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From Briefing.com: 4:30 pm Extreme Networks reports EPS in-line, misses on revs; guides Q1 EPS above consensus, revs in-line (EXTR) :

Reports Q4 (Jun) earnings of $0.10 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.10; revenues fell 7.1% year/year to $140 mln vs the $142.19 mln Capital IQ Consensus.

Co issues guidance for Q1 of FY17, sees EPS of $0.04-0.09, excluding non-recurring items, vs. $0.05

Capital IQ Consensus Estimate; sees Q1 revs of $121-131 mln vs. $125.40 mln Capital IQ Consensus Estimate.

4:25 pm Exar beats by $0.01, beats on revs; guides Q2 EPS in-line, revs in-line (EXAR) :

Reports Q1 (Jun) earnings of $0.08 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.07; revenues fell 3.8% year/year to $27.1 mln vs the $26.57 mln Capital IQ Consensus.

Co issues in-line guidance for Q2, sees EPS of $0.07-0.09 vs. $0.08 Capital IQ Consensus Estimate; sees Q2 revs Flat to +3% q/q (Approx $27.1-27.9 mln) vs. $27.90 mln Capital IQ Consensus Estimate.

Non-GAAP gross margin is targeted between 56.7% and 58.1%.

4:07 pm First Solar beats by $0.32, beats on revs; guides FY16 EPS above consensus, reaffirms FY16 revs guidance (FSLR) :

Reports Q2 (Jun) earnings of $0.87 per share, excluding non-recurring items, $0.32 better than the Capital IQ Consensus of $0.55; revenues rose 4.2% year/year to $934 mln vs the $862.68 mln Capital IQ Consensus.

Co issues guidance for FY16, sees EPS of $4.20-4.50 (Prior $4.10-4.50), excluding non-recurring items, vs. $4.19 Capital IQ Consensus Estimate; sees FY16 revs of $3.8-4.0 bln vs. $3.86 bln Capital IQ Consensus Estimate.

Gross Margins 18.5-19.0% (Prior 18-19%)
Operating Expense $380-400 mln (Reaffirm)
Operating Cashe Flow $400-650 mln (Prior $500-700 mln)
CapEx $275-325 mln (Prior $300-400 mln)
Shipments 2.9-3.0 GW (Reaffirm)

4:02 pm QuickLogic reports EPS in-line, misses on revs (QUIK) :

Reports Q2 (Jun) loss of $0.07 per share, excluding non-recurring items, in-line with the single analyst estimate of ($0.07); revenues fell 45.7% year/year to $2.7 mln vs the $3 mln single analyst estimate.

GAAP and Non-GAAP cost of goods for three and six months period ended July 3, 2016, include an inventory reserve of $203,000 for PolarPro III product.

4:10 pm : The stock market ended the midweek affair on a flat note as investors looked ahead to tomorrow's policy statement from the Bank of England and significant data due out later in the week. The S&P 500 (+0.3%) snapped a two-day losing streak, benefiting from a rebound in crude oil and key sector leadership from the heavily-weighted technology (+0.4%), industrial (+0.4%), and financial (+1.0%) sectors. The Nasdaq Composite (+0.4%) finished slightly ahead of the benchmark index (+0.3%) and the Dow Jones Industrial Average (+0.2%). Equity indices gyrated at the start of the session as investors responded to a negative bias in global markets. Japan's Nikkei (-1.9%) underperformed for a second session as investors continued to dissect the country's latest stimulus package. Investor apprehension was related to the lack of labor market reforms and limited productivity improvements contained in the new policy measures. Separately, the U.K.'s July Services PMI (47.4; previous 52.3) sparked further growth concerns ahead of tomorrow morning's policy decision from the Bank of England. The central bank is widely expected to offer further easing after holding in July.

The major averages shook off opening weakness as investors poured over the Energy Information Administration's latest stockpile data. The Department of Energy reported that crude oil inventories rose by 1.41 million barrels (estimated: -1.36 million barrels), but that gasoline inventories fell by 3.26 million barrels (estimated: -0.20 million barrels). In response, WTI crude ticked off the $40.00/bbl price level, finishing its day higher by 3.4% ($40.82/bbl; +$1.33).

The S&P 500 (+0.3%) endured a sleepy session, maintaining a meager 11-point trading range. The index finished at its best level of the day as six sectors ended above their flat lines. In front of the pack, the commodity-sensitive energy (+1.8%) sector led financials (+1.0%), industrials (+0.4%), and technology (+0.4%). Conversely, countercyclical utilities (-0.6%), consumer staples (-0.5%), and health care (-0.2%) rounded out the leaderboard.

The financial sector (+1.0%) finished ahead of the broader market as positive quarterly results from Credit Agricole and ING (ING 11.43, +0.87) helped facilitate a rebound among European banking names. On the home front, American International Group (AIG 58.10, +3.96) boosted insurance names after the company beat top- and bottom-line estimates for the quarter and announced an additional $3 billion in share repurchases. Prudential (PRU 76.15, +2.18) and MetLife (MET 43.70, +1.49) gained a respective 3.0% and 3.5% ahead of this evening's quarterly earnings results.

The Dow Jones Transportation Average (+0.8%) outperformed as Avis Budget (CAR 36.89, +2.13) rebounded. The stock jumped 6.1% after posting better-than-expected guidance and mixed quarterly results. Separately, rail names also displayed relative strength as Union Pacific (UNP 92.87, +1.57) and CSX (CSX 28.20, +0.54) jumped 1.7% and 2.0%, respectively.

The heavily-weighted health care sector (-0.2%) ended beneath its flat line as Biogen (BIIB 321.34, -8.77) underperformed in the biotechnology sub-group. The stock finished lower by 2.7% after the company indicated that despite yesterday's reports, it has not received any acquisition offers. Elsewhere, Dow component Pfizer (PFE 35.29, -0.80) rounded out the price-weighted index as investors continue to weigh yesterday's quarterly results and conference call.

The U.S. Dollar Index (95.55, +0.49) finished off its best level of the day as the yen, pound, and euro each gave up ground to the greenback. The dollar/yen pair finished higher by 0.3% (101.20), rebounding from yesterday's 1.5% decline. The pound lost 0.3% against the dollar (1.3312) ahead of tomorrow's Bank of England policy statement while the euro declined 0.7% against the buck (1.1148).

The Treasury complex ended its day on a higher note as yields declined throughout the curve. The yield on the 10-yr note finished lower by two basis points at 1.54%.

Participation was above the recent average as more than 873 million shares changed hands on the NYSE floor.

Today's economic data included the weekly MBA Mortgage Index, the ADP Employment Change Report, and ISM Services for July:

The weekly MBA Mortgage Index showed a seasonally adjusted decrease of 3.5% in mortgage applications after declining 11.2% in the prior week.
The ADP Employment Change report was better than expected, showing an estimated 179,000 jobs (Briefing.com consensus 165,000) were added to private sector payrolls.
However, those gains weren't as robust as some might have hoped coming off last month's very large increase in nonfarm payrolls.
In addition, all of the growth in the ADP number for July came from the service-providing sector (185,000). The goods-producing sector lost 6,000 jobs, according to ADP.
The ISM Non-Manufacturing PMI dipped to 55.5 in July from 56.5 in June (Briefing.com consensus 55.8), declining from 59.6 in the same period a year ago.
The dividing line between expansion and contraction for the non-manufacturing sector is 50.0. July marked the 78th straight month of growth.
The headline disappointment, though, was offset to a large extent by the increases registered in the indexes for new orders (from 59.9 to 60.3), backlog of orders (from 47.5 to 51.0), and new export orders (from 53.0 to 55.5).
The biggest drags on the non-manufacturing index in July were the indexes for prices (from 55.5 to 51.9), supplier deliveries (from 54.0 to 51.0), inventories (from 55.5 to 54.0), employment (from 52.7 to 51.4), and imports (from 54.0 to 53.0).
It was noted in the report that the past relationship between the non-manufacturing PMI and the overall economy indicates that the 55.5 level for July corresponds to a 2.6% increase in real GDP on an annualized basis.

Tomorrow's economic data will include Challenger Job Cuts for July and weekly initial claims (Briefing.com consensus 264k), which will be released at 7:30 ET and 8:30 ET, respectively. The day's data will be capped off with Factory Orders for June (Briefing.com consensus -1.9%), which will cross the wires at 10:00 ET.

Russell 2000 +6.6% YTD
S&P 500 +5.9% YTD
Dow Jones +5.3% YTD
Nasdaq Composite +3.0% YTD

DJ30 +41.23 NASDAQ +22.00 SP500 +6.76 NASDAQ Adv/Vol/Dec 1860/1.735 bln/967 NYSE Adv/Vol/Dec 2009/873.9 mln/966

3:30 pm :

The dollar index was up +0.5% around the 95.57 level, weighing on precious metals
Commodities, as measured by the Bloomberg Commodity Index, are up +1.0% around the 83.55 level
Crude oil rallied to close near session highs after EIA data showed a notable surprise draw in gasoline inventory
September crude oil futures rose $1.33 (+3.4%) to $40.82/barrel
Baker Hughes rig count data will be released Friday at 1 pm ET
Monthly IEA data will be released August 11
EIA data highlights:
Crude oil inventories had a build of +1.413 mln (consensus called for a draw between -900K & -1.9 mln barrels)
Gasoline inventories had a draw of -3.262 mln
Distillate inventories had a build of +1.152 mln
Natural gas erased all of the previous day's losses, seeing a sustained rally into the close ahead of tomorrow's inventory data
September natural gas closed $0.11 higher (+4.0%) at $2.84/MMBtu
EIA natural gas inventory data will be released tomorrow at 10:30 am ET
In precious metals, gold saw a sustained downtrend, closing near lows of the day as the dollar index gained momentum
December gold ended today's session down $7.90 (-0.6%) to $1364.60/oz
Silver saw a move similar to gold, trending lower all day and closing at session, weighed down by the dollar index
September silver closed today's session $0.22 lower (-1.1%) at $20.47/oz
Base metal copper inched lower in afternoon pit trading
September copper closed $0.01 lower (-0.5%) at $2.20/lb

The major indices began the day on a choppy note as investors weighed a negative bias in global bourses against a rebound in crude oil. Japan's Nikkei (-1.9%) led the losses overnight as participants continued to express misgivings surrounding the country's recently-announced stimulus package. Separately, the U.K.'s FTSE (-0.2%) finished its day modestly lower as investors assessed a contraction in July Services PMI (47.4; previous 52.3) ahead of tomorrow's policy statement from the Bank of England. The central bank is widely expected to call for further easing measures following the surprise Brexit vote in June.


Further, the Department of Energy announced its weekly inventory data. The EIA reported that crude inventories unexpectedly rose (+1.41 million barrels) while gasoline inventories fell faster than expected (-3.26 million barrels). At the end of floor trading today, September crude oil futures rose $1.33 (+3.4%) to $40.82/barrel.

Additional market data today included the ADP Employment Change report which was better than expected, showing an estimated 179,000 jobs were added to private sector payrolls. Also, the ISM Non-Manufacturing PMI dipped to 55.5 in July from 56.5 in June, declining from 59.6 in the same period a year ago.

When Wednesday trading wrapped up, the markets were near highs. Morning modesty melted away as the Nasdaq Composite once again led the three major US indices higher by 22.00 points (+0.43%) to 5159.74. Helping the Nasdaq out-perform, top performing Nasdaq 100 components CERN +7.0%, MYL +4.0%, ALXN +3.0%, BMRN +2.4% and CSX +2.0% all closed higher. The S&P 500 was up 6.76 points (+0.31%) when the day ended to 2163.79, and the Dow Jones Industrial Average again finished at the bottom of the pack, albeit still higher by 41.23 points (+0.23%) to 18355.00.

A mostly flat session out of the Technology (XLK 46.35, +0.16 +0.35%) sector turned higher as the broader market, too, turned a flat session into a positive affair. Component Electronic Arts (EA) turned in a higher period as the company reported better than expected Q1 EPS and revenues. Other sectors as measured by the S&P closed XLE +1.93% XLF +1.03% XLI +0.49% XLY +0.29% XLB +0.25% IYZ +0.18% XLV -0.28% XLP -0.55% XLU -0.60% with action being led higher by the Energy space and Utilities under-performing.

In the S&P 500 Information Technology (768.31, +2.89 +0.38%) sector, action finished near HoDs as a mediocre morning session ramped higher near midday. Component Qorvo (QRVO 55.12, -6.33 -10.30%) posted an especially weak Wednesday despite better than expected Q1 results and Q2 guidance as gross margins were apparently pressured. Other names in the space which were active today included AKAM -1.04%, FLIR -0.85%, PAYX -0.63%, FB -0.47%, YHOO -0.47% and XRX +1.33%, AAPL +1.25%, LRCX +1.18%, SYMC +1.06%.

Other notable news items among sector components:

Xilinx (XLNX 50.84, +0.08 +0.16%) disclosed that on July 29, it received written notification that the Joint Committee on Taxation had completed its review and had taken no exception to the conclusions reached by the Internal Revenue Service.

CyberSource, a Visa Inc. (V 78.71, +0.43 +0.55%) company, announced the launch of its Loyalty Fraud Management Solution, a new service that helps businesses guard against fraudulent account creation and protect customers from illegal use of their loyalty accounts, including theft of points, miles and misuse of payment credentials.

Mastercard (MA 95.08, -0.17 -0.18%) announced that 80% of its U.S. consumer credit cards have chips, representing an 88% increase in chip card adoption since the October 1, 2015 liability shift started to bring EMV-secured payments to the U.S.

Skyworks Solutions (SWKS 64.39, -0.65 -1.00%) announced that for $76.5 million, it has acquired the remaining 34% interest it did not already own in the filter joint venture it created with Panasonic (PCRFY 9.77, +0.11 +1.14%) in 2014. The acquisition is not expected to impact SWKS' consolidated financial statements as operations have been consolidated with SWKS' financial statements since the date of the initial joint venture.

First Solar (FSLR 49.24, +1.48 +3.10%) and D. E. Shaw Renewable Investments announced the acquisition by a DESRI affiliate of the 11 MW AC Rancho Seco Solar Project from First Solar. Financial terms of the deal were not disclosed.

Elsewhere in the tech space:

DragonWave (DRWI 3.19, -0.45 -12.36%) announced the pricing of a $6.0 million public offering.

AT&T (T 43.14, -0.02 -0.05%) announced that AT&T Mobility reached a new tentative agreement with the Communications Workers of America in benefits negotiations covering CWA-represented Mobility employees nationwide - more than 40,000 employees.

Sizmek (SZMK 3.86, +1.20 +45.11%) to be acquired by Vector Capital for $3.90 per share in an all-cash tender offer.
In addition to reporting quarterly results, CDK Global (CDK 58.55, +1.74 +3.06%) announced it will add two independent directors to its Board under an agreement with Elliott Management.

Plantronics' (PLT 50.68, +2.96 +6.20%) CEO Ken Kannappan to retire at the end of Q2. Current EVP and Chief Commercial Officer, Joe Burton, will become president and CEO effective Oct. 2.

Rocket Fuel (FUEL 2.333, +0.10 +4.48%) announced it concurrently entered into a Controlled Equity Offering with Cantor Fitzgerald of up to $30 million of the $50 million offering it filed for in May.

Take-Two (TTWO 40.79, +0.62 +1.54%) to change non-GAAP financial measures - will have no effect on the business.

Cincinnati Bell (CBB 4.75, -0.03 -0.63%) announced its shareholders approved a 1:5 reverse stock split of its common shares.

In reaction to quarterly results:

CDK Global (CDK) reported in-line Q4 EPS of $0.49 on better than expected revenues which rose 7.8% versus last year to $542.2 million. The company also guided FY17 EPS better than market expectations at $2.28-2.35 with revenues of about $2.2 billion.

Kulicke & Soffa (KLIC 11.87, -0.53 -4.27%) reported better than expected Q3 EPS and revenues of $0.45 and $216.4 million, respectively. The company also guided Q4 revenues worse than market expectations at $135-145 million.

Orbotech (ORBK 28.26, -0.37 -1.29%) reported better than expected Q2 EPS of $0.60 on revenues which were in-line with market expectations and rose 3.7% versus the prior year to $195.98 million. ORBK also guided Q3 revenues in-line at $200-208 million.

Shopify (SHOP 36.79, +3.26 +9.72%) reported a better than expected Q2 loss per share of $0.04 on revenues which rose 92.9% compared to a year ago to $86.6 million. SHOP guided Q3 and FY16 revenues ahead of expectations at $93-95 million and $361-367 million, respectively.

Fortive (FTV 49.28, +1.78 +3.75%) reported better than expected Q2 EPS of $0.69 on better than expected revenues of $1.56 billion. FTV also guided Q3 EPS in-line at $0.56-0.60.

Fiserv (FISV 104.45, -4.96 -4.53%) reported better than expected Q2 EPS of $1.08 and revenues which missed market expectations at $1.36 billion. The company also guided FY16 EPS in-line at $4.38-4.45.

Qorvo (QRVO) reported better than expected Q1 EPS and revenues of $1.08 and $698.54 million, respectively. QRVO also guided Q2 EPS and revenues ahead of market expectations at $1.35-1.45 and $820-850 million.

Electronic Arts (EA) reported better than expected Q1 EPS and revenues of $0.07 and $682 million, respectively. The company also reaffirmed FY17 GAAP revenue guidance of $4.750 billion and raised FY17 GAAP EPS guidance to $2.56 from $2.53.

Fitbit (FIT 14.93, +1.77 +13.45%) reported better than expected Q2 EPS and revenues of $0.12 and $586.5 million, respectively. For Q3, the company sees EPS of $0.17-0.19 and revenues of $490-510 million. For FY16, the company continues to see EPS of $1.12-1.24 and revenues of $2.5-2.6 billion.

Tableau Software (DATA 53.20, -3.20 -5.67%) reported worse than expected Q2 EPS of breakeven and better than expected revenues of $198.5 million. DATA also guided Q3 revenues of $210-215 million and FY16 EPS of $0.18-0.31 and revenues of $825-840 million.

Cray (CRAY 21.81, -9.47 -30.27%) reported a worse than expected Q2 loss per share of $0.29 on revenues which fell 46.2% compared to a year ago to $100.24 million. The company sees Q3 revenues of $80 million and lowered FY16 revenue guidance to $650 million from $825 million.

Rubicon Project (RUBI 9.20, -4.47 -32.70%) reported better than expected Q2 EPS and revenues of $0.17 and $65.11 million, respectively. For Q3, the company sees EPS of $0.07-0.09 and revenues of $60-64 million. For FY16, RUBI expects EPS of $0.75-0.85 and revenues of $260-275 million, down from $275-295 million.

Companies scheduled to report quarterly results tonight/tomorrow morning: HIVE BNFT CTL CSGS EQIX EXAR EXTR FSLR FIVN G GDDY HUBS INOV NSIT IL ITRI JCOM LITE PEGA QTWO QLYS QUIK RP RNG RST SQ SEMI SNCR TTEC TRIP WU WK/ACTA ALSK ANSS BCE CBB CCOI CNSL EPAM FCS IT GOGO KVHI LIOX LQDT LFUS MMS MITL NOK ORBC PRFT SPNS SSYS TU TSEM TVPT WIN

Analyst actions:

RUBI was downgraded at Cantor Fitzgerald, SunTrust, Raymond James and RBC Capital Mkts,
WDC was downgraded to Sell from Neutral at Goldman,
CSIQ was downgraded to Underweight from Overweight at Morgan Stanley,
GLUU was downgraded to Market Perform from Outperform at Northland Capital,
DATA was downgraded to Neutral from Buy at DA Davidson,
ESIO was downgraded to Hold from Buy at Needham,
EIGI was downgraded to Market Perform from Outperform at RBC Capital Mkts,
KOPN was downgraded to Hold from Buy at Wunderlich,