From Briefing.com: 4:22 pm Rubicon Project beats by $0.07, beats on revs; guides Q3 EPS, revs below consensus; lowers FY16 revs outlook (RUBI) : Reports Q2 (Jun) earnings of $0.17 per share, $0.07 better than the Capital IQ Consensus of $0.10; revenues rose 34.1% year/year to $65.11 mln vs the $63.62 mln Capital IQ Consensus.
Co issues downside guidance for Q3, sees EPS of $0.07-0.09 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of $60-64 mln vs. $70.32 mln Capital IQ Consensus Estimate.
Co updates guidance for FY16, sees EPS of $0.75-0.85 (Unch from prior guidance) vs. $0.90 Capital IQ Consensus Estimate; sees FY16 revs of $260-275 mln (Prior $275-295 mln) vs. $295.25 mln Capital IQ Consensus Estimate.
"The digital advertising market is undergoing changes that have fueled headwinds that we expect will continue through the remainder of the year-particularly as it relates to desktop advertising in the U.S."
4:18 pm Cray misses by $0.02, misses on revs; guides Q3 revs below consensus; slashes FY16 revs outlook (shares halted) (CRAY) :
Reports Q2 (Jun) loss of $0.29 per share, $0.02 worse than the Capital IQ Consensus of ($0.27); revenues fell 46.2% year/year to $100.24 mln vs the $101.36 mln Capital IQ Consensus.
Overall gross profit margin on a GAAP and non-GAAP basis for the second quarter of 2016 was 36%, compared to 27% for the second quarter of 2015.
Co issues downside guidance for Q3, sees Q3 revs of $80 mln vs. $133.73 mln Capital IQ Consensus Estimate. GAAP and Non-GAAP gross margin for the year is expected to be in the range of 34%.
Co lowers guidance for FY16, sees FY16 revs of $650 mln (Prior $825 mln) vs. $795.39 mln Capital IQ Consensus Estimate. The change in the Company's revenue outlook was driven by the level and timing of new orders and the delays of key third-party components, the risks of which were outlined last quarter, as well as a very recent electrical smoke event caused by a failed manufacturing facility power component that will delay the Company's ability to deliver on some customer contracts in 2016, including an impact on anticipated third quarter revenue.
Based on this outlook, the Company expects to be profitable on a GAAP and non-GAAP basis for 2016.
4:17 pm FormFactor beats by $0.03, beats on revs; guides Q3 EPS above consensus, revs above consensus (FORM) :
Reports Q2 (Jun) earnings of $0.13 per share, $0.03 better than the Capital IQ Consensus of $0.10; revenues rose 12% year/year to $83.1 mln vs the $77.99 mln Capital IQ Consensus.
Co issues upside guidance for Q3, sees EPS of $0.17-0.23 vs. $0.17 Capital IQ Consensus Estimate; sees Q3 revs of $118 mln vs. $117.22 mln Capital IQ Consensus Estimate.
"Our strong revenue result -- the highest level since 2007 -- reflects our solid execution as we doubled our Foundry and Logic shipments for a key customer and experienced improvement in our DRAM business," said Mike Slessor, CEO of FormFactor, Inc. "In addition, we completed the acquisition of Cascade Microtech, to create a more valuable industry player, with a larger addressable market, extended product breadth, greater diversification, and new growth opportunities."
"We are currently expecting strong second half performance in each of our businesses," said Mike Slessor. "We are enthusiastic about the Cascade product line-up's ability to expand our market share in the Foundry and Logic probe card business driven by secular trends in RF filter growth as well as continued strength at FormFactor's historical Foundry and Logic customers. Our third quarter guidance includes the immediately accretive impact of Cascade, and we are confident that 2016 will be a solid growth year for FormFactor."
4:12 pm Axcelis Tech beats by $0.06, misses on revs; guides Q3 EPS below consensus, revs below consensus (ACLS) :
Reports Q2 (Jun) earnings of $0.10 per share, $0.06 better than the Capital IQ Consensus of $0.04; revenues fell 17.8% year/year to $64.45 mln vs the $65.43 mln Capital IQ Consensus.
Co issues downside guidance for Q3, sees EPS of $0.03-0.06 vs. $0.13 Capital IQ Consensus Estimate; sees Q3 revs of $65-70 mln vs. $71.96 mln Capital IQ Consensus Estimate.
4:12 pm Maxwell Tech misses by $0.04, misses on revs; guides Q3 EPS below consensus, revs below consensus (MXWL) :
Reports Q2 (Jun) loss of $0.13 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus of ($0.09); revenues fell 9.8% year/year to $34.1 mln vs the $35.13 mln Capital IQ
Consensus. Adjusted EBITDA for the second quarter of 2016 was $(0.7) million, compared with $(1.3) million for the first quarter of 2016. The quarter-over-quarter improvement was primarily driven by margin improvements from increased high-voltage product sales and reduced operating expenses.
Co issues downside guidance for Q3, sees EPS of ($0.18), excluding non-recurring items, vs. ($0.05) Capital IQ Consensus Estimate; sees Q3 revs of $24-27 mln vs. $37.90 mln Capital IQ Consensus Estimate. Guidance: Gross margin for the third quarter of 2016 is expected to be in the range of 28% to 31%. Non-GAAP gross margin for the third quarter of 2016 is expected to be in the range of 29% to 32%.
4:06 pm Ixia beats by $0.11, beats on revs (XXIA) :
Reports Q2 (Jun) earnings of $0.18 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus of $0.07; revenues fell 8.7% year/year to $120.1 mln vs the $114.12 mln Capital IQ Consensus.
"In the second quarter we achieved revenue at the high-end of our guidance range and delivered solid earnings that were driven by our strong gross margin performance and continued focus on financial discipline."
Ixia also announces that it plans to appoint Patti Key as its senior vice president, global sales, and that Key has assumed leadership of Ixia's global sales team. Ixia and Hans-Peter Klaey have mutually agreed that he will step down from his position as senior vice president, global sales, and will leave the company, on August 31, 2016.
4:05 pm Qorvo beats by $0.03, beats on revs; guides SepQ EPS above consensus, revs above consensus (QRVO) :
Reports Q1 (Jun) earnings of $1.08 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.05; revenues rose 3.7% year/year to $698.54 mln vs the $650.64 mln Capital IQ Consensus.
Co issues upside guidance for Q2 (Sep), sees EPS of $1.35-1.45, excluding non-recurring items, vs. $1.26 Capital IQ Consensus Estimate; sees Q2 revs of $820-850 mln vs. $713.7 mln Capital IQ Consensus Estimate.
Gross margin, which was 39.6%, decreased sequentially on both a GAAP and non-GAAP basis, primarily due to a mix shift to lower margin products.
"In the June quarter, Qorvo saw customer order activity accelerate as the quarter progressed, and the entire
Qorvo Team ran hard to satisfy demand. In the September quarter, we continue to see strong demand in support of this year's most popular devices, and we're rapidly expanding our capabilities to develop new highly integrated solutions for large customer opportunities launching in 2017 and 2018."
4:15 pm : The stock market ended the Tuesday affair on a lower note as the key U.S. indices moved lower lockstep with global bourses. Today's decline was facilitated by disappointment surrounding Japan's latest fiscal stimulus package and continued weakness from European banking names. Additionally, a failed rebound attempt in oil and the underperformance of heavily-weighted technology (-0.8%), industrials (-0.9%), financials (-0.9%), and consumer discretionary (-1.5%) contributed to today's loss. The Nasdaq Composite (-0.9%) settled behind the S&P 500 (-0.6%) and the Dow Jones Industrial Average (-0.5%).
U.S. equities began the day under pressure, responding to losses from Japan's Nikkei (-1.5%) and European markets. In Japan, Prime Minister Shinzo Abe's latest round of stimulus elicited a sell-the-news response as participants eyed limited direct stimulus. Separately, weak earnings results from Commerzbank kept pressure on European banks while Deutsche Bank (DB 12.58, -0.49) and Credit Suisse (CS 10.81, -0.53) lost their spots in the Euro Stoxx 50 Index (-2.0%).
The major averages pulled back through the afternoon as oil and equities yielded to selling pressure in the broader market. The energy component trimmed an early advance, falling into negative territory near midday. WTI crude finished its session lower by 1.5% ($39.49/bbl; -$0.60), extending its weekly loss to 5.0%. On a side note, investors will receive the latest stockpile data from the American Petroleum Institute this evening while the Department of Energy's more influential stockpile data will be release tomorrow at 10:30 ET.
The S&P 500 (-0.6%) finished off its worst level of the day, reclaiming technical support near the 2152/2153 price level. However, nine sectors finished in the red with technology (-0.8%), industrials (-0.9%), financials (-0.9%), and consumer discretionary (-1.5%) rounding out the leaderboard. The remaining decliners finished with losses between 0.1% (consumer staples) and 0.6% (utilities). Conversely, energy (+0.9%) ended with the only gain.
The consumer discretionary space (-1.5%) displayed broad-based weakness as Ford (F 11.94, -0.54) and General Motors (GM 29.93, -1.37) weighed among auto names. The two fell 4.4% apiece after July U.S. auto sales disappointed. Retail names also underperformed in the group, evidenced by the 2.5% decline in the SPDR S&P Retail ETF (XRT 43.80, -1.13).
Airlines underperformed in the industrial sector (-0.9%) as the U.S. Global Jets ETF (JETS 21.63, -0.92) lost 4.1%. Delta Air Lines (DAL 36.39, -3.09) pressured the ETF after reporting that passenger revenue per available seat mile declined 7.0% in July. This missed prior guidance given by the airline. Separately, Emerson (EMR 53.03, -2.75) fell 4.9% after missing top- and bottom-line estimates for the quarter and lowering its full-year guidance.
In the technology space (-0.8%), top-weighted Apple (AAPL 104.48, -1.57) was under pressure after being downgraded to "Outperform" from "Buy" at Daiwa. On a side note, the tech giant sports a gain of 8.1% since reporting earnings on July 26. Conversely, data storage names underperformed as Seagate Technology (STX 30.65, -1.78) lost 5.5%. Seagate Technology released its earnings report ahead of today's session, showing in-line results with its pre-announcement from July 11. The high-beta chipmakers underperformed in the group, evidenced by the 1.6% decline in the PHLX Semiconductor Index.
Biotechnology demonstrated relative strength in the health care sector (-0.3%) as the iShares Nasdaq Biotechnology ETF (IBB 294.69, +0.62) rose 0.2%. The group benefited from intraday reports indicating that Allergan (AGN 250.75, -4.11) and Merck (MRK 58.33, -0.33) may be interested in acquiring Biogen (BIIB 330.11, +28.28). In the broader sector, Dow component Pfizer (PFE 36.39, -0.92) rounded out the price-weighted index after reporting a slight beat.
The U.S. Dollar Index (95.08, -0.63) finished off its worst level of the day, but the euro, pound, and yen each finished with gains against the greenback. The single currency jumped 0.5% against the greenback (1.1223) while sterling rallied 1.3% against the dollar (1.3345). Separately, the dollar/yen pair finished lower by 1.5% (100.90) as investors responded to the latest fiscal stimulus plan out of Japan.
The Treasury complex ended on a mixed note, but the group finished off its worst level of the day. The yield on the 10-yr note ended higher by two basis point (1.55%) after backtracking from the 1.57% (+4 bps) level.
Participation was above the recent average as more than 916 million shares changed hands on the NYSE floor.
Today's economic data included June Personal Income/Personal Spending reports and Core PCE Prices for June:
Personal income increased 0.2% in June (Briefing.com consensus +0.3%) on the heels of a 0.2% increase for May.
The improvement was driven largely by a 0.3% increase in wages and salaries.
Personal spending was up 0.4% (Briefing.com consensus +0.3%) on top of a 0.4% increase for May.
The personal savings rate fell to 5.3% in June from 5.5% in May.
The PCE Price Index increased 0.1% and the core PCE Price Index, which excludes food and energy, also rose 0.1% (Briefing.com consensus +0.2%).
On a year over-year basis, both the PCE Price Index and Core PCE Price Index held steady versus May, up 0.9% and 1.6%, respectively.
Tomorrow's economic data will include the 7:00 ET release of the weekly MBA Mortgage Index. Separately, the ADP Employment Change Report (Briefing.com consensus 165k) and ISM Services for July (Briefing.com consensus 55.8) will cross the wires at 8:15 ET and 10:00 ET, respectively.
Russell 2000 +5.8% YTD
S&P 500 +5.5% YTD
Dow Jones +5.1% YTD
Nasdaq Composite +2.6% YTD
DJ30 -90.74 NASDAQ -46.46 SP500 -13.81 NASDAQ Adv/Vol/Dec 721/1.982 bln/2152 NYSE Adv/Vol/Dec 690/916.5 mln/2318 3:30 pm :
The dollar index plunges -0.7%, currently trading around the 95.07 level
Commodities, as measured by the Bloomberg Commodity Index, are down -0.2% at 82.73
Crude continues its slide, ending near 5-month lows ahead of tonight's API data
September crude oil futures fell $0.60 (-1.5%) to $39.49/barrel
API data will be released today after the bell
EIA petroleum storage data will be released tomorrow at 10:30 am ET
Baker Hughes rig count data will be released on Friday at 1 pm ET
Natural gas extends yesterday's losses, ending near session lows in afternoon pit trading
September natural gas closed $0.04 lower (-1.4%) at $2.73/MMBtu
EIA natural gas data will be released Thursday at 10:30 am ET
In precious metals, gold ends near session highs as the dollar index takes a beating
December gold ended today's session up $12.70 (+0.9%) to $1372.50/oz
Silver consolidates near highs of the day, moving in tandem with gold as the dollar index sees a notable drop
September silver closed today's session $0.19 higher (+0.9%) at $20.69/oz
Base metal copper inches higher, adding onto yesterday's gains in afternoon pit trading
September copper closed $0.01 higher (+0.5%) at $2.21/lb
Equity futures were under pressure this morning as investors responded to a negative bias in global markets. Japan's Nikkei (-1.5%) under-performed as the country's latest stimulus package was met with a sell-the-news reaction. Prime Minister Shinzo Abe announced a JPY28 trillion stimulus package overnight, but reports indicated that direct stimulus will be limited to JPY7.5 trillion. Separately, European banks under-performed for the second consecutive session as disappointing earnings results from Commerzbank weighed on the group.
Market data today included personal income increased 0.2% in June on the heels of a 0.2% increase for May. Also, personal spending was up 0.4% on top of a 0.4% increase for May. Lastly, the PCE Price Index increased 0.1% and the core PCE Price Index, which excludes food and energy, also rose 0.1%.
Tuesday trading turned lower after a split Monday affair. The Nasdaq Composite was the worst performer, shedding 46.46 points (-0.90%) to 5137.73. Dragging the tech-heavy index lower, the worst performing Nasdaq 100 components included AAL -5.9%, CA -3.6%, EXPE -3.3%, ADSK -3.1%, NXPI -2.8%. The S&P 500 was down 13.81 points (-0.64%) to 2157.03 at the end of the day, and the Dow Jones Industrial Average lost 90.74 points (-0.49%) to 18313.77.
In a session of losses, Technology (XLK 46.19, -0.35 -0.75%) followed suit. The sector kept pace with the broader market sell-off, despite a strong session from component Teradata (TDC 29.42, +1.03 +3.63%) which reported better than expected quarterly results, propelling the stock higher today in the face of the broader market weakness. Other sectors as measured by the S&P closed the session IYZ -1.90% XLY -1.49% XLI -0.93% XLF -0.85% XLU -0.65% XLV -0.38% XLB -0.27% XLP -0.15% XLE +0.91% as only Energy managed gains, and Telecoms lagged.
In the S&P 500 Information Technology (765.42, -6.38 -0.83%) sector, the day ended near (but modestly higher off) lows. Component Seagate Tech (STX 30.65, -1.78 -5.49%) was particularly weak today following this morning's earnings which beat on the bottom line, and were about in-line with market expectations on the top. Other notable components which closed in the red today included CA -3.59%, TEL -3.44%, XRX -3.25%, QRVO -3.18%, GPN -3.00%, CSRA -2.71%, RHT -2.58%, TSS -2.45%.
Other notable news items among sector components:
Salesforce.com (CRM 80.50, -0.52 -0.64%) disclosed an agreement to acquire Quip.
Microsoft (MSFT 56.58, flat) priced an offering of $19.75 billion aggregate principal amount of senior unsecured notes.
Teradata (TDC) determined that the position of Chief Operating Officer of the company will no longer be required.
Cloud DC Inc. has just executed a global CSP Distribution agreement with Citrix (CTXS 83.47, -3.15 -3.64%). The Cloud DC Workspace virtualizes applications and delivers them to end devices of the user's choice. It is a white labelled, bundled infrastructure/management layer, fully automated and highly scalable platform purely developed for the channel as a turnkey solution.
Elsewhere in the tech space:
Emerson (EMR 53.03, -2.75 -4.93%) confirmed it sold its Leroy-Somer and Control Techniques business units to Nidec (NJDCY 20.04, -0.02 -0.10%) for $1.2 billion.
Avnet (AVT 39.95, -1.06 -2.57%) expanded its global franchise agreement with Cypress Semiconductor (CY 11.22, -0.41 -3.53%) to include the portfolio of their recently acquired wireless IoT products, effective immediately.
Digital Ally (DGLY 5.69, -0.19 -3.23%) received a three-year supply contract exceeding $1.0 million for body cameras, service and storage systems.
Izea (IZEA 6.86, +0.12 +1.78%) acquired ZenContent for up to $4.5 million in cash and equity, including performance-based earn outs over a three-year period.
TD Ameritrade's (AMTD 29.57, -0.35 -1.17%) COO Marv Adams to resign. The company is eliminating the COO position.
WPCS Intl (WPCS 1.60, -0.06 -3.67%) announced it added $2.7 million of new contracts during its first quarter ended July 31, 2016.
Cree (CREE 27.85, -0.78 -2.72%) confirmed a favorable decision in the ITC case against Feit and Unity.
In reaction to quarterly results:
Frontier Communications (FTR 4.85, -0.23 -4.53%) reported a worse than expected Q2 loss per share of $0.07 on revenues which came in worse than expectations and rose 90.6% versus a year ago to $2.61 billion.
Seagate Tech (STX) reported better than expected Q4 EPS of $0.69 on revenues which fell 9.3% versus last year to $2.65 billion.
Vonage (VG 6.26, +0.43 +7.38%) reported better than expected Q2 EPS and revenues of $0.08 and $233.7 million, respectively.
Integrated Device (IDTI 19.56, -2.63 -11.85%) reported in-line Q1 EPS and revenues of $0.36 and $192.1 million, respectively. On the conference call, management guided for Q2 revenues of $179-189 million, worse than expectations.
Teradata (TDC) reported better than expected Q2 EPS and revenues of $0.71 and $599 million, respectively. The company also reaffirmed FY16 EPS and revenue guidance at $2.35-2.50 and $2.32-2.39 billion, respectively.
Harris (HRS 87.97, +2.40 +2.80%) reported better than expected Q4 EPS of $1.45 and worse than expected revenues of $1.9 billion. The company also guided FY17 EPS of $5.70-5.90.
Companies scheduled to report quarterly results tonight/tomorrow morning: ATTO ACLS BBOX CALX CALD CRAY ESIO EA ENPH FARO FISV FIT FORM FTV GLUU GUID IMPR XXIA JIVE MXWL MRCY NEWR NOVT OCLR PAYC PCTI PLT PRO QRVO QUMU FUEL RUBI DATA TNAV TSRA TRMB ZEN/CDK CEVA CRTO INXN KLIC LMOS NVMI OIIM ORBK PERI SHOP ZAYO
Analyst actions:
FORM was upgraded to Buy from Hold at Stifel,
VECO was upgraded to Buy from Hold at Deutsche Bank;
IDTI was downgraded to Mkt Perform from Buy at Charter Equity,
IMPR was downgraded to Market Perform from Outperform at Wells Fargo,
FLTX and SCTY were downgraded to Neutral from Outperform at Robert W. Baird,
AAPL was downgraded to Outperform from Buy at Daiwa,
SCTY was downgraded to Mkt Perform from Strong Buy at Raymond James,
N downgraded to Neutral from Buy at MKM Partners;
NXPI was initiated with an Outperform at Robert W. Baird,
PFPT was initiated with a Buy at Needham,
PSTG was initiated with a Market Perform at Wells Fargo,
AI
Market Data 
Markets 
