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From Briefing.com: Weekly Recap - Week ending 20-Apr-12An afternoon descent dashed gains and left stocks to settle at session lows. Still, the S&P 500 was able to cling to a fractional gain after logging losses in the two previous sessions.

The broad market measure also booked its first weekly gain, 0.6%, in three weeks. Market participants were without domestic data today. That left traders to focus on action in Europe and the latest round of earnings reports.

Despite mixed overnight action in Asia that left Japan's Nikkei to end the week down nearly 1% and Hong Kong's Hang Seng to advance by about 1.5%, Europe's major bourses put together strong gains on the back of a surprisingly strong IFO business climate survey from Germany. Strong retail sales numbers were also reported by the United Kingdom. Germany's DAX ended the week more than 1% below where it began, France's CAC actually eked out a fractional gain for the week, but Britain's FTSE fell about 2% for the week.

Strong earnings reports from a broad range of industry players provided a positive backdrop to early trade. Blue chips McDonald's (MCD 95.94, +0.66) and General Electric (GE 19.36, +0.22) both performed well because of a positive response to their latest quarterly announcements. Microsoft (MSFT 32.42, +1.41) put together an impressive performance, but the stock's strength wasn't enough to offset weakness in Apple (AAPL 572.98, -14.46), which boasts a market cap that is about double that of MSFT. Shares of AAPL also carry the greatest weight of any stock in either the S&P 500 or the Nasdaq.

Tech stocks, which settled the day down 0.5%, were joined in negative territory by Financials, which also fell 0.5%. Arguably the two most influential sectors, both lagged for virtually the entire session. Their weakness ultimately dragged down the broader market in afternoon trade.

Still, many defensive-oriented stocks managed to maintain most of their gains. Consumer Staples scored a 0.9% gain, while Utilities advanced 1.0% and Telecom laid claim to a 0.7% gain.

The dollar ran into some rather stiff selling that left it to lose 0.5% against a basket of major foreign currencies. It fell about 0.9% for the week. Most of that downturn was due to renewed strength in the euro, which climbed 0.6% on Friday to about $1.32. That helped fuel a 1.1% weekly gain.

Despite weakness in the dollar, commodities had another negative week that saw the CRB Index fall 0.5% for the week. The CRB has suffered five consecutive weekly losses for a cumulative decline of about 5%.

The expiration of monthly options helped take share volume on the NYSE to almost 1 billion, which is well above average levels of the past several months.

Advancing Sectors: Utilities +1.0%, Consumer Staples +0.9%, Industrials +0.8%, Telecom +0.7%, Health Care +0.5%, Consumer Discretionary +0.2%, Materials +0.1%.

Declining Sectors: Energy -0.1%, Financials -0.5%, Tech -0.5%..Nasdaq 100 -0.4%. ..S&P Midcap 400 +0.3%. ..Russell 2000 +0.6%. ..NYSE Adv/Dec 1973/1040. ..NASDAQ Adv/Dec 1499/1010.

 
 Index	  Started Week  Ended Week  Change % Change  YTD % 
 DJIA	    12849.59	 13029.26   179.67    1.4    6.6 
 Nasdaq	     3011.33	  3000.45   -10.88   -0.4   15.2 
 S&P 500	     1370.26	  1378.53     8.27    0.6    9.6 
 Russell 2000  796.29	   804.05     7.76    1.0    8.5

2:29PM Apple continues to trend lower intraday, eyeing its 50-day ma's below.... (AAPL) 576.71 -10.81 : Under distribution for 8 out of the last 9-days since its April 10th $644.00 peak, AAPL is trending lower this afternoon towards Tuesday's low of 571.91. There's a "runaway gap" zone from March 14 in play between 568.18/575.40, with its 50-day simple/exponential moving averages just below that at 569.22/566.86. Failure for price to hold these key zones, would suggest further weakness down towards the early March highs/breakout support near 548/555.

FSI International (FSII) announced that several leading device producers have placed orders for ANTARES CryoKinetic Cleaning Systems. The systems are expected to ship in fiscal 2012.

7:52AM Lattice Semi Correction: Misses by $0.01 on a GAAP basis, with revenue in-line; guides Q2 rev below consensus (LSCC) : Last night we incorrectly compared Q1 GAAP EPS to the non-GAAP consensus; the comment has been removed and should have read as follows:

HP (HPQ) announced that HP Enterprise Services has been awarded a 7 year contract valued at ~ $39.8 mln by the Defense Information Systems Agency to help enhance the DoD's ability to detect IT system vulnerabilities.

6:39AM General Electric beats by $0.01, beats on revs (GE) 19.14 : Reports Q1 (Mar) earnings of $0.34 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.33; revenues fell 8.2% year/year to $35.18 bln vs the $34.7 bln consensus, up 4% ex-the impact of NBCU.

GE's Q1 Industrial segment revenues were $23.7 bln, up 14%. Industrial segment organic revenue was up 11% for the quarter. Industrial growth market revenues were up 14%, driven by double-digit growth in Australia, Canada, China, Russia, Latin America, and Sub-Saharan Africa. The U.S. was also strong with Industrial segment revenues up 17%. Industrial segment profit was up 10% to $3.3 bln and segment operating profit margins showed improvement in Healthcare and Transportation in the first quarter. While margins were down in total in the quarter, we expect them to increase 50 basis points over the total year as businesses continue to implement productivity projects and recognize value gap improvements. In addition, pricing on new orders was up 50 basis points in total with higher prices in 4 out of 5 businesses. Cash generated from Industrial operating activities was up 22% at $2.1 bln. At the end of the first quarter, GE had $84 bln of consolidated-cash and cash equivalents.

GE Capital's first quarter earnings were $1.8 bln, flat from last year, but up 27% excluding the 1Q'11 Garanti sale impact. The co believes that GE Capital's strong business performance should continue for the year. Margins on new business continue to be attractive, with overall portfolio margins increasing. Real Estate turned its first profit since 3Q 2008. GECC's Tier One common ratio of 10.4% has never been stronger.

Infrastructure orders were a record high for the first quarter at $23.1 bln, up 20% from the prior year. Organic orders grew 14% in the first quarter, marking the eighth consecutive quarter of positive growth. Industrial growth market orders were up 21%. All businesses grew equipment orders at double-digit rates for the quarter.

"This quarter we witnessed broad-based strength in orders across all our Infrastructure businesses and in both equipment and services. We see encouraging leading indicators driven by global growth. Our strategy to invest in technology and global growth platforms continues to produce results with 11% organic Industrial segment revenue growth and 10% Industrial segment profit growth in the first quarter... We are positioned for double digit growth and our Industrial cash plan remains solid. We expect to return excess cash from GE Capital over the course of 2012, subject to review by the Federal Reserve."

Microsoft (MSFT $32.30 +1.30) reported third quarter earnings of $0.60 per share, $0.02 better than the Capital IQ Consensus of $0.58, while revenues rose 6.0% year/year to $17.41 billion versus the $17.16 billion consensus. The Server & Tools business posted $4.57 billion in Q3 revenue, a 14% increase from the prior year period, driven by double-digit revenue growth in SQL Server and more than 20% growth in System Center revenue. The Microsoft Business Division reported $5.81 bln in third-quarter revenue, a 9% increase from the prior year period, reflecting the continued strength of Office 2010 with businesses and consumers. Dynamics posted an 11% revenue increase from the prior year period, with Dynamics CRM revenue growing more than 30%. The Windows and Windows Live Division posted revenue of $4.62 bln, a 4% increase from the prior year period. Strong Windows 7 adoption continued with enterprise desktops on Windows 7 now up to 40% worldwide. The Online Services Division reported revenue of $707 million, a 6% increase from the prior year period, and operating loss improvement of approximately $300 mln. The Entertainment & Devices Division posted revenue of $1.62 billion, a decrease of 16% from the prior period due to a soft gaming console market. Outlook: Microsoft is revising operating expense guidance downward and now offers a range of $28.3 bln to $28.7 bln for FY12 from $28.5-28.9 billion. Microsoft also offers preliminary fiscal year 2013 operating expense guidance of $30.3-30.9 billion, representing 6% to 8% growth from the mid-point of fiscal year 2012 guidance.

Riverbed Technology (RVBD $20.35 -7.51) reported first quarter earnings of $0.20 per share, in-line with the Capital IQ Consensus of $0.20, while revenues rose 11.6% year/year to $183 million versus the $186.03 million consensus. "In a seasonally difficult quarter, we completed a major product cycle and achieved results within our guidance range... Looking ahead, we expect our new Steelhead, Granite, and Cascade products, along with Stingray and Whitewater, to form the basis for Riverbed's next leg of growth as we continue to execute on our vision to deliver a complete performance platform. Our competitive position is strong, our addressable market is growing, and we are optimistic about the opportunity before us."

SanDisk (SNDK $34.93 -5.54) reported first quarter earnings of $0.63 per share, $0.08 worse than the Capital IQ Consensus of $0.71, while revenues fell 6.8% year/year to $1.21 billion versus the $1.21 billion consensus. The company also reported Gross margin of 35.8%. Co also reported "Our first quarter results were adversely impacted by lower-than-expected pricing and demand weakness in certain segments and we expect similar trends in the second quarter as well, we believe a seasonally stronger demand environment in the second half of the year, combined with our diversifying portfolio of mobile and SSD solutions, will allow us to deliver strong sequential revenue growth in the third and fourth quarters..."

Rambus (RBMS $5.34 -0.26) reported a first quarter loss of $0.25 per share, $0.02 worse than the Capital IQ Consensus of ($0.23), while revenues rose 0.6% year/year to $62.9 million versus the $63 million consensus.

Advanced Micro (AMD $8.01 +0.02) reported first quarter earnings of $0.12 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.09, while revenues fell 1.7% year/year to $1.59 billion versus the $1.56 bln consensus. The company issues upside guidance for the second quarter with revenues flat to +6% quarter over quarter to $1.585-1.680 billion versus the $1.59 billion consensus. Computing Solutions segment revenue decreased eight percent sequentially and was flat year-over-year. The sequential decrease was driven by seasonally lower sales in the Client business. Graphics segment revenue was flat sequentially and decreased 7 percent year-over-year. GPU revenue was up in a seasonally down quarter, due to higher improved desktop GPU ASP in the channel, offset by seasonally lower game console royalty revenue. The year-over-year decrease was primarily driven by lower demand for desktop and mobile graphics. Non-GAAP gross margin was 46%, flat sequentially. "A complete top-to-bottom introduction of new APU offerings, combined with ample product supply resulting from continued progress with our manufacturing partners, positions us to win and grow."

12:49 pm Technology sector trading higher today with the market

The tech sector is trading higher today, inline with gains in the broader market. Semiconductors are also showing relative weakness, however, with the Philly Semi Index trading 1.2% lower. SNDK (-14.2%) is a notable laggard in that chip index. Among other major indices, the SPY, the QQQ and the NASDAQ are all trading 0.8% higher on the session. Among tech bellwethers, MSFT (+5.4%) is a standout, while AAPL (+2.2%) is showing weakness.

In earnings last night, MSFT (-3.1%) reported a beat, while SNDK (-14.2%) and RVBD (-26.5%) posted slight misses and issued downside guidance. Elsewhere, AMD (+1.3%) posted a beat with inline guidance and ALTR (-6.5%) reported a miss and offered inline guidance. There were few notable analyst upgrades this morning. Among those, XXIA (+13.3%) was upgraded to Buy at Wunderlich. While in downgrades, RVBD (-26.5%) and SNDK (-14.2%) where each downgraded at a host of firms on the Street following last night's earnings.

09:43 am General Electric shares rise 2% following beat on earnings

General Electric (GE $19.50 +0.37) reported first quarter earnings of $0.34 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.33, while revenues fell 8.2% year/year to $35.18 billion versus the $34.7 bln consensus, up 4% ex-the impact of NBCU. GE's Q1 Industrial segment revenues were $23.7 billion, up 14%. Industrial segment organic revenue was up 11% for the quarter. Industrial growth market revenues were up 14%, driven by double-digit growth in Australia, Canada, China, Russia, Latin America, and Sub-Saharan Africa. The U.S. was also strong with Industrial segment revenues up 17%. Industrial segment profit was up 10% to $3.3 bln and segment operating profit margins showed improvement in Healthcare and Transportation in the first quarter. While margins were down in total in the quarter, we expect them to increase 50 basis points over the total year as businesses continue to implement productivity projects and recognize value gap improvements. In addition, pricing on new orders was up 50 basis points in total with higher prices in 4 out of 5 businesses.

Cash generated from Industrial operating activities was up 22% at $2.1 bln. At the end of the first quarter, GE had $84 bln of consolidated-cash and cash equivalents. GE Capital's first quarter earnings were $1.8 bln, flat from last year, but up 27% excluding the 1Q'11 Garanti sale impact. The co believes that GE Capital's strong business performance should continue for the year. Margins on new business continue to be attractive, with overall portfolio margins increasing. Real Estate turned its first profit since 3Q 2008. GECC's Tier One common ratio of 10.4% has never been stronger. Infrastructure orders were a record high for the first quarter at $23.1 bln, up 20% from the prior year. Organic orders grew 14% in the first quarter, marking the eighth consecutive quarter of positive growth. Industrial growth market orders were up 21%. All businesses grew equipment orders at double-digit rates for the quarter. "This quarter we witnessed broad-based strength in orders across all our Infrastructure businesses and in both equipment and services. We see encouraging leading indicators driven by global growth. Our strategy to invest in technology and global growth platforms continues to produce results with 11% organic Industrial segment revenue growth and 10% Industrial segment profit growth in the first quarter... We are positioned for double digit growth and our Industrial cash plan remains solid. We expect to return excess cash from GE Capital over the course of 2012, subject to review by the Federal Reserve."

09:41 am Sandisk shares plunge over 13% following miss on EPS

SanDisk (SNDK $35.07 -5.48) reported first quarter earnings of $0.63 per share, $0.08 worse than the Capital IQ Consensus of $0.71, while revenues fell 6.8% year/year to $1.21 billion versus the $1.21 billion consensus. The company also reported Gross margin of 35.8%.

The company also reported "Our first quarter results were adversely impacted by lower-than-expected pricing and demand weakness in certain segments and we expect similar trends in the second quarter as well, we believe a seasonally stronger demand environment in the second half of the year, combined with our diversifying portfolio of mobile and SSD solutions, will allow us to deliver strong sequential revenue growth in the third and fourth quarters..."

09:39 am Riverbed shares plunge over 25% following miss on revenues and downside guidance on call

Riverbed Technology (RVBD $20.64 -7.20) reported first quarter earnings of $0.20 per share, in-line with the Capital IQ Consensus of $0.20, while revenues rose 11.6% year/year to $183 million versus the $186.03 million consensus.

"In a seasonally difficult quarter, we completed a major product cycle and achieved results within our guidance range... Looking ahead, we expect our new Steelhead, Granite, and Cascade products, along with Stingray and Whitewater, to form the basis for Riverbed's next leg of growth as we continue to execute on our vision to deliver a complete performance platform. Our competitive position is strong, our addressable market is growing, and we are optimistic about the opportunity before us."

09:35 am Microsoft shares rise nearly 4% following beat on earnings

Microsoft (MSFT $32.19 +1.18) reported third quarter earnings of $0.60 per share, $0.02 better than the Capital IQ Consensus of $0.58, while revenues rose 6.0% year/year to $17.41 billion versus the $17.16 billion consensus. The Server & Tools business posted $4.57 billion in Q3 revenue, a 14% increase from the prior year period, driven by double-digit revenue growth in SQL Server and more than 20% growth in System Center revenue. The Microsoft Business Division reported $5.81 bln in third-quarter revenue, a 9% increase from the prior year period, reflecting the continued strength of Office 2010 with businesses and consumers.

Dynamics posted an 11% revenue increase from the prior year period, with Dynamics CRM revenue growing more than 30%. The Windows and Windows Live Division posted revenue of $4.62 bln, a 4% increase from the prior year period. Strong Windows 7 adoption continued with enterprise desktops on Windows 7 now up to 40% worldwide. The Online Services Division reported revenue of $707 million, a 6% increase from the prior year period, and operating loss improvement of approximately $300 mln. The Entertainment & Devices Division posted revenue of $1.62 billion, a decrease of 16% from the prior period due to a soft gaming console market.

Outlook: Microsoft is revising operating expense guidance downward and now offers a range of $28.3 bln to $28.7 bln for FY12 from $28.5-28.9 billion. Microsoft also offers preliminary fiscal year 2013 operating expense guidance of $30.3-30.9 billion, representing 6% to 8% growth from the mid-point of fiscal year 2012 guidance.