From Briefing.com: This week ended with the broader market split on Friday. Losses were led by the Dow Jones Industrial Average which shed 57.32 points (-0.34%) to 16639.97. The S&P 500 lost 3.65 points (-0.19%) to 1948.05. The lone gains today were enjoyed by the Nasdaq Composite which added 8.27 points (+0.18%) to close 4590.47. Today's action led the three major US indices to close the week -4.5%, -4.7% and -8.3% YTD, respectively.
Market data today came as the second estimate indicated fourth quarter GDP increased at an annual rate of 1.0% versus the advance estimate of 0.7%. The GDP deflator was revised up to 0.9% from 0.8%. In addition, the personal income and spending report for January produced a slate of good economic news as income increased 0.5% month-over-month, spending increased 0.5% and the core PCE Price Index, which includes food and energy, increased 0.3%. The final reading for the University of Michigan Consumer Sentiment Index for February checked in at 91.7 above the preliminary reading of 90.7.
Action in the Technology (XLK 41.26, -0.11 -0.27%) sector was much like that in the broader market, at least in terms of overall trading action. Component Computer Sciences (CSC 28.53, +0.65 +2.33%) was downgraded to Neutral from Buy at Citigroup intraday, but the stock remained higher for the majority of the session. Other sectors closed today XLB +1.45%, IYZ +0.86%, XLF +0.71%, XLE +0.60%, XLI +0.13%, XLY -0.11%, XLV -0.18%, XLP -1.41%, XLU -2.76% with the advance led by Materials and Utilities lagging.
Internet (FDN 65.59, +0.62 +0.95%) names were mostly higher ahead of component Ebix's (EBIX 34.27, +0.40 +1.18%) quarterly print which is scheduled for Monday morning. Other components which finished the session in the green included TRUE +9.69%, GRPN +8.45%, RAX +8.11%, DWRE +5.97%, LPSN +5.76%, N +4.57%, EIGI +4.47%, ETFC +4.35%, AMTD +3.07%, PYPL +2.04%, TWTR +1.99%.
Semi (SOXX 84.67, +0.54 +0.64%) names were again among the best performers as component SunEdison (SUNE 2.26, +0.54 +31.40%) was strong following confirmation last night that the Delaware Chancery court ruled in denial of Appaloosa Management's request for a preliminary injunction and said 'We are gratified that the court denied the injunction'. Other SOXX components which finished higher included MCHP +2.44%, LRCX +1.91%, NXPI +1.88%, QRVO +1.85%, CAVM +1.29%, ARMH +1.24%, ON +1.21%, CREE +1.09%, ASML +1.00%, ADI +0.87%, SNDK +0.84%.
In the S&P 500 Information Technology sector (680.17, -1.93 -0.28%), trading managed modest losses as early gains were not held for long and the modest weakness continued throughout the session. Component Autodesk (ADSK 51.19, +1.77 +3.58%) was among the best performing stocks today as the company reported better than expected Q4 EPS and revenues last night. Other components which finished the session higher included FFIV +1.22%, MSI +1.08%, GLW +1.05%, KLAC +0.77%, INTC +0.61%, WU +0.60%, AMAT +0.58%, SWKS +0.54%, HRS +0.53%, AKAM +0.51%.
Other notable news items among sector components:
Cisco Systems (CSCO 26.41, -0.19 -0.71%) Executive Chairman John Chambers modified his pre-arranged stock trading plan.
Accenture (ACN 101.12, +0.21 +0.21%) launched a new business, Accenture Customer Credit Solutions, which will help businesses and retailers across Sub-Saharan Africa provide faster, efficient and more flexible credit services to their customers.
Teradata (TDC 25.11, -0.02 -0.08%) updated on charges it expects to incur in connection with its business transformation plan. TDC now estimates it will incur costs and charges in the range of about $182 to $230 million (versus the prior expectation of about $75-100 million) related to the business transformation.
Elsewhere in the tech sector:
In addition to reporting quarterly results, Starz (STRZA 23.85, +1.06 +4.65%) announced an addition of $400 million to the share repurchase program.
SciQuest (SQI 12.41, +0.62 +5.26%) authorized a $30 million repurchase program.
Nintendo (NTDOY 16.75, -1.30 -7.20%) lowered their net sales forecast to JPY500 billion from JPY 570 billion as a result of the sales performance for the nine months, in addition to yen appreciation. Also, NTDOY lowered their forecast for net income to JPY 141.52 from JPY 291.35.
Scripps Networks Interactive (SNI 59.41, +1.62 +2.80%) acquired the remaining 35% interest in Travel Channel Media from Cox Communications Inc, for $99 million in cash, which includes the value of certain tax benefits. The transaction gives Scripps Networks Interactive full ownership of the fully-distributed network in which it originally acquired a controlling interest in 2009. Separately, SNI announced the sale of its 7.25% ownership interest in Fox-BRV Southern Sports Holdings LLC, comprising the Sports South and Fox Sports Net South regional television networks, to Fox Southern Holdings, Inc., for $225 million in cash.
In reaction to quarterly results:
Baidu.com (BIDU 173.80, +15.58 +9.85%) reported worse than expected Q4 EPS of $1.18 on better than expected revenues which also rose 33% YoY to $2.89 billion. The company also guided Q1 revenues worse than expected at $2.379-2.465 billion.
Intuit (INTU 95.75, -4.32 -4.32%) reported better than expected Q2 EPS and revenues of $0.25 and $923 million, respectively. The company also guided Q3 EPS and revenues slightly better than expected at $3.15-3.20 and $2.21-2.26 billion, respectively. INTU also reaffirmed FY16 EPS and revenue guidance of $3.45-3.50 and $4.525-4.600 billion.
Palo Alto Networks (PANW 147.58, +7.29 +5.20%) reported better than expected Q2 EPS and revenues of $0.40 and $334.7 million, respectively. The company also guided Q3 EPS worse than expected at $0.41-0.42, but guided Q3 revenues better than expected at $335-339 million.
SBA Comm (SBAC 94.66, -1.94 -2.01%) reported better than expected Q4 EPS of $1.43 on revenues which were essentially flat YoY to $406.9 million. Also, SBAC guided Q1 revenues worse than expected at $391.5-401.5 million. The company also issued in-line expectations for FY16 revenues of $1.619-1.659 billion.
Autodesk (ADSK) reported better than expected Q4 EPS and revenues of $0.21 and $648.3 million. For Q1, the company sees worse than expected EPS and revenues of ($0.14)-($0.12) and $500-520 million, respectively. ADSK also issued in-line FY17 EPS guidance of ($0.85)-($0.60), but worse than expected revenue guidance of $1.95-2.05 billion.
Ingram Micro (IM 35.67, -0.16 -0.45%) reported worse than expected Q4 EPS and revenues of $1.01 and $11.31 billion, respectively.
Starz (STRZA) reported worse than expected Q4 EPS of $0.26 on in-line revenues of $427.6 million.
Companies scheduled to report quarterly results Monday morning: BSFT, EBIX, IMN, TRCO
Analyst actions:
PANW was upgraded to Buy from Neutral at BofA/Merrill,
RATE was upgraded to Neutral at Sell at Goldman,
DISH was upgraded to Hold from Reduce at HSBC,
FLTX was upgraded to Outperform from In-Line at Imperial Capital;
CSC was downgraded to Neutral from Buy at Citigroup,
I was downgraded to Market Perform from Outperform at Wells Fargo
Weekly Recap - Week ending 26-Feb-16The stock market registered its second consecutive weekly advance with the S&P 500 climbing 1.6%. The benchmark index extended its two-week rally to 4.5%, turning its February loss to a 0.4% gain. The Nasdaq outpaced the benchmark index this week (+1.9%), but remains down 0.5% for the month.
To little surprise, this week's rally in equities occurred alongside a bid in the crude oil market, which sent the energy component higher by 3.2% to $32.75/bbl. Interestingly, the energy sector was among the weakest performers, climbing just 0.4% for the week.
Several reports suggested that equity investors were longing for some sort a coordinated intervention being agreed to at the weekend G-20 summit in Shanghai, but U.S. Treasury Secretary Jack Lew cautioned not to expect any sort of a crisis response outside of a commitment to fiscal reforms. On a related note, German Finance Minister Wolfgang Schaeuble said on Friday that the debt-financed growth model has reached its limits and that there is no shortage of policy proposals, but rather a lack of policy implementation.
The rally in equities hit a speed bump on Friday after the second revision to fourth quarter GDP (+1.0%; Briefing.com consensus 0.4%) and January Core PCE Prices (+0.3%; Briefing.com consensus 0.1%) strengthened the case for the Federal Reserve's rate hike argument. The PCE Price Index is the Fed's preferred inflation gauge and it followed hotter than expected January PPI (+0.1%; Briefing.com consensus -0.2%), core PPI (+0.4%; Briefing.com consensus 0.0%), CPI (0.0%; Briefing.com consensus -0.1%), and core CPI (+0.3%; Briefing.com consensus +0.1%) readings. As a result, the fed fund futures market saw a shift in rate hike expectations with the market now pricing in a 53.0% chance of the next hike in December after not expecting another hike until after February of 2017 prior to Friday's session.
Index Started Week Ended Week Change % Change YTD %
DJIA 16391.99 16639.97 247.98 1.5 -4.5
Nasdaq 4504.43 4590.47 86.04 1.9 -8.3
S&P 500 1917.78 1948.05 30.27 1.6 -4.7
Russell 2000 1010.01 1037.17 27.16 2.7 -8.7
4:12 pm Closing Market Summary: PCE Reading Leads Indices Off Highs (:WRAPX) :
The stock market ended an upbeat week with a hiccup as the implications of a hotter than expected core PCE reading (0.3%; Briefing.com consensus of 0.1%) augmented concerns regarding a sooner than expected Fed rate hike. Today's trade saw a continuation of oil and equities moving largely in tandem while the heavyweight financial sector (+0.9%) maintained its recent leadership role. The Nasdaq Composite (+0.2%) managed to finish ahead of the S&P 500 (-0.2$) and the Dow Jones Industrial Average (-0.3%).
The major averages slipped from their morning highs shortly after the hotter than expected Personal Income and Spending report was released. The data received a good deal of attention today as the PCE Index is the Fed's preferred inflation gauge, and this reading can be seen as supportive of further rate hikes. As a result, the economically-sensitive financial space (+0.7%) was able to remain ahead of the broader market and only trailed the materials space (+1.3%). Despite today's outperformance, the financial sector still shows the largest monthly loss (-2.1%) out of the ten economic sectors.
The commodity-sensitive materials and energy (+0.4%) groups enjoyed an early rally alongside crude oil this morning. However, that rally lost some momentum as the energy component struggled to maintain the height of its advance ($34.66/bbl). To be fair though, oil has jumped 3.2% since its pit close last Friday. As for today, WTI crude ended higher by 1.1% at $32.75/bbl.
The energy group pared most of its advance after oil slipped from its high, but independent oil and gas names were still able to top the sector. On that note, Apache (APA 39.47, +1.68) and ConocoPhillips (COP 34.12, +1.06) climbed a respective 4.5% and 3.2%. Interesting to note, both companies received downgrades from Moody's on their senior unsecured notes (to Baa3 and Baa2, respectively).
The influential technology sector (-0.3%), ended its day behind the broader market. Underperformance from sector-large caps contributed to the broader weakness as Microsoft (MSFT 51.30, -0.80) and Alphabet (GOOGL 724.86, -4.26) ended lower by 1.5% and 0.6%, respectively.
Meanwhile, health care (-0.2%) abandoned some early strength as large-caps also anchored that group. Conversely, biotechnology demonstrated relative strength with the iShares Nasdaq Biotechnology ETF (IBB 261.49, +2.17) climbing 0.8%. For the week, the ETF climbed 1.1%
Today's trade saw relative weakness among the countercyclical sectors with health care (-0.2%), telecom services (-0.4%), consumer staples (-1.4%), and utilities (-2.7%) all finishing behind the broader market.
The greenback strengthened today, evidenced by the 0.8% gain in the U.S. Dollar Index (98.09, +0.80). The euro/dollar pair finished at 1.0937 (-0.7%) while the dollar/yen rose to 113.94 (+0.9%).
The Treasury complex began its day broadly lower and remained largely range bound throughout the session. The yield on the 10-yr note managed to close off its high (1.78%), but remained up four basis points at 1.76%.
Today's participation was once again beneath the recent average with fewer than 1.005 billion shares changing hands at the NYSE floor.
Today's economic data included the the second estimate of Q4 GDP, PCE Prices for January, and the final reading of the February Michigan Sentiment Index:
The second estimate indicates fourth quarter GDP increased at an annual rate of 1.0% (Briefing.com consensus 0.4%) versus the advance estimate of 0.7%. The GDP Deflator was revised up to 0.9% (Briefing.com consensus 0.8%) from 0.8%.The good is that fourth quarter GDP was revised up. The bad is that we're still only talking 1.0% growth. The upward revision was basically the result of private inventory investment decreasing less than previously estimated. With the advance estimate, the change in inventories subtracted 0.45 percentage points from GDP growth, yet the second estimate showed a drag of only 0.14 percentage points.The drag from net exports was also less as it subtracted 0.25 percentage points from GDP growth versus 0.47 percentage points in the advance estimate.
Personal spending saw a slight downward revision to 2.0% growth with the second estimate versus 2.2% in the advance estimate. That downtick was led by lower spending on durable and nondurable goods.
Final sales of domestic product, which exclude the change in private inventories, were unchanged at 1.2%.The Personal Income and Spending report for January produced a slate of good economic news. Income increased 0.5% month-over-month (Briefing.com consensus +0.4%), spending increased 0.5% (Briefing.com consensus +0.3%), and the core PCE Price Index, which excludes food and energy, increased 0.3% (Briefing.com consensus +0.1%).This compendium of data leans in the Fed's favor for rationalizing another rate hike. The pressing question is this: Might it be enough to prompt another rate increase at the March 15-16 FOMC meeting?Time will tell, yet there was some key support offered for the Fed's inflation view and the notion that the Fed is making progress toward reaching its 2.0% inflation target (remember, progress toward, not actual achievement, is the guiding principle these days for the Fed).
To this end, the PCE Price Index is up 1.3% year-over-year versus 0.7% in December. The core PCE Price Index is now up 1.7% year-over-year versus 1.5% in December.
The January income gain flowed from increases in all income variables, paced by a 0.7% increase in rental income and a 0.6% gain in wages and salaries.
The personal spending gain, in turn, stemmed from increases in spending on both goods (+0.4%) and services (+0.6%). Durable goods spending was up 1.2% while nondurable goods spending was flat.
Real personal spending jumped 0.4%, which will be a positive input for first quarter GDP computations. The personal savings rate held steady at 5.2%.
The final reading for the University of Michigan Consumer Sentiment Index for February checked in at 91.7 (Briefing.com consensus 91.0) above the preliminary reading of 90.7. The final reading for January was 92.0. The Sentiment Index is 6.5% below its cyclical peak of 98.1 in January 2015, which the report suggests hardly merits a recession warning. For added perspective, the Sentiment Index hit a cyclical peak of 96.9 in January 2007 and then declined 27% to 70.8 in February 2008. Relative to the final January reading, the Current Economic Conditions Index improved to 106.8 in February from 106.4. The Index of Consumer Expectations dipped to 81.9 from 82.7. The release noted that consumers are a little more cautious about year-ahead prospects for the economy, but that the outlook for their personal financial situation has improved to its best level in ten years. Currently, consumers think the the slowdown in GDP growth will only have a slight negative impact on jobs.Keep in mind that the G20 Summit is taking place in Shanghai throughout the weekend.
Monday's economic data will include Chicago PMI for February (Briefing.com consensus 52.0) and Pending Home Sales for January (Briefing.com consensus +0.7%), which will be released at 9:45 ET and 10:00 ET, respectively.
Russell 2000 -8.4% YTDNasdaq -8.3% YTDS&P 500 -4.7% YTDDow Jones -4.5% YTDWeek in Review: Stocks and Rate Hike Odds on the Rise
The stock market registered its second consecutive weekly advance with the S&P 500 climbing 1.6%. The benchmark index extended its two-week rally to 4.5%, turning its February loss to a 0.4% gain. The Nasdaq outpaced the benchmark index this week (+1.9%), but remains down 0.5% for the month.
To little surprise, this week's rally in equities occurred alongside a bid in the crude oil market, which sent the energy component higher by 3.2% to $32.75/bbl. Interestingly, the energy sector was among the weakest performers, climbing just 0.4% for the week.
Several reports suggested that equity investors were longing for some sort a coordinated intervention being agreed to at the weekend G-20 summit in Shanghai, but U.S. Treasury Secretary Jack Lew cautioned not to expect any sort of a crisis response outside of a commitment to fiscal reforms. On a related note, German Finance Minister Wolfgang Schaeuble said on Friday that the debt-financed growth model has reached its limits and that there is no shortage of policy proposals, but rather a lack of policy implementation.
The rally in equities hit a speed bump on Friday after the second revision to fourth quarter GDP (+1.0%; Briefing.com consensus 0.4%) and January Core PCE Prices (+0.3%; Briefing.com consensus 0.1%) strengthened the case for the Federal Reserve's rate hike argument. The PCE Price Index is the Fed's preferred inflation gauge and it followed hotter than expected January PPI (+0.1%; Briefing.com consensus -0.2%), core PPI (+0.4%; Briefing.com consensus 0.0%), CPI (0.0%; Briefing.com consensus -0.1%), and core CPI (+0.3%; Briefing.com consensus +0.1%) readings. As a result, the fed fund futures market saw a shift in rate hike expectations with the market now pricing in a 53.0% chance of the next hike in December after not expecting another hike until after February of 2017 prior to Friday's session.
9:08 am Benchmark Electronics: Engaged capital responds to one of its Director nominee's consent withdrawal (BHE) : Engaged states, "Engaged Capital was disappointed to learn that Lisa M. Kelly, one of Engaged Capital's nominees with significant industry experience, including 11 years as a senior executive at one of BHE's competitors prior to her current role at Avnet, Inc., has withdrawn her consent to serve as a nominee. Engaged Capital believes that the Company intervened with Ms. Kelly's employer in an attempt to pressure her to withdraw and frustrate Engaged Capital's efforts to reconstitute the Board to include individuals with significant industry experience. The Company's contention that it offered Engaged Capital an opportunity to offer an alternative candidate to Ms. Kelly is a fabrication. At no time was any such offer made to Engaged Capital."
Other news: VSLR +35.7% (Judge has ruled David Tepper's Appaloosa can't block a key aspect of SunEdison's (SUNE) pending acquisition of Vivint),SUNE +30.2% (Judge has ruled David Tepper's Appaloosa can't block a key aspect of SunEdison's (SUNE) pending acquisition of Vivint),
Intel (INTC) Security announced McAfee Mobile Security will be pre-installed on the latest smartphone from LG Electronics, the LG G5, to enable users to connect with more confidence. This extends an existing agreement
AI
Market Data 
Markets 
