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From Briefing.com: 4:30 pm : The major market averages recovered from some early selling pressure to trade with gains of roughly 1% for most of the day, but the stock market's failure to extend its gains in the face of resistance provided participants with an excuse to exit their positions, causing stocks to roll over into the close.

Stocks opened in positive territory as participants took their cues from renewed buying interest in Europe, where news that Italy's debt was downgraded came without surprise given speculation last week. An early slip by financials prompted some knee-jerk selling, but stocks were able to stabilize quickly and mount an impressive bounce that took the Dow more than 100 points higher and the S&P 500 to a gain of more than 1%.

However, momentum stalled when the S&P 500 approached the 1220 line. It traded between there and 1215 for more than three hours before sentiment soured and participants, partly seeking the path of least resistance, resorted to selling. The decision to sell also precedes the latest FOMC policy statement, which will be released tomorrow afternoon. The past couple of statements have featured verbiage regarding the Fed's vigilance and readiness to use its policy tools if conditions should permit, but nothing has been let on about new plans to help stimulate the economy.

Also of primary concern is the ability of European officials to contain Greece's financial troubles, so as to help prevent contagion. However, participants never got any updates on the progress of Greece's dealings with the Troika. CNBC did report before the close that officials from the Troika will return to Athens in October, though.

The Dow managed to make it out with an marginal gain, but the S&P 500 logged a loss. Of the three major equity averages, the Nasdaq suffered the worst fate. Aggressive selling sent it to a loss of nearly 1% after it had been up about 1% at its session high. Oracle (ORCL 28.35, -0.67) proved to be a heavy drag ahead of its quarterly report.

Small-cap and mid-cap stocks were hit hard as participants moved to pare risk. That left the S&P 400 to fall to a loss of more than 1%, while the Russell 2000 tumbled to a loss of almost 2%.

Cyclical plays like materials (-1.0%), industrials (-0.7%), energy (-0.6%), and consumer discretionary stocks (-0.6%) finished the day with the worst results. In contrast, defensive-oriented utilities were the top performers for the entire session. They settled with a 1.4% gain after the group had been up in excess of 2% at its session high. Midsession strength among utilities helped the Dow Jones Utility Index climb to its highest level in nearly three years.

Advancing Sectors: Utilities (+1.4%), Health Care (+0.9%), Telecom (+0.5%), Consumer Staples (+0.1%)
Declining Sectors: Materials (-1.0%), Industrials (-0.7%), Energy (-0.6%), Consumer Discretionary (-0.6%), Tech (-0.4%), Financials (-0.3%)DJ30 +7.65 NASDAQ -22.59 NQ100 -0.6% R2K -1.8% SP400 -1.3% SP500 -2.00 NASDAQ Adv/Vol/Dec 713/1.91 bln/1825 NYSE Adv/Vol/Dec 1099/926 mln/1910

4:12PM Adobe Systems beats by $0.01, misses on revs; guides Q4 EPS in-line, revs above consensus (ADBE) 24.64 -0.63 : Reports Q3 (Aug) earnings of $0.55 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.54; revenues rose 2.3% year/year to $1.01 bln vs the $1.03 bln consensus. Co issues in-line EPS guidance for Q4, sees EPS of $0.57-0.64, excluding non-recurring items, vs. $0.58 Capital IQ Consensus Estimate; sees upside revs guidance of $1.08 bln-1.13 bln vs. $1.06 bln Capital IQ Consensus Estimate. The Co's operating margin is targeted to be 26.5-29.5% on a GAAP basis, and 36-38% on a non-GAAP basis. In addition, the co is targeting its share count to be between 497-499 mln shares, and it is targeting non-operating expense between $17-21 mln. Adobe's GAAP and non-GAAP tax rates are expected to be ~22%. "We delivered strong earnings in Q3. At the high end of our financial targets for our fourth quarter, we will achieve our 10 percent annual revenue growth target as well as earnings growth of 20 percent for the fiscal year."

4:08PM Oracle beats by $0.01, reports revs in-line (ORCL) 28.35 -0.67 : Reports Q1 (Aug) earnings of $0.48 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.47; non-GAAP revenues rose 10.7% year/year to $8.40 bln vs the $8.35 bln consensus. Non-GAAP new software license revenues were up 17% to $1.5 bln; non-GAAP software license updates and product support revenues were up 16% to $4.0 bln. Non-GAAP hardware systems products revenues were down 5% to $1.0 bln. Non-GAAP operating income was up 21% to $3.6 bln, and non-GAAP operating margin was 42%. "Our high-end server business -- Exadata, Exalogic, and SPARC M-Series -- delivered solid double digit revenue growth in Q1. In contrast, revenue declined in our low-end server business. By moving away from low-margin commodity hardware and focusing on high-end servers, we increased our hardware gross margins from 48% to 54%. Our strategy to grow the profitable parts of our hardware business is paying off."

8:00AM Cypress Semi authorized a new $400 million stock repurchase program (CY) 17.10 :

7:02AM General Electric's Energy unit announces more than $3 bln in new customer agreements (GE) 16.19 : Co announced agreements that include the Middle East, Australia, Europe, Asia and North and South America, more than $1 bln in New Commitments in Brazil in Oil and Gas and Wind Technologies. In addition the co announced 1.6-100 MW wind turbine adds more than $1.5 bln in new commitments. The orders include natural gas production technologies in subsea and liquefied natural gas sectors; natural gas technologies to produce power such as heavy-duty and aeroderivative gas turbines, gas engines and waste-heat recovery solutions; wind turbines; and water treatment, grid infrastructure and equipment optimization technologies. Together, they reflect the expanded set of capabilities GE offers to customers across multiple energy intensive industrial sectors.

09:46 am ARM Holdings upgraded to Buy at The Benchmark Company; tgt $35: . The Benchmark Company upgrades ARMH to Buy from Hold and sets target price at $35. Their bullish thesis centers on the long-term growth prospects for the very profitable Process Division (ARM PD) royalties, which made up 46% of 1H11 total revenue

Xilinx (XLNX $30.53 -0.92) lowered second quarter revenue guidance to down 7-10% QoQ to approximately $554.0-572.4 million versus the $604.30 million Capital IQ consensus (-2.0% QoQ), from +1 to -3% QoQ previously. Weaker than expected sales growth during the quarter is driven primarily by the Communications and Industrial and Other categories. Gross margin forecast remains unchanged at approximately 63%. Operating expenses are expected to be approximately $208 million, lower than $218 million previously.

ARM Holdings (ARMH $29.20 +.0.96) was upgraded to Buy from Hold at The Benchmark Company and the firm set a target price at $35. Their bullish thesis centers on the long-term growth prospects for the very profitable Process Division royalties, which made up 46% of 1H11 total revenue.

Plexus (PLXS $24.50 -1.44) was downgraded to Sell from Neutral at Ticonderoga with a target of $20. The firm notes they are increasingly finding it difficult to justify the company's current valuation relative to its peers, especially in light of disappointing financial performance in recent quarters and growing signs of weakness in core markets.

11:43 am S&P Tech Sector Trading Higher, In-line With the Broader Market (XLNX)

The tech sector is trading higher today, in-line with the broader market. Semiconductors are showing relative weakness in the tech space, however, with the Philly Semi Index trading 0.3% higher. Among chips in the index, XLNX (-2.3%) is a notable laggard. Among other major indices, the S&P 500 is trading 0.5% higher, while the NASDAQ is trading 0.6% higher. The QQQ, meanwhile, is trading 1.0% higher. Among tech bellwethers, AAPL (+2.5%) is outperforming, while CSCO (+0.2%) is under pressure.

In earnings this morning, XLNX (-2.3%) lowered its Q2 rev guidance.

In news last night, MLNX (-10.1%) announces a 3 mln ordinary share offering.

Among notable analyst upgrades this morning, The Benchmark Company upgraded ARMH (+3.8%) to Buy and SAP (+1.4%) was upgraded to Outperform at Wells Fargo. Among notable downgrades, PLXS (-4.9%) was downgraded to Sell at Ticonderoga and LOGI (-4.5%) was downgraded to Sell at Goldman.