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From Briefing.com: Weekly Recap - Week ending 19-Jul-13

Dow -4.80 at 15543.74, Nasdaq -23.66 at 3587.61, S&P +2.72 at 1692.09

Today's session featured disappointing earnings from technology heavyweights, Google (GOOG 896.60, -14.08) and Microsoft (MSFT 31.40, -4.04), but that could have gone unnoticed if someone were to only focus on the performance of the S&P 500, which ended with a slim gain of 0.2%, notching a new record high.

Meanwhile, the Nasdaq settled lower by 0.7% as earnings and revenue misses from the two major components weighed on the tech-heavy index. For its part, the S&P technology sector fell 2.0%.

While technology shares displayed weakness across the board, the broader market was kept afloat by the outperformance of heavily-weighted energy, health care, and industrial sectors. The three groups added between 1.2% and 1.4% with health care ending in the lead.

The health care sector spent the entire session in a steady climb as biotechnology provided significant support. The iShares Nasdaq Biotechnology ETF (IBB 195.00, +3.06) advanced 1.6% after marking a fresh all-time high.

Elsewhere, the industrial sector was underpinned by Dow component General Electric (GE 24.72, +1.09), which jumped 4.6% after its slim earnings beat overshadowed a 3.5% year-over-year decline in revenue. Another Dow member, Boeing (BA 106.96, -0.67), kept industrials from logging further gains after two more jets produced by the company were forced to return to their home ports following in-flight technical issues.

Also of note, the energy sector advanced 1.4% on the back of better-than-expected earnings from Schlumberger (SLB 82.74, +4.33). On a related note, crude oil added 0.3% to $108.15.

Another commodity-related sector, materials, rose 0.5% as chemical producers and gold miners displayed strength. The Market Vectors Gold Miners ETF (GDX 25.86, +1.08) jumped 4.4%. Gold futures displayed strength as well, climbing 0.8% to $1294.30 per troy ounce.

The CBOE Volatility Index (VIX 12.54, -1.23) spent the entire session in a steady decline, dropping to its lowest level since May 17. After notching its 2013 high of 21.91% on June 24, the near-term volatility measure has logged three consecutive weekly losses as the S&P 500 climbed to fresh all-time highs.

Participation was relatively limited and NYSE trading volume of 872 million shares was light when taking today's options expiration into account.

On Monday, June existing home sales will be reported at 10:00 ET.

Week in Review: Another Week, Another Record for the S&P 500

On Monday, the S&P 500 settled higher by 0.1% to mark its eight consecutive advance. The utilities sector ended atop the leaderboard with a gain of 1.6%, but the relative strength of three influential sectors (financials, industrials, and technology) helped the S&P end less than five points away from its May 22 all-time intraday high of 1687.18. Notably, the session was one of the quietest of the year in terms of participation as only 567 million shares changed hands on the floor of the New York Stock Exchange. Financials provided the broader market with an opening boost after Citigroup (C 52.35, -0.34) reported better-than-expected earnings on above-consensus revenue. Citigroup rose 2.0% while the broader sector added 0.4%.

Tuesday's session saw the S&P 500 end lower by 0.4% to snap its streak of eight consecutive gains. The decline marked only the third time this month where the S&P registered a loss, and first with a drop larger than one point. Heavily-weighted sectors, including financials and health care, pressured the broader market despite better-than-expected quarterly results from Goldman Sachs (GS 164.36, +0.30) and Johnson & Johnson (JNJ 92.23, +2.06). In addition, market participants appeared cautious ahead of the Wednesday testimony by Fed Chairman Ben Bernanke in front of the House Financial Services Committee. Also of note, Coca-Cola (KO 41.09, +0.28) shed 1.9% after missing on revenue.

Equities began Wednesday's session in the black and the S&P 500 added 0.3% after the prepared remarks from Ben Bernanke's testimony in front of the House Financial Services Committee provided an opening boost. Mr. Bernanke's comments were in-line with previous statements, indicating the Federal Reserve plans to base its decisions on the incoming data. The Fed Chairman expounded on this by saying asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, if financial conditions were to tighten, the current pace of purchases could be maintained or increased. In that vein, housing data released concurrently with Chairman Bernanke's comments spoke in favor of leaving asset purchases unchanged after June housing starts hit an annualized rate of 836,000 units (958,000 Briefing.com consensus). The large miss was mostly due to 26.2% decline in multi-family units while single-family starts declined by 0.8%. Separately, the weekly MBA Mortgage Index decreased 2.6% to mark its fifth negative reading in a row and the ninth decline out of the past ten weeks. Homebuilders received the news in stride, and the iShares Dow Jones US Home Construction ETF (ITB 23.23, +0.16) advanced 1.3%.

On Thursday, the S&P 500 settled with a gain of 0.5% after notching a fresh intraday record high of 1693.13. Meanwhile, the tech-heavy Nasdaq underperformed, ending unchanged. Stocks climbed at the open and received an additional boost after the July Philadelphia Fed Index spiked to 19.8 from 12.5. That was well ahead of the Briefing.com consensus estimate of 5.3 and marked the highest reading for the index since March 2011. The S&P was able to register to a new record high as heavily-weighted energy, financial, and industrial sectors all logged gains of at least 0.9%.

 
 Index	     Started Week  Ended Week  Change  % Change  YTD % 
 DJIA	       15464.30	    15543.74	79.44	  0.5	18.6 
 Nasdaq	        3600.08	     3587.61   -12.47	 -0.3	18.8 
 S&P 500	1680.19	     1692.09    11.90     0.7	18.6 
 Russell 2000	1036.52	     1050.48	13.96	  1.3	23.7

4:30PM This week's biggest % gainers/losers (SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Technology: LEAP (17.39 +122.98%), SOL (3.72 +39.18%), GAME (5.74 +28.36%), RVLT (4.92 +24.94%), SFUN (31.5 +23%), AMCC (11.04 +21.42%), POWI (52.87 +18.12%), CYOU (39.09 +17.87%)
Services: XPO (23.06 +25.97%), ATHN (110.27 +25.6%), VIPS (37.21 +23.07%), OSTK (32.77 +21.34%), RSH (3.07 +19.77%), BYI (69.8 +17.98%)
Healthcare: STSI (1.97 +23.38%), XOMA (4.86 +20.1%), TSRX (11.48 +17.89%)
Financial: TAYC (22.39 +28.47%)
Consumer Goods: SHFL (22.92 +24.18%), ACW (6.6 +21.09%)

This week's top 20 % losers

Technology: AFFX (4.09 -16.57%), UTEK (30.01 -11.89%), SPIL (5.27 -11.55%), FCS (12.85 -11.13%), APH (76.78 -10.31%), UMC (2.06 -10.17%)
Services: LQDT (28.9 -12.76%), CHUY (36.71 -11.52%), RLD (12.03 -10.95%), SCHL (29.54 -10.3%)
Industrial Goods: XONE (63.37 -12.69%)
Healthcare: RGLS (10.08 -20.95%), VSTM (15.55 -10.99%), AIRM (33.29 -10.55%)
Financial: SRC (9.6 -49.35%)
Consumer Goods: SCSS (24.03 -12.33%)
Basic Materials: TGD (2.16 -12%), GORO (7.84 -10.64%), SHW (172.86 -10.13%), SAND (5.96 -10.08%)

12:51PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).
Large Cap Gainers

CMG (408.43 +8.41%): Beat quarterly EPS by $0.01 ($2.82 vs $2.81 estimate); comparable restaurant sales rose 5.5%; management expects 165-180 new restaurant openings, low to mid single digit comparable restaurant sales in 2013; target raised to $455 from $427 at Lazard, to $435 from $420 at Wedbush
SLB (83.19 +6.00%): Beat quarterly EPS by $0.05 ($1.15 ex items vs $1.10 estimate), revs rose 8.1% yoy to $11.18 bln vs $11.12 bln estimate; mentioned positively at Cowen
GE (24.7 +4.53%): Beat quarterly EPS by $0.01 ($0.36 vs $0.35 estimate), revs fell 3.5% yoy to $35.12 bln vs $35.49 bln estimate; Q2 orders +4%, U.S. orders +20%

Large Cap Losers

ISRG (371.25 -11.92%): Missed quarterly EPS by $0.14 ($3.90 vs $4.04 estimate), revs rose 7.8% yoy to $578.5 mln vs $574.68 mln estimate; lowered FY13 rev guidance to flat to +7% (~$2.18-2.33 bln) from +16-19% vs $2.45 bln estimate; lowered FY13 procedures growth guidance to +15-18% from +20-23%
MSFT (31.57 -10.93%): Missed quarterly EPS by $0.16 ($0.59 vs $0.75 estimate), revs rose 10.2% yoy to $19.9 bln vs $20.7 bln estimate; downgraded to Market Perform at Raymond James; downgraded to Market Perform at Cowen; reiterated with a Sell at Pacific Crest
TSM (16.14 -3.99%): Beat quarterly EPS by NT$0.10 (NT$2.00 vs NT$1.90 estimate), revs rose 21.6% yoy to NT$155.89 vs NT$155.3 bln estimate; sees Q3 revs of NT$161-164 bln vs NT$165.53 bln estimate; downgraded to Neutral from Overweight at HSBC Securities

Mid Cap Gainers

CBST (56.5 +9.54%): Missed quarterly EPS by $0.13 ($0.42 ex items vs $0.55 estimate), revs rose 12.2% yoy to $258.8 mln vs $254.77 mln estimate; announced the initiation of Phase 3 efficacy studies of bevenopran (previously known as CB-5945) in patients with chronic non-cancer pain and opioid-induced constipation
ALGN (43.1 +8.70%): Beat quarterly EPS by $0.08 ($0.36 ex items vs $0.28 estimate), revs rose 12.5% yoy to $163.8 mln vs $156.2 mln estimate; target raised to $46 from $43 at Stifel; target raised to $43 from $38 at Jefferies; target raised to $47 from $43 at JMP Securities; target raised to $42 from $40 at Cantor Fitzgerald
HOLX (21.66 +8.46%): Sees Q3 revs of ~$626 mln (vs $626.72 mln Capital IQ Consensus Estimate), in-line with previous guidance of $625-630 mln; sees Q3 EPS of $0.38 (vs $0.37 Capital IQ consensus Estimate), slightly above previous guidance of $0.36-0.37

Mid Cap Losers

AMD (3.95 -14.87%): Beat quarterly EPS by $0.03 (-$0.09 vs -$0.12 estimate), revs fell 17.9% yoy to $1.16 bln vs $1.11 bln estimate; gross margin decreased sequentially; sees Q3 gross margin of 36%, down 300 bps; sees Q3 revs of $1.38-1.45 bln vs $1.22 bln estimate; downgraded to Underweight at Morgan Stanley; downgraded to Underperform at Credit Suisse; target raised to $4 from $2 at Bernstein; target raised to $6 from $5 at Canaccord Genuity
RGA (67.08 -8.49%): Reports Q2 net loss of $49.6 mln or $0.69 per share which includes a charge and may not be comparable to the estimate of $1.83, excluding the charge EPS was $1.84
CYH (43.89 -7.23%): Sees Q2 revs of $3.236 bln vs $3.375 bln estimate; sees FY13 revs of $13.0-13.4 bln vs $13.44 bln estimate; sees FY13 EPS of $2.95-3.25 vs $3.65 estimate

07:59 am Skyworks shares spike 8% following better than expected earnings
Skyworks (SWKS $24.25 +1.80) reported third quarter earnings of $0.54 per share, excluding non-recurring items, which was better than expected, while revenues rose 12.1% year/year to $436.1 million which was in line with expectations. The company issued fourth quarter guidance EPS guidance $0.62, which beat expectations, with revenues $475 million which also topped expectations.

07:53 am Google shares fall 3% following miss on earnings
Google (GOOG $882.03 -28.68) reported second quarter earnings of $9.56 per share, excluding non-recurring items, which missed expectations, while revenues rose 18.6% year/year to $14.11 billion which also missed expectations. GAAP operating income in Q2 was $3.12 billion, or 22% of revenues. This compares to GAAP operating income of $3.24 billion, or 27% of revenues, in the second quarter of 2012. Non-GAAP operating income in Q2 was $3.99 billion, or 28% of revenues.

This compares to non-GAAP operating income of $3.94 billion, or 33% of revenues, in 2Q12. On a consolidated basis, Google Inc. revenues for the quarter ended June 30, 2013 were $14.11 billion, an increase of 19% y/y. Google Revenues (advertising and other) -- Google revenues were $13.11 billion, or 93% of consolidated revenues, in Q2 representing a 20% increase y/y. Google Sites Revenues -- Google-owned sites generated revenues of $8.87 billion, or 68% of total Google revenues, in Q2 up 18% y/y. Google Network Revenues: Google's partner sites generated revenues of $3.19 billion, or 24% of total Google revenues, in tQ2 up 7% y/y. Other revenues from Google were $1.05 billion, or 8% of total Google revenues, in Q2, up 138% y/y. Google

International Revenues : Google revenues from outside of the United States totaled $7.2 billion, representing 55% of total Google revenues in the second quarter of 2013, compared to 55% in Q1. Foreign Exchange Impact on Google Revenues - Had foreign exchange rates remained constant from the first quarter of 2013 through the second quarter of 2013, our Google revenues in the second quarter of 2013 would have been $177 million higher. Google revenues from the United Kingdom totaled $1.32 billion, representing 10% of Google revenues in Q1, compared to 11% in 2Q12. Paid Clicks: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 23% over the second quarter of 2012 and increased approximately 4% over the first quarter of 2013. Cost-Per-Click: Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2012 and decreased approximately 2% over the first quarter of 2013. Traffic acquisition costs increased to $3.01 billion in Q2, compared to $2.60 billion in 2Q12. TAC as a percentage of advertising revenues was 25% in Q2, same as prior year.

Motorola Mobile Revenues (hardware and other) - Motorola Mobile revenues were $998 million, or 7% of consolidated revenues in Q2, compared to $843 million, or 7% of consolidated revenues in 2Q12. Operating expenses were $4.92 billion in Q2 or 35% of revenues, compared to $3.89 billion in the second quarter of 2012, or 33% of revenues. Motorola Mobile Operating Loss: GAAP operating loss for Motorola Mobile was $342 million, or -34% of Motorola Mobile revenues in Q2. This compares to GAAP operating loss of $199 million, or -24% of Motorola Mobile revenues in 2Q12. Non-GAAP operating loss for Motorola Mobile in Q2 was $218 million, or -22% of Motorola Mobile revenues. This compares to non-GAAP operating loss of $49 million, or -6% of Motorola Mobile revenues in 2Q12. Cash Flow and Capital Expenditures - Net cash provided by operating activities in the second quarter of 2013 totaled $4.71 billion, compared to $4.25 billion in the second quarter of 2012. In the second quarter of 2013, capital expenditures were $1.6 billion, the majority of which was for production equipment, data center construction and facilities-related purchases. Free cash flow was $3.09 billion. We expect to continue to make significant capital expenditures. Cash: As of June 30, 2013, cash, cash equivalents, and marketable securities were $54.4 billion.

07:51 am Microsoft shares plunge 7% following miss on earnings
Microsoft (MSFT $32.89 -2.55) reported fourth quarter earnings of $0.59 per share, including a $900 million boost, $0.07/share, from Surface RT inventory adjustments, which was worse than expected, while revenues rose 10.2% year/year to $19.9 billion which was worse than expected. In addition, these financial results reflect the recognition of $782 million of previously deferred revenue related to the Office Upgrade Offer. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft Business Division revenue grew 14% for the fourth quarter and 3% for the full year. Adjusting for the recognition of previously deferred revenue related to the Office Upgrade Offer, Microsoft Business Division non-GAAP revenue increased 2% for the fourth quarter. Office 365 is now on a $1.5 billion annual revenue run rate.

Server & Tools revenue grew 9% for the fourth quarter and 9% for the full year, driven by double-digit percentage revenue growth in SQL Server and System Center. Windows Division revenue grew 6% for the fourth quarter and 5% for the full year. Excluding the impact of the prior year Windows Upgrade Offer revenue deferral, Windows Division non-GAAP revenue decreased 6% for the fourth quarter and 1% for the full year. In June, Microsoft released the public preview of Windows 8.1 which will be made available to OEMs in August. Online Services Division revenue grew 9% for the fourth quarter and 12% for the full year, driven by an increase in revenue per search and volume. Bing organic U.S. search market share was 17.9% for the month of June 2013, up 230 basis points from the prior year period. Entertainment and Devices Division grew 8% for the fourth quarter and 6% for the full year.

During the quarter, transactional revenue within Xbox LIVE grew nearly 20%, and we unveiled our next-generation gaming and entertainment console, Xbox One. "While our fourth quarter results were impacted by the decline in the PC market, we continue to see strong demand for our enterprise and cloud offerings, resulting in a record unearned revenue balance this quarter. We also saw increasing consumer demand for services like Office 365, Outlook.com, Skype, and Xbox LIVE."

Skyworks (SWKS) reported third quarter earnings of $0.54 per share, excluding non-recurring items, which was better than expected, while revenues rose 12.1% year/year to $436.1 million which was in line with expectations. The company issued fourth quarter guidance EPS guidance $0.62, which beat expectations, with revenues $475 million which also topped expectations.

Advanced Micro (AMD) reported a second quarter loss of $0.09 per share, which was a lower than expected loss, revenues fell 17.9% year/year to $1.16 billion which also topped expectations. Gross margin decreased sequentially. Q2 2013 gross margin included an $11 million benefit from sales of inventory that had been previously reserved in Q3 2012 and this positively impacted gross margin by 1 percentage point as compared to a similar $20 million benefit in Q1 2013 which positively impacted gross margin by 2 percentage points. The company issues guidance for the third quarter with revenues of $1.38-1.45 billion (+19-25% q/q) which also topped expectations.

Southeastern Asset Management, Inc. and Carl C. Icahn today issued the following statement in response to the decision by Dell (DELL) to adjourn the company's Special Meeting to July 24, 2013. "It is unfortunate, although not surprising, that Dell's Board and Special Committee have delayed the date of the Special Meeting at which stockholders can vote on the Michael Dell/Silver Lake freeze out transaction. We believe that this delay reflects the unhappiness of Dell stockholders with the Michael Dell/Silver Lake offer, which we believe substantially undervalues the company. This is not the time for delay but the time to move Dell forward. Should the Michael Dell/Silver Lake transaction be defeated, we urge the Dell Board to move quickly to hold the Annual Meeting when stockholders will have the opportunity to elect our slate of directors. Our slate has met and unanimously supports our proposed Dell self tender offer and its implementation in accordance with their fiduciary duties. As previously communicated, we believe that our proposed Dell self tender offer has a total value to tendering stockholders of approximately $15.50 to $18.00 per share. Southeastern and Icahn continue to recommend that our fellow Dell stockholders vote the gold proxy card (1) against the Merger Agreement proposal, (2) against the Golden Parachute proposal, and (3) 'against' the Adjournment proposal."