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From Briefing.com: 4:10 pm : The S&P 500 ended lower by 1.4% as broad-based weakness persisted throughout the session. Stocks slumped at the open after disappointing guidance from Cisco Systems (CSCO 24.48, -1.89) and Wal-Mart (WMT 74.41, -1.99) combined with a spike in Treasury yields pressured the major averages.

Networking company Cisco reported a slight earnings beat, but its cautious demand outlook coupled with news of 4,000 layoffs caused the stock to slump 7.2%.

Separately, Wal-Mart fell 2.6% after reporting in-line results, and saying current quarter same-store sales are expected to be essentially flat.

In addition, the 10-yr yield spiked to its highest level in two years after today's jobless claims, in-line inflation, and the better-than-expected Empire Manufacturing data were perceived as supportive of the Fed cutting back on its asset purchases as early as September. The benchmark 10-yr yield ended higher by six basis points at 2.78% after climbing as high as 2.82%. Although yields ended off their highs, stocks settled on their lows.

All ten sectors finished in the red with seven of ten groups posting losses larger than 1.0% while, energy (-0.7%), materials (-0.8%), and telecom services (-0.9%) outperformed.

Of the three sectors, the materials space staged a notable partial recovery off its opening lows as gold miners contributed to the rebound. The Market Vectors Gold Miners ETF (GDX 30.43, +1.73) jumped 6.0% as gold futures advanced 2.2% to $1362.50 per troy ounce. Despite today's decline, the materials sector continues to hold an August gain of 1.4%.

Outside of materials, only the technology sector remains in positive territory for the month (+0.6%). However, the group led to the downside today as all top components registered losses. High-beta chipmakers underperformed as well with the PHLX Semiconductor Index falling 2.2%.

The technology sector was followed closely by the discretionary space. Although the sector tumbled 1.8%, homebuilders registered broad gains. The iShares Dow Jones US Home Construction ETF (ITB 21.30, +0.49) gained 2.4% after declining steadily through the first half of the month. Despite today's advance, the home builders ETF remains lower by 4.4% in August, and essentially flat for the year. The industry group rallied today after the August NAHB Housing Market Index rose to 59 from 56.

Today's opening sell off caused the CBOE Volatility Index (VIX 14.55, +1.51) to break out of its recent range after spending the entire month between 11.83% and 13.91%. The near-term volatility measure ended at its best level since mid-July as participants scrambled in search of protection.

Economic data was plentiful. The initial claims level fell to 320,000 for the week ending August 10 from an upwardly revised 335,000 (from 333,000) for the week ending August 3. That was the lowest initial claims reading since October 2007. The Briefing.com consensus expected the initial claims level to increase to 339,000. More importantly, the Department of Labor announced that there was nothing unusual in the claims data. The large drop in layoffs was a result of improvement in labor conditions and not from statistical anomalies.

Industrial production was flat in July after increasing a downwardly revised 0.2% (from 0.3%) in June. The Briefing.com consensus expected industrial production to increase 0.4%. The report serves as a prime example of why we do not follow the ISM and regional manufacturing surveys very closely.

According to the surveys, production levels in July increased to their highest point since May 2004 and had the largest one-month gain since June 2009. If these surveys accurately portrayed the manufacturing sector, then the manufacturing component of industrial production should have risen by at least 1.0% in July. In actuality, manufacturing production declined 0.1% in July after rising a downwardly revised 0.2% (from 0.3%) in June.

Moving on, the Philadelphia Fed's Business Outlook dropped from 19.8 in July to 9.3 in August. The consensus expected the index to fall to 10.0.

Also of note, consumer prices rose 0.2% in July. That was down from a 0.5% gain in June and exactly what the Briefing.com consensus expected. Energy prices were up 0.2% after increasing 3.4% in June. Gasoline costs increased 1.0%, but much of that gain was offset by a 2.8% decline in residential natural gas prices. Food prices rose 0.1%. Excluding food and energy, core prices rose 0.2% for a third consecutive month, which is what the consensus expected.

Tomorrow, July housing starts, building permits, second quarter productivity, and unit labor costs will all be reported at 8:30 ET. In addition, the preliminary reading of the August Michigan Consumer Sentiment Survey will cross the wires at 9:55 ET.DJ30 -225.47 NASDAQ -63.16 SP500 -24.07 NASDAQ Adv/Vol/Dec 479/1.68 bln/2069 NYSE Adv/Vol/Dec 456/721.2 mln/2638

3:35 pm :

Sep crude oil rose for a fifth consecutive session as supply concerns increased over the escalating violence in Egypt. The energy component traded as high as $107.85 per barrel and settled with a 0.4% at $107.34 per barrel.
Sep natural gas gained support on inventory data that showed a build of 65 bcf when a larger build of 69-70 bcf was anticipated. Prices rose as high as $3.43 per MMBtu from a session low of $3.31 per MMBtu.
Natural gas settled 2.4% higher at $3.42 per MMBtu.
Dec gold and Sep silver slipped to their respective session lows of $1317.90 and $21.70 per ounce following numerous economic data released this morning that included Initial Claims and CPI. However, both metals found buying support and lifted into positive territory.
Gold surged in a late rally to a session high of $1367.90 per ounce as chatter circulated that a tier 1 firm was buying gold and while the dollar index sold off sharply. It settled with a 0.4% gain at $1359.70 per ounce.
Silver popped to a session high of $23.19 per ounce and settled with a solid 5.2% gain at $22.91 per ounce.

4:12PM Applied Materials misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus (AMAT) 15.33 -0.41 : Reports Q3 (Jul) earnings of $0.18 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.19; revenues fell 15.7% year/year to $1.98 bln vs the $2.06 bln consensus.

Co issues downside guidance for Q4, sees EPS of $0.16-0.20, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q4 revs of ~flat compared to prev quarter or ~$1.975 bln vs. $2.14 bln Capital IQ Consensus Estimate.

Applied generated orders of $2.00 bln, down 12 percent from the prior quarter as a seasonal decline in foundry bookings was partially offset by growth in memory and logic orders along with higher bookings in the Display Group and Applied Global Services.

Silicon Systems Group orders were $1.20 bln, down 22 percent, due to a decrease in foundry orders, partially offset by increases in memory and logic orders. Net sales of $1.27 bln declined 1 percent. Display orders were $256 mln, up 31 percent led by a recovery in TV equipment demand.

Gross margin was 42.9 percent on a non-GAAP adjusted basis, down slightly from 43.2 percent in the prior quarter.

"Consumers' appetite for mobile devices and larger TVs is driving healthy demand for our semiconductor and display equipment...We are seeing stronger investment by our memory customers, and our display business booked its highest orders in over two years."

4:02PM Applied Materials names Gary E. Dickerson as Chief Executive Officer; Michael R. Splinter to Serve as Executive Chairman (AMAT) 15.33 -0.40 : Co announced that its Board of Directors has appointed Gary E. Dickerson as president and chief executive officer (CEO) and Michael R. Splinter as executive chairman of the Board of Directors, effective September 1, 2013. Mr. Dickerson also was elected a member of the Board of Directors, effective at the same time. Mr. Dickerson is currently president of Applied Materials and succeeds Mr. Splinter who has served as the Company's CEO since 2003.

4:06PM Dell beats by $0.01, beats on revs (DELL) 13.71 -0.02 : Reports Q2 (Jul) earnings of $0.25 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 0.2% year/year to $14.51 bln vs the $14.15 bln consensus.

Operating Segments Summary:

Enterprise Solutions Group revenue was $3.3 billion, an 8% increase. Operating income for the quarter was $137 million, a 9% decrease. Dell server, networking and peripherals revenue increased 10%, the fifth consecutive quarter of growth for this business, driven by continued strength in hyper-scale data center servers. Dell networking continued to grow, with a 19% revenue increase. Dell storage revenue declined 7%.

Dell Services revenue was $2.1 billion, up 2%, driven by a 3% increase in support and deployment revenue and a 5% increase for infrastructure, cloud and security services revenue. Applications and business process services revenue declined 6%. Total Services operating income was $339 million, a 1% increase.

Dell Software revenue was $310 million, and recorded an operating loss. The co is continuing to enhance its software capabilities with investments in this business that increase R&D and sales capacity.

End User Computing revenue was $9.1 billion in the quarter, a 5% decrease. Operating income for the quarter was $205 million, a 71% decrease. Dell desktop and thin client revenue increased 1%, mobility revenue declined 10%, and revenue from software from third parties and peripherals declined 5%. Dell was the only vendor among the top five worldwide to increase PC unit-shipment share both year over year and sequentially in the past two calendar quarters, according to IDC.

Given the co's announcement on Feb. 5 of a definitive merger agreement to take Dell private, the co is not providing an outlook.

3:32PM Photronics correction: Co did not acquire a building in Plymouth, MN to expand Protomold capacity (PLAB) 7.57 -0.24 : The comment should have been posted under Proto Labs (PRLB); the original comment has been deleted.

Large Cap Gainers

KSS (53.1 +4.45%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus, revs in-line; lowered top end of FY14 EPS below consensus; Q2 comps +0.9%.
EL (68.33 +4.91%): Beat on EPS by $0.03, reported revs in-line; guided Q1 and FY14 EPS below consensus.
TU (31.15 +4.64%): Co to purchase up to 6.5 mln common shares under its normal course issuer bid through private agreements.

Large Cap Losers

CSCO (24.72 -6.29%): Beat on EPS by $0.01, reported revs in-line; sees Q1 revs in the range of 3-5% y/y vs $12.46 bln (~ +4.9% y/y) Capital IQ Consensus Estimate, sees Q1 non-GAAP EPS of $0.50-0.51 vs $0.51 Capital IQ Consensus Estimate; said it will reduce its workforce by about 5%; upgraded to Neutral from Cautious at ISI Group; heard defended at Deutsche Bank; heard BofA/Merrill said expectations were too high, reiterated Buy rating.
MU (14.19 -4.25%): Downgraded to Neutral from Outperform at Robert W. Baird.
TRIP (71.42 -2.9%): Heard ests lowered at Barclays on more muted Q3 outlook.

Mid Cap Gainers

DDS (84.58 +7.12%): Beat on EPS by $0.05, missed on revs.
SLW (26.05 +3.62%): Missed on EPS by $0.05, missed on revs; reported record Q2 production: attributable silver equivalent production of 8.6 mln ounces vs 6.7 mln in prior year; declared dividend of $0.10 vs $0.12 prior dividend.
JCP (13.6 +3.74%): DailyMail discussed speculation that Bill Ackman will soon be working with PE firms to take JCP private at 'substantial premium'; Soros disclosed new ~20 mln share stake.

Mid Cap Losers

PPC (16.66 -10.33%): Downgraded to Equal Weight at boutique firm.
VIPS (41.58 -9.52%): Beat on EPS by $0.02, beat on revs; guided Q3 revs in-line.
ONXX (115.53 -7%): Lower on reports of stalled merger with AMGN; heard ISI Research defending ONXX; believes deal will go through; heard defended at Deutsche Bank; M&A looks likely.

11:19AM Floor Talk (TALKX) : It has been a trend down day since the opening bell as sellers have controlled the action. There are manifold reasons for the broad-based weakness that has each of the major averages down at least 1.2%, but there are several clear-cut reasons why the stock market is struggling today:

Both Cisco (CSCO 24.43, -1.95) and Wal-Mart (WMT 74.65, -1.75) fueled growth concerns with their disappointing guidance and cautious-sounding remarks about customer demand
The S&P 500 broke through some minor support levels, as well as its 50-day ema at 1666/1664
The yield on the 10-yr note has spiked to 2.80%

The jump in long-term rates has been an especially interesting development as it is presumably predicated on the belief that the Fed is going to make a tapering announcement at next month's FOMC meeting. That view was cast after the encouraging report this morning on initial claims, which fell to their lowest level since October 2007. The industrial production report for July, however, provided a counterpoint to the tapering expectation since it showed production was unchanged last month, led by a 0.1% decline in manufacturing output, and that capacity utilization slipped to 77.6% from 77.7%.

Notwithstanding today's mixed batch of economic data that also included an in-line CPI report, a better-than-expected Empire Manufacturing Index, a higher-than-expected NAHB Housing Market Index, and a weaker-than-expected Philadelphia Fed Index, the Treasury market still remains pinned to the mat of September tapering expectations, having garnered little buying interest in the face of the stock market's notable weakness today.

There are some irreconcilable messages, though, in the similarly weak showings by the stock and bond markets. If there is a true tapering trade in Treasuries, that would be based on the recognition that the economy is strengthening -- something that should be viewed as a positive development by the stock market given the favorable implications for corporate profits. Cisco's and Wal-Mart's guidance, though, have undercut that macro view, which leads one to wonder if the weakness in Treasuries today could also be a function of concerns that the Fed is losing its grip on things.

In the same vein, the stock market is no doubt grappling with the concern that a rise in long-term rates threatens to slow the economic recovery, and an even bigger concern today in thinking the Fed risks really putting a break on things with a tapering in September given the inconclusive messages in the data about economic activity. So, one could argue that the stock market is being buffeted today by weak guidance at the micro level and concerns the macro picture isn't yet strong enough to handle higher interest rates that come either via the Fed's hand or the market's own hand.

11:01AM Agilent announces expanded business relationship with Gradient Design Automation (A) 47.67 +1.16 : Co announced a new agreement that expands its business relationship with Gradient Design Automation. As part of the agreement, Agilent has increased its financial commitment in exchange for increased access to Gradient's technology.

ANADIGICS (ANAD) announced that the co's AWL9581 front-end integrated circuit enables 5 GHz 802.11ac WiFi connectivity in the new G2 by LG Electronics.

9:12AM JDS Uniphase plans to offer up to $575 mln principal amount of its Senior Convertible Debentures due 2033 (JDSU) 14.23 : The interest rate, initial conversion rate and other terms of the notes will be determined by negotiations between JDSU and the initial purchasers of the notes. Co plans to use up to $100 million of the net proceeds from the offering of the notes to repurchase shares of its outstanding common stock in privately negotiated, transactions, which may be effected through one or more of the initial purchasers of the notes or their respective affiliates, concurrently with the consummation of the offering. The remaining net proceeds will be used for general corporate purposes including potential strategic transactions. Contingent and effective upon the closing of the offer and sale of the notes, JDSU intends to terminate its existing $250 million revolving credit facility, which currently has no amounts outstanding.

9:03AM Canadian Solar announced that it has filed a prospectus supplement to sell up to an aggregate of $50.0 mln of its common shares through an at-the-market equity offering program (CSIQ) 12.00 : Co announced that it has filed a prospectus supplement to sell up to an aggregate of US$50.0 million of its common shares through an at-the-market equity offering program. The common shares will be offered through Credit Suisse as sales agent. Sales, if any, of the common shares under the at-the-market equity offering program will be made from time to time, at the Co's discretion, by means of ordinary broker transactions, including on the NASDAQ, in negotiated transactions at market prices, or as otherwise agreed with the sales agent. Canadian Solar intends to use the net proceeds from the sales of its common shares for general corporate purposes, which may include solar power project development expenses and working capital.

7:46AM Volterra Semi to be acquired by Maxim Integrated (MXIM) for $23/share; Maxim expects transaction to be immediately accretive to GAAP EPS, excluding special items (VLTR) 14.80 : Co announced it has entered into a definitive agreement to acquire Volterra Semiconductor (VLTR) for $23 per share, which represents a 55% premium to Volterra Semiconductor's closing share price on August 14, 2013. The transaction value is ~$605 mln equity value or $450 mln net of Volterra's cash position of ~$155 mln. Pending regulatory approvals, Maxim's acquisition of Volterra is expected to close early in the December quarter. Transaction valued at $605 mln equity value; $450 mln enterprise value.

TranSwitch (TXCC) is working with InFocus to leverage HDplay technology in several upcoming projectors.

Agilent (A $48.45 +1.94) reported third quarter earnings of $0.68 per share, excluding non-recurring items, which is better than expected, while net revenues fell 4.1% year/year to $1.65 billion which is line with expectations. The company issued fourth quarter EPS of $0.75-0.77 which is line with expectations, with revenues of $1.70-1.72 billion which is line with expectations. The company reported orders of $1.60 billion down 4% YoY. "Although we are operating in a very challenging economic environment, we are pleased with our operational performance, as we continue to make progress improving our manufacturing efficiency and streamlining our expense structure. The result has been better than forecasted operating margins."

07:47 am Cisco Systems shares fall 7% following inline earnings/guidance and workforce reductions
Cisco Systems (CSCO $24.35 -2.03) reported fourth quarter earnings of $0.52 per share, excluding non-recurring items, which is better than expected, while revenues rose 6.2% year/year to $12.42 billion which is line with expectations. Cash flows from operations were $4.0 billion for the fourth quarter of fiscal 2013, compared with $3.1 billion for the third quarter of fiscal 2013, and compared with $3.1 billion for the fourth quarter of fiscal 2012.

Cash and cash equivalents and investments were $50.6 billion at the end of the fourth quarter of fiscal 2013, compared with $47.4 billion at the end of the third quarter of fiscal 2013, and compared with $48.7 billion at the end of the fourth quarter of fiscal 2012. Cisco repurchased approximately 47 million shares of common stock under the stock repurchase program at an average price of $24.80 per share for an aggregate purchase price of $1.2 billion.

On the conference call the company guided for first quarter revenues in the range of 3-5% y/y which is within the range of expectations with Non-GAAP EPS of $0.50-0.51 which is line with expectations.

The company also announced it is rebalancing costs with work force reduction (approximately 4K employees or 5% of workforce) starting in Q1.

07:45 am NetApp shares fall 4% following better than expected earnings
NetApp (NTAP $40.64 -1.69) reported first quarter earnings of $0.53 per share, which is better than expected, while revenues rose 4.9% year/year to $1.52 billion which is below expectations. The company issued guidance for the second quarter with EPS of $0.60-0.65 which is line with expectations, with revenues of $1.56-1.66 billion which is line with expectations.. "NetApp delivered solid results and innovation with the latest release to our clustered Data ONTAP operating system... Despite an uneven macro environment, our branded business was strong, with 9% year-over-year growth. This is evidence of the tremendous value we are delivering to customers today and their confidence in our long-term strategy to enable them to navigate the future."