From Briefing.com: 4:15 pm : The stock market began February on a sharply lower note after enduring a rough month of January. Small caps paced the Monday retreat as the Russell 2000 tumbled 3.1% while the S&P 500 fell 2.3%. For its part, the Dow Jones Industrial Average lost 2.1%, ending below its 200-day moving average (15470).
Despite the sharply lower finish, today's session actually started in the green. However, sellers emerged during the opening minutes and intensified their efforts after the January ISM Manufacturing Index registered a large decline (to 51.3 from 56.6).
Although the ISM report itself did not cause the aggressive selloff, it added to global growth concerns that have been percolating under the surface after China's Manufacturing PMI (50.5) fell to a six-month low while the Non-Manufacturing reading (53.4) registered an 11-month low.
Furthermore, the selloff was accompanied by another wave of yen strength. Dollar/yen traded right above the 102.00 level at the start of the session, but retreated along with equities. The pair finished the trading day right under 101.00 while yen futures added 1.4%, extending their 2014 gain to 4.3%.
The daylong pressure that was exerted on equities translated into strength for the bond market. The 10-yr note ended on its high with its yield down seven basis points at 2.59%. Gold futures also garnered interest, climbing 1.6% to $1259.50 per troy ounce.
Also of note, the retreat invited strong demand for volatility protection, sending the CBOE Volatility Index (VIX 21.12, +2.71) to its highest level since late June. Over the past two weeks, the near-term volatility gauge has added more than 72.0%.
All ten sectors finished in the red with the lowest-weighted group-telecom services (-3.7%)-ending at the bottom of the leaderboard. The remaining nine sectors fared a bit better, posting losses between 0.8% and 2.7%.
The discretionary sector (-2.7%) was the weakest performer among cyclical groups as retailers continued their recent weakness. The SPDR S&P Retail ETF (XRT 77.47, -2.38) lost 3.0%, sliding to levels not seen since late August. Today's loss widened the retail ETF's 2014 decline to 12.1%.
Automakers also pressured the discretionary space after Ford (F 14.55, -0.41) reported a 7.0% decline in January sales while General Motors (GM 35.25, -0.83) announced an 11.9% decrease in sales. The two names settled lower by 2.7% and 2.3%, respectively.
Elsewhere, other influential sectors like financials (-2.5%) and industrials (-2.7%) lagged while health care (-2.0%) and technology (-2.2%) ended just ahead of the S&P 500.
The utilities sector (-0.8%) was the only group that avoided losing 1.0% or more. The rate-sensitive sector is the only group that remains in positive territory for the year with a gain of 2.1%.
The selloff was accompanied by heavy volume as more than 900 million shares changed hands on the floor of the New York Stock Exchange.
Today's data was limited to just a pair of reports:
The ISM Manufacturing Index for January dropped to 51.3 from 56.5 while the Briefing.com consensus expected the reading to fall to 56.0. That tied the largest one-month decline since October 2008. The sharp decline in the national index did not correlate with the regional surveys from Federal Reserve banks. They showed modest improvements in manufacturing activity throughout the country. According to the ISM report, some of the weakness may have been due to the extreme winter weather conditions that occurred in January. If this is true, then the ISM Index should bounce back rather significantly in February.
Total construction spending increased 0.1% in December after increasing a downwardly revised 0.8% (from 1.0%) in November. The Briefing.com consensus expected construction spending to increase 0.1%. The residential construction spending data does not line up with the contraction reported in the advance estimate for fourth quarter GDP growth. The downturn in fourth quarter residential investment spending could have only occurred if spending fell in December or if there were large revisions to the November and/or October data. According to the Census data, that did not happen.
Tomorrow, December factory orders will be announced at 10:00 ET.
Nasdaq Composite -4.3% YTD
S&P 500 -5.8% YTD
Russell 2000 -5.8% YTD
Dow Jones Industrial Average -7.3% YTD
DJ30 -326.05 NASDAQ -106.92 SP500 -40.70 NASDAQ Adv/Vol/Dec 368/2.15 bln/2288 NYSE Adv/Vol/Dec 464/900.7 mln/2648
3:35 pm :
Precious metals rallied in morning pit trade as the dollar index fell following weak ISM Manufacturing data. The ISM Manufacturing Index dropped to 51.3 in January from 56.5 in December, the largest one-month decline since October 2008. The Briefing.com consensus expected the index to fall to 56.0. Apr gold rose as high as $1266.10 per ounce and settled with a 1.6% gain at $1259.50 per ounce.
Mar silver popped to a session high of $19.62 per ounce on the economic data. However, the momentum faded and prices pulled back as the session progressed. Silver eventually settled at $19.41 per ounce, or 1.6% higher.
Mar crude oil extended Friday's losses as it retreated from a session high of $97.77 per barrel set in morning action. The energy component dipped to a session low of $96.26 per barrel and settled at $96.43 per barrel, booking a loss of 1.1%.
Mar natural gas fell for a third consecutive session but trimmed earlier losses as it lifted from a session low of $4.80 per MMBtu set at pit trade open. It advanced to a session high of $4.96 per MMBtu and settled 0.8% lower at $4.90 per MMBtu.
4:24PM Advanced Energy beats by $0.09, beats on revs; guides Q1 EPS in-line, revs below consensus (AEIS) : Reports Q4 (Dec) earnings of $0.67 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 35.0% year/year to $152.6 mln vs the $150.75 mln consensus.
Co issues mixed guidance for Q1, sees EPS of $0.41-0.47 vs. $0.44 Capital IQ Consensus Estimate; sees Q1 revs of $138-146 mln vs. $147.19 mln Capital IQ Consensus Estimate
4:12PM Power Integrations beats by $0.03, beats on revs; guides Q1 revs in-line (POWI) 57.36 -1.87 : Reports Q4 (Dec) non-GAAP earnings of $0.66 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 14.2% year/year to $90.4 mln vs the $89.2 mln consensus. Co issues in-line guidance for Q1, sees Q1 revs of $86-92 mln vs. $90.2 mln Capital IQ Consensus Estimate.
Non-GAAP gross margin for Q4 was 54.5% while non-GAAP operating margin was 23.5%.
Gross margin in Q1 is expected to be similar to Q4 levels.
"We ended the year with a strong quarter, and believe we're well-positioned for 2014 and beyond. Energy efficiency continues to be a major factor in the electronics, appliance and industrial markets, and our addressable market is expanding thanks to strong growth in areas like LED lighting, renewable energy and rapid charging for mobile devices."
4:07PM Peregrine Semi misses by $0.13, misses on revs; guides Q1 revs below consensus (PSMI) 6.65 +0.08 : Reports Q4 (Dec) loss of $0.16 per share, $0.13 worse than the Capital IQ Consensus Estimate of ($0.03); revenues fell 31.3% year/year to $43.3 mln vs the $45.02 mln consensus. Gross margin on a non-GAAP basis for the fourth quarter of 2013 was 36.6% of revenue, compared to 43.6% of revenue for the same period in 2012. Gross margins in the fourth quarter were impacted by a higher than normal inventory write-down of $3.1 million.
Co issues downside guidance for Q1, sees Q1 revs of $33-36 mln vs. $41.35 mln Capital IQ Consensus Estimate. First quarter GAAP gross margin is expected to be in the range of 36% to 38%.
"While we delivered on our commitments in the quarter, we clearly have work to do to return to sustainable top and bottom line growth," said Stephen MacMillan, President and Chief Executive Officer. "Looking forward, I am energized by our unique collection of leading product technologies and a deeply committed and passionate employee base to drive organic growth. Through the balance of fiscal 2014, we will remain focused on improving our operating performance and growth profile and on paying down our debt balance, which we believe will enhance shareholder value."
4:07PM Rudolph Tech beats by $0.04, misses on revs (RTEC) : Reports Q4 (Dec) earnings of $0.09 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.05; revenues fell 18.0% year/year to $44.5 mln vs the $45.25 mln consensus.
4:04PM Rudolph Tech has received two orders for its lithography systems totaling more than $11 mln (RTEC) 10.90 -0.09 : Purchase orders include a repeat order for the JetStep Lithography System for advanced packaging applications and a repeat order for a PanelPrinter 9200 System for flat panel display (FPD) lithography. The orders were received in the fourth quarter of 2013, and came from customers who are presently using Rudolph's lithography systems in volume production, both of whom foresee new capacity needs that require the Company's lithography systems. The JetStep system was shipped in Q1 2014 and the PanelPrinter system is scheduled to ship before the end of 2014.
4:03PM Integrated Device beats by $0.05, misses on revs (IDTI) : Reports Q3 (Dec) earnings of $0.17 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.12; revenues rose 9.0% year/year to $124.6 mln vs the $126.14 mln consensus.
Large Cap Gainers
RYAAY (48.85 +3.40%): Repoerted Q3 EPS of EUR -0.03, revs flat yoy at EUR 964 mln vs EUR 965.5 mln estimate; passnengers increased 6% yoy to 18.3 mln
PFE (31 +1.97%): Announced that the randomized Phase 2 trial [PALOMA-1] of palbociclib achieved its primary endpoint by demonstrating a statistically significant and clinically meaningful improvement in progression-free survival (PFS) for the combination of palbociclib and letrozole compared with letrozole alone in post-menopausal women with estrogen receptor positive (ER+), human epidermal growth factor receptor 2 negative (HER2-) locally advanced or newly diagnosed metastatic breast cancer
GG (25.17 +1.12%): Strength in gold companies: ABX also higher
Large Cap Losers
OKE (58.86 -14.06%): Completed separation of natural gas distribution business into a stand-alone, publicly traded company called ONE Gas (OGS)
GPC (78.54 -4.51%): Announced three acquisitions for its Industrial, Electrical/Electronic, and Office groups
LYG (5.26 -4.01%): Sees FY13 net underlying profit of GBP 6.2 bln; co plans to apply dor dividend reinstatement in the second half of 2014
Mid Cap Gainers
GOLD (72.21 +4.80%): Reported total cash cost per ounce for the quarter was $628, down 5% on the previous quarter, and $715 for the year, down 3% on 2012; reported gold sales of $1.27 billion for the year
AOL (47.55 +3.19%): Target raised to $57 from $46 at Needham
BLL (51.65 +0.90%): Co announced it completed the SpaceWire Inter-operability Test for the Joint Polar Satellite System-1 satellite and has begun spacecraft bus integration
Mid Cap Losers
FEYE (66.9 -8.35%): Filed for $700 mln common stock offering
MDVN (74.14 -6.86%): Downgraded to Market Perform from Outperform at Bernstein; downgraded to Hold from Buy at Needham; target raised to $100 at chardan Capital Markets
NMBL (40.3 -6.78%): Mentioned positively at Pacific Crest
11:33AM Juniper Networks: Elliot Management provdes update on Junier: 'received overwhelming support for shareholder value plan' (JNPR) 26.76 +0.15 : Elliott Management Corporation, which owns 6.2% of the common stock of Juniper Networks (JNPR), released a statement regarding its investment in Juniper:
"Elliott is extremely gratified by the absolutely overwhelming support we have received from fellow Juniper shareholders, sell-side analysts and the broader investing community for the Shareholder Value Plan we have urged Juniper to adopt," said Jesse Cohn, Portfolio Manager at Elliott. "When we set out to suggest a plan for Juniper, we talked with fellow shareholders and leading analysts to develop a reasonable set of steps that could generate tremendous value. We also recruited a team of leading executives who are excited about Juniper and who have the operational skills and deep industry experience to help ensure that the Shareholder Value Plan becomes a reality. Elliott is entirely committed to seeing the plan through, and our commitment is such that we remain open to all paths to ensure its implementation. We have been pleased with our dialogue with the Company, and we were encouraged by Shaygan's decision to position himself as a change agent on Juniper's January 23rd earnings call. It is our strong preference to work collaboratively with Juniper to achieve the most important goal of ensuring implementation of a plan that is fully consistent with the specific value-maximizing steps outlined in the Shareholder Value Plan."
The Shareholder Value Plan was developed based on feedback from Juniper's shareholders and sell-side analysts and can be found at www.new-juniper.com.
1:38AM Suntech Power reaches agreement with petitioners and supporting noteholders in connection with the Chapter 7 proceeding (STPFQ) 0.59 : Co announces announces that it has signed a Restructuring Support Agreement relating to the petition for involuntary bankruptcy filed against it under chapter 7 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Under the RSA signed by the petitioners for the chapter 7 proceeding, the Company, the joint provisional liquidators of the Company, and certain supporting holders of the Company's 3% Convertible Senior Notes that include members of the Company's creditor working group, the chapter 7 proceedings in the U.S. have been stayed and a stipulation for the dismissal of the chapter 7 proceedings will be executed and filed following recognition of the provisional liquidation proceeding previously filed by the Company in the Cayman Islands under chapter 15 of the U.S. Bankruptcy Code.
In addition, the RSA provides that (among other things):
The JPLs, on behalf of the Company, will use commercially reasonable efforts to file the chapter 15 petition by February 21, 2014;
The petitioners and supporting noteholders will support the chapter 15 petition
The restructuring must treat all beneficial holders of the notes pari passu
Upon performance of the RSA, the Company is required to dismiss appeals of certain judgments obtained by the petitioners relating to repayment of the Notes held by such petitioners
The RSA may be terminated if the Company fails to file the chapter 15 petition by February 21, 2014, an order obtaining recognition of the Cayman Islands restructuring proceeding is not entered by the U.S. Bankruptcy Court by May 31, 2014, or the Cayman Islands restructuring is not approved by December 31, 2014.
Last night after the close, Google (GOOG) reported Q4 (Dec.) earnings of $12.01 per share, $0.28 worse than the consensus estimate of $12.29, while revenues rose 17.9% year/year to $16.86 billion vs. the $16.76 billion consensus.
Paid Clicks- Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of its Network members, increased approximately 31% over the fourth quarter of 2012 and increased approximately 13% over the third quarter of 2013.
Cost-Per-Click- Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its Network members, decreased approximately 11% over the fourth quarter of 2012 and decreased approximately 2% over the third quarter of 2013.
Last night after the close, Broadcom (BRCM) reported Q4 (Dec.) earnings of $0.60 per share, $0.03 better than the consensus estimate of $0.57, while revenues fell 1.0% year/year to $2.06 billion vs. the $2.02 billion consensus. "In 2013 Broadcom delivered record revenue in all three business groups. Continued strength in our Infrastructure Business Group drove Q4 revenue and earnings ahead of expectations. Looking into 2014, we are building momentum in LTE, setting the stage for Ultra HD and powering next generation service provider and data center networks."
Broadcom guided Q1 revenues to ~$1.9-2.0 billion vs $1.97 billion consensus and non-GAAP product gross margin to -50 to -100 bps quarter/quarter from 52.6%.
Last night after the close, NetSuite (N) reported Q4 (Dec.) earnings of $0.08 per share, $0.01 better than the consensus estimate of $0.07, while revenues rose 35.3% year/year to $115 million vs the $111.44 million consensus. Cash flow from operations was $17.3 million in the fourth quarter of 2013, an increase of $3.9 million, or 29%, over the same period last year. Cash flow from operations was $62.2 million for the year, an increase of $7.9 million, or 15%, over the prior year.
Last night after the close, JDS Uniphase (JDSU) reported Q2 (Dec.) earnings of $0.19 per share, $0.05 better than the consensus estimate of $0.14, while revenues rose 4.2% year/year to $447.6 million vs the $433.73 million consensus.
The company issued in-line guidance for Q3, with revenues of $420-440 million vs. the $425.94 million consensus estimate.
Last night after the close, Proofpoint (PFPT) reported Q4 (Dec.) loss of $0.07 per share, $0.05 better than the consensus estimate of ($0.12), while revenues rose 42.7% year/year to $40.8 million vs the $35.7 million consensus. The company generated $5.3 million in net cash from operations for the fourth quarter of 2013 compared to generating $4.9 million during the fourth quarter of 2012.
The company issued mixed guidance for Q1, with EPS of ($0.21)-(0.18) vs. the ($0.12) consensus estimate and revenues of $40-41 million vs. the $36.72 million consensus estimate.
The company issued mixed guidance for FY14, with EPS of ($0.53)-(0.48) vs. the ($0.29) consensus estimate and revenues of $174.5-176.5 million vs. the $165.49 million consensus estimate. Free cash flow is expected to be approximately positive $10.0 million.
AI
Market Data 
Markets 
