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From Briefing.com: 4:33 pm SanDisk now higher by 7.3% in after-hours, following Bloomberg report suggesting co is in talks to be acquired by Western Digital (WDC) (SNDK) :

This follows Bloomberg reports last week suggesting SNDK was exploring a sale with Micron (MU) and Western Digital (WDC) identified as potential suitors. See 16:24 comment for details.

4:20 pm Rambus misses by $0.01, misses on revs; guides Q4 revs below consensus (RMBS) :

Reports Q3 (Sep) earnings of $0.14 per share, $0.01 worse than the Capital IQ Consensus of $0.15; revenues rose 5.9% year/year to $73.8 mln vs the $76.21 mln Capital IQ Consensus. Co issues downside guidance for Q4, sees Q4 revs of $71-77 mln vs. $83.50 mln Capital IQ Consensus Estimate. Achieving revenue in this range will require that the Company sign new customer agreements for patent and solutions licensing among other matters.

4:12 pm IBM beats by $0.04, misses on revs; lowers FY15 guidance (IBM) :

Reports Q3 (Sep) earnings of $3.34 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $3.30; revenues fell 13.9% year/year to $19.28 bln vs the $19.64 bln Capital IQ Consensus. Down 1% adjusting for currency (9 points) and the divested System x business (4 points). Revenues from the Software segment were down 10% to $5.1 bln (down 3% adjusting for currency) compared with the third quarter of 2014. Revenues from the company's strategic imperatives --- cloud, analytics, and engagement --- increased 17% year-to-year (up 27% adjusting for currency and the divested System x business Services backlog of $118 billion, up 1% adjusting for FXCo issues downside guidance for FY15, lowers EPS to $14.75-15.75, excluding non-recurring items, from $15.75-16.50 vs. $15.68 Capital IQ Consensus Estimate; lowers FCF to flat from a modest increase YoY.


4:04 pm Flex reports Q2 revenue of $6.317 bln, better than Capital IQ consensus $6.167 bln; Reports Q2 EPS ex-item of $0.27, $0.02 better than $0.25 Capital IQ consensus; Guides Q3 in line (FLEX) :

For the third quarter ending December 31, 2015, revenue is expected to be in the range of $6.2 to $6.8 billion Capital IQ consensus $6.580 and adjusted EPS is expected to be in the range of $0.28 to $0.34 per diluted share, Captal IQ consensus $0.28.GAAP earnings per share is expected to be lower than the adjusted EPS guidance provided herein by approximately $0.06 per diluted share for estimated intangible amortization and stock-based compensation expense.

The Technology (XLK 42.13, +0.16 +0.38%) sector closed the session at highs as late session buying took the sector higher. Sectors ended the session as follows -- XLY +0.47%, XLP +0.44%, XLK +0.38%, XLV +0.32%, IYZ +0.21%, XLI +0.13%, XLU +0.07%, XLF -0.08%, XLB -0.75%, XLE -1.96% with Technology trailing only Consumer Staples and Consumer Discretionary.

The broader market on the other hand, closed in a flurry. Buying pressure at the close edged all three major US indices higher when Monday trading came to a conclusion. The Nasdaq Composite posted the strongest session, edging higher by 18.78 points (+0.38%) to 4905.47. The Dow Jones Industrial Average followed, higher by 14.57 points (+0.08%) to 17230.54. The S&P 500 edged just higher as the session closed, posting gains of 0.55 points (+0.03%) to 2033.66.

Networking (IGN) names were notably weak on the session, as sector components Ixia (XXIA 13.98, -1.02 -6.80%) and Ubiquiti Networks (UBNT 32.06, -2.09 -6.12%) were both downgraded today. Other notably weak names in the sector included LITE -2.42%, PANW -2.22%, HRS -1.63%, QCOM -1.35%.

Outperforming the broader market today were Internet (FDN 71.93, +0.42 +0.59%) names. Blue chip names like Priceline (PCLN 1376.13, +39.56 +2.96%), Netflix (NFLX 101.69, +2.70 +2.73%) and Expedia (EXPE 130.45, +3.07 +2.41%) added to the strength of the sector.

In the S&P 500 Information Technology sector (707.45, +2.17 +0.31%), widely held names like INTC +1.66%, PYPL +1.60%, V +1.30%, WDC +1.21%, FB +0.99%, EA +0.81%, GOOGL +0.67%, AAPL +0.62%, GOOG +0.59% held the sector higher, staving off early session and midday weakness.

Other notable news items among sector components:

Microsemi (MSCC 35.33, -2.03 -5.43%) proposed to acquire PMC-Sierra (PMCS 11.73, +1.49 +14.55%) for $11.50 per share in cash and stock deal. The bid is in opposition to the earlier bid for the company by

Skyworks (SWKS 77.83, -1.77 -2.22%) to acquire PMCS for $10.50 per share.

Freddie Mac (FMCC 2.37, -0.08 -3.27%) and Intuit's (INTU 94.08, +0.46 +0.49%) Quicken Loans entered a partnership. Terms of said deal were not disclosed.

Micron's (MU 19.16, +0.66 +3.57%) CEO D. Mark Durcan has requested a voluntary and temporary base salary reduction of 50% to $525,000 effective as of Oct. 18, 2015.

Square (SQ) confirmed it has hired Jackie Reses to lead Square Capital, the company's business financing service. Reses most recently served as Yahoo's (YHOO 33.50, +0.13 +0.39%) Chief Development Officer, where she focused on revenue and product partnerships, strategic acquisitions, and operational and people transformation.

Applied Materials (AMAT 15.81, -0.02 -0.16%) announced it plans to establish a new R&D laboratory in Singapore in collaboration with the Agency for Science, Technology and Research. The S$150 million joint investment will focus on developing advanced semiconductor technology to fabricate future generations of logic and memory chips.

Western Digital (WDC 80.48, +0.96 +1.21%) to integrate substantial portions of its HGST and WD subsidiaries following decisions by China's Ministry of Commerce. The company also announced the appointment of Mike Cordano as President and COO.

Elsewhere in the technology space:

AT&T's (T 33.63, -0.20 -0.59%) DirecTV reported an error in financial statements relating to Venezuelan subsidiary, about $1.1 billion charge added to restated financials.

Imation (IMN 1.97, +0.03 +1.55%) to explore new alternative uses for excess capital. The company has concluded that initiatives should not be limited solely to areas of historical focus and that it should consider opportunities to diversify its business activities.

WEX (WEX 96.12, +4.01 +4.35%) to acquire Electronic Funds Source for about $1.1 billion in cash and 4 million shares of common stock. The deal is expected to be immediately accretive to adjusted net income.

I.D. Systems (IDSY 3.22, +0.01 +0.31%) secured a multi-year renewal and expansion contract with Knight Transportation (KNX 25.45, +0.19 +0.75%).

Windstream (WIN 6.94, +0.09 +1.31%) agreed to sell its data center business to TierPoint for $575 million in cash.

Qumu (QUMU 3.23, -0.41 -11.26%) President and COO Vern Hanzlik to succeed Sherman Black as CEO effective today.

21Vianet (VNET 20.30, +0.06 +0.30%) appointed Steve Zhang as CEO effective October 19, 2015.

Science Applications (SAIC 42.44, +0.11 +0.26%) was awarded a $757 million systems and computer resources support task order from the US Army.

Model N (MODN 10.04, +0.01 +0.10%) agrees to acquire channel data management solution provider, Channelinsight. Financial terms of the deal were not disclosed.

Nokia (NOK 7.01, -0.01 -0.14%) received antitrust clearance from the Chinese Ministry of Commerce for its proposed acquisition of Alcatel-Lucent (ALU 3.78, +0.02 +0.53%).

TeleComm Sys (TSYS 4.05, +0.25 +6.58%) received the delivery order with a $91 million ceiling contract value from the US Army for SNAP deployment satellite systems sustainment.

Bridgeline Digital (BLIN 1.29 -0.04 -3.35%) entered into a Securities Purchase Agreement under which it may sell up to an aggregate of 680,884 shares of common stock at $1.00 per share.

Telecom Italia (TI 12.20, +0.39 +3.30%) confirmed EUR 3 billion plan, announces resumption of contracts with MetroWeb.

Lumos Networks (LMOS 12.51, +0.09 +0.72%) named Thomas Ferry as interim Chief Technology Officer effective Oct. 12, 2015.

Infosys (INFY 17.92, -0.12 -0.67%) to acquire Noah Consulting for $70 million.

Arris (ARRS 28.73, -0.24 -0.83%) provided an update on the pending merger with Pace, warns the closing may not occur until late December or 1Q16.

Ciber (CBR 3.43, -0.08 -2.28%) was granted a motion to dismiss the Hawaii Department of Transportation's complaint for ignoring the law and a lack of subject matter jurisdiction.

Diebold (DBD 35.80, +2.25 +6.71%) in talks with Wincor Nixdorf regarding a potential business combination valued at roughly $1.8 billion. Diebold (DBD) filed a complaint with the US International Trade Commission and District Court in Ohio, alleging that Nautilus Hyosung infringed on its ATM patents.

Analyst actions:

VOD was upgraded to Outperform from Neutral at Macquarie;
ORCL was downgraded to Sector Weight from Overweight at Pacific Crest,
STX was downgraded to Neutral from Positive at Susquehanna,
QUMU was downgraded to Neutral from Buy at Ladenburg Thalmann,
SMSI was downgraded to Hold from Buy at Needham,
UBNT was downgraded to Mkt Underperform from Mkt Perform at JMP Securities,
TEF was downgraded to Underperform from Neutral at Credit Suisse,
XXIA was downgraded to Hold from Buy at Wunderlich

4:10 pm : The stock market began the trading week on a quiet note with the major averages spending the Monday session inside narrow ranges. The S&P 500 settled just above its flat line after climbing off its opening low while the Nasdaq Composite (+0.4%) outperformed.

In some ways, the range-bound action was a bit of a surprise considering investors received China's Q3 GDP report over the weekend. The growth report proved to be a mixed bag as GDP beat estimates (+6.9%; consensus 6.8%), but dipped below the official target growth rate of 7.0% year-over-year.

Asian markets took the data in stride with China's Shanghai Composite and Hong Kong's Hang Seng both ending flat; however, the slowdown in the year-over-year growth rate weighed on commodities, sending crude oil lower by 3.0% to $45.90/bbl.

The sell-off in crude oil futures pressured the energy sector (-2.0%) while a major sector component-Halliburton (HAL 37.36, -0.45)-lost 1.2% in reaction to better than expected earnings on below-consensus revenue.

Similar to energy, the materials sector (-0.8%) ended well behind the broader market while the remaining sectors fared better. The top-weighted technology sector (+0.3%) eked out a modest gain while another influential group-financials (unch)-ended just below its flat line despite a 4.8% dive in the shares of Morgan Stanley (MS 32.32, -1.63) brought on by a disappointing earnings report.

Elsewhere among cyclical sectors, the discretionary space (+0.5%) outperformed throughout the day thanks to strength in retail names. Also in the discretionary sector, Weight Watchers (WTW 13.92, +7.13) soared 105.0% after announcing Oprah Winfrey will purchase newly-issued shares representing 10.0% of all shares outstanding.

Moving to the countercyclical side, the health care sector (+0.3%) settled among the leaders after enduring a volatile session that mirrored the price action in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 315.94, +1.62) was up more than 2.0% at the start, but surrendered that gain after presidential candidate Hillary Clinton sent a letter to the Food and Drug Administration and the Federal Trade Commission, requesting an inquiry into drug pricing. The biotech ETF returned into the green by the closing bell, ending higher by 0.5%.

Similar to stocks, Treasuries maintained narrow ranges throughout the day with the 10-yr yield ending flat at 2.03%.

Today's participation was a bit below average as just over 800 million shares changed hands at the NYSE floor.

Economic data was limited to the NAHB Housing Market Index for October, which rose to 64 from a downwardly revised 61 (from 62) while the Briefing.com consensus expected the reading to come in at 62. Tomorrow's economic data will be limited to September Housing Starts (Briefing.com consensus 1.15 million) and Building Permits (consensus 1.17 million) with both data points set to cross at 8:30 ET.

Nasdaq Composite +3.6% YTD
S&P 500 -1.2% YTD
Dow Jones Industrial Average -3.3% YTD
Russell 2000 -3.4% YTD

DJ30 +14.57 NASDAQ +18.78 SP500 +0.55 NASDAQ Adv/Vol/Dec 1410/1.47 bln/1393 NYSE Adv/Vol/Dec 1430/805.9 mln/1665

3:40 pm :

The dollar index continued to trade higher today, which helped weigh on commodities today
Commodities, as measured by the Bloomberg Commodity Index, fell 1.4% today
Nov WTI crude oil futures slid lower today and was in the red all day
Nov crude ended today's session -3% at $45.90/barrel
Nov natural gas closed +0.4% at $2.44/MMBtu
Metals got hit today too
Dec gold ended floor trading -0.9% at $1172.70/oz, while Dec silver closed -1.6% at $15.84/oz
Dec copper finished -1.7% at $2.36/lb

11:35 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (77) outpacing new lows (40) (SCANX) : Stocks that traded to 52 week highs: ABTL, ACGL, ADEP, AEPI, AKO.A, AKO.B, APDN, ARTNA, AVB, BMRC, BNK, BSQR, BZC, CALM, CDW, CENT, CINF, CLX, CMN, COB, COR, CRM, CSH, DEA, DEI, DPS, EBF, EGBN, ELS, ENVI, EQC, FF, FONR, GAME, GE, GLOB, HA, HOMB, HRL, HTBI, IGLD, IPHI, JJSF, K, KINS, LG, LOXO, MPWR, MRKT, MSEX, MTS, MXL, NDAQ, NKE, NVX, NYRT, OGS, OME, PMCS, PNY, PRA, PRMW, PSA, RENX, RNR, SBUX, SHEN, SIFI, SIGI, TOWN, TSS, UBSH, UDR, V, VLRS, VRTU, WTR

Stocks that traded to 52 week lows: AMS, ATRS, BDE, BNSO, BSI, CPAH, CPSS, CTMX, CUR, CVA, DRWI, FSC, GLDD, GNCA, HCLP, ISH, KSU, LITE, LNG, MFRM, MOKO, MSL, MSM, MYRG, NGL, NNBR, NTRA, ORN, PERF, PWR, SAVE, SIEB, STX, SXC, SYRX, TDY, VXUP, WAYN, WCC, WILC

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: none

6:15 am PMC-Sierra: Microsemi Corporation (MSCC) proposes to acquire PMC-Sierra for $11.50/share, or ~$2.4 bln; believes its offer constitutes a 'superior proposal' over the Skyworks (SWKS) deal (PMCS) :

Microsemi Corporation (MSCC) announced that it submitted an offer to acquire PMC-Sierra in a cash and stock transaction. Based on the closing stock price of Microsemi on Oct. 16, 2015, the transaction is valued at $11.50 per PMC share, representing a premium of ~50% to the closing price on Oct. 5, 2015, the last trading day prior to the announcement of PMC's proposed acquisition with Skyworks Solutions (SWKS)

Microsemi believes its cash and stock proposal would provide PMC shareholders with a substantial premium and immediate cash value, as well as the opportunity to participate in the significant upside potential of a global analog and mixed-signal leader with a highly diversified platform for growth and profitability. Microsemi believes its proposal constitutes a "Superior Proposal" under the terms of PMC's merger agreement with Skyworks. Under the terms of Microsemi's proposal, PMC shareholders will receive $8.75 in cash and 0.0736 of a share of Microsemi common stock for each share of PMC common stock held at the close of the transaction. The implied total transaction value is approximately $2.4 billion and the implied enterprise value is $2.2 billion, net of PMC's net cash balance as of June 27, 2015. The transaction is expected to be immediately accretive to Microsemi's non-GAAP EPS and free cash flow. Microsemi anticipates achieving more than $100 million in annual cost synergies with greater than $75 million of those to be realized in the first full quarter of combined operations. Microsemi currently estimates more than $0.60 of non-GAAP EPS accretion in the first full year after closing the transaction.

For reference, earlier this month PMCS and Skyworks entered into a deal for Skyworks to acquire PMC-Sierra for $10.50/share

4:44 am Western Digital to integrate substantial portions of its HGST and WD subsidiaries following decision by China's Ministry of Commerce; Mike Cordano named President and COO (WDC) :

The co announced a decision from China's Ministry of Commerce, which enables the company to integrate substantial portions of its HGST and WD subsidiaries under Western Digital Corporation. As a unified entity, Western Digital hopes to further drive its ability to innovate and lead in the changing data storage industry.

The agency's decision is the result of an ongoing dialogue regarding the "hold separate" restriction associated with Western Digital's acquisition of HGST in March 2012. As part of the agreement with MOFCOM, and in order to leverage the rich storage industry heritage of each long-standing brand, Western Digital will continue to offer both HGST and WD product brands in the market and maintain separate sales teams for two years from the date of the decision.

Integration activities will begin immediately and are expected to continue over the next 24 months. Western Digital expects the integration of corporate and other key functions, including research and development, heads and media operations, engineering and manufacturing, will result in significant opportunities for growth, synergies and cost savings consistent with the levels previously outlined by the company.

The company also announced today that Mike Cordano, formerly president of the HGST subsidiary, has been appointed president and chief operating officer of Western Digital by the company's board of directors. Jim Murphy, who previously served as president of the WD subsidiary, will lead the Storage Devices business unit, which includes the company's HDD and SSD products. Jim Welsh and Dave Tang will lead the company's Content Solutions and Storage Solutions business units, respectively. Steve Milligan will continue to serve as chief executive officer of Western Digital Corporation and oversee all business and corporate functions, including an Advanced Technology organization led by Steve Campbell, former chief technology officer for HGST.

Applied Materials (AMAT) announced it plans to establish a new R&D laboratory in Singapore in collaboration with the Agency for Science, Technology and Research. The S$150 million joint investment will focus on developing advanced semiconductor technology to fabricate future generations of logic and memory chips.