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Wednesday, October 09, 2013 6:09:08 PM
From Briefing.com: 4:20 pm : The S&P 500 added 0.1%, but was unable to regain its 100-day moving average (1,662) after flirting with that level throughout the afternoon. The tech-heavy Nasdaq underperformed throughout the session, sliding 0.5%.
Equities began the session with slim gains amid reports President Obama was set to nominate Janet Yellen as the next Chairwoman of the Federal Reserve. However, given the expected nature of the announcement, the early boost faded quickly.
The major averages appeared on their way to another losing session, but found support during late-morning trade when the Dow Jones Industrial Average tested its 200-day moving average (14,728) for the first time this year. The price-weighted Dow built the subsequent rebound on the relative strength of top-weighted names like Nike (NKE 70.89, +0.61), IBM (IBM 181.32, +2.60), and Goldman Sachs (GS 154.44, +1.39).
On a related note, the financial sector (+0.3%) finished ahead of the remaining cyclical groups while other growth-sensitive areas were a bit more mixed.
The materials space advanced 0.2% with aluminum manufacturer Alcoa (AA 8.10, +0.16) gaining 2.0% after reporting better-than-expected earnings on a 1.2% decline in revenue. Miners contributed to the sector's strength as the Market Vectors Gold Miners (GDX 23.92, +0.10) added 0.4%.
On the downside, the discretionary sector (-0.4%) lagged throughout the session as quick service restaurants displayed weakness after Yum! Brands (YUM 66.48, -4.82) reported disappointing earnings and made cautious comments about its operating environment going forward.
Elsewhere, much of the Nasdaq underperformance was the result of significant losses among biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 194.50, -4.20) lost 2.1% to extend its week-to-date loss to 8.5%. In turn, this weighed on the health care sector (-0.2%), which was the only countercyclical group ending in negative territory.
Treasuries registered modest losses with the benchmark 10-yr yield rising three basis points to 2.67%.
Trading volume was right in-line with average as 732 million shares changed hands on the floor of the NYSE.
The Minutes from the latest Federal Open Market Committee meeting reflected much of what has already been communicated to the markets by the regional Fed presidents. Once again, several participants took note of tighter financial conditions while others pointed out rising fiscal risks associated with the stalemate in Washington.
Most notably, the Minutes revealed that most FOMC participants expected the Fed to begin scaling back the pace of its asset purchases this year with purchases being concluded in the middle of 2014.
Separately, the weekly MBA Mortgage Index rose 1.3% to follow last week's downtick of 0.4%.
Tomorrow, weekly initial claims will be reported at 8:30 ET while September import/export prices and the September Treasury Budget will not be released due to the partial government shutdown.DJ30 +26.45 NASDAQ -17.06 SP500 +0.95 NASDAQ Adv/Vol/Dec 1093/2.15 bln/1427 NYSE Adv/Vol/Dec 1446/732.2 mln/1531
3:30 pm :
Precious metals traded lower today as the dollar index rose on news that President Obama will nominate Janet Yellen as the next Chair of the Federal Reserve
Dec gold slumped to a session low of $1294.60 per ounce and settled at $1307.10 per ounce, booking a loss of 1.3%
Dec silver dipped as low as $21.75 per ounce in morning floor trade. It eventually settled with a 2.5% loss at $21.89 per ounce
Nov crude oil also fell on the stronger dollar index and on the largest weekly increase in crude oil inventories since Sept 2012. The EIA reported that for the week ending Oct. 4, crude oil inventories had a build of 6.81 mln barrels when a much smaller build of 1.55 mln barrels was anticipated. The energy component retreated from its session high of $103.29 per barrel set at pit trade open and eventually settled 1.8% lower at $101.62 per barrel
Nov natural gas fell for the first time in four sessions, dipping to a session low of $3.67 per MMBtu. It closed at $3.68 per MMBtu, booking a loss of 0.8%.
4:32PM ClickSoftware issues downside Q3 guidance (CKSW) 6.20 +0.20 : Co issues downside guidance for Q3 (Sep), sees EPS of ($0.10), excluding non-recurring items, vs. $0.03 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $23.2 million vs. $28.25 mln Capital IQ Consensus Estimate.The Company estimates that its cash, cash-equivalents, short and long-term investments were approximately $55.5 million as of September 30, 2013.
"In the short-term, our quarterly results have been impacted due to lower up-front license fees and a smaller initial deployment size, a natural occurrence when shifting to the cloud. Overall the number of new cloud-based customers we signed in the first nine months of 2013 increased by 100% year over year. Among our new cloud customers in the third quarter were a division of one of the world's largest suppliers of high value and complex equipment, and two large utility companies. Over the long-term, the fact that we continue to sign a greater number of deals on an absolute basis will be reflected with a significantly increased recurring revenue stream."
4:18PM Citrix Systems issues downside guidance (CTXS) 66.66 -0.95 : Co issues downside guidance for Q3 (Sep), sees EPS of $0.68-0.69 vs. $0.73 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $710-712 mln vs. $737.04 mln Capital IQ Consensus Estimate.
"While we are disappointed that we fell short of our expectations this quarter, we remain confident in our strategy and markets,"
"Our focus remains steadfast on helping our customers leverage cloud services and business mobility to improve the security and agility of their IT infrastructure. We will provide more color at our regularly scheduled conference call on October 23."
4:18PM Citrix Systems drops over 8 pts after lowering guidance; stock fell as low as $58.53.. stock is now $58.87 after hours (CTXS) 66.66 -0.95 :
4:15PM Claude Resources announces to voluntarily delist common shares from the NYSE MKT (CGR) 0.22 0.00 : Co announced its intention to voluntarily delist its common shares from the NYSE MKT. The Company's shares will continue to trade on the Toronto Stock Exchange ("TSX"). Based on the general tone of the resource sector and the Company's ongoing pursuit to rationalize its corporate expenditures, the Company has decided to delist its Shares from the NYSE MKT. The Company is confident that the listing of its Shares on the TSX will provide sufficient liquidity to maintain an orderly market for its shares. The delisting of Claude Shares from the NYSE MKT will not change the ownership of U.S. shareholders and U.S. shareholders will be able to trade the Shares through the TSX going forward.
4:15PM Gilead to stop phase 3 study 116 of Idelalisib in chronic Lymphocytic Leukemia early because of positive risk-benefit (GILD) 58.90 -0.48 : GILD announced that its Phase 3 study (Study 116) evaluating idelalisib in previously-treated chronic lymphocytic leukemia (CLL) patients who are not fit for chemotherapy will be stopped early. This DMC recommendation is based on a predefined interim analysis showing highly statistically significant efficacy for the primary endpoint of progression-free survival in patients receiving idelalisib plus rituximab compared to those receiving rituximab alone.
4:10PM Acura Pharma announces settlement of Oxecta patent litigation with Par Pharmaceutical and Impax Laboratories (IPXL) (ACUR) 1.70 -0.03 : Co announced that it has entered into distinct Settlement Agreements with each of Par Pharmaceutical and Impax Laboratories (IPXL), to settle Acura's patent infringement action pending against them in the United States District Court for the District of Delaware. In the suit, Acura alleges that a generic Oxecta product for which each of Par and Impax is separately seeking approval to market in the United States pursuant to an ANDA filing with the FDA infringes a U.S. patent owned by Acura. Par is the first filer of an ANDA for a generic Oxecta product and is entitled to the 180-day first filer exclusivity under applicable law and FDA regulations.
Under the terms of the Settlement Agreement with Par, Par may launch its generic Oxecta product in the U.S., through the grant of a non-exclusive, royalty-bearing license from Acura to Par that would trigger on Jan 1, 2022. Acura currently has Orange Book patents that are due to expire between Nov 2023 and Mar 2025. In certain limited circumstances, Acura's license to Par would become effective prior to Jan 1, 2022. Par is required to pay Acura royalties in the range of 10% to 15% of Par's net profits from the sale of its generic Oxecta product.
Under the Settlement Agreement, Impax may launch its generic Oxecta product in the U.S., through the grant of a non-exclusive, royalty-free license from Acura to Impax that would trigger 180 days following the first sale of a generic Oxecta product in the U.S. by an entity that is entitled to the 180 day first-filer exclusivity under applicable law and FDA regulations (or if no entity is entitled to such 180 day exclusivity period, the date on which a generic Oxecta product is first sold in the U.S. or Nov 27, 2021, whichever date occurs first). In certain circumstances, Acura's license to Impax would become effective prior to such time.
4:10PM Ctrip.com announces proposed offering of $500 mln convertible senior notes (CTRP) 55.11 +1.47 : CTRP today announced that it proposes to offer up to $500 mln in aggregate principal amount of convertible senior notes due 2018. The conversion rate and other terms of the notes have not been finalized and will be determined at the time of pricing of the offering. The notes will be convertible into co's American depositary shares ("ADSs"), each representing as of the date of this press release 0.25 of an ordinary share of Ctrip, at the option of the holders, in integral multiples of $1,000 principal amount, at any time prior to the close of business on the second business day immediately preceding the maturity date.
4:08PM Boeing delivers first next-generation 737-800 to Russia's UTair (BA) 114.47 -0.97 : BA delivered to UTair its first directly purchased Next-Generation 737-800. The airline currently has 40 Next-Generation 737s on order to be delivered in the next several years.
4:08PM NASDAQ announces as of settlement date Sep 30, 2013, short interest in 2,143 NASDAQ Global Market securities totaled 7,096,278,074 shares vs 7,061,571,599 shares in 2,127 Global Market issues reported for prior settlement date of Sep 13, 2013 (NDAQ) 32.06 +0.27 :
Short interest in 546 securities on The NASDAQ Capital MarketSM totaled 489,368,382 shares at the end of the settlement date of September 30, 2013 compared with 486,790,225 shares in 541 securities for the previous reporting period.
This represents 4.22 days average daily volume, compared with the previous reporting period's figure of 5.57.
4:07PM AllianceBernstein announces Sept 30, 2013 Assets Under Management (AUM); preliminary AUM rose 2.1% MoM to $445 bln (AB) 19.80 +0.29 : Co announced that preliminary assets under management increased to $445 billion during September 2013 from $436 billion at the end of August. The 2.1% increase was driven entirely by market appreciation, including the positive impact of foreign exchange movements during the month, as net flows were negative across all three of the firm's distribution channels.
4:07PM Ruby Tuesday misses by $0.31, misses on revs; sees same-restaurant sales to be down high single digits in Q2 (RT) 7.55 +0.31 : Reports Q1 (Aug) loss of $0.36 per share, $0.31 worse than the Capital IQ Consensus Estimate of ($0.05); revenues fell 11.6% year/year to $289.7 mln vs the $298.04 mln consensus. Same-restaurant sales decreased 11.4% at Company-owned Ruby Tuesday restaurants and decreased 8.4% at domestic Ruby Tuesday franchise restaurants
"The first quarter was challenging as the overall economy failed to realize any significant improvements which adversely affected us and the casual dining industry. We are disappointed that our first quarter same-restaurant sales came in below our expectations. However, we made progress during the quarter in our strategy to re-establish Ruby Tuesday as a fun, energetic, and broadly-appealing brand, with the highlight being the August 12 launch of our new pretzel burgers and flatbreads. These items represented the first wave of our core menu transformation and the feedback from our guests has been encouraging as these new food platforms at price points of $5.99 to $9.99 address our guests' desire for innovation, variety, and affordability.
Guidance:
Same-Restaurant Sales -- We anticipate same-restaurant sales to be down high single digits in the second quarter with sequential improvement in the third and fourth quarter, including positive same-restaurant sales in the fourth quarter, reflecting traction from our new menu offerings and marketing campaign which were rolled out in the first quarter
Excess Real Estate -- We expect to generate $10 - $15 million of cash proceeds from the disposition of excess real estate
4:07PM American Spectrum Realty appoints Elisa Grainger as new CFO (AQQ) 2.11 -0.09 : Mrs. Grainger has more than 15 years of experience in finance and accounting with national companies engaged in the management of commercial, residential and self-storage properties. She has worked with equity groups, investors, property managers, accounting personnel, Real Estate Investment Trusts (REITs) and 1031 Tenant-in-Common (TIC) exchanges for both public and private companies.
4:06PM Invesco preliminary Sept AUM of $745.5 bln, an increase of 3.6% month over month (IVZ) 32.16 +0.66 : The increase was primarily due to favorable market returns, positive long-term net flows and increased money market AUM. Both active and passive long-term net flows were positive during the month, while the impact from foreign exchange increased AUM by $6.1 billion. Preliminary average total AUM for the quarter through September 30 were $729.4 billion, and preliminary average active AUM for the quarter through September 30 were $602.7 billion.
4:06PM Carlyle announces preliminary Q3 fund valuations: carry fund valuations increased 4% (CG) 27.13 -0.26 : Co released preliminary performance metrics for its carry funds during the third quarter of 2013. The Carlyle Group preliminary carry fund valuations increased 4% during the third quarter of 2013. Over the past twelve months, Carlyle's carry fund portfolio increased 17%. In comparison, the MSCI All Country World Index (ACWI) increased 8% during the quarter ending September 30, 2013 and has risen 16% over the past 12 months.
4:05PM Aruba Networks announces additional $100 mln share repurchase authorization (ARUN) 18.21 +0.08 :
4:03PM Hub Group guides Q3/FY13 EPS below consensus (HUBG) 37.31 -0.39 : Co issues downside guidance for Q3 (Sep), sees EPS of $0.48 to $0.51 vs. $0.55 Capital IQ Consensus Estimate. Co issues downside guidance for FY13 (Dec), sees EPS of $1.85 to $1.95 vs. $2.02 Capital IQ Consensus Estimate.
Significant factors affecting earnings in the third quarter of 2013 include:
a challenging intermodal pricing environment that resulted in price increases that were lower than anticipated,
unfavorable intermodal traffic mix, including soft demand for freight shipping from the West Coast,
less new business than expected in truck brokerage due to intense competition from asset-based carriers, and
unfavorable business mix in truck brokerage due to a decline in demand for high value-added services.
4:03PM Buckeye Partners commences public offering of 6.5 mln limited partnership units representing limited partner interests (BPL) 64.35 -0.09 : BPL announced that it has commenced a public offering of 6.5 mln limited partnership units representing limited partner interests. Co intends to use the net proceeds from this offering to fund indirectly a portion of the purchase price for the previously announced marine terminals acquisition. Pending such use, co intends to use the net proceeds of the offering to reduce the indebtedness outstanding under its revolving credit facility and for general partnership purposes. Barclays, Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, Deutsche Bank Securities and J.P. Morgan are acting as joint book-running managers of the LP Unit offering.
4:01PM Buckeye Partners to Acquire Liquid Petroleum Products Terminals Network From Hess for $850 Million (BPL) 64.35 -0.10 : Co announces it has signed a definitive agreement with Hess Corporation (HES) to acquire 20 liquid petroleum products terminals with total storage capacity of approximately 39 million barrels for $850 million. The 19 domestic terminals are located primarily in major metropolitan locations along the U.S. East Coast and have approximately 29 million barrels of refined petroleum products storage capacity.
4:01PM Chelsea Therapeutics announces FDA Advisory Committee to review NORTHERA (droxidopa) (CHTP) 2.66 -0.05 : Co announced that the FDA has notified the Company that the New Drug Application (NDA) seeking approval to market NORTHERA (droxidopa), an orally active synthetic precursor of norepinephrine, for the treatment of symptomatic neurogenic orthostatic hypotension (NOH) will be reviewed by the Cardiovascular and Renal Drug Advisory Committee (CRDAC). The meeting is tentatively scheduled for January 14, 2014.
3:30PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
HELE, RELL, RT, VOXX
Tomorrow before the open look for the following companies to report:
HAWK, IGTE, LNN, VAC
3:03PM Kinder Morgan Partners expands Eagle Ford Shale footprint (KMP) 79.42 +0.31 : Co announced it has entered into an agreement with a large Eagle Ford Shale producer to extend the Kinder Morgan Crude and Condensate (KMCC) pipeline farther into the Eagle Ford Shale in South Texas. KMP will invest approximately $74 million to build an 18-mile, 24-inch diameter lateral pipeline northwest from its DeWitt Station to a new facility in Gonzales County, where KMP will construct 300,000 barrels of storage, a pipeline pump station and truck offloading facilities. The lateral will have a capacity of 300,000 barrels per day and will enable Kinder Morgan to batch Eagle Ford crude and condensate from the new Gonzales Station via KMCC to its delivery points on the Houston Ship Channel and/or the soon to be completed Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, Texas. Including joint ventures and other projects, KMP's planned investments related to Eagle Ford Shale crude and condensates currently total almost $900 million.
2:55PM NYMEX Energy Closing Prices (COMDX) :
Nov crude oil fell $1.90 to $101.62/barrel
Crude oil fell today as weak inventory data and a stronger dollar index pressured prices. The EIA reported that for the week ending Oct. 4, crude oil inventories had a build of 6.81 mln barrels when consensus called for a much smaller build of 1.55 mln barrels. This was the largest weekly increase since Sept 2012. The energy component retreated from its session high of $103.29 set at pit trade open and settled with a 1.8% loss.
Nov natural gas fell 3 cents to $3.68/MMBtu
Natural gas fell for the first time in four sessions, dipping to a session low of $3.67. It closed just above that level, booking a loss of 0.8%.
Nov heating oil fell 1 cent to $3.02/gallon
Nov RBOB gasoline fell 1 cent to $2.62/gallon
2:34PM Stock indices break above afternoon range highs -- Dow +70 and S&P +6.5 set new session highs, Nasdaq Comp -4.6 (TECHX) :
2:31PM Dollar Hits Three-Week High: 10-yr: -03/32..2.650%..USD/JPY: 97.40..EUR/USD: 1.3515 (SUMRX) : The Dollar Index spiked to session highs near 80.55 as the latest FOMC minutes crossed the wires. The minutes provided nothing new, but that did not stop money from moving into the greenback on hopes the Fed would begin tapering its asset purchase program by the end of the year. Today's advance has action threatening its best close in three weeks. Click here to see a daily Dollar Index chart.
EURUSD is -75 pips at 1.3500 as action tests near-term support. These levels will be watched closely as a breach of the 1.3475 area sets up a potential move into 1.3400. Traders remain on the lookout for a German Constitutional Court ruling as to the validity of the ECB's European Stability Mechanism, which is expected to cross the wires in the coming days. Eurozone data is limited to French industrial production. ECB head Mario Draghi will speak tonight at Harvard University.
GBPUSD is -155 pips at 1.5925 as sellers remain in control for the fourth time in five days. The 1.5900 level is setting up as an important level as a breakdown likely means a test of the 50 dma. The Bank of England opines tonight with markets expecting no change to the current 0.50% and GBP375 bln asset purchase program.
USCHF is +80 pips at .9120 as action holds just off the highs. Today's surge has trade testing resistance in the .9100/.9130 area with a close north of there being the best since the middle of September.
USDJPY is +55 pips at 97.40 as action continues its bounce off the 200 dma. Bulls have their sights set on reclaiming the 98.00 area, but both the 50 and 100 dma will look to cap action just above that level. Japanese data includes core machinery orders and Tertiary Industry Activity.
AUDUSD is +15 pips at .9435 amid a rather uneventful trade. The pair has held in just a 30 pip range throughout the U.S. session with trade once again struggling as it approached the .9500 region. Australian data is heavy with MI Inflation Expectations, employment change, and the unemployment rate.
USDCAD is +20 pips at 1.0390 as trade looks likely to see a third day of gains. The three-day win streak has run the pair above both its 50 and 100 dma, and has action on track to close at a one-month high. The late August/early September highs in the 1.0500/1.0550 area are quickly shifting into focus. Canada's New Home Price Index is due out tomorrow.
2:21PM CBOT Agriculture and Ethanol Closing Prices (COMDX) :
Dec corn rose 2 cents to $4.44/bushel
Dec wheat fell 3 cents to $6.90/bushel
Nov soybeans fell 2 cents to $12.87/bushel
Nov ethanol rose 3 cents to $1.72/gallon
2:14PM United Tech increases quarterly dividend 10.1% to $0.589 per share (UTX) 103.12 +0.36 :
2:09PM Minor new session highs for Dow +59 and S&P +5.1, new recovery high Nasdaq Comp -7.4 (TECHX) :
2:03PM Steady to slightly weaker trade after Fed minute headlines are digested -- Dow +38, S&P +2.1, Nasdaq Comp -14 (SPY) :
1:47PM COMEX Metals Closing Prices (COMDX) :
Dec gold fell $17.80 to $1307.10/ounce
Gold spent all of today's floor trade in negative territory while the dollar index rose on news that President Obama will nominate Janet Yellen as the next Chair of the Federal Reserve. The yellow metal slumped to a session low of $1294.60 and settled slightly above the $1300 level, booking a loss of 1.3%.
Dec silver fell $0.56 to $21.89/ounce
Silver also traded in the red, dipping as low as $21.75 in morning floor trade. It eventually settled with a 2.5% loss.
Dec copper fell 6 cent to $3.23/lbs
1:33PM Hewlett-Packard confirms FY14 outlook; provides update on turnaround progress (HPQ) 21.93 +1.18 : Today at HP's 2013 Securities Analyst Meeting, the company's leadership team provided an update on HP's progress executing against its turnaround plan and future strategy.
Co anticipates operating profit dollars to be flat to up year-over-year in fiscal 2014, due to its continued focus on cost savings and operational efficiency. The company estimates non-GAAP diluted EPS for fiscal 2014 to be in the range of $3.55 to $3.75 (vs $3.62 Capital IQ Consensus Estimate). HP estimates GAAP diluted EPS to be in the range of $2.85 to $3.05 for fiscal 2014. Fiscal 2014 non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangible assets and a restructuring charge of approximately $0.8 billion. HP expects to generate approximately $9 billion to $9.5 billion in cash flow from operations in fiscal 2014. After deducting estimated fiscal 2014 capital expenditures, the company anticipates free cash flow of $6 billion to $6.5 billion in fiscal 2014.
HP's president and chief executive officer Meg Whitman reviewed the accomplishments of the past year -- a "fix and rebuild" year -- noting that the multi-year turnaround remains broadly on track. In particular, the company:
Has met or exceeded quarterly non-GAAP diluted earnings per share (EPS) outlook since the turnaround plan began through Q3 of fiscal 2013.
Provided outlook in August that HP expects free cash flow to approach $8 billion by the end of FY13.
Reduced operating company net debt by almost $8 billion over the past 12 months, approaching a goal of zero.
Recommitted to smarter innovation, with research and development (R&D) spending expected to be in excess of $3 billion in fiscal 2013.
Large Cap Gainers
TI (8.79 +6.80%): Reuters reporting that analysts expect the company to sell some assets; TSU trading higher in reaction to the news
HDB (33.09 +3.44%): Strength in Indian stocks: IBN and INFY also higher
T (34.05 +2.84%): Co and GE (GE) announced they have signed a global alliance agreement to allow GE machines to connect to the AT&T network and cloud
Large Cap Losers
YUM (65.41 -8.74%): Missed quarterly EPS by $0.08 ($0.85 ex items vs $0.93 estimate), revs fell 2.9% yoy to $3.47 bln vs $3.53 bln estimate; management said it is now unlikely that China Division same-store sales will be positive for the fourth quarter
FAST (46.58 -6.8%): Missed quarterly EPS by $0.01 ($0.40 vs $0.41 estimate), revs rose 7.0% yoy to $858.4 mln vs $864.21 mln estimate
TSLA (166.46 -4.73%): Hearing that margin requirements are being raised at a major broker for TSLA, QIHU, and SFUN
Mid Cap Gainers
SFUN (47.38 +6.19%): Strength in Chinese internet companies: YY also higher
AA (8.2 +3.26%): Beat quarterly EPS by $0.05 ($0.11 ex items vs $0.06 estimate), revs fell 1.2% yoy to $5.76 bln vs $5.66 bln estimate; reaffirmed 7% global aluminum demand growth forecast for 2013
Q (42.47 +2.14%): Upgraded to Strong Buy from Outperform at Raymond James
Mid Cap Losers
ARIA (5.18 -69.81%): Announced that patient enrollment in all clinical studies of Iclusig is being paused due to safety concerns
SCTY (36.63 -6.08%): To acquire Zep Solar for ~$158 mln in stock
ALNY (53.73 -5.74%): Co and The Medicines Company (MDCO) announced that their strategic alliance has yielded a lead Development Candidate that is a subcutaneously administered RNAi therapeutic (ALN-PCSsc) targeting PCSK9 for the potential treatment of hypercholesterolemia
Semtech (SMTC) has teamed up with IMST for the IM880A radio module featuring Semtech's LoRa long distance technology.
Silicon Labs (SLAB) introduced the industry's most energy-friendly 32-bit microcontrollers (MCUs - EFM32 Zero Gecko MCU Family) based on the ARM (ARMH) Cortex-M0+ processor.
SunPower (SPWR) announced that Erin Mulligan Nelson has been named the co's executive vice president and chief marketing officer.
IBM (IBM) announced that telecommunications service provider Surfline Communications has selected an IBM cloud solution consisting of IBM servers, storage and software to help expand mobile data services in Ghana and across Africa. Also, TienPhong Commercial Joint Stock Bank is using IBM cloud solutions to expand its business operations, drive growth, and deliver a variety of new customer services.
Juniper Networks (JNPR) has received Microsoft (MSFT) Lync qualification for both its wired and wireless campus portfolio.
AMD +0.8% (NVIDIA offers price cuts to compete with AMD, according to reports )
6:53AM BlackBerry and Wi-LAN (WILN) settle all litigations (BBRY) 7.98 : Wi-Lan (WILN) announced that BlackBerry and WiLAN have reached an agreement to dismiss all pending patent litigations between the companies. As part of the agreement, BlackBerry has obtained a license to certain patents in suit in Florida. As a result, all litigations between the companies in Florida will be dismissed with prejudice. In addition, the agreement calls for the dismissal, without prejudice, of all litigation between the companies in Texas. The parties will pursue licensing discussions regarding certain other wireless technologies.
6:05AM Chipmos Technology sees Q3 revs slightly above estimates; in-line with guidance (IMOS) 17.23 : Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of $172.9 mln vs. $172.10 mln Capital IQ Consensus Estimate. This represents a QoQ gain of 3.5%, in-line with co's guidance of +2-6% over Q2.
Callidus Software (CALD) raised third quarter revenue guidance to $28.5-29 million which is ahead of expectations, which is up from $26-27 million; raises FY13 revs to $108.5-109.5 million which is ahead of expectations, from $106-109 million. For the third quarter ended September 30, 2013 management expects: Record total revenue in the range of $28.5 million to $29.0 million. The co had previously provided guidance for third quarter 2013 revenue of $26.0-27.0 million. SaaS revenue growth of 22% to 25% year over year. SaaS billings growth of 32% to 35% year over year. All time record SaaS bookings including two 7-figure annual contracts. Closed two 7-figure license deals during the quarter, which are included in revenue for the quarter. Positive cash flow from operations.
Integrated Device (IDTI) disclosed that on October 2, 2013, it announced a plan to reduce its workforce by approximately 5%, or 90 employees. The Company has taken this action following an assessment of operational and financial considerations. In connection with this reduction in force, the Company expects to record approximately $4.8 million for severance and related costs. During the second quarter of fiscal 2014, IDT accrued approximately $3.9 million and paid $0.6 million in expenses associated with this action. The Company expects to complete this action in the fourth quarter of fiscal 2014.
ON Semiconductor (ONNN) disclosed that on October 6, 2013 it committed to a plan to close its SANYO Semiconductor backend assembly/test facility located in Hanyu, Japan, commonly referred to as "KSS," by the end of the second quarter of 2014. Under the Plan, a majority of the production from KSS will be transferred to other Company-owned manufacturing facilities. This Plan is being undertaken as part of the Company's overall drive for operational efficiencies and is in line with an ongoing strategy aimed at migrating in-house production to large, high volume facilities. The Plan includes the elimination in workforce of approximately 170 full time and 40 contract employees located at the Hanyu site. These actions are expected to take place over the next nine months and are expected to lower certain of the Company's costs, primarily through operational efficiencies. As a result of the Plan, co expects to incur cash charges of approximately $11 million to $16 million.
Equities began the session with slim gains amid reports President Obama was set to nominate Janet Yellen as the next Chairwoman of the Federal Reserve. However, given the expected nature of the announcement, the early boost faded quickly.
The major averages appeared on their way to another losing session, but found support during late-morning trade when the Dow Jones Industrial Average tested its 200-day moving average (14,728) for the first time this year. The price-weighted Dow built the subsequent rebound on the relative strength of top-weighted names like Nike (NKE 70.89, +0.61), IBM (IBM 181.32, +2.60), and Goldman Sachs (GS 154.44, +1.39).
On a related note, the financial sector (+0.3%) finished ahead of the remaining cyclical groups while other growth-sensitive areas were a bit more mixed.
The materials space advanced 0.2% with aluminum manufacturer Alcoa (AA 8.10, +0.16) gaining 2.0% after reporting better-than-expected earnings on a 1.2% decline in revenue. Miners contributed to the sector's strength as the Market Vectors Gold Miners (GDX 23.92, +0.10) added 0.4%.
On the downside, the discretionary sector (-0.4%) lagged throughout the session as quick service restaurants displayed weakness after Yum! Brands (YUM 66.48, -4.82) reported disappointing earnings and made cautious comments about its operating environment going forward.
Elsewhere, much of the Nasdaq underperformance was the result of significant losses among biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 194.50, -4.20) lost 2.1% to extend its week-to-date loss to 8.5%. In turn, this weighed on the health care sector (-0.2%), which was the only countercyclical group ending in negative territory.
Treasuries registered modest losses with the benchmark 10-yr yield rising three basis points to 2.67%.
Trading volume was right in-line with average as 732 million shares changed hands on the floor of the NYSE.
The Minutes from the latest Federal Open Market Committee meeting reflected much of what has already been communicated to the markets by the regional Fed presidents. Once again, several participants took note of tighter financial conditions while others pointed out rising fiscal risks associated with the stalemate in Washington.
Most notably, the Minutes revealed that most FOMC participants expected the Fed to begin scaling back the pace of its asset purchases this year with purchases being concluded in the middle of 2014.
Separately, the weekly MBA Mortgage Index rose 1.3% to follow last week's downtick of 0.4%.
Tomorrow, weekly initial claims will be reported at 8:30 ET while September import/export prices and the September Treasury Budget will not be released due to the partial government shutdown.DJ30 +26.45 NASDAQ -17.06 SP500 +0.95 NASDAQ Adv/Vol/Dec 1093/2.15 bln/1427 NYSE Adv/Vol/Dec 1446/732.2 mln/1531
3:30 pm :
Precious metals traded lower today as the dollar index rose on news that President Obama will nominate Janet Yellen as the next Chair of the Federal Reserve
Dec gold slumped to a session low of $1294.60 per ounce and settled at $1307.10 per ounce, booking a loss of 1.3%
Dec silver dipped as low as $21.75 per ounce in morning floor trade. It eventually settled with a 2.5% loss at $21.89 per ounce
Nov crude oil also fell on the stronger dollar index and on the largest weekly increase in crude oil inventories since Sept 2012. The EIA reported that for the week ending Oct. 4, crude oil inventories had a build of 6.81 mln barrels when a much smaller build of 1.55 mln barrels was anticipated. The energy component retreated from its session high of $103.29 per barrel set at pit trade open and eventually settled 1.8% lower at $101.62 per barrel
Nov natural gas fell for the first time in four sessions, dipping to a session low of $3.67 per MMBtu. It closed at $3.68 per MMBtu, booking a loss of 0.8%.
4:32PM ClickSoftware issues downside Q3 guidance (CKSW) 6.20 +0.20 : Co issues downside guidance for Q3 (Sep), sees EPS of ($0.10), excluding non-recurring items, vs. $0.03 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $23.2 million vs. $28.25 mln Capital IQ Consensus Estimate.The Company estimates that its cash, cash-equivalents, short and long-term investments were approximately $55.5 million as of September 30, 2013.
"In the short-term, our quarterly results have been impacted due to lower up-front license fees and a smaller initial deployment size, a natural occurrence when shifting to the cloud. Overall the number of new cloud-based customers we signed in the first nine months of 2013 increased by 100% year over year. Among our new cloud customers in the third quarter were a division of one of the world's largest suppliers of high value and complex equipment, and two large utility companies. Over the long-term, the fact that we continue to sign a greater number of deals on an absolute basis will be reflected with a significantly increased recurring revenue stream."
4:18PM Citrix Systems issues downside guidance (CTXS) 66.66 -0.95 : Co issues downside guidance for Q3 (Sep), sees EPS of $0.68-0.69 vs. $0.73 Capital IQ Consensus Estimate; sees Q3 (Sep) revs of $710-712 mln vs. $737.04 mln Capital IQ Consensus Estimate.
"While we are disappointed that we fell short of our expectations this quarter, we remain confident in our strategy and markets,"
"Our focus remains steadfast on helping our customers leverage cloud services and business mobility to improve the security and agility of their IT infrastructure. We will provide more color at our regularly scheduled conference call on October 23."
4:18PM Citrix Systems drops over 8 pts after lowering guidance; stock fell as low as $58.53.. stock is now $58.87 after hours (CTXS) 66.66 -0.95 :
4:15PM Claude Resources announces to voluntarily delist common shares from the NYSE MKT (CGR) 0.22 0.00 : Co announced its intention to voluntarily delist its common shares from the NYSE MKT. The Company's shares will continue to trade on the Toronto Stock Exchange ("TSX"). Based on the general tone of the resource sector and the Company's ongoing pursuit to rationalize its corporate expenditures, the Company has decided to delist its Shares from the NYSE MKT. The Company is confident that the listing of its Shares on the TSX will provide sufficient liquidity to maintain an orderly market for its shares. The delisting of Claude Shares from the NYSE MKT will not change the ownership of U.S. shareholders and U.S. shareholders will be able to trade the Shares through the TSX going forward.
4:15PM Gilead to stop phase 3 study 116 of Idelalisib in chronic Lymphocytic Leukemia early because of positive risk-benefit (GILD) 58.90 -0.48 : GILD announced that its Phase 3 study (Study 116) evaluating idelalisib in previously-treated chronic lymphocytic leukemia (CLL) patients who are not fit for chemotherapy will be stopped early. This DMC recommendation is based on a predefined interim analysis showing highly statistically significant efficacy for the primary endpoint of progression-free survival in patients receiving idelalisib plus rituximab compared to those receiving rituximab alone.
4:10PM Acura Pharma announces settlement of Oxecta patent litigation with Par Pharmaceutical and Impax Laboratories (IPXL) (ACUR) 1.70 -0.03 : Co announced that it has entered into distinct Settlement Agreements with each of Par Pharmaceutical and Impax Laboratories (IPXL), to settle Acura's patent infringement action pending against them in the United States District Court for the District of Delaware. In the suit, Acura alleges that a generic Oxecta product for which each of Par and Impax is separately seeking approval to market in the United States pursuant to an ANDA filing with the FDA infringes a U.S. patent owned by Acura. Par is the first filer of an ANDA for a generic Oxecta product and is entitled to the 180-day first filer exclusivity under applicable law and FDA regulations.
Under the terms of the Settlement Agreement with Par, Par may launch its generic Oxecta product in the U.S., through the grant of a non-exclusive, royalty-bearing license from Acura to Par that would trigger on Jan 1, 2022. Acura currently has Orange Book patents that are due to expire between Nov 2023 and Mar 2025. In certain limited circumstances, Acura's license to Par would become effective prior to Jan 1, 2022. Par is required to pay Acura royalties in the range of 10% to 15% of Par's net profits from the sale of its generic Oxecta product.
Under the Settlement Agreement, Impax may launch its generic Oxecta product in the U.S., through the grant of a non-exclusive, royalty-free license from Acura to Impax that would trigger 180 days following the first sale of a generic Oxecta product in the U.S. by an entity that is entitled to the 180 day first-filer exclusivity under applicable law and FDA regulations (or if no entity is entitled to such 180 day exclusivity period, the date on which a generic Oxecta product is first sold in the U.S. or Nov 27, 2021, whichever date occurs first). In certain circumstances, Acura's license to Impax would become effective prior to such time.
4:10PM Ctrip.com announces proposed offering of $500 mln convertible senior notes (CTRP) 55.11 +1.47 : CTRP today announced that it proposes to offer up to $500 mln in aggregate principal amount of convertible senior notes due 2018. The conversion rate and other terms of the notes have not been finalized and will be determined at the time of pricing of the offering. The notes will be convertible into co's American depositary shares ("ADSs"), each representing as of the date of this press release 0.25 of an ordinary share of Ctrip, at the option of the holders, in integral multiples of $1,000 principal amount, at any time prior to the close of business on the second business day immediately preceding the maturity date.
4:08PM Boeing delivers first next-generation 737-800 to Russia's UTair (BA) 114.47 -0.97 : BA delivered to UTair its first directly purchased Next-Generation 737-800. The airline currently has 40 Next-Generation 737s on order to be delivered in the next several years.
4:08PM NASDAQ announces as of settlement date Sep 30, 2013, short interest in 2,143 NASDAQ Global Market securities totaled 7,096,278,074 shares vs 7,061,571,599 shares in 2,127 Global Market issues reported for prior settlement date of Sep 13, 2013 (NDAQ) 32.06 +0.27 :
Short interest in 546 securities on The NASDAQ Capital MarketSM totaled 489,368,382 shares at the end of the settlement date of September 30, 2013 compared with 486,790,225 shares in 541 securities for the previous reporting period.
This represents 4.22 days average daily volume, compared with the previous reporting period's figure of 5.57.
4:07PM AllianceBernstein announces Sept 30, 2013 Assets Under Management (AUM); preliminary AUM rose 2.1% MoM to $445 bln (AB) 19.80 +0.29 : Co announced that preliminary assets under management increased to $445 billion during September 2013 from $436 billion at the end of August. The 2.1% increase was driven entirely by market appreciation, including the positive impact of foreign exchange movements during the month, as net flows were negative across all three of the firm's distribution channels.
4:07PM Ruby Tuesday misses by $0.31, misses on revs; sees same-restaurant sales to be down high single digits in Q2 (RT) 7.55 +0.31 : Reports Q1 (Aug) loss of $0.36 per share, $0.31 worse than the Capital IQ Consensus Estimate of ($0.05); revenues fell 11.6% year/year to $289.7 mln vs the $298.04 mln consensus. Same-restaurant sales decreased 11.4% at Company-owned Ruby Tuesday restaurants and decreased 8.4% at domestic Ruby Tuesday franchise restaurants
"The first quarter was challenging as the overall economy failed to realize any significant improvements which adversely affected us and the casual dining industry. We are disappointed that our first quarter same-restaurant sales came in below our expectations. However, we made progress during the quarter in our strategy to re-establish Ruby Tuesday as a fun, energetic, and broadly-appealing brand, with the highlight being the August 12 launch of our new pretzel burgers and flatbreads. These items represented the first wave of our core menu transformation and the feedback from our guests has been encouraging as these new food platforms at price points of $5.99 to $9.99 address our guests' desire for innovation, variety, and affordability.
Guidance:
Same-Restaurant Sales -- We anticipate same-restaurant sales to be down high single digits in the second quarter with sequential improvement in the third and fourth quarter, including positive same-restaurant sales in the fourth quarter, reflecting traction from our new menu offerings and marketing campaign which were rolled out in the first quarter
Excess Real Estate -- We expect to generate $10 - $15 million of cash proceeds from the disposition of excess real estate
4:07PM American Spectrum Realty appoints Elisa Grainger as new CFO (AQQ) 2.11 -0.09 : Mrs. Grainger has more than 15 years of experience in finance and accounting with national companies engaged in the management of commercial, residential and self-storage properties. She has worked with equity groups, investors, property managers, accounting personnel, Real Estate Investment Trusts (REITs) and 1031 Tenant-in-Common (TIC) exchanges for both public and private companies.
4:06PM Invesco preliminary Sept AUM of $745.5 bln, an increase of 3.6% month over month (IVZ) 32.16 +0.66 : The increase was primarily due to favorable market returns, positive long-term net flows and increased money market AUM. Both active and passive long-term net flows were positive during the month, while the impact from foreign exchange increased AUM by $6.1 billion. Preliminary average total AUM for the quarter through September 30 were $729.4 billion, and preliminary average active AUM for the quarter through September 30 were $602.7 billion.
4:06PM Carlyle announces preliminary Q3 fund valuations: carry fund valuations increased 4% (CG) 27.13 -0.26 : Co released preliminary performance metrics for its carry funds during the third quarter of 2013. The Carlyle Group preliminary carry fund valuations increased 4% during the third quarter of 2013. Over the past twelve months, Carlyle's carry fund portfolio increased 17%. In comparison, the MSCI All Country World Index (ACWI) increased 8% during the quarter ending September 30, 2013 and has risen 16% over the past 12 months.
4:05PM Aruba Networks announces additional $100 mln share repurchase authorization (ARUN) 18.21 +0.08 :
4:03PM Hub Group guides Q3/FY13 EPS below consensus (HUBG) 37.31 -0.39 : Co issues downside guidance for Q3 (Sep), sees EPS of $0.48 to $0.51 vs. $0.55 Capital IQ Consensus Estimate. Co issues downside guidance for FY13 (Dec), sees EPS of $1.85 to $1.95 vs. $2.02 Capital IQ Consensus Estimate.
Significant factors affecting earnings in the third quarter of 2013 include:
a challenging intermodal pricing environment that resulted in price increases that were lower than anticipated,
unfavorable intermodal traffic mix, including soft demand for freight shipping from the West Coast,
less new business than expected in truck brokerage due to intense competition from asset-based carriers, and
unfavorable business mix in truck brokerage due to a decline in demand for high value-added services.
4:03PM Buckeye Partners commences public offering of 6.5 mln limited partnership units representing limited partner interests (BPL) 64.35 -0.09 : BPL announced that it has commenced a public offering of 6.5 mln limited partnership units representing limited partner interests. Co intends to use the net proceeds from this offering to fund indirectly a portion of the purchase price for the previously announced marine terminals acquisition. Pending such use, co intends to use the net proceeds of the offering to reduce the indebtedness outstanding under its revolving credit facility and for general partnership purposes. Barclays, Morgan Stanley, UBS Investment Bank, Wells Fargo Securities, Deutsche Bank Securities and J.P. Morgan are acting as joint book-running managers of the LP Unit offering.
4:01PM Buckeye Partners to Acquire Liquid Petroleum Products Terminals Network From Hess for $850 Million (BPL) 64.35 -0.10 : Co announces it has signed a definitive agreement with Hess Corporation (HES) to acquire 20 liquid petroleum products terminals with total storage capacity of approximately 39 million barrels for $850 million. The 19 domestic terminals are located primarily in major metropolitan locations along the U.S. East Coast and have approximately 29 million barrels of refined petroleum products storage capacity.
4:01PM Chelsea Therapeutics announces FDA Advisory Committee to review NORTHERA (droxidopa) (CHTP) 2.66 -0.05 : Co announced that the FDA has notified the Company that the New Drug Application (NDA) seeking approval to market NORTHERA (droxidopa), an orally active synthetic precursor of norepinephrine, for the treatment of symptomatic neurogenic orthostatic hypotension (NOH) will be reviewed by the Cardiovascular and Renal Drug Advisory Committee (CRDAC). The meeting is tentatively scheduled for January 14, 2014.
3:30PM Earnings Calendar (SUMRX) : Today after the close look for the following companies to report:
HELE, RELL, RT, VOXX
Tomorrow before the open look for the following companies to report:
HAWK, IGTE, LNN, VAC
3:03PM Kinder Morgan Partners expands Eagle Ford Shale footprint (KMP) 79.42 +0.31 : Co announced it has entered into an agreement with a large Eagle Ford Shale producer to extend the Kinder Morgan Crude and Condensate (KMCC) pipeline farther into the Eagle Ford Shale in South Texas. KMP will invest approximately $74 million to build an 18-mile, 24-inch diameter lateral pipeline northwest from its DeWitt Station to a new facility in Gonzales County, where KMP will construct 300,000 barrels of storage, a pipeline pump station and truck offloading facilities. The lateral will have a capacity of 300,000 barrels per day and will enable Kinder Morgan to batch Eagle Ford crude and condensate from the new Gonzales Station via KMCC to its delivery points on the Houston Ship Channel and/or the soon to be completed Sweeny Lateral pipeline serving the Phillips 66 Sweeny Refinery in Brazoria County, Texas. Including joint ventures and other projects, KMP's planned investments related to Eagle Ford Shale crude and condensates currently total almost $900 million.
2:55PM NYMEX Energy Closing Prices (COMDX) :
Nov crude oil fell $1.90 to $101.62/barrel
Crude oil fell today as weak inventory data and a stronger dollar index pressured prices. The EIA reported that for the week ending Oct. 4, crude oil inventories had a build of 6.81 mln barrels when consensus called for a much smaller build of 1.55 mln barrels. This was the largest weekly increase since Sept 2012. The energy component retreated from its session high of $103.29 set at pit trade open and settled with a 1.8% loss.
Nov natural gas fell 3 cents to $3.68/MMBtu
Natural gas fell for the first time in four sessions, dipping to a session low of $3.67. It closed just above that level, booking a loss of 0.8%.
Nov heating oil fell 1 cent to $3.02/gallon
Nov RBOB gasoline fell 1 cent to $2.62/gallon
2:34PM Stock indices break above afternoon range highs -- Dow +70 and S&P +6.5 set new session highs, Nasdaq Comp -4.6 (TECHX) :
2:31PM Dollar Hits Three-Week High: 10-yr: -03/32..2.650%..USD/JPY: 97.40..EUR/USD: 1.3515 (SUMRX) : The Dollar Index spiked to session highs near 80.55 as the latest FOMC minutes crossed the wires. The minutes provided nothing new, but that did not stop money from moving into the greenback on hopes the Fed would begin tapering its asset purchase program by the end of the year. Today's advance has action threatening its best close in three weeks. Click here to see a daily Dollar Index chart.
EURUSD is -75 pips at 1.3500 as action tests near-term support. These levels will be watched closely as a breach of the 1.3475 area sets up a potential move into 1.3400. Traders remain on the lookout for a German Constitutional Court ruling as to the validity of the ECB's European Stability Mechanism, which is expected to cross the wires in the coming days. Eurozone data is limited to French industrial production. ECB head Mario Draghi will speak tonight at Harvard University.
GBPUSD is -155 pips at 1.5925 as sellers remain in control for the fourth time in five days. The 1.5900 level is setting up as an important level as a breakdown likely means a test of the 50 dma. The Bank of England opines tonight with markets expecting no change to the current 0.50% and GBP375 bln asset purchase program.
USCHF is +80 pips at .9120 as action holds just off the highs. Today's surge has trade testing resistance in the .9100/.9130 area with a close north of there being the best since the middle of September.
USDJPY is +55 pips at 97.40 as action continues its bounce off the 200 dma. Bulls have their sights set on reclaiming the 98.00 area, but both the 50 and 100 dma will look to cap action just above that level. Japanese data includes core machinery orders and Tertiary Industry Activity.
AUDUSD is +15 pips at .9435 amid a rather uneventful trade. The pair has held in just a 30 pip range throughout the U.S. session with trade once again struggling as it approached the .9500 region. Australian data is heavy with MI Inflation Expectations, employment change, and the unemployment rate.
USDCAD is +20 pips at 1.0390 as trade looks likely to see a third day of gains. The three-day win streak has run the pair above both its 50 and 100 dma, and has action on track to close at a one-month high. The late August/early September highs in the 1.0500/1.0550 area are quickly shifting into focus. Canada's New Home Price Index is due out tomorrow.
2:21PM CBOT Agriculture and Ethanol Closing Prices (COMDX) :
Dec corn rose 2 cents to $4.44/bushel
Dec wheat fell 3 cents to $6.90/bushel
Nov soybeans fell 2 cents to $12.87/bushel
Nov ethanol rose 3 cents to $1.72/gallon
2:14PM United Tech increases quarterly dividend 10.1% to $0.589 per share (UTX) 103.12 +0.36 :
2:09PM Minor new session highs for Dow +59 and S&P +5.1, new recovery high Nasdaq Comp -7.4 (TECHX) :
2:03PM Steady to slightly weaker trade after Fed minute headlines are digested -- Dow +38, S&P +2.1, Nasdaq Comp -14 (SPY) :
1:47PM COMEX Metals Closing Prices (COMDX) :
Dec gold fell $17.80 to $1307.10/ounce
Gold spent all of today's floor trade in negative territory while the dollar index rose on news that President Obama will nominate Janet Yellen as the next Chair of the Federal Reserve. The yellow metal slumped to a session low of $1294.60 and settled slightly above the $1300 level, booking a loss of 1.3%.
Dec silver fell $0.56 to $21.89/ounce
Silver also traded in the red, dipping as low as $21.75 in morning floor trade. It eventually settled with a 2.5% loss.
Dec copper fell 6 cent to $3.23/lbs
1:33PM Hewlett-Packard confirms FY14 outlook; provides update on turnaround progress (HPQ) 21.93 +1.18 : Today at HP's 2013 Securities Analyst Meeting, the company's leadership team provided an update on HP's progress executing against its turnaround plan and future strategy.
Co anticipates operating profit dollars to be flat to up year-over-year in fiscal 2014, due to its continued focus on cost savings and operational efficiency. The company estimates non-GAAP diluted EPS for fiscal 2014 to be in the range of $3.55 to $3.75 (vs $3.62 Capital IQ Consensus Estimate). HP estimates GAAP diluted EPS to be in the range of $2.85 to $3.05 for fiscal 2014. Fiscal 2014 non-GAAP diluted EPS estimates exclude after-tax costs related primarily to the amortization of purchased intangible assets and a restructuring charge of approximately $0.8 billion. HP expects to generate approximately $9 billion to $9.5 billion in cash flow from operations in fiscal 2014. After deducting estimated fiscal 2014 capital expenditures, the company anticipates free cash flow of $6 billion to $6.5 billion in fiscal 2014.
HP's president and chief executive officer Meg Whitman reviewed the accomplishments of the past year -- a "fix and rebuild" year -- noting that the multi-year turnaround remains broadly on track. In particular, the company:
Has met or exceeded quarterly non-GAAP diluted earnings per share (EPS) outlook since the turnaround plan began through Q3 of fiscal 2013.
Provided outlook in August that HP expects free cash flow to approach $8 billion by the end of FY13.
Reduced operating company net debt by almost $8 billion over the past 12 months, approaching a goal of zero.
Recommitted to smarter innovation, with research and development (R&D) spending expected to be in excess of $3 billion in fiscal 2013.
Large Cap Gainers
TI (8.79 +6.80%): Reuters reporting that analysts expect the company to sell some assets; TSU trading higher in reaction to the news
HDB (33.09 +3.44%): Strength in Indian stocks: IBN and INFY also higher
T (34.05 +2.84%): Co and GE (GE) announced they have signed a global alliance agreement to allow GE machines to connect to the AT&T network and cloud
Large Cap Losers
YUM (65.41 -8.74%): Missed quarterly EPS by $0.08 ($0.85 ex items vs $0.93 estimate), revs fell 2.9% yoy to $3.47 bln vs $3.53 bln estimate; management said it is now unlikely that China Division same-store sales will be positive for the fourth quarter
FAST (46.58 -6.8%): Missed quarterly EPS by $0.01 ($0.40 vs $0.41 estimate), revs rose 7.0% yoy to $858.4 mln vs $864.21 mln estimate
TSLA (166.46 -4.73%): Hearing that margin requirements are being raised at a major broker for TSLA, QIHU, and SFUN
Mid Cap Gainers
SFUN (47.38 +6.19%): Strength in Chinese internet companies: YY also higher
AA (8.2 +3.26%): Beat quarterly EPS by $0.05 ($0.11 ex items vs $0.06 estimate), revs fell 1.2% yoy to $5.76 bln vs $5.66 bln estimate; reaffirmed 7% global aluminum demand growth forecast for 2013
Q (42.47 +2.14%): Upgraded to Strong Buy from Outperform at Raymond James
Mid Cap Losers
ARIA (5.18 -69.81%): Announced that patient enrollment in all clinical studies of Iclusig is being paused due to safety concerns
SCTY (36.63 -6.08%): To acquire Zep Solar for ~$158 mln in stock
ALNY (53.73 -5.74%): Co and The Medicines Company (MDCO) announced that their strategic alliance has yielded a lead Development Candidate that is a subcutaneously administered RNAi therapeutic (ALN-PCSsc) targeting PCSK9 for the potential treatment of hypercholesterolemia
Semtech (SMTC) has teamed up with IMST for the IM880A radio module featuring Semtech's LoRa long distance technology.
Silicon Labs (SLAB) introduced the industry's most energy-friendly 32-bit microcontrollers (MCUs - EFM32 Zero Gecko MCU Family) based on the ARM (ARMH) Cortex-M0+ processor.
SunPower (SPWR) announced that Erin Mulligan Nelson has been named the co's executive vice president and chief marketing officer.
IBM (IBM) announced that telecommunications service provider Surfline Communications has selected an IBM cloud solution consisting of IBM servers, storage and software to help expand mobile data services in Ghana and across Africa. Also, TienPhong Commercial Joint Stock Bank is using IBM cloud solutions to expand its business operations, drive growth, and deliver a variety of new customer services.
Juniper Networks (JNPR) has received Microsoft (MSFT) Lync qualification for both its wired and wireless campus portfolio.
AMD +0.8% (NVIDIA offers price cuts to compete with AMD, according to reports )
6:53AM BlackBerry and Wi-LAN (WILN) settle all litigations (BBRY) 7.98 : Wi-Lan (WILN) announced that BlackBerry and WiLAN have reached an agreement to dismiss all pending patent litigations between the companies. As part of the agreement, BlackBerry has obtained a license to certain patents in suit in Florida. As a result, all litigations between the companies in Florida will be dismissed with prejudice. In addition, the agreement calls for the dismissal, without prejudice, of all litigation between the companies in Texas. The parties will pursue licensing discussions regarding certain other wireless technologies.
6:05AM Chipmos Technology sees Q3 revs slightly above estimates; in-line with guidance (IMOS) 17.23 : Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of $172.9 mln vs. $172.10 mln Capital IQ Consensus Estimate. This represents a QoQ gain of 3.5%, in-line with co's guidance of +2-6% over Q2.
Callidus Software (CALD) raised third quarter revenue guidance to $28.5-29 million which is ahead of expectations, which is up from $26-27 million; raises FY13 revs to $108.5-109.5 million which is ahead of expectations, from $106-109 million. For the third quarter ended September 30, 2013 management expects: Record total revenue in the range of $28.5 million to $29.0 million. The co had previously provided guidance for third quarter 2013 revenue of $26.0-27.0 million. SaaS revenue growth of 22% to 25% year over year. SaaS billings growth of 32% to 35% year over year. All time record SaaS bookings including two 7-figure annual contracts. Closed two 7-figure license deals during the quarter, which are included in revenue for the quarter. Positive cash flow from operations.
Integrated Device (IDTI) disclosed that on October 2, 2013, it announced a plan to reduce its workforce by approximately 5%, or 90 employees. The Company has taken this action following an assessment of operational and financial considerations. In connection with this reduction in force, the Company expects to record approximately $4.8 million for severance and related costs. During the second quarter of fiscal 2014, IDT accrued approximately $3.9 million and paid $0.6 million in expenses associated with this action. The Company expects to complete this action in the fourth quarter of fiscal 2014.
ON Semiconductor (ONNN) disclosed that on October 6, 2013 it committed to a plan to close its SANYO Semiconductor backend assembly/test facility located in Hanyu, Japan, commonly referred to as "KSS," by the end of the second quarter of 2014. Under the Plan, a majority of the production from KSS will be transferred to other Company-owned manufacturing facilities. This Plan is being undertaken as part of the Company's overall drive for operational efficiencies and is in line with an ongoing strategy aimed at migrating in-house production to large, high volume facilities. The Plan includes the elimination in workforce of approximately 170 full time and 40 contract employees located at the Hanyu site. These actions are expected to take place over the next nine months and are expected to lower certain of the Company's costs, primarily through operational efficiencies. As a result of the Plan, co expects to incur cash charges of approximately $11 million to $16 million.
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