From Briefing.com: 4:10 pm : Once again, equity indices posted modest gains even as the agreement to end the partial government shutdown and extend the debt ceiling remained elusive. The S&P 500 added 0.4%, extending its year-to-date gain to 19.9%.
Stocks slumped at the open after the weekend ended without any concrete progress in Washington. Despite the opening weakness, dip-buyers were quick to step in, drawing encouragement from late-morning reports indicating a bipartisan meeting was scheduled to take place at the White House at 15:00 ET.
The rebound continued into the afternoon with upbeat quotes from lawmakers providing additional support. On that note, Senate Majority Leader Harry Reid said he is 'very optimistic' that an agreement will be reached this week. Similar remarks were made by Minority Leader Mitch McConnell who said "I share Senator Reid's optimism."
A brief slip ensued during the final 90 minutes of the session when the White House meeting was postponed in order to allow more time for talks. Strikingly, the market did not appear too concerned with the cancellation as the major averages ended the session on their highs.
Eight of ten sectors posted gains while telecom services (-0.7%) and utilities (-0.6%) spent the day in negative territory.
On the upside, the technology sector (+0.5%) fueled much of the session-long rebound as top components rallied. Apple (AAPL 496.04, +3.23), Google (GOOG 876.11, +4.12), and Microsoft (MSFT 34.45, +0.32) settled with gains between 0.5% and 0.9%. Netflix (NFLX 324.36, +23.51) also displayed strength, surging 7.8% after reports indicated the company is exploring making its service available through cable set-top boxes. In addition, the company said it entered into a production deal with Sony (SNE 19.93, -0.03).
The outperformance of tech shares helped the Nasdaq end ahead of the broader market. The index also drew strength from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 202.30, +1.52) ended higher by 0.8% after weighing on the tech-heavy index in early going.
Elsewhere, the energy sector (+0.6%) displayed relative strength as crude oil added 0.2% to $102.22 per barrel. Meanwhile, other commodities also posted gains. Gold futures rose 0.3% to $1272.50 per troy ounce and copper futures climbed 0.9% to $3.30 per pound.
The Treasury market was closed for Columbus Day, and the holiday had a visible impact on trading volume as only 575 million shares changed hands on the floor of the New York Stock Exchange.
Tomorrow, the October Empire Manufacturing Survey will be released at 8:30 ET.DJ30 +64.15 NASDAQ +23.40 SP500 +6.95 NASDAQ Adv/Vol/Dec 1536/1.44 bln/948 NYSE Adv/Vol/Dec 1714/574.5 mln/1225
3:30 pm :
Nov crude oil erased earlier losses as it pushed into positive territory heading into afternoon pit trade. It touched a session high of 102.62 per barrel after trading as low as $101.06 per barrel in early morning floor action. The energy component eventually settled with a 0.4% gain at $102.39 per barrel
Nov natural gas brushed a session low of $3.76 per MMBtu after pulling back from its session high of $3.84 per MMBtu. However, it quickly recovered back into positive territory and settled at $3.82 per MMBtu, or 1.3% higher
Precious metals traded higher today as the dollar index chopped around in negative territory
Dec gold touched a session high of $1287.40 per ounce but pulled back slightly in afternoon pit action and settled at $1276.60 per ounce, booking a 0.6% gain
Dec silver trended lower after touching a session high of $21.67 per ounce in early morning pit trade. It settled with a 0.5% gain at $21.35 per ounce
4:13PM Teradata cuts Q3 and FY13 guidance below consensus; announces additional $300 mln buyback (TDC) 52.58 -0.37 :
Co sees Q3 revenue to be approximately $665 mln vs $699.42 mln Capital IQ Consensus Estimate; sees Q3 EPS of $0.69-0.70 vs. $0.81 Capital IQ Consensus.
As a result, Teradata is lowering its full-year guidance for 2013 to reflect the preliminary third quarter results and its current expectations for the fourth quarter.
FY13 revenue is now expected to be approximately the same as 2012 full-year reported GAAP revenue (approx $2.66 bln, Capital IQ consensus $2.78 bln).
FY13 EPS for 2013 is expected to be in the approximate range of $2.70 - $2.80, vs. Capital IQ consensus $3.04.
Overalll, the International segment revenue in the third quarter declined approximately 2 percent, and was flat in constant currency, compared to the strong prior-year period when revenue grew 23 percent in constant currency. As it has been throughout 2013, revenue growth was strong in Europe where revenue grew approximately 13 percent, up 11 percent in constant currency in the third quarter. However, revenue was lower than expected in the Asia, Pacific, and Japan markets (APJ) where revenue was down approximately 21 percent, down 10 percent in constant currency, and in the Middle East and Africa markets (MEA), where revenue was down approximately 19 percent, down 12 percent in constant currency.
TDC's Board has authorized an additional $300 million to be utilized to repurchase. TDC now has a total of approximately $509 million authorized for share repurchases under this program.
4:11PM Teradata drops after guiding Q3 revenues and EPS below consensus (TDC) :
4:10PM Analog Devices to sell microphone product line to InvenSense (INVN) for $100 mln in cash (ADI) 47.17 +0.19 : ADI announced that it has signed a definitive agreement to sell the assets of its microphone product line to INVN. INVN will acquire the assets related to analog and digital output microphones, as well as certain support operations, for $100 mln in cash; INVN will also assume certain specified liabilities of ADI related to the MBL. The BOD's of both companies have approved the transaction, which is expected to close by the end of October 2013.
3:15PM Netflix follow-up; confirms it ordered psychological thriller series from 'Damages' creators from Sony Pictures Television (NFLX) 322.30 +21.52 : Co has ordered a new psychological thriller series from "Damages" creators Todd A. Kessler, Daniel Zelman and Glenn Kessler that centers on a family of adult siblings whose secrets and scars are revealed when their black sheep brother returns home. The 13-episode first season, from Sony Pictures Television (SNE), will premiere exclusively for Netflix members to watch instantly in all Netflix territories.
Large Cap Gainers
NFLX (316.85 +5.32%): Tgt to $340 from $290 at JPMorgan; Co in discussions with Comcast (CMCSA) and other cable cos to make service available through set top boxes, according to reports.
LINTA (25.61 +3.6%): Upgraded to Outperform from Market Perform at Wells Fargo.
MT (15.28 +2.52%): Upgraded to Outperform from Neutral at Macquarie; upgraded to Outperform at Mainfirst.
Large Cap Losers
ERIC (12.89 -1.98%): Downgraded to Underweight from Equal Weight at Barclays.
WMB (35.52 -1.74%): Downgraded to Neutral from Buy at ISI Group.
MYL (39.22 -1.73%): Downgraded to Equal-Weight from Overweight at Morgan Stanley.
Mid Cap Gainers
AMD (4.01 +4.83%): Upgraded to Outperform from Neutral at Wedbush; tgt raised to $5.
HSC (26.28 +4.16%): Upgraded to Buy from Hold at BB&T Capital Markets; tgt $32.
PT (4.87 +3.81%): Downgraded to Underweight from Buy at Santander.
Mid Cap Losers
EXPE (47.74 -7.71%): Downgraded to Hold from Buy at Deutsche Bank.
FICO (55.32 -3.51%): Sees Q4 GAAP EPS and revs below consensus; issued downside guidance for FY13.
SPN (25.18 -2.67%): Sees Q3 earnings below consensus; authorized $400 mln share repurchase program.
10:51 am Technology
The tech sector is trading lower today, in line with losses in the broader market. Semiconductors are showing relative strength, however, with the SOX trading 0.1% higher. Within the chip index, AMD (+3.7%) is a notable standout. Among other major indices, the SPY is trading 0.4% lower today, while the QQQ -0.3% and the NASDAQ is trading 0.4% lower on the session. Among tech bellwethers, AAPL (+0.6%) is showing notable strength, while FB (-2.0%) is under pressure.
This morning in earnings, FICO (-4.1%) issued downside Q4 guidance.
Among notable analyst upgrades in tech this morning, ALU (+1.1%) and NOK (-0.5%) were upgraded at Barclays, TSS (+1.1%) was upgraded to Mkt Outperform at JMP, Baird upgrades IRM (+0.8%) to Outperform, AMD (+3.8%) was upgraded to Outperform at Wedbush, and GLUU (+5.5%) & MTSN (+3.6%) were upgraded at B. Riley. In downgrades, IFNNY (-1.9%) was downgraded to Neutral at BofA/Merrill, Pacific Crest downgraded ATML (-1.0%) to Sector Perform, and AVT (-1.2%) & ARW (-2.0%) were downgraded to Hold at Deutsche Bank. There are no notable names in tech scheduled to report after the close.
10:01AM KLA-Tencor breaks above Sep peak at 62.44 to set a new multi-year high of 62.68 (KLAC) 62.63 +0.95 :
9:53AM Intel displays relative strength, edges above Friday's high of 23.26 -- session high 23.29 (INTC) 23.28 +0.02 :
STMicroelectronics (STM) has released its ST2100 STreamPlug System-on-Chip targeting smart-home and smart-energy applications to the world market.
9:17AM Integrated Silicon responds to filing of lawsuit by GSI Tech (GSIT); co intends to vigorously defend itself and believes there is no merit to the claims (ISSI) 11.21 : Co responded to the lawsuit filed by GSI Technology (GSIT) against ISSI and United Memories.
The complaint adding ISSI as a defendant was filed on October 3, 2013 in the United States District Court for the Northern District of California. The complaint alleges that ISSI colluded with UMI to engage in various anticompetitive acts aimed at GSI. ISSI intends to vigorously defend itself and believes there is no merit to the claims.
The court recently denied GSI's request for a preliminary injunction against UMI and ruled that GSI had not shown a likelihood that the design database in question contained any GSI proprietary information. Thereafter, GSI filed an amended complaint adding ISSI as a defendant alongside UMI. This lawsuit arose after Cisco Systems, Inc. awarded a second-source design for a next generation DRAM chip to ISSI over a competing bid by GSI.
According to the Court's ruling denying the request for preliminary injunction, "Cisco (CSCO) informed GSI that it was not selected because GSI lacked experience in DRAM." Furthermore, with regard to UMI's participation in ISSI's winning design bid, the Court's ruling noted that "other factors appear to have weighed into the award of the Atris bid which had more to do with GSI's own shortcomings rather than UMI's participation."
Ixia (XXIA) announced that 6WIND is using Ixia solutions to ensure it delivers the highest performance networking data plane software to its customers.
Mellanox Technologies (MLNX) announced that Mellanox's end-to-end Virtual Protocol Interconnect solution has been chosen by Pensions First to power its multi-tenanted private cloud business intelligence solution, which uses Microsoft (MSFT) Hyper-V Server 2012 R2 and Microsoft Windows Server 2012 R2.
Altera (ALTR) announced the addition of five new low-cost development kits based on its Cyclone V FPGAs.
KLIC +1.1% (Kulicke & Soffa ticking higher following positive Barron's mention)
DSP Group (DSPG) was collaborating with Swissvoice to jointly develop an OTT ULE home automation gateway. DSP Group's DVF99 chipset will be integrated into the Swissvoice home automation OTT gateway.
OmniVision Technologies (OVTI) announced the release of OmniGlass, a new reference design that combines a wearable display and a camera module for the rapidly growing wearable electronics market.
1:34AM Suntech Power provides updates on GSF assets in Brindisi, Italy (STP) 1.48 : Co announces further developments with respect to Global Solar Fund assets in Brindisi, Italy.
On September 23rd, an additional 5.3 MW of solar fields were seized and on October 4th, another 1.9 MW were seized. As of October 9th, in total, 47 sites with a total generating capacity of 37.8 MW have been seized representing approximately 26.9% of GSF's total generating capacity.
On September 30th, the Court of Brindisi agreed to appoint judicial administrators for the 27 sites seized on September 19th. During the judicial administration period, the Court of Brindisi has authorized that such solar fields will continue to operate and receive feed-in-tariffs in accordance with the guidelines provided by the Court.
In relation to the seizures on September 23rd, the relevant Italian subsidiaries of GSF have filed to the competent Court the request for the appointment of a judicial administrator.
In relation to the last seizure on October 4th, the relevant Italian subsidiaries of GSF are evaluating whether to file the request for the appointment of a judicial administrator.
Apple (AAPL) target was raised to $550 from $520 at Mizuho. The firm notes, ahead of earnings on Oct 28, they expect a slight revenue and EPS beat driven primarily by strong iPhone shipments, which could offset any weakness in iPads. For F1Q14, they think distribution expansion of iPhones combined with a refresh of iPads should drive the company's performance. They expect the revenue outlook to be in-line to slightly better than consensus with potential upside to EPS. Lastly, they expect 2014 to be a strong product cycle year.
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