From Briefing.com: 4:15 pm : There was oil today and then there was everything else. That doesn't mean, though, that "everything else" wasn't interesting. It's just that the movement in oil prices was so spectacular that it garnered top billing throughout the session.
To the latter point, crude prices were down 3.6% in early trading to $43.60 per barrel. They would settle the day up 8.8% at $49.20 per barrel, representing a huge 13% swing from low to settlement price.
There were several factors contributing to the sharp reversal:
The Energy Information Administration released a report showing monthly production in the U.S. in June was estimated to be 9.3 million barrels per day or roughly 100,000 barrels per day less than May and 300,000 barrels per day less than April
OPEC published a bulletin in which it said it stands ready to talk to other producers about the low oil prices; and
Big short-covering activity on the last day of the month (with Monday's move, oil prices have surged 27% over the last three sessions)
The reversal in oil prices triggered a reversal in the S&P 500 energy sector, which was down 2.6% shortly after the start of trading. It would end the day up 1.1%, which left it as the best-performing sector in the S&P 500, as well as the only sector to finish the day in positive territory.
By and large, the stock market was stymied by selling efforts on Monday that were rooted in the following factors:
An awareness that Fed Vice Chairman Fischer suggested in a speech over the weekend that a rate hike at the September Federal Open Market Committee meeting is still a possibility
Mr. Fischer indicated his belief that inflation should move higher as the effects of falling oil prices and the stronger dollar dissipate
A sense the market was due for a pullback after rallying 6.5% from the low it hit last Monday
Last Friday's low in the S&P 500 (1975.19) being taken out in early action and an inability to take out last Friday's closing level (1988.87) on a subsequent rebound try; and
A general lack of convincing sector leadership
The Chicago Purchasing Managers Index (PMI) for August was the only economic release on today's docket. It checked in weaker than expected at 54.4 (Briefing.com consensus 54.7), which was down slightly from 54.7 in July. It didn't carry much weight in moving the market since participants were keyed in more on Tuesday's release of the national ISM Index and a battery of PMI readings out of China, Japan, and the eurozone.
Notably, the Treasury market coughed up early gains even as the stock market struggled to gain upside traction. Its turnaround was precipitated by the spike in oil prices, which played into Mr. Fischer's view that inflation should move higher. The yield on the 10-yr note, which dipped to 2.14%, eventually pushed back up to 2.21%; meanwhile, the yield on the 2-yr Treasury note, which stood at 0.72%, bumped up to 0.74%.
The U.S. Dollar Index, however, was a bit weaker, falling 0.3% to 95.87 as both the euro and the yen gained ground against the greenback.
The majority of Dow components ended the day lower, led by Boeing (BA 130.68, -2.56, -1.9%), which was the biggest price loser. Conversely, Goldman Sachs (GS 188.60, +0.85, +0.6%) was the biggest price gainer and helped the Dow cut an early 199-point loss.
Boeing's weakness weighed on the industrials sector (-0.9%), but it was the health care sector (-1.9%) that was the weakest area, pressured by losses in the medical equipment and major pharmaceutical stocks. Separately, the biotech stocks also succumbed to selling efforts, evidenced by the 3.3% decline in the iShares Nasdaq Biotechnology ETF (IBB 341.80, -11.48).
Volume was again relatively heavy with 1.08 billion shares changing hands at the NYSE.
For the month of August, the Dow, Nasdaq, S&P 500, and Russell 2000 declined 6.6%, 6.9%, 6.3%, and 6.3%, respectively.DJ30 -114.98 NASDAQ -51.82 SP500 -16.69 NASDAQ Adv/Vol/Dec 1388/1.67 bln/1483 NYSE Adv/Vol/Dec 1351/1.08 bln/1733
3:35 pm :
WTI crude oil prices surged again today, in the last day of trading for the month
Today's oil rally, following the rally seen Thursday and Friday, is the largest three-day rally since January 2009 as some short covering helped today's move higher
Overall, front-month October crude oil has rallied 27.7% since the close of Wednesday
In today's pit trading session, Oct crude oil closed +8.8% at $49.19/barrel
In other energy, Sept natural gas dropped -0.7% to $2.69/MMBtu
Metals were mostly flat/mixed
Sept copper finished the day flat at $2.34/lb
Dec gold lost -0.2% to $1131.70/oz, while Sept silver gained +0.3% to $14.58/oz
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
TWTR (28.09 +4.7%): Upgraded to Buy from Neutral at Sun Trust Rbsn Humphrey; tgt $38.
SNDK (54.68 +4.61%): Renewed M&A chatter.
PSX (79.11 +2.43%): Warren Buffett's Berkshire Hathaway disclosed it had accumulated a 58 mln share stake, worth ~$4.5 bln ahead of today's trading.
Large Cap Losers
BBD (6.36 -5.22%): Brazil names underperforming (ITUB, UGP, BSBR, ABEV also underperforming).
NTES (111.91 -5.09%): Cautious trading in Chinese names as volatility in Chinese indices continues (VIPS, BABA, among other names from the region lower).
NEE (98.19 -3.57%): Utilities underperforming (DUK, SRE, EXC among peers lower).
Mid Cap Gainers
WLL (19.85 +12.78%): Outperforming amid continued recovery in crude oil prices, late Friday Integrated Core Strategies disclosed a 4.7% passive stake in a 13G filing
CALM (53.31 +6.09%): Upgraded to Buy from Hold at BB&T Capital Mkts.
GWRE (56.46 +4.83%): Price target raised to $70 at Deutsche Bank.
Mid Cap Losers
W (38.26 -9.38%): Citron issued a new report on Wayfair, reiterating their prior cautious stance.
PBYI (91.03 -4.02%): Biotech's notably under performing the broad market (ALNY [had data], KITE, NVAX, CBPO, OPK among other names in the space lower).
QUNR (32.87 -4.55%): Chinese names weak in today's session, following action overseas, as mentioned above (MOMO, CTRP, also lower).
1:23 pm Intel is the top performer Dow component and has recently extended to a new session high (INTC) : The stock has established a new session high of 29.13 in recent trade leaving it slightly under its 50 day ema/sma at 29.18/29.20.
12:49 pm Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (38) outpacing new highs (23) (:SCANX) : Stocks that traded to 52 week highs: AXGN, CENT, COMM, DSGX, DXLG, EDUC, EFOI, FBNK, HRTX, INCY, JHY, LJPC, MBTF, MDCO, NCIT, NDRM, POST, SIG, SMED, SPWH, SRPT, SWHC, TANH
Stocks that traded to 52 week lows: AGM, ARTW, BGMD, BUR, CFMS, CIDM, CIG, CIG.C, CPL, CRD.B, DPW, EDE, ENRJ, ESEA, EXC, FBZ, FPP, GBSN, GLBS, GYRO, HCOM, HHS, KFS, LEE, LF, LINC, MYOS, OPGN, PLPC, PPSI, PW, RGS, SRE, SXCL, TIGR, UTI, VRS, YGE
ETFs that traded to 52 week highs: None
ETFs that traded to 52 week lows: ENZL
9:31 am MagnaChip Semi: Pleasant Lake Partners formally submits an indication of interest to purchase all of the outstanding shares of Magnachip for $10/share in cash; PLP has a 9.9% stake (MX) :
Highlights from the letter disclosed alongside the 13D filing:
"As you know, funds managed by Pleasant Lake Partners ("PLP") are one of the largest shareholders of Magnachip Semiconductor Corporation ("Magnachip" or the "Company") with a 9.9% stake in the Company. We have stated to you our desire to increase the size of our investment and have requested that the Board consider removing the Company's poison pill. We have also requested to be included in any upcoming auction process for the Company. However, we have yet to receive a formal response to either request. Furthermore, while the Company has formed a Strategic Review Committee, shareholders have seen little tangible progress to date. We believe the Company needs major and immediate strategic change and that the best course for value maximization for all shareholders is to sell Magnachip. Accordingly, in order to effectuate this, we are writing to you today to formally submit an indication of interest to purchase all of the outstanding shares of Magnachip that PLP does not currently own at a price of $10.00 per share in cash (the "Proposal"). The Proposal represents a premium of approximately 29% to Friday's closing price and approximately 58% to PLP's average cost and is subject to confirmatory due diligence and the negotiation of definitive transaction documents."
"While we are obviously not such a strategic acquirer, we think shareholders should have the ability to decide for themselves whether to accept our Proposal at $10.00 per share, or wait for other potentially better offers; were any such offers to emerge, we would be prepared to vote our shares in favor of an offer that we believe is materially superior to our Proposal."
"We respectfully ask that you and the Board immediately engage with us to discuss the Proposal and negotiate a transaction. We are prepared to devote all necessary resources to evaluate and consummate a transaction, and believe we can obtain the necessary financing to do so.
9:10 am American Superconductor receives an ~$40 mln order for wind turbine electrical control systems from Inox Wind Limited (AMSC) : AMSC expects to begin shipments under this new order during the second quarter of fiscal 2015 and expects to complete the vast majority of shipments by the end of fiscal year 2015.
8:43 am GT Advanced Tech. reduces global headcount by ~40% (GTATQ) :
In July, the company announced it had secured a $95 million debtor-in-possession term loan facility, and is now taking steps it believes are necessary to align its cost structure with its revised business plan being developed to allow the company to successfully emerge from Chapter 11 in the first quarter of 2016.
The revised business plan's foundation will be centered on the breadth of the company's core technologies and product offerings, including its ASF sapphire equipment business, its traditional polysilicon and DSS solar PV business, the commercialization of the Merlin cell interconnect technology and its specialty sapphire materials business. In addition to its ASF equipment sales efforts, the company is taking steps to ensure that its solar PV product offerings are ready to capitalize on new demand from customers as the solar capital equipment business returns to growth over the next two years. Additionally, the company is looking at its other businesses to assess their strategic importance to the company's operations once it emerges from Chapter 11.
The action impacts all locations and functions of the company's global business operations and is expected to reduce headcount and related operating expenses by approximately 40 percent.
8:35 am Arch Coal announces extension of private debt exchange offers and support agreement, now set to expire at midnight on September 23, 2015 (ACI) :
AI
Market Data 
Markets 
