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From Briefing.com: 4:20 pm : Equities ended the Thursday session on their highs with small caps in the lead. The Russell 2000 gained 1.1% while the S&P 500 rose 0.6% with all ten sectors posting gains.

Prior to the open, the market appeared to be headed for a lower start as disappointing data from China, Japan, and the eurozone weighed on index futures. Specifically, China's HSBC Manufacturing PMI fell to 48.3 from 49.5 (49.4 expected), Japan posted a record trade deficit of JPY1.82 trillion (JPY1.56 trillion expected), and the Manufacturing PMI for the eurozone (53.0 versus 54.0 expected) disappointed.

Despite the weak data from overseas, equity futures were able to find support when a better-than-expected Markit Manufacturing PMI for the U.S. was released (56.7 actual versus 53.0 expected). Historically, the data point has not been known for eliciting a noteworthy reaction in the market, but today's number likely fueled some short covering activity that sent futures back to their flat lines by the opening bell. In addition, buying ahead of tomorrow's options expiration likely factored into the morning rebound and the daylong rally.

Once the session got going, stocks saw a mild dip, which was erased within the first hour of action. Small caps enjoyed a strong session from the get-go after Facebook (FB 69.63, +1.57) announced the $16 billion acquisition of WhatsApp, a mobile messenger service.

With small caps charging ahead, the rest of the market followed suit. Although the S&P 500 ended on its high, the largest two sectors-financials (+0.3%) and technology (+0.3%)-could never catch up to the index. However, the market did receive support from the third largest sector-health care-which gained 0.9%.

Another countercyclical group-consumer staples (+0.5%)-finished behind the broader market as Wal-Mart (WMT 73.52, -1.33) weighed. The retail giant fell 1.8% after its cautious guidance overshadowed its bottom-line beat.

Also of note, the industrial sector (+0.8%) outperformed as transports rallied broadly. The Dow Jones Transportation Average jumped 1.6% with all 20 components posting gains. Despite the sharp move, the bellwether complex was unable to regain its 50-day moving average (7278), which was violated on Tuesday.

Treasuries ended modestly lower with the benchmark 10-yr yield up one basis point at 2.75%.

Participation was on the light side as 660 million shares changed hands on the floor of the NYSE.

Today's economic data featured four reports:

The weekly initial claims level fell to 336,000 from an unrevised 339,000 while the Briefing.com consensus expected the reading to fall to 335,000. There were no seasonal biases or unusual events reported in the data. The initial claims level is holding firmly between 330,000 and 340,000.
The Conference Board's Index of Leading Indicators increased 0.3% in January after a downward revision to unchanged (from +0.1%) in December. The Briefing.com consensus expected the index to increase 0.4%. The increase in the index was largely the result of the initial claims level returning to normal levels following unusual seasonal biases in the data. That component added 0.24 percentage points to the January increase in the index after reducing growth by 0.34 percentage points in December.
Manufacturing activity in the Philadelphia region contracted for the first time since May 2013. The Philadelphia Fed's Business Outlook Survey for February dropped to -6.3 from 9.4 while the Briefing.com consensus expected the Index to decline to 7.4. Manufacturers commented to the Philly Fed that severe winter storms affected the region and reduced business activity. If this is true, then the contraction should not last long. We are hesitant to blame all of the weakness on the weather. Poor economic data have been reported for the last two months, and evidence suggests that the overall economy is to blame for the sluggishness and not necessarily the weather.
Consumer prices increased 0.1% in January, down from a 0.2% increase in December. The Briefing.com consensus expected the CPI to increase 0.2%. Inflation growth remains tame, and there was nothing in the data that suggests any type of breakout. Food prices rose 0.1% after being unchanged in December. Excluding food and energy, core CPI increased an in-line 0.1% for a second consecutive month.

Tomorrow's data will be limited to the Existing Home Sales report for January, which is set to be released at 10:00 ET.

Nasdaq Composite +2.2% YTD
Russell 2000 -0.1% YTD
S&P 500 -0.5% YTD
Dow Jones Industrial Average -2.7% YTD

DJ30 +92.67 NASDAQ +29.59 SP500 +11.03 NASDAQ Adv/Vol/Dec 1834/1.84 bln/761 NYSE Adv/Vol/Dec 1982/660.1 mln/1033

3:35 pm :

Apr gold extended yesterday's losses while the dollar index rose as investors digested yesterday's FOMC minutes. The minutes indicated that some officials said there should be a 'clear presumption' in support of continued tapering in $10 bln increments. The yellow metal brushed a session low of $1311.10 per ounce in early morning pit trade and eventually settled with a 0.2% loss at $1317.30 per ounce.
Mar silver also traded in negative territory, with prices trending near the $2.70 per ounce level. Unable to gain momentum, it settled at $21.68 per ounce, or 0.2% lower.
Apr crude oil spent most of its floor session in the red. Prices slipped to a session low of $102.40 per barrel following inventory data that showed a build of 0.973 mln barrels when a build of 2.0-2.3 mln barrels was anticipated. The energy component briefly rose above the unchanged line to a session high of $103.04 per barrel but settled with a 0.1% loss at $102.77 per barrel.
Mar natural gas fell to a session low of $5.88 per MMBtu following inventory data that showed a draw of 250 bcf when a larger draw of 251-257 bcf was anticipated. Prices reversed to a session high of $6.32 per MMBtu in early afternoon action but retreated back into negative territory heading into the close.
Natural gas eventually settled 1.6% lower at $6.05 per MMBtu.

4:34PM Multi-Fineline announces restructuring plan designed to return co to profitability; expects to record a total of ~ $40 to $60 mln in pre-tax charges for write-downs of production equipment and buildings that will be idled, severance, costs to move and rearrange equipment and other costs and liabilities associated with the restructuring (MFLX) 14.96 +0.13 :

Co announced its restructuring plan which is designed to return the co to profitability. Following a full review of its manufacturing footprint and in an effort to realign its manufacturing capacity and costs with expected revenues, MFLEX is consolidating its production facilities to reduce the total manufacturing floor space by ~ one-third.
In connection with these actions, MFLEX anticipates annual cost savings of ~ $50 mln, of which 90% is expected to reduce cost of sales and 10% is expected to lower operating expenses. The co anticipates that these actions will return it to profitability.
The co expects to record a total of ~ $40 to $60 mln in pre-tax charges for write-downs of production equipment and buildings that will be idled, severance, costs to move and rearrange equipment and other costs and liabilities associated with the restructuring. The charges are anticipated to be taken during the fiscal second and third quarters. This estimate is subject to change based on various factors including the appraisal of idled assets to be sold. The near-term cash outlay portion of these charges is expected to be less than $20 mln.
"Our restructuring initiatives are expected to reduce our annual revenue capacity by over 30 percent to ~ $920 mln, or $230 mln per quarter. As we enter fiscal 2015, we are targeting a quarterly breakeven point of roughly $160 to $165 mln. We believe this capacity will be sufficient to support our key customers, as well as our growing base of newer customers, over the next 12 months. After that time, we believe we have the ability to incrementally increase capacity at a much lower cost, if or when needed."

4:29PM Anadigics reports EPS in-line, beats on revs; guides Q1 revs below consensus (ANAD) 2.05 +0.11 : Reports Q4 (Dec) loss of $0.10 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of ($0.10); revenues rose 19.1% year/year to $36.3 mln vs the $35.91 mln consensus.

Co issues downside guidance for Q1, The Company expects that first quarter 2014 revenue will decrease by 34 - 37% sequentially - equates to Q1 revs of ~$22.9-24.0 mln vs. $31.17 mln Capital IQ Consensus Estimate.
"However, through greater efficiency and expense reductions, we anticipate a double digit gross margin in spite of the revenue decrease. Furthermore, we expect a 10% sequential reduction in operating expenses (research and development and selling and administrative expenses), which establishes a lower expense baseline for 2014."

4:23PM Mattson reports EPS in-line, beats on revs (MTSN) 2.68 -0.07 : Reports Q4 (Dec) earnings of $0.04 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of $0.04; revenues rose 20.6% year/year to $40.8 mln vs the $40.36 mln consensus.

4:18PM Juniper Networks announces integrated operating plan; has support of Elliott Management (JNPR) 27.41 +0.21 : Co says enhanced operational efficiency expected to result in a 25% operating margin for 2015; aggressive capital return plan returning a minimum of $3 bln of capital to shareholders over the next three years, including more than $2 bln in share repurchases through Q1 2015; co to initiate $0.10 per share quarterly dividend to commence in Q3 2014.

Co also stated, "In developing the IOP, Juniper considered the views of its stakeholders, and engaged in constructive discussions with shareholders including Elliott Management. Juniper has reached an agreement with Elliott whereby Elliott has agreed among various customary terms, to support the Company's changes announced today and to vote in favor of Juniper's nominees at its 2014 Annual Meeting of Stockholders."

4:17PM Univ Elec beats by $0.01, beats on revs; guides Q1 EPS above consensus, revs in-line (UEIC) 37.35 +1.12 : Reports Q4 (Dec) earnings of $0.49 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.48; revenues rose 15.5% year/year to $136.1 mln vs the $129.89 mln consensus.

Co issues guidance for Q1, sees EPS of $0.33-0.41, excluding non-recurring items, vs. $0.29 Capital IQ Consensus Estimate; sees Q1 revs of $120-126 mln vs. $124.07 mln Capital IQ Consensus Estimate.

4:16PM Marvell beats by $0.04, beats on revs; guides Q1 EPS in-line, revs above consensus (MRVL) 16.13 : Reports Q4 (Jan) earnings of $0.29 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.25; revenues rose 20.2% year/year to $931.7 mln vs the $901.18 mln consensus.
Co issues in-line EPS guidance for Q1, sees EPS of $0.20-0.24, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q1 revs of $870-910 mln vs. $849.41 mln Capital IQ Consensus Estimate.

4:05PM Marvell names Michael Rashkin Chief Financial Officer (MRVL) 16.12 +0.35 : MRVL announced it has named Michael Rashkin Chief Financial Officer, effective February 17, 2014.

Mr. Rashkin served as the Interim Chief Financial Officer since December of 2013 and brings to Marvell more than 40 years of experience in finance, tax and operations in high technology industries.
Mr. Rashkin has been with the Company since 1999

4:13PM Hewlett-Packard beats by $0.06, beats on revs; guides Q2 EPS in-line (midpoint below); raises low end of FY14 EPS, in-line (HPQ) 30.19 +0.74 : Reports Q1 (Jan) adj. earnings of $0.90 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.84; revenues fell 0.7% year/year to $28.15 bln vs the $27.17 bln consensus.

Personal Systems revenue was up 4% YoY with a 3.3% operating margin. Commercial revenue increased 8% and Consumer revenue declined 3%. Total units were up 6% with Desktops units down 3% and Notebooks units up 5%.
Printing revenue was down 2% YoY with a 16.8% operating margin. Total hardware units were up 5% with Commercial hardware units up 6% and Consumer hardware units up 4%. Supplies revenue was down 3%.
Enterprise Group revenue was up 1% YoY with a 14.4% operating margin. Industry Standard Servers revenue was up 6%, Storage revenue was flat, Business Critical Systems revenue was down 25%, Networking revenue was up 4% and Technology Services revenue was down 4%.
Enterprise Services revenue was down 7% YoY with a 1% operating margin. Application and Business Services revenue was down 4%, and Infrastructure Technology Outsourcing revenue declined 9%.
Software revenue was down 4% YoY with a 15.8% operating margin. Support revenue was down 2%, license revenue was down 6%, professional services revenue was down 12% and software-as-a-service (SaaS) revenue was up 6%.
HP Financial Services revenue was down 9% YoY with a 6% decrease in net portfolio assets and an 18% increase in financing volume. The business delivered an operating margin of 11.6%. Corporate Investments revenue increased due to the sale of a portfolio of mobile computing intellectual property.
Asset management
HP generated $3.0 billion in cash flow from operations in the first quarter, up 17% from the prior-year period. Inventory ended the quarter at $6.0 billion, down 1 day YoY to 25 days. Accounts receivable ended the quarter at $13.5 billion, down 2 days YoY at 43 days. Accounts payable ended the quarter at $12.6 billion, up 4 days YoY to 52 days. HP's dividend payment of $0.1452 per share in the first quarter resulted in cash usage of $278 million. HP also utilized $565 million of cash during the quarter to repurchase ~20.4 million shares of common stock in the open market. HP exited the quarter with $16.4 billion in gross cash.

Co issues in-line guidance for Q2, sees adj. EPS of $0.85-0.89 vs. $0.89 Capital IQ Consensus Estimate.

Co issues in-line guidance for FY14, raises adj. EPS to $3.60-3.75 (from $3.55-3.75) vs. $3.64 Capital IQ Consensus Estimate.

12:25PM Notable movers of interest (SCANX) : The following are some of today's most notable movers of interest, categorized by market capitalization (large cap over $10 billion and mid cap between $2-10 billion) and ranked by % change (all stocks over 100K average daily volume).

Large Cap Gainers

TSLA (209 +7.93%): Beat on EPS by $0.12, non-GAAP rev rose 148.5% y/y to $761.3 mln vs $673.14 mln consensus - GAAP rev was $615 mln; guided FY14 deliveries above consensus; Deutsche Bank downgraded TSLA to Hold from Buy on valuation; tgt to $220 from $200; tgt raised to $245 from $215 at Robert W. Baird; tgt raised to $220 from $190 at Jefferies; tgt raised to $253 from $230 at Northland Capital; tgt raised to $325 from $200 at Dougherty; tgt raised to $225 from $205 at Wedbush.
BMRN (80.35 +5.24%): Co received positive opinion from the CHMP in the EU for VIMIZIM for Morquio A syndrome.
ABX (20.75 +4.93%): Upgraded to Outperform at RBC Capital Mkts; tgt raised to $28.

Large Cap Losers

YNDX (36.55 -8.24%): Beat on top and bottom lines; guided FY14 revs.
AEG (8.71 -5.12%): Reported Q4 Net income declined 23% y/y to EUR174 mln; total sales increased 3% y/y to EUR1.74 bln.
TRP (43.98 -2.31%): Missed on EPS by CAD0.02, missed on revs; WSJ discussed that Nebraska Judge has blocked Governor's Keystone decision.

Mid Cap Gainers

PRAA (58.96 +16.8%): Reported EPS in-line, revs in-line; agreed to acquire Aktiv Kapital for $880 mln, while also agreeing to assume ~$435 mln of its corporate debt, resulting in an acquisition of estimated total enterprise value of $1.3 bln; expected to be immediately accretive to earnings.
AWAY (48 +11.73%): Missed on EPS by $0.06, beat on revs; guided Q1 revs above consensus; guided FY14 revs above consensus; target raised to $53 from $43 at Piper Jaffray; tgt raised to $51 from $43 at Stifel; tgt raised to $43 at Canaccord Genuity.
TRN (66.5 +9.47%): Beat on EPS by $0.02, beat on revs; guided Q1 EPS above consensus; guided FY14 EPS above consensus; upgraded to Buy from Neutral at Sterne Agee.

Mid Cap Losers

CONN (38.19 -31.56%): Sees Q4 EPS below consensus; lowered FY15 EPS below consensus; downgraded to Equal Weight from Overweight at a boutique firm; downgraded to Perform from Outperform at Oppenheimer; tgt to $44 from $92; tgt lowered to $60 at Canaccord Genuity.
TAC (12.04 -10.18%): Missed on EPS by $0.05, revs fell 9,1% y/y to $587 mln vs the $617.6 mln consensus; cut dividend by 38% to $0.18/share (from $0.29), sold 50% interest in CE Generation.
WST (45.42 -4.86%): Beat on EPS by $0.01, missed on revs; guided FY14 EPS in-line, revs in-line.

11:01AM Microsoft and Hop-on sign patent agreement for android and Chrome devices (MSFT) 37.54 +0.03 : Co and Hop-on, Inc., signed a worldwide patent licensing agreement that provides broad coverage under Microsoft's patent portfolio for devices running the Android and Chrome OS, including smartphones and tablets. While the contents of the agreement are confidential, the parties indicate that Microsoft will receive royalties from Hop-on under the agreement.

9:48AM Advanced Micro announces private offering of $500 mln of senior notes (AMD) 3.73 +0.01 : Co announced that it intends to commence a private offering, subject to market and other conditions, of $500 million aggregate principal amount of senior notes due 2019. AMD intends to use the net proceeds received in the offering to repurchase up to $425 million aggregate principal amount of its outstanding 6.00% Convertible Senior Notes due 2015 through a tender offer which was launched on February 20, 2014. AMD intends to use remaining net proceeds to repurchase up to a maximum of $200 million aggregate principal amount of AMD's outstanding 8.125% Senior Notes due 2017 through a tender offer which was also launched on February 20, 2014. To the extent AMD will have net proceeds after the completion of the tender offers, it will use such net proceeds to redeem, repurchase or otherwise retire other outstanding debt.

8:32AM Interdigital Comm beats by $0.05, beats on revs; guides Q1 revs (IDCC) 28.41 : Reports Q4 (Dec) earnings of $0.35 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.30; revenues rose 13.4% year/year to $99.7 mln vs the $81.73 mln consensus.
Co issues guidance for Q1, sees Q1 revs of $54-59 mln vs. $54.25 mln Capital IQ Consensus Estimate. "This revenue guidance is based on royalty reports received to date, and does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of first quarter 2014."

Broadcom (BRCM) introduced the industry's first Global Navigation Satellite System system-on-chip, designed for low-power, mass-market wearable devices such as fitness trackers and smart watches.

SunEdison (SUNE) and MIC Solar Energy, a subsidiary of Macquarie Infrastructure (MIC), announced the completion of a 16.4 MW PV solar power plant located outside Tucson, Arizona on Davis-Monthan Air Force Base.

Nokia (NOK) considering acquisition of Juniper Networks (JNPR), according to reports

Equinix (EQIX) reported fourth quarter earnings of $0.88 per share, which is higher than expected, while revenues rose 11.5% year/year to $564.7 million which is line with estimates. The company issued guidance for the first quarter with revenues of $572.0 and $576.0 million which is below estimates. Cash gross margins are expected to approximate 68% to 69%. Adjusted EBITDA is expected to range between $256.0 and $260.0 million, which includes $11.0 million in professional fees and costs primarily related to the REIT conversion. The company issued guidance for the fiscal year 2014 with revenues greater than $2.38 billion. Total year cash gross margins are expected to approximate 69%. Adjusted EBITDA for the year is expected to be greater than $1,100.0 million, which includes negative foreign currency headwinds of approximately $5.0 million compared to the rates used from our prior guidance, and includes $37.0 million in professional fees and costs primarily related to the REIT conversion.

Millennial Media (MM) reported fourth quarter earnings of $0.08 per share, excluding non-recurring items, which is higher than expected, while revenues rose 66.8% year/year to $96.66 million which is lower than expected. The company reported fourth quarter GAAP EPS of ($0.04), which is line with the GAAP consensus. As of December 31, 2013, Millennial Media reached over 600 million monthly unique users globally, including approximately 170 million monthly unique users in the United States alone. As of December 31, 2013, more than 50,000 apps were enabled by mobile app developers to operate on Millennial Media's platform, and Millennial Media had more than 625 million proprietary, anonymous user profiles used for delivering the most relevant ads to consumers. The company issued guidance for the revenues of $72-76 million which is lower than expected.

Facebook (FB) announced that it has reached a definitive agreement to acquire WhatsApp, a rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp's founders and employees that will vest over four years subsequent to closing. The acquisition supports Facebook and WhatsApp's shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. The combination will help accelerate growth and user engagement across both companies. "WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," said Mark Zuckerberg, Facebook founder and CEO. "I've known Jan for a long time and I'm excited to partner with him and his team to make the world more open and connected." In the event of termination of the Merger Agreement under certain circumstances principally related to a failure to obtain required regulatory approvals, the Merger Agreement provides for Facebook to pay WhatsApp a fee of $1 billion in cash and to issue to WhatsApp a number of shares of Facebook's Class A common stock equal to $1 billion based on the average closing price of the ten trading days preceding such termination date.