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From Briefing.com: Weekly Recap - Week ending 08-Nov-13

Dow +167.80 at 15761.78, Nasdaq +61.90 at 3919.23, S&P +23.46 at 1770.61

Equities climbed throughout the session despite showing early signs of a potential continuation to yesterday's weakness. The S&P 500 advanced 1.3% while the Nasdaq and Russell 2000 outperformed with respective gains of 1.6% and 1.9%.

Before today's opening bell, it was announced that nonfarm payrolls increased by 204,000 in October (Briefing.com consensus 100,000). The immediate reaction was consistent with increased expectations of tapering sooner rather than later as bonds and futures fell to lows. However, equity futures returned into positive territory by the opening bell while Treasuries settled on their lows with the 10-yr yield up 15 basis points at 2.75%. The dollar also strengthened, sending the Dollar Index higher by 0.5% to 81.24.

Stocks rallied with the financial sector (+2.3%) paving the way after the group struggled to keep pace with the S&P earlier in the week. All major banks posted solid gains, and JPMorgan Chase (JPM 53.96, +2.31) surged 4.5%.

Other cyclical sectors also displayed strength, but only financials added more than 2.0%. Meanwhile, the materials space was the second-best performer (+1.8%) as steelmakers provided support. The Market Vectors Steel ETF (SLX 49.37, +0.81) gained 1.7%. Miners posted modest gains as the Market Vectors Gold Miners ETF (GDX 24.28, +0.14) added 0.6% despite weakness in gold. The yellow metal fell 1.8% to $1284.60 per troy ounce.

Elsewhere, the technology sector (+1.1%) was the only cyclical group unable finish ahead of the broader market as top components traded in mixed fashion. Apple (AAPL 520.56, +8.07) and Cisco Systems (CSCO 23.51, +0.40) gained 1.6% and 1.7%, respectively, while IBM (IBM 179.99, -0.01) and Intel (INTC 24.09, +0.03) ended little changed.

Yesterday, the Nasdaq was pressured by biotechnology and momentum names, but both groups displayed relative strength today. The iShares Nasdaq Biotechnology ETF (IBB 204.18, +6.36) climbed 3.2% while Priceline.com (PCLN 1073.20, +50.31) paced the gains among momentum names after beating on earnings.

Also of note, Twitter (TWTR 41.65, -3.25) endured a forgettable second-day of trading after Hudson Square initiated coverage of the stock with a 'Sell' rating. The social media stock tumbled 7.2%.

Trading volume was well above average as 823 million shares changed hands on the floor of the New York Stock Exchange.

Taking another look through today's data, with the exception of government, every sector reported positive payroll gains in October. That included a 44,400 increase in retail employees. It has been reported that retailers started hiring earlier than normal for the holiday season.

Private payrolls added 212,000 new jobs in October, up from 150,000 in September. That was the biggest monthly gain since February when 319,000 jobs were added. The consensus expected only 110,000 new private jobs.

The average workweek remained at 34.4 hours and hourly wages increased by 0.1%. Combined with the solid increase in private payrolls, aggregate wages increased 0.3%. That is enough to keep consumption growth moving ahead.

The unemployment rate increased to 7.3% in October from 7.2% in September, as expected.

Separately, the November University of Michigan Consumer Sentiment Index dropped to 72.0 in the preliminary reading from 73.2 in October. The Briefing.com consensus expected the index to increase to 75.0. With the government shutdown over and the economy returning to its normal, albeit weak, trends, it was expected that consumer sentiment would return to September (77.5) or August (82.1) levels.

There is no economic data scheduled to be reported on Monday.

Week in Review: Stocks Test Record Highs

The major averages kicked off the week with modest gains as the S&P 500 added 0.4%. The Russell 2000 (+1.1%) outperformed, but its relative strength came after the small cap index struggled to keep pace with the prior week's advance in the broader market. Outside of the notable outperformance among small caps, the session unfolded in an uneventful fashion. Overseas markets did little to upset the state of affairs as Japan's Nikkei was closed for Culture Day while China's Shanghai Composite ended flat despite its Non-Manufacturing PMI rising to a 14-month high of 56.3 from 55.4. All ten sectors ended in the green, but only energy (+1.3%) and telecom services (+0.8%) posted gains in excess of 0.4%. Energy was responsible for pacing much of the advance as the sector rallied throughout the session. Meanwhile, crude oil ended little changed at $94.59 per barrel.

On Tuesday, the major averages ended on a mixed note as the S&P 500 shed 0.3% while the Nasdaq added 0.1%. Equities spent the entire session climbing off their early lows after weakness in Europe set the stage for a lower open. European indices hovered near their worst levels of the day at the outset of the U.S. session after the European Commission lowered its 2014 GDP forecast for the region to 1.1% from 1.2%. Similar to equities, core EU bonds also sold off as Germany's 10-yr yield added four basis points to 1.74% while the French 10-yr yield rose six basis points to 2.21%. Although stocks began the U.S. session in negative territory, the buy-the-dip trade was at work once again, fueling a day-long rebound. The tech-heavy Nasdaq was able to eke out a modest gain thanks to the outperformance of biotechnology as the iShares Nasdaq Biotechnology ETF rose 0.7%.

Wednesday saw the major averages register broad gains at the open, but only the Dow Jones Industrial Average (+0.8%) and S&P 500 (+0.4%) were able to end in positive territory while the Nasdaq (-0.2%) and Russell 2000 (-0.4%) posted modest losses. The Dow finished at a fresh record high of 15,746.63 as 27 of 30 components registered gains. Of those 27, twelve added at least 1.0%. Microsoft (MSFT 37.78, +0.28) was the top index performer, climbing 4.2% amid reports Ford (F 16.85, +0.30) Chief Executive Officer Alan Mullaly remains on the list of candidates hoping to replace outgoing CEO Steve Ballmer.

The major averages ended Thursday on their lows after opening gains turned into broad-based losses. The S&P 500 fell 1.3% while the Nasdaq underperformed with a decline of 1.9%. Prior to the open, the European Central Bank cut its key interest rate by 25 basis points to 0.25% after recent data suggested the price level is moving away from the ECB's inflation target. The rate cut fueled a surge in the dollar while also sparking a risk bid. However, the equity gains were capped after a better-than-expected headline Q3 GDP reading (2.8% versus 2.5% Briefing.com consensus) fostered renewed speculation about a potential tapering announcement coming sooner rather than later. The immediate reaction in Treasuries also reflected a 'taper on' trade as bonds sold off, sending the 10-yr yield from its low to a session high. However, Treasuries returned to their best levels of the day as weakness among equities redirected some flows into safe-haven assets. The 10-yr yield ended lower by four basis points at 2.61%.

 
 Index	    Started Week  Ended Week  Change  %Change  YTD % 
 DJIA	      15615.55	   15761.78  146.23     0.9   20.3 
 Nasdaq	       3922.04	    3919.23   -2.81    -0.1   29.8 
 S&P 500        1761.64	    1770.61    8.97     0.5   24.1 
 Russell 2000   1095.67	    1099.97    4.30     0.4   29.5

This week's top 20 % gainers

Technology: GTAT (9.47 +24.13%), GSAT (1.58 +20.14%), BCOR (28.76 +20.06%), FLTX (36.03 +18.11%), VJET (44.91 +17.66%), AEIS (24.46 +16.57%)
Services: PMC (18.81 +22.76%), LIOX (5.34 +22.48%), ONE (9.42 +20%), LPSN (11.31 +19.59%), MWW (5.21 +18.06%)
Industrial Goods: GTI (11.36 +24.27%)
Healthcare: GERN (4.61 +31.9%), ENDP (60.5 +31.35%), IDIX (4.35 +30.09%), KERX (12.99 +27.54%), HTWR (89.36 +21.23%), HWAY (12.09 +19.85%)
Consumer Goods: TPX (44.88 +17.24%)
Basic Materials: REGI (13.34 +19.16%)

This week's top 20 % losers

Technology: NQ (11.33 -23.82%), IO (3.78 -22.84%), BSFT (25.09 -22.22%), ELLI (22.96 -22.11%), JCOM (45.08 -20.12%)
Services: QUAD (25.2 -24.31%), OWW (7.42 -24.24%), CKP (13.86 -20.68%), EDMC (12.74 -18.43%), FWM (21.1 -18.34%), EXLS (23.94 -18.3%)
Industrial Goods: PPO (36.15 -20.55%)
Healthcare: TRNX (16.41 -25.34%), IMGN (13.64 -22.43%), NXTM (10.16 -21.7%), BIOS (6.14 -19.4%)
Financial: NSM (36.48 -20.6%)
Basic Materials: PWE (8.69 -23.86%), ALDW (10.57 -20.04%), SZYM (8.87 -18.64%)

4:02PM OmniVision announced the OV13850, a new PureCel 13-megapixel CameraChip sensor for high-performance mobile devices (OVTI) 14.35 -0.06 : Co announced the OV13850, a new PureCel 13-megapixel CameraChip sensor for high-performance mobile devices. The OV13850 combines OmniVision's most advanced process technology and design methods to enable best-in-class low- and high-light performance. In addition to dramatically improved pixel performance, the OV13850 boasts best-in-class power efficiency, making it an ideal camera solution for high-end smartphones and tablets.

3:33PM Earnings Preview for the week of November 11 - 15 (SUMRX) : Of the companies reporting earnings for the week of November 11 - 15 some of the bigger names include:

Monday:
Pre Market - ABFS, STRL, SLW, WLH
After Hours - HOLX, RAX, AGO, IOC, SPRD, SHO, BID
Tuesday:
Pre Market - DISH, NRG, CORE, DF, ACM, DHI, NAFC, NS, SATS, ROC, YGE, DNDN, SRPT
After Hours - YRCW, BWC, TMHC, WWD, STAN, WX, PEGA, PBPB, MDVN, NQ
Wednesday:
Pre Market - M, MTOR, PF
After Hours - CSCO, ANW, NTAP, KGC, SEAS, TTEK, WGL, NTES, MM, XONE
Thursday:
Pre Market - WMT, KSS, VIAB, TYC, GIB, SBH, HP, TDG, DANG
After Hours - JWN, AMAT, A, HMIN, YOKU
Friday:
Pre Market - MMS

Large Cap Gainers
GPS (40.7 +7.81%): Reported October same store sales rose 4%; sees Q3 EPS of $0.70-0.71 vs $0.66 estimate, revs of $3.98 bln vs $3.96 bln estimate; target raised to $45 from $44 at Canaccord Genuity
SCHW (23.76 +4.39%): Seeing reports that co said it is closer to adding ETFs and 401(k) retirement plans
MET (49.6 +4.22%): Strength following rise in yields due to positive jobs data (MET has a large bond portfolio)
Large Cap Losers
TI (9.06 -4.43%): Downgraded to Neutral from Buy at Natixis Bleichroeder
TSLA (134.45 -3.81%): Continued weakness following a third fire in a Model S
HCN (60.14 -2.10%): Priced EUR 550 mln in aggregate principal amount of 4.8% senior unsecured notes due November 20, 2028

Mid Cap Gainers

UBNT (43.3 +16.46%): Beat quarterly EPS by $0.06 ($0.46 vs $0.40 estimate), revs rose 110.9% yoy to $129.7 mln vs $119.82 mln estimate; sees Q2 EPS of $0.42-0.46 vs $0.40 estimate, revs of $130-136 mln vs $123.07 mln estimate
SLXP (82.84 +16.17%): Acquired Santarus (SNTS) for $32 per share, expected to be accretive in 2014; upgraded to Neutral at Janney
RVBD (17.43 +15.35%): Elliott Assoc. disclosed a 5.8% active stake in the company, believes it is "significantly undervalued"

Mid Cap Losers

NSM (37.62 -7.68%): Downgraded to Equal Weight from Overweight at Morgan Stanley and Evercore; downgraded to Neutral from Buy at Sterne Agee; target lowered to $45 at FBR Capital
LEN (32.67 -4.60%): Announced pricing of $250 mln of 7.00% senior notes due 2018
SWY (32.5 -4.50%): Seeing rumors that activist investor has a negative outlook on the company; also seeing reports that co is in talks with unions, concerns of a potential strike

8:44AM Riverbed Technology: Elliott Assoc. discloses 5.8% active stake in 13D filing; believes Co is significantly undervalued and has expressed this view to the Board (RVBD) 15.11 : "Elliott believes that the Issuer is significantly undervalued and has expressed this view to the Issuer's Board of Directors. The Issuer occupies a mission-critical position in thousands of networks, possesses extremely loyal customers who deeply value the Issuer's service and maintenance, and has a valuable and stable platform that is capable of producing significant profitability while generating revenue growth in its core and logically adjacent markets. It is Elliott's belief that the Issuer can build on these strengths and immediately increase stockholder value by implementing certain value-maximizing operational, capital structure and strategic review initiatives. Elliott believes that these initiatives will prudently, but significantly, provide a meaningful increase to the company's valuation. We have detailed these observations to the Board of Directors of the Issuer and look forward to a constructive dialogue."

QLogic (QLGC) is now providing enterprise-class Fibre Channel and converged network connectivity for Lenovo (LNVGY) ThinkServer systems.

NVIDIA (NVDA 14.81, +0.27): +1.8% following its in-line earnings and cautious fourth quarter revenue guidance.

Microsemi (MSCC) reported fourth quarter earnings of $0.53 per share, excluding non-recurring items, which is in line with expectations, while revenues fell 4.8% year/year to $250.4 million which is line with expectations. The company issued first quarter with EPS of $0.42-0.46 which is below expectations with revenues of 3-5% QoQ calc to approximately$237.8-242.9 million which is below expectations. "Microsemi's strategic business model continued to serve us well in the September quarter, with a sequential increase in revenue of 3.2 percent and disciplined cost controls driving 100 basis points of operating margin improvement...Operating and free cash flows remained strong and we are confident that our overall strategy continues to bring benefit to our shareholders."

FireEye (FEYE) reported third quarter loss of $1.21 per share, which is higher than expected, while revenues rose 95.0% year/year to $42.7 million which is higher than expected with billings +103% to $70.8 million. The company issued fourth quarter revenues of $52-54 which is above expectations with adjusted operating loss $40-44 million; billings $82-86 million. The company issued guidance for the fiscal year 2014 with EPS revenues of $240-250 million which is above expectations with billings of $350-370 million.

OCZ Tech (OCZ) announced further progress in resolving outstanding legal issues. Three shareholder derivative actions filed in California state court recently were dismissed with prejudice pursuant to stipulation and order. The dismissals of these actions occurred after final approval of the settlement in the federal shareholder derivative action. On October 17, 2013, the United States District Court for the Northern District of California granted final approval of the previously announced settlement of the consolidated federal shareholder derivative litigation captioned In re OCZ Technology Group, Inc. Shareholder Derivative Litigation, Lead Case No. 12-cv-05556-RS, and entered an order dismissing the federal derivative action with prejudice. There are no more shareholder derivative actions pending.

NVIDIA (NVDA) reported third quarter earnings of $0.26 per share, which is line with expectations. while revenues fell 12.5% year/year to $1.05 billion which is line with expectations. The company issued downside guidance for the fourth quarter with revenues of $1.05 billion, plus of minus 2%, which equates to approximately $1.03-1.07 billion which is below expectations.

AVG Tech (AVG) reported third quarter earnings of $0.52 per share, which is higher than expected, while revenues rose 5.0% year/year to $100.1 million which is lower than expected. Non-GAAP unlevered free cash flow was $21.4 million for the quarter, compared with $26.8 million for the same period in the prior year. Operating cash flow was $24.8 million for quarter, compared with $24.9 million for the third quarter last year Guidance: The company issued guidance for the fourth quarter with EPS of 0.37-$0.42 which is below expectations with revenues of $93-$97 million which is below expectations.