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From Briefing.com: 4:10 pm : The major averages registered gains on Thursday, but not before enduring a daylong retreat from their opening highs. The S&P 500 was up more than 1.3% at the start, but narrowed its advance to 0.2% by the closing bell.

Equity indices charged out of the gate after the overnight session featured a rebound in China's Shanghai Composite, which climbed 5.8%. The advance occurred as officials in China continued introducing measures aimed at halting the recent market plunge with reports indicating a special taskforce targeting "hostile short-sellers" will be established by China's Public Security Ministry and China Securities Regulatory Commission.

Elsewhere, optimistic-sounding remarks from top Eurozone officials also contributed to the opening strength as European Council President Donald Tusk said he expects Greece to submit concrete, realistic reform proposals today. Mr. Tusk continued, saying the proposals must be matched by an offer from creditors that focuses on debt sustainability.

The opening spike sent the S&P 500 above its 200-day moving average (2,056), but the index returned below that mark during the afternoon. Cyclical sectors displayed broad strength in the early going, but the top-weighed technology sector (-0.3%) faded from its high during the afternoon, ending among the laggards. In general, large cap names held up well, but the largest stock by market cap-Apple (AAPL 120.07, -2.50)-surrendered 2.0%, contributing to the sector's afternoon pullback. In addition, high-beta chipmakers continued their recent woes with the PHLX Semiconductor Index falling 1.3% to extend this week's decline to 5.7%.

Meanwhile, the remaining cyclical sectors also pulled back from their highs, but they managed to end the day ahead of the broader market. The financial sector (+0.8%) had the best showing, settling in the top half of its trading range. The sector likely drew some strength from higher market rates as Treasuries retreated throughout the day with the 10-yr yield jumping 11 basis points to 2.31%.

Also of note, the industrial sector (+0.4%) finished among the leaders thanks to relative strength among transport stocks. The Dow Jones Transportation Average rose 0.6% to narrow this week's loss to 0.9%. JB Hunt (JBHT 84.02, +1.77) was a standout performer, rallying 2.2% after Longbow upgraded the stock to 'Buy' from 'Neutral.'

With the Q2 earnings season about to heat up, investors received the first few reports with Alcoa (AA 10.59, +0.09) climbing 0.9% after reporting a bottom-line miss on better than expected revenue. The company reaffirmed its global aluminum demand growth forecast of 6.0%.

Over on the countercyclical side, the consumer staples sector (+0.1%) ended among the laggards with PepsiCo (PEP 94.59, -1.02) surrendering 1.1% despite beating estimates and raising its earnings growth forecast.

Despite the higher finish, there were plenty of investors seeking downside protection today with the CBOE Volatility Index (VIX 19.91, +0.25) climbing above yesterday's session high.

Today's participation was ahead of average with more than 800 million shares changing hands at the NYSE floor.

Economic data was limited to weekly Initial Claims, which increased to 297,000 for the week ending July 4 from an upwardly revised 282,000 (from 281,000) while the Briefing.com consensus expected a decrease to 276,000. Today's reading represented the highest level since the end of February when claims briefly surpassed 300,000.

The Department of Labor reported that there were no special factors that impacted the latest claims reading, but it is possible that the Independence Day holiday factored into the increase.

Tomorrow, the Wholesale Inventories report for May will be released at 10:00 ET (Briefing.com consensus 0.3%).


Nasdaq Composite +3.9% YTD
Russell 2000 +2.4% YTD
S&P 500 -0.4% YTD
Dow Jones Industrial Average -1.5% YTD

DJ30 +33.20 NASDAQ +12.64 SP500 +4.63 NASDAQ Adv/Vol/Dec 1919/1.71 bln/1050 NYSE Adv/Vol/Dec 1777/806.2 mln/1298 3:45 pm :

WTI crude oil futures rise after five consecutive days of losses, ending the day +$1.16 to $52.78/barrel
In other energy, Aug natural gas rose $0.04 today to $2.72/MMBtu
Metals were mixed today
Aug gold fell $3.90 to $1159.60/oz, Sept silver rose $0.015 to $15.35/oz, while Sept copper gained $0.04 to $2.54/lb

2:15 pm QLogic (-21%) leading semiconductors (SMH -0.5%) lower after cutting Q1 guidance; chip stocks extend break down a five month low (QLGC) :

QLGC is -21% at a 9 month low after lowering Q1 guidance this morning: EPS to $0.16-0.17 from $0.23-0.27 vs. $0.25 Consensus; rev to $113 mln from $124-132 mln vs. $128.3 mln consensusCo cited lower than expected demand due to general weakness in the Company's traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments. Last year HPQ accounted for 27% of rev with Dell at 17% and IBM at 11%.Semiconductors (SMH -0.5%) are the second weakest sector today (after Utilities XLU -1.2%) and are trading at a five month low after breaking through its 200 day moving average earlier in the week. The SMH is nearing the $52 level which has previously provided support. Chip stocks trading lower:IDTI -5%, IMOS -4%, SCON -4%, MXL -3.5%, ALTR -3.5% (antitrust concerns over INTC merger), AMKR -3.3%, MOSY -3%, ENPH -3%, SIGM -3%, AVGO -2.5%,QUIK -2.2%, EXAR -2.2%, MLNX -2% (defended at Stifel), AMD (also warned this week) -2%, MTSN -2%, SQNS -1.8%, TXN -1.7%, MXIM -1.6%, PMCS -1.6%, CCMP -1.6%, CRUS -1.8%, CAMT -1.7%, INTC -1.5%, CAVM -1.4%, MU -1.2%, ADI -1%, EMC -1%

11:45 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (109) outpacing new highs (49) (:SCANX) : Stocks that traded to 52 week highs: ABCD, ABCW, ADMS, AEC, ANAC, AYI, BHBK, BNCN, BOOT, BSET, CACC, CLGX, CNMD, CPK, CRV, DIS, EA, ESNT, EVI, FL, GKNT, GME, GNCMA, GWRE, HSP, JNP, LEN.B, MKTX, MYCC, NEO, NGHC, NVAX, NVR, OMG, PGR, PLL, PSCC, RARE, RE, RRGB, SIXD, SNA, SREV, TPX, TYL, ULTA, VIRT, WSFS, WST

Stocks that traded to 52 week lows: ACV, ADAT, AEZS, AGI, AHC, AIRM, AIXG, ALLT, AMD, AQXP, ASTI, AUY, AXON, BIOA, BIOD, BLT, CAE, CALX, CAR, CH, CIG, CLW, CNS, CP, CRDS, CUI, DCI, DDC, DDD, DRWI, DTEA, EGO, ENPH, EOX, EVAL, EVY, FELP, FOR, FTEK, FTR, GALT, GIGM, GLPW, GOL, GWR, HMY, HTZ, IDN, IIIN, INTX, INVE, IPI, JASN, JOY, KRO, LINC, LOR, MEI, MILL, MKTO, MNTX, MOLG, MU, MVO, NATH, NFEC, NFG, NJV, NRG, NRP, NTAP, NTL, NTN, OESX, OFG, PAAS, PBM, PGH, PLPC, PNX, POT, PPT, PRI, PSUN, QUAD, RAS, RDEN, RNWK, RYAM, SLW, SMT, SRT, SVM, SVU, SZC, TGD, TKR, TTHI, TYPE, UNIS, URRE, VII, VLT, VMEM, VPCO, WG, WHLR, XBIT, XRA

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: PALL, PPLT

8:06 am QLogic lowers Q1 guidance on lower demand from traditional enterprise server and storage markets and OEM inventory build with certain customers (QLGC) :

Co lowers Q1 guidance: EPS to $0.16-0.17 from $0.23-0.27 vs. $0.25 Consensus; rev to $113 mln from $124-132 mln vs. $128.3 mln consensus. The preliminary results reflect lower than expected demand due to general weakness in the Company's traditional enterprise server and storage markets, and a build-up of inventory at certain of its OEM customers due to a slower next-generation server transition in enterprise environments.

8:00 am Cree acquires Arkansas Power Electronics International; terms not disclosed (CREE) : Co announces the acquisition of APEI, a global leader in power modules and power electronics applications. Under the terms of the agreement, Cree will acquire APEI in a merger transaction. The transaction is not targeted to have a material impact on Cree's fiscal 2016 earnings.