%, plus or minus a couple of percentage points; cap-ex to $8.2-9.2 bln from $9.5-10.5 bln; R&D plus MG&A spending: ~$19.7 bln, plus or minus $400 million.
Co withdrew mid single digit rev growth and 62$ midpoint margin guidance when it warned last month.
1:39 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
ALU (4.89 +12.42%): Confirmed it is advanced discussions with Nokia (NOK) with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent
MT (9.94 +5.85%): Initiated with a Buy at Clarkson Capital; also seeing reports that co's steel will be used constructing a retail and leisure complex at Singapore's Changi airport
JBHT (91.06 +3.80%): Beat quarterly EPS by $0.06 ($0.78 vs $0.72 estimate), revs rose 2.4% yoy to $1.44 bln vs $1.54 bln estimate
Large Cap Losers
NSC (99.32 -5.29%): Sees Q1 EPS of ~$1.00 vs $1.29 estimate, revs of ~$2.6 bln vs $2.68 bln estimate; downgraded to Hold from Buy at TD Securities, target lowered to $110 from $120; target lowered to $109 from $115 at Deutsche Bank; target lowered to $113 from $116 at Cowen
NOK (7.91 -4.70%): Lower on confirmation that co is in discussions to acquire Alcatel-Lucent
WYNN (127.61 -4.48%): Weakness in large cap resorts and casino stocks: LVS, MPEL also lower
Mid Cap Gainers
WUBA (64.92 +27.72%): Seeing reports that co may merge with Ganji.com
AVP (9.07 +13.23%): Wall Street Journal reporting co exploring strategic alternatives
PRE (129.94 +9.06%): Confirmed that EXOR has submitted a proposal to acquire the company for $130 per share in cash
Mid Cap Losers
SANM (23.38 -5.65%): Downgraded to Underperform at Longbow
HZNP (27.71 -2.74%): Announced offering to sell 12 mln odrinary shares in an underwritten public offering
NBG (1.22 -2.40%): Seeing reports that Greece is preparing for default
11:55 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (117) outpacing new lows (33) (:SCANX) : Stocks that traded to 52 week highs: AB, ACGL, ADXS, AERI, AFAM, AGRX, AHL, AKER, ALU, ALV, AMSG, ANAC, APB, AWH, AXS, BAM, BCV, BLDR, BLMT, BLUE, BSFT, BTX, CAJ, CCCL, CDXS, CNXR, COWN, CSF, CYN, DCM, DENN, DHIL, DL, DOVR, DSGX, DTSI, DVCR, EIG, EIGI, ELLI, ELOS, ERI, ESLT, ETE, ETM, EURN, FNRG, GFF, GIB, GIMO, GS, GTWN, HCC, HMHC, HMN, HOFT, HTLF, ICLN, INFA, IPCM, IPKW, JBHT, JEQ, JPM, KBSF, LBY, LGND, LUX, LVNTA, MASI, MKL, MKTX, MNTA, MTG, NAP, NAT, NHTC, NORD, NPBC, NPD, NRZ, NVEE, NYCB, OZRK, PBIP, PLAY, PLT, PRE, PRTO, PZE, REPH, RGS, RIGL, RNG, RTIX, SABR, SFS, SHAK, SIMO, SMED, SNE, SRDX, STDY, STON, STRZA, SUPN, TAYD, TERP, TLMR, TRK, TXMD, VLTC, VR, WSH, WUBA, XRM, YORW
Stocks that traded to 52 week lows: APOL, BIOD, CBYL, CDNA, CIDM, CNNX, ELTK, ESIO, FUEL, ICLD, IKAN, IRG, ISDR, IVAC, KIQ, MTBC, MXPT, OPXA, PBMD, PFIE, PNX, SCON, SIF, SIFY, SONS, SPDC, STRM, TGD, TKC, URRE, WRN, XPL, Z
ETFs that traded to 52 week highs: CUT, MBB, TAN
ETFs that traded to 52 week lows: none
AI
Market Data 
Markets 
