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From Briefing.com: Weekly Recap - Week ending 27-Aug-10The major indices closed the week with only modest declines after Fed Chairman Bernanke fueled a large rally on Friday, helping to offset some of the growing concerns regarding the pace of the economic recovery.

The S&P 500 fell to a loss of as much as 2.3% this week before recovering to just a 0.7% decline. Only three of the 10 sectors gained, led by utilities (+2.0%). On the downside, the tech sector was the main laggard with a loss of 2.1%.
Stocks rallied 1.7% Friday after Fed Chairman Bernanke said that he expects a pickup in growth in 2011, adding that the Fed is ready to use "unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly." The news sparked a selloff in Treasuries.

Economic data acted as a focal point. The housing industry remains in tough shape, with the latest data pointing to a double dip in housing.

Existing home sales plummeted 27.2% to a 3.83 mln seasonally adjusted annual rate (consensus 4.72 mln) in July - marking the lowest level since records began in 1999. July is typically one of the strongest months for home sales but the tax credits pulled sales into April. It is possible that new historical sales lows will be broken each month through the remainder of the year.

Meanwhile, new home sales in July declined to 276,000 (consensus 334,000), which is the lowest level since records began in 1963.


In other economic news, the latest revision to second quarter GDP was revised lower to 1.6% from the prior reading of 2.4%. The rate, however, was better than expected as the Briefing.com consensus stood at 1.4%.

Though the market was focused on economic data, there were some corporate items of note. Dell (DELL) and Hewlett-Packard (HPQ) started a bidding war for data storage company 3Par (PAR). Though 3Par had already agreed to a takeover offer from Dell, Dell was forced to hike its bid to $24.30 and then $27 per share in order to fend off offers from HP. HP has since raised its offer for 3Par to $30 per share.

In other M&A news, U.K.-based BHP Billiton (BHP) offered to buy Canadian-based Potash (POT) for $130 per share. Potash refused the offer and is reportedly seeking other suitors.

Intel (INTC) came under pressure after the chip giant lowered its Q3 revenue guidance below expectations. The company now expects revenue of between $10.8 bln and $11.2 bln compared to its previous forecast of $11.2 bln $12.0 bln and the $11.52 bln Thomson Reuters consensus.

  
 Index	  Started Week	Ended Week  Change % Change  YTD % 
 DJIA	    10213.62	 10150.65  -62.97    -0.6   -2.7 
 Nasdaq	     2179.76	  2153.63  -26.13    -1.2   -5.1 
 S&P 500	     1071.69	  1064.59   -7.10    -0.7   -4.5 
 Russell 2000  610.78	   616.76    5.98     1.0   -1.4

10:54 am INTC Lowers Q3 Revs Guidance Below Consensus (INTC)

Intel (INTC 18.22 +0.05) lowered its third quarter revenue guidance to $10.8 billion to $11.2 billion, below the $11.52 billion Thomson Reuters consensus, down from $11.2 billion to $12.0 billion previously.

Revenue is being affected by weaker than expected demand for consumer PCs in mature markets.

Inventories across the supply chain appear to be in-line with the co's revised expectations. The company's expectation for the third quarter gross margin is now 65% to 67%, lower than the previous expectation of 66% to 68%, versus the 66.8% consensus.

The impact of lower volume is being partially offset by slightly higher average selling prices stemming from solid enterprise demand.

7:01AM 3Par accepts Dell's (DELL) increased price of $27/share in cash; total value of $1.8 bln (PAR) 26.03 : Co announces that it accepted Dell's increased offer to acquire the storage leader for $27 per share in cash, or ~ $1.8 bln, net of 3PAR's cash. The new Dell-3PAR accord was reached under the provision in the existing agreement between the companies that allows Dell to match competing bids. Co and Dell have signed a second amendment to their previously announced merger agreement reflecting the new offer price, and maintaining the termination fee unchanged at $72 million, which is payable in the event that 3PAR receives and accepts another unsolicited acquisition proposal that its board determines to be superior to Dell's increased offer. Dell continues to believe that the acquisition of 3PAR, with its industry-leading storage technology, is important to its customers and will enhance Dell's position in utility-storage solutions. Consistent with its previous rationale for the acquisition, Dell also believes that its global brand and broad global reach will dramatically accelerate 3PAR's revenue growth. The cash tender offer, through a wholly-owned Dell subsidiary, is for all outstanding shares of 3PAR common stock, without interest, and subject to reduction for any federal back-up withholding or other taxes. The offer documents will be amended to reflect the new offer price, but this will not alter the timing of the acquisition. Unless extended, the tender offer and any withdrawal rights to which 3PAR stockholders may be entitled will expire at midnight, EDT, on 9/20/2010. Based on current estimates, the transaction is expected to be accretive to Dell 's non-GAAP earnings in its Fiscal Year 2012.