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From Briefing.com: It was a slow day for news overall, but a very busy day for news regarding Google (GOOG 672.93, +93.08, +16.1%), which soared 16.0% after its better-than-expected second quarter earnings report. That move added about $32 billion in market capitalization to the stock and had remnants of performance chasing by fund managers who distanced themselves over the last 52 weeks when GOOG shares hadn't done much of anything. Google A shares (GOOGL 699.62, +97.84), which carry voting status, jumped 16.3% and boosted their market capitalization by $28 billion.

Including Friday's gain, GOOG has risen 30% since its low on July 7 (i.e. just eight sessions ago).

Google made a huge difference for the broader market, evidenced by the fact that the S&P 500 eked out a 0.1% gain despite nine of its 10 sectors finishing with a loss. The lone winner of course was the S&P 500 information technology sector (+1.8%). That gain, however, belies an otherwise weak showing that saw 40 of the sector's 66 components lose ground on the day.

Facebook (FB 94.97, +4.12, +4.5%) rode Google's coattails, as did Yahoo! (YHOO 39.68, +0.77, +2.0%). Combined with a 0.9% gain in Apple (AAPL 129.62, +1.11, +0.9%), the sector had enough core strength to muscle its way to a nice gain that left it up 5.3% for the week and 5.2% year-to-date.

Notable news items from sector components included the following:

Adobe Systems (ADBE 82.10, -0.42, -0.5%): SEC filing showed Value Act Holdings L.P. sold 1,693,000 shares at $82.06-82.45 worth ~$139.2 mln

KLA-Tencor (KLAC 51.93, -0.65, -1.2%): Disclosed details from its July 14 analyst presentation, noting its sees Q4 bookings of $550-750 mln, revenue of $710-790 mln, and adjusted EPS of $0.78-1.02. Those ranges are all consistent with the guidance provided on June 26, 2015.

Xerox (XRX 10.82, +0.22, +2.0%): Announced changes in its Government Healthcare Solutions strategy resulting from review of future market opportunities Company said it will discontinue investment in and sales of the Xerox Integrated Eligibility System in order to concentrate more of its future software development efforts on the existing Health Enterprise implementations. As a result of the strategic change, Xerox will record a pre-tax non-cash software impairment charge of approximately $145 million (approximately $90 million after-tax or 8 cents per share) in its second-quarter 2015 results. It now expects second-quarter 2015 GAAP earnings from continuing operations of 9 to 11 cents per share, which is below the company's prior guidance. Excluding the impairment charge, adjusted earnings per share is expected to be in line with the company's prior guidance of 21 to 23 cents.

Analyst Action:

Google A (GOOGL 699.62, +97.84, +16.3%): target raised to $620 from $570 at Pivotal Research Group... Axiom Capital upgrades GOOGL to Buy from Hold and raises their tgt to $850 from $615... target raised to $750 from $600 at Rosenblatt

eBay (EBAY 66.29, +0.70, +1.1%): target raised to $70 from $65 at Mizuho... target raised to $62 from $57 at RBC Capital Mkts

Fairchild Semi (FCS 15.24, +0.17, +1.1%): upgraded to Outperform from Mkt Perform at FBR Capital; tgt $20

(Disclosure: Briefing.com has a business relationship with Yahoo!)

4:16 pm Micrel announces that it intends to delist its common stock from Nasdaq, in connection with its merger with Microchip (MCHP); first step of merger expected to be completed in August, 2015 (MCRL) :

4:10 pm : The stock market began the week on a higher, albeit sleepy, note with the S&P 500 (+0.1%) testing its record close from May. The benchmark index backed away from its session high into the close, settling a bit behind the Nasdaq Composite (+0.2%), which marked a fresh closing record high at 5,218.86.

Equity indices started the Monday session near their flat lines with the S&P 500 spending the initial hour in the red; however, influential sectors like technology (+0.5%), financials (+0.1%), and health care (+0.3%) displayed early strength, underpinning the broader market.

The S&P 500 was back in the green by 11:00 ET and slowly inched higher into the afternoon. Seven sectors ended the day with gains while energy (-1.3%), materials (-0.9%), and utilities (-0.5%) spent the session below their flat lines.

Notably, the energy sector retreated alongside crude oil, which fell 1.6% to $50.40/bbl. Meanwhile, the growth-sensitive sector struggled throughout the session, widening its July loss to 4.5%, even after Halliburton (HAL 40.75, +0.76) climbed 1.9% after reporting better than expected results.

On the upside, the technology sector held the lead throughout the session with gains among the likes of Apple (AAPL 132.07, +2.45), Facebook (FB 97.91, +2.94), and Visa (V 72.70, +1.82) overshadowing a 1.0% decline in the shares of Google (GOOGL 692.84, -6.78). Also of note, IBM (IBM 173.22, +0.71) gained 0.4% ahead of its quarterly report.

Interestingly, high-beta chipmakers could not keep pace with the technology sector, evidenced by a 0.7% decline in the PHLX Semiconductor Index. Similarly, high-beta transport stocks struggled (Dow Jones Transportation Average -0.4%) while the broader industrial sector (unch) settled just above its flat line. Lockheed Martin (LMT 205.13, +3.95) was in the news, spiking 2.0% after reporting better than expected results and announcing the acquisition of the Sikorsky helicopter unit from United Technologies (UTX 110.48, -0.26) for $9.0 billion in cash.

Elsewhere, Treasuries slipped into the red during overnight action and they settled near their overnight lows with the 10-yr yield rising two basis points to 2.37%.

Investor participation was relatively light today with 720 million shares changing hands at the NYSE floor.

Today's session was free of economic data and investors will not receive any data tomorrow either.


Nasdaq Composite +10.2% YTD
Russell 2000 +4.6% YTD
S&P 500 +3.4% YTD
Dow Jones Industrial Average +1.6% YTD

DJ30 +13.96 NASDAQ +8.72 SP500 +1.64 NASDAQ Adv/Vol/Dec 913/1.66 bln/1980 NYSE Adv/Vol/Dec 979/723.5 mln/2092 3:15 pm :

The dollar saw modest momentum in today's trading, rallying late in the afternoon, after a mid-day slump that failed to offer support to the broad commodity set
Overall, the dollar index is positive on the day by +0.2% to 98.02
Crude rallied from red to flat in early trade, as market participants tested the resolve of over-supply concerns.
The rally failed to materialize into positive territory however, as the September contract then saw an extended sell-off into the close, ending -1.6% to $50.40/barrel
Gold showed notable weakness all session, seeing almost no upward momentum from movements in the dollar. Silver fared better, but still booked losses into the close
August gold was -3.2% to $1106.80/oz and September silver was -1.3% to $14.78/oz
Copper tested its highs mid-day, near the $2.50 level in early afternoon trading. That move reversed going into the session's close however, and the metal finished -1.6% to $2.48/lb
Natural gas finished the day at -1% to $2.83/MMBtu
Agricultural closing commodities saw heavy losses, as market sentiment ahead of this afternoon's USDA Weekly Crop Progress Report drove corn to close -5.6% to $4.06/bu, wheat to end -5.2% to $5.34/bu and soybeans to finish -0.8% to $10.02/bu

4:08 pm IBM beats by $0.05, reports revs in-line; reaffirms FY15 EPS guidance, raises FCF modestly (IBM) :

Reports Q2 (Jun) earnings of $3.84 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $3.79; revenues fell 13.4% year/year to $20.81 bln vs the $20.94 bln consensus. Down 1% year-to-year adjusting for currency and the divested System x business (9 points and 4 points, respectively); down 13% as reported; Strategic imperatives revenue up more than 30% adjusting for currency and the divested System x business; up more than 20% as reported; Cloud revenue up more than 70% adjusting for currency and divested businesses; up more than 50% as reported; For cloud delivered as a service, annual run rate of $4.5 bln compared to $2.8 bln in the second quarter of 2014; Business analytics revenue up more than 20% adjusting for currency; up more than 10% as reported.Adj. gross margin +20 bps to 50.9%Co reaffirms guidance for FY15, sees EPS of $15.75-16.50, excluding non-recurring items, vs. $15.84 Capital IQ Consensus. IBM now expects a modest increase in free cash flow, improved from its prior expectation of flat year-to-year performance.
4:08 pm Rambus reports EPS in-line, revs in-line; guides Q3 revs below consensus (RMBS) : Reports Q2 (Jun) earnings of $0.13 per share, in-line with the Capital IQ Consensus Estimate of $0.13; revenues fell 4.8% year/year to $72.8 mln vs the $73.24 mln consensus.

Co issues downside guidance for Q3, sees Q3 revs of $73-78 mln vs. $79.02 mln Capital IQ Consensus Estimate.Total operating costs and expenses for the second quarter of 2015 were $57.3 million, 4% higher than the previous quarter and 2% higher than the second quarter of 2014.4:04 pm Sanmina beats by $0.04, beats on revs; guides Q4 EPS & revs mid-points above consensus (SANM) : Reports Q3 (Jun) earnings of $0.53 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.49; revenues fell 4.1% year/year to $1.54 bln vs the $1.52 bln consensus.

Co issues guidance for Q4, sees EPS of $0.52-0.58 vs. $0.53 Capital IQ Consensus Estimate; sees Q4 revs of $1.55-1.65 bln vs. $1.57 bln Capital IQ Consensus Estimate.
"Our outlook for the fiscal fourth quarter reflects stabilization in the market. We remain confident the second half of the calendar year will continue to improve."
11:45 am Stocks/ETFs that traded to new 52 week highs/lows this session- New lows (74) outpacing new highs (43) (:SCANX) : Stocks that traded to 52 week highs: ABBV, AMZN, BAC, BMRN, BMY, BUD, C, COF, CTRX, DG, DIS, DRI, DXCM, EA, EBAY, EVHC, FB, FISV, FV, GD, HALO, HZNP, IBB, ILMN, INSY, KR, MA, MBLY, MS, NKE, NVO, NVS, PGR, QQQ, RAI, SBUX, SCHW, SERV, SKX, SUNE, TTWO, TWC, V

Stocks that traded to 52 week lows: AA, ABX, APA, AR, AU, AUO, AUY, AVP, AXLL, BVN, BWP, CIG, CNP, CNQ, CNX, COP, CPN, CVE, CVX, DAR, DDD, DNR, DO, ECA, EGO, EOG, EPD, ESV, FCX, FLR, GFI, GG, GGB, HES, HUN, JOY, KGC, KORS, LINE, MDU, MRO, MUR, NBL, NE, NUE, NYLD, OGE, OI, OII, OXY, P, PAA, PPC, PXD, QEP, RDC, RIG, RRC, SE, SFM, SID, SLW, SNH, SNI, SU, SWN, TAHO, TCK, TTM, VIAB, WPX, X, YELP, Z

ETFs that traded to 52 week highs: FDN, IBB, IHI, IWF, IYF, IYG, IYH, OEF, QQQ, UYG, XBI, XLF, XLV, XLY

ETFs that traded to 52 week lows: AMJ, DBC, DIG, DJP, EPU, EWC, EWY, FXA, FXC, GDX, GDXJ, GLD, IAU, IGE, IYE, KOL, PALL, PPLT, SGG, SIL, SLX, THD, URA, VXX, VXZ, XES, XLE, XME, XOP

Note: To reduce the list of stocks making 52 week highs/lows to a manageable size we have filtered out stocks below $2 bln in market cap and below 1 mln average volume. Without this filter 189 stocks made 52 week highs and 381 stocks made 52 week lows.

8:32 am Arch Coal announces One-For-Ten reverse stock split (Effective 7/28) (ACI) : Co announced a one-for-ten reverse stock split of Arch's common stock. Arch's stockholders granted authority to the Arch Board of Directors to effect this reverse stock split at the company's annual meeting of stockholders on April 23, 2015. The reverse stock split is expected to take place after market close on July 27, 2015. It also is expected that Arch's common stock will begin trading on a split-adjusted basis on the New York Stock Exchange at the market open on July 28, 2015.

M&A news: VSLR +42.9% (SunEdison (SUNE) to acquire Vivint Solar for ~$2.2 bln; under the merger agreement, Vivint Solar stockholders will receive $16.50/share)

7:35 am Newport lowers Q2 EPS and rev guidance below consensus (NEWP) :

Co issues downside guidance for Q2 (Jun), sees EPS of $0.24-0.36 from $0.34 prior guidance vs. $0.38 Capital IQ Consensus Estimate; sees Q2 (Jun) revs of $147-148 mln from $154-161 mln vs. $159.06 mln Capital IQ Consensus Estimate. The lower expected earnings are due to the lower sales level, a loss of ~$1.4 mln (or $0.02/share) from the company's newly acquired Femtolasers business, and an inventory charge of ~$1.1 mln (or $0.02/share).
Co said "We are implementing specific actions to improve our company's financial results going forward."

7:11 am Vivint Solar to be acquired by SunEdison (SUNE) for ~$2.2 bln, or $16.50/share (VSLR) : SunEdison (SUNE), Vivint Solar (VSLR) and TerraForm Power (TERP) announced that SunEdison and Vivint Solar have signed a definitive merger agreement pursuant to which SunEdison will acquire Vivint Solar for approximately $2.2 billion, payable in a combination of cash, shares of SunEdison common stock and SunEdison convertible notes.

SunEdison has entered into a definitive purchase agreement with a subsidiary of TerraForm Power which, concurrently with the completion of SunEdison's acquisition of Vivint Solar, will acquire Vivint Solar's rooftop solar portfolio, consisting of 523 megawatts (MW) expected to be installed by year-end 2015, for $922 million in cash (TERP Purchase Agreement). The 523 MW of residential solar projects are expected to provide a 10 year average unlevered CAFD of $81 million. Under the merger agreement, Vivint Solar stockholders will receive $16.50 per share, consisting of $9.89 per share in cash, $3.31 per share in SunEdison stock, and $3.30 per share in SunEdison convertible notes. SunEdison expects to issue approximately $370 million of its common stock and approximately $350 million of SunEdison convertible notes to Vivint Solar stockholders as merger consideration. SunEdison intends to fund the cash portion of the merger consideration primarily from the proceeds of a new $500 million secured debt facility and the completion of the $922 million sale of assets to TerraForm Power. To support the merger transaction, SunEdison has entered into a commitment letter with Goldman Sachs Bank USA for a $500 million. TerraForm Power has entered into a debt commitment letter with Goldman Sachs Bank USA for a $960 million unsecured bridge facility. Sees deal as immediately accretion to stockholders at initial drop down.SunEdison initiated 2016 annual guidance of 4,200 MW to 4,500 MW, a 50 percent increase from its prior outlook of 2,800 MW to 3,000 MW.TerraForm Power is raising its prior 2016 dividend per share guidance of $1.70 to $1.75, a 30 percent year-over-year increase compared to 2015 annual guidance. TerraForm Power is also initiating 2017 dividend per share guidance of $2.05, up from its prior target of $2.00.United Microelectronics Corporation (UMC) announced that it has entered volume production for the Through-Silicon-Via technology used on the AMD Radeon R9 Fury X, the flagship GPU product of the recently announced Radeon R 300 Series of graphics cards