Replies to post #6857 on Sector Investing

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VIX, VXO and VXN on 6 Month Charts versus the S&P 500, DJIA, NASDAQ and SMH:
















3 Year Weekly Charts

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From Briefing.com: 4:10 pm : The stock market finished the Tuesday session on a modestly lower note, but small-cap stocks underperformed once again. The Russell 2000 slipped 0.2%, while the S&P 500 snapped its three-day win streak, shedding less than a point.

Equity indices faced an uphill climb from the opening bell, but the S&P 500 was able to cut the bulk of its losses during the initial 45 minutes of action; however, the early rebound attempt was stonewalled by the underperformance of small-caps. With high-beta names unable to gain any significant traction, the benchmark index returned to its earlier low. The S&P 500 then staged another recovery, which placed it right below its flat line by the close.

To be sure, the (nearly) flat finish reflected a lack of concerted sector leadership during the trading day. On the cyclical side, energy (+0.3%) and financials (+0.1%) posted modest gains, while the remaining four sectors lost between 0.1% and 0.3%.

Interestingly, the industrial sector (-0.2%) settled just behind the broader market, masking the relative weakness among transport stocks. The Dow Jones Transportation Average fell 0.8%, but that was likely a function of some profit taking after the bellwether complex surged 3.1% over the past two weeks. Airlines were able to withstand the selling pressure as four of five carriers posted gains with JetBlue Airways (JBLU 10.05, +0.23) leading the way. The stock advanced 2.3%.

Elsewhere, the four countercyclical groups finished mixed with health care (+0.2%) and utilities (+0.3%) posting slim gains, while consumer staples (-0.3%) and telecom services (-1.0%) ended in the red.

The somewhat sloppy session lured some investors into demanding portfolio insurance, which sent the CBOE Volatility Index (VIX 11.79, +0.21) higher by 1.8%. Despite the uptick, the near-term volatility measure ended the day not far above its 2014 low (11.29%), which was notched yesterday.

Even though volatility protection was in demand, the safety of the Treasury market was not. On that note, the 10-yr note spent the session in a steady retreat, falling 19 ticks, which sent its yield higher by seven basis points to 2.60%.

Today's participation marked an improvement from recent days, but remained below average as 644 million shares changed hands at the NYSE floor.

Economic data was limited to April factory orders, which increased 0.7% following an upwardly revised 1.5% (from 1.1%) increase in March. The Briefing.com consensus expected an increase of 0.5%.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the ADP Employment Change for May (Briefing.com consensus 200,000) will cross the wires at 8:15 ET. The April Trade Balance (consensus -$41.30 billion) and Q1 Productivity (consensus -2.5%) and Unit Labor Costs (consensus 4.8%) will be reported at 8:30 ET, while the May ISM Services Index (consensus 55.5) will be released at 10:00 ET. The day's data will be topped off with the 14:00 ET release of the Fed's Beige Book for June.

S&P 500 +4.1% YTD
Dow Jones Industrial Average +0.9% YTD
Nasdaq Composite +1.4% YTD
Russell 2000 -3.1% YTD

DJ30 -21.29 NASDAQ -3.12 SP500 -0.73 NASDAQ Adv/Vol/Dec 1017/1.58 bln/1657 NYSE Adv/Vol/Dec 1166/644.4 mln/1893

3:30 pm :

Aug gold chopped around near the unchanged level for most of today's floor trade. It dipped to a session low of $1240.20 per ounce in morning action and eventually settled with a 60 cent gain at $1244.60 per ounce.
July silver pulled back from its session high of $18.88 per ounce set at pit trade open and touched a session low of $18.71 per ounce. It then consolidated near the unchanged level and settled at $18.76 per ounce, or 0.1% higher.
July crude oil touched a session low of $102.26 per barrel in morning pit trade but recovered into positive territory. It settled 0.2% higher at $102.68 per barrel.
July natural gas pulled back to a session low of $4.61 per MMBtu after trading as high as $4.66 per MMBtu in morning action. It settled at $4.62 per MMBtu, booking a gain of 0.2%.

12:06 pm 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

SSLT (19.87 +5.36%): Trading higher following strength in overseas trading.
AMAT (21.29 +3.75%): Initiated with a Buy at Jefferies; tgt $28.
DG (56.72 +4.46%): Missed on EPS by $0.01, reported revs in-line with comps below guidance; reaffirmed FY15 guidance.

Large Cap Losers

MPEL (33.51 -5.88%): Macau Gaming Inspection and Coordination Bureau reported May gross gaming rev (:GGR) +9.3% y/y to 32.4 bln patacas (~$4.05 bln), vs. +13.5% in May 2013 and below most ests (WYNN, LVS, MGM also lower); co disclosed studio city project development update.
NTAP (36.61 -2.4%): Priced $500 mln in aggregate principal amount of its 3.375% senior notes due 2021.
AGN (168.15 -2.38%): Downgraded to Neutral from Outperform at Credit Suisse.

Mid Cap Gainers

ACHC (46.85 +11.44%): Co signed definitive agreement to purchase partnerships in care for ~ $660 mln; Transaction expected to be accretive to 2014 earnings by ~$0.17 to $0.20 per diluted share and provide opportunities for organic growth and acquisitions in the UK.
HSH (58.35 +8.92%): Pilgrim's Pride (PPC) confirmed revised proposal to acquire Hillshire Brands at $55.00 per share in cash; HSH confirmed Board authorized discussions with Pilgrim's Pride (PPC) and Tyson Foods (TSN).
SWKS (44.94 +4.34%): Raised Q3 EPS and rev guidance above ests; target raised to $54 from $48 at Topeka Capital Markets; target raised to $55 from $47 at Northland Capital.

Mid Cap Losers

THRX (23.15 -19.2%): Co and Theravance Biopharma (:TBPH) announced completion of separation of Theravance Biopharma from Theravance, to form two, independent, publicly traded cos.
CMCM (16.16 -6.59%): Reported Q1 adj. EPS per ADS of $0.04; revs 132% y/y to RMB 315.7 mln (no ests).
WAIR (20.33 -5.62%): Priced public offering of 6 mln shares of its common stock by an affiliate of Carlyle Group (CG) at $20.50 per share.

11:41 am Relative sector weakness (:TECHX) : Sector underperforming the S&P in recent trade include: Software IGV (CRM, ADBE, CA, CTXS, ADSK, INTU), Internet FDN, Technology XLK, Biotech IBB, Telecom IYZ, Industrial XLI, Transports IYT, Rail, Casino,

11:41 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (131) outpacing new lows (71) (:SCANX) : Stocks that traded to 52 week highs: AAL, ABG, AEC, AET, AGRX, AGX, AL, ALB, ALDR, ALK, AMAT, AMKR, AN, ARE, AVB, AVGO, AVIV, BMA, BMR, CAR, CE, CHC, CHSP, CRZO, CSCD, DAL, DEI, DFZ, DKL, DOM, DOW, DVN, DYN, EMES, EMN, ENSG, EPD, EQM, ERF, ETE, ETR, EXC, FGP, FLEX, GBX, GD, GIII, GLOP, GPK, HA, HCLP, HDB, HDS, HRL, HSH, HTZ, HUN, IFN, IHS, IMOS, INGR, INT, INTC, IRS, ISIL, JBLU, JNJ, LAD, LAZ, LEA, LLL, LQ, LRCX, LUV, LYB, MCK, MGA, MGPI, MJN, MMC, MMP, MWRX, MWV, NGLS, NI, NNBR, NRG, NTT, NYRT, PAHC, PE, PKY, PSXP, ROL, SAFM, SAH, SBR, SDPI, SE, SGBK, SIAL, SKX, SLCA, SLG, SNDK, SPCB, SSLT, SWHC, SWKS, SYA, TAP, TD, TDG, TEN, TEO, TKR, TLP, TMH, TNET, TRGP, TRIV, TRNS, TRUE, TSM, UGI, UHS, VLCCF, VTL, WES, WLDN, WLK

Stocks that traded to 52 week lows: ACI, ADAT, AEPI, ALLY, AMCO, AMWD, ANR, ANV, AOI, AVD, AXGN, BAA, BAXS, BEBE, BIND, BOTA, CAS, CDE, CLVS, COCO, COH, COVS, CRMB, END, ESI, ESP, ETH, FHCO, FMBH, FMD, FRAN, FSYS, GLPI, GMAN, GOOD, GRVY, IMN, JE, JMBA, KOSS, LAND, LXRX, MCP, MEIP, MFLX, MICT, NAUH, NCQ, NIHD, NRP, OGXI, OXF, PERI, PIR, RFIL, SPHS, SPLK, SQI, SVM, SWSH, TBIO, TCCO, UNTK, VHI, WFM, WH, WHZ, WLT, XXIA, YUME, ZQK

ETFs that traded to 52 week highs: AMJ, EWH, IYT, SMH, SOXX

ETFs that traded to 52 week lows: none


11:16 am Agilent and Cascade Microtech (CSCD) announce alliance to streamline wafer-level measurements (A) : Co and Cascade Microtech (CSCD) announced a strategic alliance to provide fully configured and validated RF measurement solutions that streamline wafer-level semiconductor measurements while delivering guaranteed configuration, installation and support.

Peregrine Semiconductor (PSMI) announced the availability of UltraCMOS PE45140 and PE45450 RF power limiters

Mentor Graphics (MENT) and Intel (INTC) announced that Mentor's circuit simulation and sign-off tools are fully enabled for Intel's 14nm Tri-Gate process technology for customers of Intel Custom Foundry.

9:21 am Intel and Synopsys (SNPS) collaborate to enable 14-nm Tri-Gate Design platform for use by customers of Intel custom foundry (INTC) : Co announced broad SoC design enablement for Intel's 14-nm Tri-Gate process technology for use by customers of Intel Custom Foundry. The Intel Custom Foundry 14-nm design platform supports Synopsys' Galaxy Design Platform tools and RTL-to-GDSII methodology, DesignWare Memory Compiler intellectual property, and interface IP. Extending the companies' production-proven design enablement for Intel's 22-nm foundry process design platform, the design tools and IP are now ready for Intel's 14-nm foundry process technology.

Synopsys and Intel have worked together at 22-nm to deliver silicon-proven advanced IP. The most recent collaboration expands to Intel Custom Foundry's 14-nm Tri-Gate technology by providing tuned DesignWare Memory Compilers that offer very high performance while still keeping a low power profile.
Intel and Synopsys collaborated closely in developing this enablement to ensure that the tools meet Tri-Gate requirements and model the complexities involved.

Intersil (ISIL) announced the ISL6388, a 6-phase pulse-width modulation controller with non-volatile memory that is compliant with Intel's (INTC) VR12/12.5 specification.

8:24 am Skyworks re-opens for trading after guiding higher..currently at 45.68 (SWKS) :

8:05 am Skyworks (halted) raises Q3 EPS and rev guidance (SWKS) : Co issues upside guidance for Q3 (Jun), raises EPS to $0.80, excluding non-recurring items, from $0.73 vs. $0.73 Capital IQ Consensus; raises Q3 (Jun) revs to $570 mln from $535 mln vs. $535.33 mln Capital IQ Consensus.

"As our upwardly revised outlook reflects, Skyworks is capitalizing on the growing opportunity within the Internet of Things as well as increasing analog complexity associated with higher data rate connectivity standards, both of which are enabling us to substantially outpace the growth of the broader semiconductor market. These macro trends continue to validate our investments in highly differentiated, custom solutions that are facilitating an expanding set of end markets. Based on our design win traction and order visibility, we anticipate continued strength beyond the June quarter as our products continue to gain momentum."

"We also expect our recently announced joint venture with Panasonic to further enrich our systems capabilities, broaden our technology portfolio and enhance our financial returns," said Donald W. Palette, executive vice president and chief financial officer of Skyworks. "In fact, we anticipate the Panasonic transaction will provide at least 100 basis points of gross margin accretion in fiscal 2015, paving the way for continued top- and bottom-line outperformance for the foreseeable future."

6:07 am Interdigital Comm announces patent license agreement with Samsung (SSNLF) (IDCC) : InterDigital (IDCC) announces that the company's patent licensing subsidiaries have entered into a patent license agreement with Samsung Electronics (SSNLF).

The multi-year agreement also resolves all pending litigation between the companies.
The royalty-bearing license agreement sets forth terms covering the sale by Samsung of 3G, 4G and certain future generation wireless products.

Vitesse Semiconductor (VTSS), a leading provider of advanced IC solutions for Carrier, Enterprise and Internet of Things networks introduced the latest generation of its SparX-IIIEthernet switches -- VSC7420-04, VSC7421-04 and VSC7422-04 -- optimized for industrial IoT applications, including building automation, manufacturing automation, intelligent transportation, smart energy, and video surveillance/security.

SanDisk Corporation (SNDK) announced the availability of its new SanDisk Extreme PRO SSD-a drive designed for gamers, PC enthusiasts and media professionals who demand the highest possible consistent, real-world performance

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From Briefing.com: Weekly Recap - Week ending 12-Sep-14Dow -61.49 at 16987.51, Nasdaq -24.21 at 4567.60, S&P -11.91 at 1985.54

Equity indices extended this week's losses with a broad-based retreat. The S&P 500 fell 0.6% to end the week lower by 1.1%, while the Russell 2000 (-1.1%) finished with a 0.9% decline since last Friday.

Staying true to the theme observed throughout the week, the energy sector (-1.5%) tumbled out of the gate, thus dragging the broader market down with it. Once again, dollar strength and crude oil weakness contributed to sector's underperformance, but the growth-sensitive group did not see any respite in the afternoon when the Dollar Index (-0.1%) edged lower, while oil made a short-lived appearance in the green. Late-afternoon weakness sent crude oil (-0.6%; $92.26/bbl) to its lowest level in almost a year, while the energy sector widened its September loss to 5.2%.

Meanwhile, the remaining sectors opened closer to their respective flat lines, but could not climb off those levels as the underperformance of small caps and the big loss in the energy sector kept dip-buyers sidelined. Furthermore, the recognition that next week will include an avalanche of global macro data and the latest FOMC policy decision also factored into the cautious approach.

Interestingly, the energy sector was the only cyclical group that ended behind the broader market. The top-weighted sector-technology-shed 0.4% with the relative strength of Apple (AAPL 101.66, +0.23) masking the losses among high-beta chipmaker stocks. The PHLX Semiconductor Index lost 1.3%.

Elsewhere, the financial sector (-0.1%) lurked near its flat line throughout the session with Dow component Goldman Sachs (GS 183.17, +2.17) contributing to the relative strength. The stock added 1.2%, while the sector ended the week lower by 0.4%.

Things did not look much better on the countercyclical side where all four sectors settled behind the broader market. Consumer staples (-0.7%) and health care (-0.7%) registered comparable losses with the health care sector pressured by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 269.57, -3.78) lost 1.4%.

The other two-telecom services (-1.2%) and utilities (-1.8%)-were hampered by higher interest rates. Staying on that point, the 10-yr note retreated throughout the session to register a half-point loss. The benchmark yield rose six basis points to 2.61% after starting the week at 2.46%.

Also of note, the U.S. Treasury has announced a new set of sanctions on Russian banks, energy, and defense companies. The move followed a similar announcement from the European Union.

Today's session saw relatively strong participation with more than 675 million shares changing hands at the NYSE floor.

Economic data included Retail Sales, Import/Export Prices, Michigan Sentiment Survey, and Business Inventories:

Retail sales increased 0.6% in August following an upwardly revised 0.3% (from 0.0%), which matched the Briefing.com consensus
After missing expectations last month, sales rebounded in August and upward revisions were reported for the prior month (to 0.3% from 0.0%); concerns that consumption could weigh down GDP growth were somewhat alleviated.
Excluding motor vehicles, retail sales increased a respectable 0.3% for a second consecutive month and met the consensus expectations
Export prices, excluding agriculture, decreased 0.3% in August after increasing 0.3% in the prior reading
Excluding oil, import prices ticked up 0.1%, which followed last month's unchanged reading
The University of Michigan Consumer Sentiment Index increased to 84.6 in the preliminary September reading from 82.5 in August, while the Briefing.com consensus expected the index to increase to 83.5
That was the highest reading in the Sentiment Index since July 2013
The Present Conditions Index deteriorated in September, dropping from 99.8 in August to 98.5
The Expectations Index rose to 75.6 in September from 71.3 in August
Business inventories increased an in-line 0.4% in July after increasing by the same amount in June
Inventories for manufacturers (0.1%) and merchant wholesalers (0.1%) were known prior to the release. The only bit of new information was that retailer inventories increased 1.0% in July after increasing 0.7% in June

On Monday, the Empire Manufacturing Index for September will be released at 8:30 ET, while August Industrial Production and Capacity Utilization will be reported at 9:15 ET.

Week in Review: Backtracking From Record Highs

The stock market started the first full week of September on a cautious note. The S&P 500 lost 0.3%, but the relative strength of small-cap stocks helped the Russell 2000 (+0.2%) and Nasdaq Composite (+0.2%) finish ahead of the benchmark index. Equity indices struggled from the get-go with the overall risk sentiment dampened by continued dollar strength that sent the US Dollar Index (+0.54, 84.28) near its best level of the year. The greenback surged on the back of yen weakness following a downward revision to Japan's Q2 GDP (to -7.1% from -6.8%), while also drawing strength from weakness in the British pound. The pound fell to 1.6110 from 1.6330 against the greenback after a weekend YouGov poll revealed majority support for Scottish independence with the referendum coming up on September 18. Conversely, the dollar strength weighed on commodities.

Equities ended the Tuesday session on their lows with the S&P 500 sliding 0.7%. After outperforming on Monday, the Russell 2000 erased that uptick with a 1.2% decline the following day. Indices spent the entire session in the red with the early pressure coming from the financial sector (-1.0%). The second-largest group by market cap slumped out of the gate amid broad weakness in top-weighted components. Meanwhile, the consumer discretionary space (-1.0%) also weighed with the quick-service restaurant space adding pressure. McDonald's (MCD) fell 1.5% after reporting a 3.7% decline in comparable store sales during August, which was paced by a 14.5% slump in Asia following the recent food safety scandal.

The stock market ended the midweek session on an upbeat note with the Nasdaq Composite providing leadership. The tech-heavy index advanced 0.8%, while the S&P 500 added 0.4% with seven sectors posting gains. Equities were driven into the red shortly after the open due to notable weakness in the energy sector. The growth-sensitive group was down in excess of 1.0% during the first hour of action, but narrowed its loss to 0.3% by the close. For its part, crude oil fell 1.1% to $91.71/bbl, ending the pit session at its lowest level since early January. The Dollar Index (84.22, -0.06) climbed to its best level in 14 months before slipping in the early afternoon. The greenback retreated against the British pound after latest poll results from Scotland indicated majority support for staying in the UK (weekend YouGov poll gave a slight edge to the pro-independence movement). The pound/dollar pair climbed to 1.6210 after trading at 1.6070 in the early morning.

The Dow Jones Industrial Average (-0.1%), Nasdaq (+0.1%), and S&P 500 (+0.1%) ended the Thursday affair on a flat note, while the relative strength among small caps sent the Russell 2000 higher by 0.7%. The trading day began on a cautious note following Wednesday's remarks from President Obama who announced increased support for Syrian rebels and a U.S.-led coalition effort targeting ISIS militants in Syria and Iraq. The address led to some risk aversion overnight, but that sentiment faded during the day. Treasuries climbed overnight, but wiped out all of their gains over the course of the session. The 10-yr yield ended at 2.55% after marking a low at 2.51% shortly before the opening bell.

 
 Index	   Started Week  Ended Week  Change  % Change   YTD % 
 DJIA	     17137.36	 16987.51   -149.85    -0.9     2.5 
 Nasdaq	      4582.90	  4567.60    -15.30    -0.3     9.4 
 S&P 500	2007.71	  1985.54    -22.17    -1.1     7.4 
 Russell 2000  1170.13	  1160.61     -9.52    -0.8    -0.3

5:02 pm This week's biggest % gainers/losers (:SCANX) : The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

Technology:SSNI (12.13 +22.91%),JDSU (13.43 +22.57%),DQ (47.71 +21.96%),WB (23.81 +19.61%),MBLY (50.87 +19.51%),IMPV (33.25 +15.81%),OIBR-C (0.68 +15.75%)Services:LE (44.77 +31.56%),MGAM (36.84 +31.18%),GPRO (69.18 +28.64%),TPUB (22.02 +15.91%)Healthcare:ECYT (8.58 +25.74%),CMRX (28.27 +23.05%),BDSI (18.15 +19.15%),RDNT (7.64 +18.35%),HZNP (11.81 +18.19%),RCPT (59.67 +16.99%)Financial:GFIG (6.02 +31.4%)Consumer Goods:BNNY (46 +36.41%)
Basic Materials:SNMX (9.89 +24.29%)
This week's top 20 % losers

Utilities:PGN (7.16 -14.15%),CIG (7.2 -11.93%),ELP (15.43 -11.04%)Technology:VNET (19.87 -42.69%),EOPN (11.2 -23.16%),GTAT (12.82 -18.6%),SFUN (10.65 -11.04%),TWOU (15.61 -10.29%)Healthcare:KERX (14.34 -18.57%),RPRX (14.52 -13.06%),OREX (5.16 -11.85%)Financial:LEJU (14.58 -12.55%),WRLD (71.54 -11.07%)Consumer Goods:TOUR (17.98 -10.37%)Conglomerates:REX (89.26 -10.36%)Basic Materials:AU (13.45 -17.67%),CAK (0.51 -15.71%),GGB (5.32 -11.07%),ANR (3.44 -10.11%)

3:36 pm Earnings Preview for the week of September 15 - 19 (:SUMRX) : Of the companies reporting earnings for the week of September 15 - 19 some of the bigger names include:

Monday: After Hours - ALOG
Tuesday: Pre Market - FDSAfter Hours - ADBE, APOG, PAHC
Wednesday: Pre Market - FDX, GIS, LEN, CBRLAfter Hours - UNFI, MLHR, PIR, CLC
Thursday: Pre Market - RAD, CAG, PWE, IHS, MCSAfter Hours - ORCL, RHT, TIBX

12:42 pm 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

S (6.93 +5.56%): Upgraded to Outperform from Market Perform at Cowen
EBAY (52.03 +2.66%): Trading higher on rumors that Google (GOOG) taking a stake in the company
CME (79.21 +2.18%): Mentioned positively in blog article; seeing strength in trading exchange stocks:
ICE also higher

Large Cap Losers

SDRL (31.29 -4.68%): Weakness in large cap oil and gas companies: UGP, PBR, ESV also higherHCN (64.1 -3.59%): Priced 15.5 mln share offering of common stock at $63.75 per share
ITUB (16.18 -3.29%): Weakness in Brazilian stocks as recent polls suggest rising support for relection of Dilma Rousseff: BRFS, BBD also higher

Mid Cap Gainers

ULTA (116.47 +19.48%): Beat quarterly EPS by $0.11 ($0.94 vs $0.83 estimate), revs rose 22.2% yoy to $734.2 mln vs $713.35 mln estimate; sees Q3 EPS of $0.79-0.84 vs $0.83 estimate, revs of $724-736 mln vs $718.04 mln estimate; raised FY15 EPS guidance to +20% (from mid teens) or ~$3.79 vs $3.69 estimate, revs +20% (from mid teens) to ~$3.204 bln vs $3.15 bln estimate; raised FY15 comps guidance to +7-8% from prior guidance of +4-6%
ALNY (74.43 +5.77%): Co announced that it is broadening its pipeline with ALN-AGT, a subcutaneously administered RNAi therapeutic targeting angiotensinogen for the treatment of hypertensive disorders of pregnancy, including preeclampsia, one of the most common complications of pregnancy
ACAD (28.47 +3.64%): Mentioned positively on CNBC's Mad Money program

Mid Cap Losers

SDLP (31.84 -3.54%): Weakness in mid cap oil and gas companies: APL, NE, RICE also lower
DDR (17.31 -2.89%): Downgraded to Hold from Buy at KeyBanc Capital Markets; downgraded to Neutral from Buy at UBS

11:44 am Stocks/ETFs that traded to new 52 week highs/lows this session - New highs (86) outpacing new lows (60) (:SCANX) :

Stocks that traded to 52 week highs: AAVL, ABBV, ACT, AHGP, AHS, ALGT, AOSL, ARUN, BANF, BDSI, BKYF, CALM, CARO, CFN, CNVR, CNW, CTLT, CVTI, CYH, DECK, DYAX, EARS, ECL, ENPH, ENSV, FCAP, FINL, FLWS, FUBC, GFIG, GLNG, GS, GTIM, HAIN, HCA, HCBK, HTLD, IBKR, ICLR, IG, IMDZ, ISTR, IT, JBSS, KEX, LAKE, LE, LUV, MARA, MHFI, MIK, MSFT, MTB, MTN, NFBK, NOR, NVGS, OILT, PKX, PLOW, PRXL, PTRY, RAIL, RCL, RDNT, SBAC, SCHW, SERV, SGBK, SKX, SNY, SWIR, SYNL, THC, THRM, TRNX, TWC, UTHR, VAC, VFC, WB, WMS, WTM, WWAV, XPO, ZLTQ

Stocks that traded to 52 week lows: AGCO, ALG, ALXA, ATW, BPHX, CLRB, CNHI, CTT, CWST, DLA, DO, DWCH, ECR, ECT, ENZY, ESCR, FF, FI, FMC, FVE, FWM, GGB, GLF, GLPI, IRET, IRG, IVC, KEG, KIPS, KVHI, KWK, LODE, MCP, MDR, MNTG, MVC, MXL, PCL, PRFT, RAVN, RCPI, REE, RIG, RNDY, RTGN, RVNC, SCL, SPEX, STRM, STXS, TAC, THRX, TLR, TRGT, UAMY, VALE, VNOM, XNY, ZEP, ZX

ETFs that traded to 52 week highs: IYG, PPH

ETFs that traded to 52 week lows: BJK, BNO, DBC, DJP, EWO, FUD, FXS, FXY, JJA, SGG, SIVR, SLV

6:00 am Ascent Solar regains compliance with NASDAQ minimum bid price rule (ASTI) : Co announced that it has received notification from the Listing Qualifications Department of The Nasdaq Stock Market that it has regained compliance with Nasdaq Listing Rule 5550(a)(2), the minimum bid price requirement for continued listing on The Nasdaq Capital Market.

Rovi Corporation (ROVI) today announced its collaboration with Broadcom Corporation (BRCM) to demonstrate Rovi's new cloud-based guide offering, Rovi Guide (announced yesterday), which runs on Broadcom's BCM7445 Ultra HD system-on-a-chip and Nexus-Trellis set-top box software.

TSMC (TSM) announced its 28-nanometer High Performance Compact process is in volume production, making it the most power- and cost-efficient solution among all 28-nanometer technologies in the foundry segment.

There are 66 companies in the S&P 500 information technology sector. On Friday, only ten of them ended with a gain. That's the bad news.

The good news is that the biggest company of them all -- Apple (AAPL 101.66, +0.23) -- was one of the ten that finished higher. Its good fortune was predicated on reports that pre-order demand for the iPhone 6 is at record levels. There was even a Business Insider article that noted Apple's online store temporarily crashed due to the high volume of beginning pre-orders.

Apple's relative strength was a key factor behind the relative strength of the sector. Despite the fact that 56 components ended Friday lower, the overall sector loss was limited to a 0.4% decline versus a 0.6% decline for the S&P 500.

Actually, there wasn't a single sector that ended Friday higher. It was that kind of profit-taking day in front of a big week next week that will feature the FOMC meeting, Scotland's independence vote, a rash of data out of China, Alibaba.com's (BABA) IPO, and undoubtedly geopolitical happenings of some kind.

Another crutch for the information technology sector was Alliance Data Systems (ADS 257.91, +5.04). Investors took kindly to its news that it will be acquiring Conversant (CNVR 34.80, +8.09) in a $2.3 billion, or $35 per share, cash-and-stock deal that ADS says will be significantly accretive to core EPS in the first two years after closing.

eBay (EBAY 52.19, +1.51), however, stole the spotlight from most sector components. It jumped 3.0% amid early speculation that Google (GOOG 575.62, -5.73) might be interested in taking a stake in the company in an effort to compete with Apple Pay.

A Reuters article later conveyed that eBay denied any such conversations taking place. That took some steam out of the stock, yet it didn't let the speculative air out of it altogether.

Separately, Yahoo (YHOO 42.88, +1.62) was the other big winner on Friday as it continued to enjoy the halo effect of Alibaba.com's impending IPO.

Salesforce.com (CRM 59.25, -1.96) suffered the biggest percentage decline within the sector, which looked to be a case of profit-taking activity. Leading into Friday, shares of CRM had jumped 16% in the last month.

Applied Materials (AMAT 22.30, -0.63) was another notable laggard. After gaining 2.5% on Thursday, it fell 2.8% on Friday following a report of an unfavorable China Ministry of Commerce determination over its Tokyo Electron deal.

AMAT's weakness and losses in most semiconductor-related issues weighed on the Philadelphia Semiconductor Index, which declined 1.3%. Friday's retreat left the SOX index down 1.7% for the week.

Trading activity outside the S&P 500 information technology sector looked very much the same as there was a lot of red seen amongst the technology names. Sprint (S 7.00, +0.43) was a big exception. It surged 6.5%, garnering support from news of a new exclusive rate plan for iPhone 6 and iPhone 6 Plus and a Cowen upgrade to Outperform from market Perform.

On a related note, T-Mobile (TMUS 30.83, +0.38) also bucked the broader trend after reporting at a Goldman Sachs conference that it added over 200,000 prepaid subs in August. Meanwhile, its CEO wouldn't comment specifically on M&A activity, yet he did say that many different companies have shown support for T-Mobile.

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From Briefing.com: 4:10 pm : The major averages ended the Thursday session on a flat note despite showing broad-based weakness in the early going. The S&P 500 ended unchanged with four sectors in the green.

Equity indices started the day near their flat lines, but commenced their retreat once European Central Bank President Mario Draghi concluded his press conference without providing much detail about the central bank's ABS purchases. Furthermore, Mr. Draghi did not hint at plans for sovereign bond purchases, which had been the subject of conversation in recent weeks. To that point, diminished prospects of a full-scale QE program weighed on markets in Italy (-3.9%) and Spain (-3.1%) with bank shares leading the retreat.

As for the U.S., equities slumped across the board in the morning, but staged an impressive reversal after reaching short-term oversold conditions just ahead of 12:00 ET. At that time, the S&P 500 hit its session low of 1925.93 and the TICK reading at the NYSE neared -1500-a level typically associated with excessive selling.

The major averages spent the afternoon in a steady rally back to their flat lines, but could not extend their advance past the unchanged mark. The discretionary sector (+0.4%) resisted the renewed pressure amid strength in apparel retailers and homebuilders. Heavyweight Nike (NKE 89.30, +1.60) jumped 1.8%, while the broader SPDR S&P Retail ETF (XRT 85.43, +1.10) rose 1.3%. As for homebuilders, the group rallied broadly with the iShares Dow Jones US Home Construction ETF (ITB 22.47, +0.20) climbing 0.9%.

Elsewhere among cyclical groups, the financial sector (+0.2%) outperformed throughout the session, while technology (+0.04%) displayed strength in the afternoon. Large cap names like Apple (AAPL 99.90, +0.72), Oracle (ORCL 38.27, +0.18), and Facebook (FB 77.08, +0.53) fueled the modest advance in tech, while chipmakers refused to take part. The PHLX Semiconductor Index lost 0.6%.

Similarly, the high-beta biotechnology group lagged with the iShares Nasdaq Biotechnology ETF (IBB 268.59, -0.84) sliding 0.3%. This pressured the health care sector (-0.2%), while the remaining countercyclical groups ended closer to their flat lines.

Treasuries slumped overnight, but tried turning positive during the morning retreat in stocks. However, the flat line served as resistance, resulting in new lows into the close. The 10-yr note fell 14 ticks, raising its yield five basis points to 2.44%.

Today's participation was ahead of recent averages with more than 780 million shares changing hands at the NYSE.

Economic data included initial claims, factory orders, and the Challenger Job Cuts report:


The weekly initial claims level fell to 287,000 from an upwardly revised 295,000 (from 293,000), while the Briefing.com consensus expected an increase to 297,000
According to the Department of Labor, there were no special factors impacting the initial claims
Over the past several weeks, the claims level has clearly moved from a 310,000 -- 320,000 trend to a sub-300,000 trend. These levels are typically associated with an economy at, or near, full employment, which would imply monthly payroll gains above 250,000
Factory orders fell 10.1% in August after increasing an unrevised 10.5% in July, while the Briefing.com consensus expected a decline of 9.3%
Led by strong demand for Boeing (BA 124.17, -0.50) aircraft, transportation orders increased 73.3% in July. Those gains were not sustainable and orders fell 42.2% in August, which brought orders back in-line with June levels. These severe up-and-down moves caused the biggest one-month increase and the biggest subsequent one-month decrease in overall manufacturing orders since data started being collected
Excluding transportation, factory orders declined a much more modest 0.1% in August, which was an improvement from a 0.7% decline in July
The September Challenger Job Cuts report revealed a 24.0% year-over-year drop to follow the previous reading of -20.7%

Tomorrow, the Nonfarm Payrolls report for September (Briefing.com consensus 210K) and the Trade Balance for August (consensus -$40.90 billion) will be released at 8:30 ET, while ISM Services for September (consensus 58.9) will cross the wires at 10:00 ET.

Nasdaq Composite +6.1% YTD
S&P 500 +5.3% YTD
Dow Jones Industrial Average +1.4% YTD
Russell 2000 -5.8% YTD

12:13 pm GT Advanced Tech. business update webcast postponed until week of October 6th -- see 11:09 comment for further details (GTAT) :

12:12 pm 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

MYL (46.86 +3.51%): M&A chatter made the rounds.
TSLA (247.06 +2.84%): CEO Elon Musk tweeted 'About time to unveil the D and something else'; suggesting Model D introduction on Oct 9.
CP (204.29 +2.38%): Upgraded to Strong Buy from Outperform at Raymond James.

Large Cap Losers

GPRO (81.11 -11.64%): Founders of company released from lock-up restriction as it provides gift towards charitable organization.
HMC (32.38 -4.17%): Heard downgraded at UBS; Garmin (GRMN) announced HMC has selected Garmin as the navigation provider for future Civic and CR-V models in Europe, Russia and South America.
VRTX (102.44 -4.48%): Initiated with a Buy at Guggenheim; heard Deutsche Bank out positive on the co.

Mid Cap Gainers

AN (51.73 +5.36%): Reported retail sales of 84,225 new vehicles in 3Q2014, up 10% y/y; auto dealership stocks higher on Berkshire (BRK.B) deal to acquire the nation's largest privately-owned auto dealership.
GPN (71.58 +4.06%): Beat on EPS by $0.08, beat on revs; raised FY15 EPS & rev guidance.
GNRC (40.93 +3.75%): Co acquired MAC Inc; terms not disclosed.

Mid Cap Losers
CREE (34.03 -14.11%): Guided for Q1 EPS below prior target range of $0.25 to $0.30; sees revs of $428 mln vs $451.35 mln estimate on lower LED Products rev; Heard downgraded to Perform from Outperform at Oppenheimer.
DWA (25.32 -5.35%): Softbank (SFTBY) confirmed will invest $250 mln in Legendary.
SAVE (63.22 -5.39%): International Air Transport Association announced total revenue passenger kilometers increased 5.9% compared to August 2013.

11:43 am Stocks/ETFs that traded to new 52 week highs/lows this session - New lows (333) outpacing new highs (17) (:SCANX) : Stocks that traded to 52 week highs: ADSK, BSTC, DUK, ESPR, ETP, FLWS, HNH, HRL, IMDZ, OABC, PBHC, REIS, SGNT, SLI, STRP, TTGT, TTPH

Stocks that traded to 52 week lows: ABB, ABX, ABY, ACST, ADNC, AEY, AFL, AG, AKO.A, ALEX, ALG, ALLY, ALU, AMCO, AMDA, AMRK, AMRN, AMZG, APAM, APRI, AREX, ARP, ARQL, ATEN, ATL, ATR, ATU, ATW, AUDC, AUY, AVH, AVP, AWRE, AXX, BAA, BABA, BALT, BBG, BBL, BCO, BCOR, BDC, BDE, BEBE, BEL, BHP, BID, BIND, BIOD, BKU, BNFT, BRN, BRSS, BTU, BXE, CA, CACQ, CASS, CBI, CBMX, CBNK, CBS, CCO, CCXI, CDE, CEQP, CERE, CEVA, CHK, CHS, CIDM, CIE, CIEN, CIK, CKH, CLB, CLD, CLF, CLRX, CMLS, COOL, CPRT, CPST, CREE, CRH, CRR, CTCM, CTG, CTRL, CTT, CVD, CVG, CYBX, CYCC, CYD, CYOU, CYTK, DARA, DCIX, DDD, DEO, DF, DISCA, DNR, DO, DRQ, DRYS, DSS, DSX, DWSN, EC, ECR, ECYT, EGAN, EGHT, EGLT, EMITF, EMMS, END, EOPN, EOX, EPE, EPRS, ERA, ESP, ESV, ETN, EXAR, EXEL, EXXI, FEIC, FELE, FF, FI, FLO, FLR, FMC, FNFG, FNGN, FNJN, FPP, FRED, FREE, FST, FULL, FXEN, GEF, GEOS, GFA, GGB, GLDD, GLF, GLPI, GLPW, GPOR, GRAM, GRO, GSK, GTE, GTLS, GURE, HELI, HERO, HGR, HMY, HOG, HOS, I, IAG, IMMR, IMRS, INTL, IO, JEC, KBH, KBR, KEG, KNM, KOP, KRA, KRO, L, LAYN, LF, LFL, LPG, LTRPA, LUK, LXP, LYTS, MBI, MBT, MCF, MDC, MDR, MDU, MEA, MFG, MFRI, MHR, MIL, MIND, MOS, MPEL, MRC, MRKT, MSN, MT, MTH, MUR, MX, MXC, NADL, NAK, NBG, NCT, NE, NEPT, NGS, NM, NMR, NRZ, NSPH, NTLS, OAS, OC, OGEN, OI, OII, ONP, OREX, ORIG, ORIT, ORN, OSK, PACD, PBY, PETX, PGH, PGN, PHMD, PICO, PIH, PIR, PKD, PKE, PLPM, PLX, PLXS, POWL, PRGN, PSTR, PULS, PWE, QUAD, RDC, REE, REN, REXX, RFIL, RGR, RIG, RNF, RNWK, RRC, RS, RSO, RVNC, RWT, RXII, SALT, SB, SBS, SC, SCL, SD, SDR, SDRL, SDT, SEAC, SFXE, SFY, SGY, SID, SINA, SMT, SOHU, SPTN, SSE, STNG, SWN, SYT, TAC, TCK, TDW, TERP, TEU, TEX, TGA, TGE, THRX, TILE, TIS, TLM, TPRE, TRS, TSE, TTMI, TWI, TX, UGP, UNIS, URG, USAP, VCYT, VIAB, VIP, VNR, VOLC, VTG, VVI, WAIR, WGA, WLKP, WMK, WPP, WPPGY, WRLD, WTI, XCO, YOKU, ZAZA, ZNGA

ETFs that traded to 52 week highs: none

ETFs that traded to 52 week lows: BJK, BNO, CROP, CUT, DBC, DJP, EFA, EWG, EWO, EWQ, EWU, EZU, GSG, KOL, PPLT, REMX, SIL, SLX, UGA, URA, USCI, XES, XME

Atmel (ATML) announced the development of a new family of Atmel | SMART ARM Cortex-M7-based MCUs that are sampling to select customers now.

SunPower (SPWR) announced that its SunPower E-Series Solar Panel and SunPower X-Series Solar Panel have been awarded the Cradle to Cradle Certified Silver distinction by the Cradle to Cradle Products Innovation Institute.

8:07 am Cree follow-up: Co guides down on lower LED Products revenue (CREE) : Co issues downside guidance for Q1 (Sep), sees Q1 (Sep) GAAP EPS below the co's previously announced target range of $0.25-0.30, vs. $0.28 GAAP Capital IQ consensus; co sees revs of $428 mln vs. $451.35 mln Capital IQ Consensus Estimate.

The expected revenue is below the company's previously targeted range of $440 million to $465 million due to lower LED Products revenue. LED Products revenue is expected to decline 20% year over year and 13% sequentially to $174 million in the first quarter of fiscal 2015 due to weaker global demand than originally targeted.

Overall gross margin is expected to be below the company's previously announced targets primarily due to the lower LED Products revenue and higher than targeted LED bulb revenue.

8:01 am Fairchild Semi enters into a new $400 million revolving credit facility which replaces its existing revolver (FCS) : The co will use the proceeds from the refinancing to retire the old revolving credit facility, which was due to mature in May 2016.

Fairchild will initially draw approximately $200 million from the new facility, which will leave $200 million of undrawn capacity. The new facility matures in September 2019 and continues to include a $300 million accordion feature. The facility is subject to leverage and interest coverage ratios and enables Fairchild to borrow at lower interest rates.

The S&P 500 ended Thursday up one-one hundredth of a point. Its final standing, though, belied what was an otherwise roller-coaster day of trading.

Things were unsettling in the early-going following an ugly finish for European bourses that played out as ECB President Draghi failed in his press conference to inspire much confidence in the ECB's asset-backed securities purchase program. At the same time, he left listeners with the impression that the ECB lacks the ability to change the economic dynamic in the eurozone with its policy efforts.

At their lows of the morning, the Dow, Nasdaq, S&P 500, and Russell 2000 were down 131, 54, 20, and 7 points, respectively. At the close, the Dow was down 3 points, the Nasdaq was up 8 points, the S&P 500 was up 0.01 points, and the Russell 2000 was up 11 points.

There wasn't any catalyst for the turn in the indices other than the pervasive sense that the market had gotten oversold on a short-term basis. From 11:45 a.m. ET on, when the TICK reading at the NYSE was almost -1500, the major indices marched their way higher in a move driven by bargain-hunting activity and short-covering interest (TICK is a measure of the number of stocks trading on an uptick minus the number trading on a downtick. A reading below -1000 would be viewed by traders as a sign of excessive selling on an intraday basis).

The information technology sector went along for the ride. It declined 1.2% at its worst level of the day but closed the session with a gain of 0.26 points.

As one might expect, the performance of the 66 components comprising the sector was mixed. There were some notable percentage winners:

Autodesk (ADSK 57.74, +2.08) -- upgraded by Citigroup, Credit Suisse, and Cowen following its investor day on Wednesday Apple (AAPL 99.89, +0.71) - reports that iPhone 6 pre-orders in China topped one million in the first six hours; Citigroup raised its price target to $120 from $110 and maintained its Buy rating Electronic Arts (EA 35.58, +0.44) -- no news
F5 Networks (118.71, +1.63) -- no news
Juniper Networks (JNPR 21.95, +0.27) -- no news
Red Hat (RHT 57.38, +0.91) -- priced its private offering of $700 million convertible senior notes due 2019
Symantec (SYMC 23.35, +0.31) -- no news
Verisign (VRSN 55.52, +1.21) -- no news
Western Union (WU 16.09, +0.16) -- no news
And there were some notable percentage losers:
Applied Materials (AMAT 20.51, -0.41) -- no news
Avago Technologies (AVGO 83.21, -2.33) -- no news Intel (INTC 33.51, -0.48) -- MKM Partners highlights concerns about ARM-based competition to Intel servers Intuit (INTU 84.52, -1.20) -- downgraded to Underweight from Equal Weight at Evercore Motorola Solutions (MSI 61.03, -1.31) -- downgraded to Neutral from Buy at Citigroup It was the kind of day where both the news and the price action were spotty as traders were picking and choosing their spots with buy-the-dip efforts.

Outside of the S&P information technology sector, Chinese Internet company Qihoo 360 Technology (QIHU 67.20, +3.31) was a big winner after announcing a $200 million share repurchase plan; and Cree (CREE 34.85, -4.76) was a big loser following an earnings warning for its fiscal first quarter that was attributed to lower LED products revenue.

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From Briefing.com: 4:15 pm : The stock market began its week on a lower note as investors eyed the potential implications of the United Kingdom leaving the European Union. The decision has had far reaching consequences across capital markets as investors look for clues to the potential timing and terms of the official breakup. Additional focal points impacting today's trade included strengthening in the dollar, a downturn in oil, and the underperformance of the heavyweight financial (-2.8%), technology (-2.3%), and industrial (-2.3%) spaces. The Nasdaq Composite (-2.4%) ended its day behind the S&P 500 (-1.8%) and the Dow Jones Industrial Average (-1.5%).

The major U.S. averages began under pressure as investors eyed a continued downturn in European bourses. European equity markets stumbled for the second straight session as investors maintained their risk-off posture. Specifically, British banking names led the losses as concerns mounted regarding how a Brexit may impact lenders in the region and the potential effects of an elongated period of low interest rates. Additionally, Barclays (BCS 7.03, -1.86) plunged 20.9% after numerous firms downgraded the stock post-Brexit.

The S&P 500 (-1.8%) gapped down at the beginning of the session, slipping alongside weakness in heavily-weighted financials (-2.8%), technology (-2.3%), and industrials (-2.43). The benchmark index tested technical support at the psychological 2000 price level in the opening hour and continued to trade near that level for most of the session. Equities carved out fresh intraday lows in the final hour of trade, but were able to finish the day above those levels. Eight sectors ended in negative territory with commodity-sensitive materials (-3.4%) trailing financials (-2.8%), energy (-2.5%), and technology (-2.3%). Conversely, countercyclical utilities (+1.3%) and telecom services (+0.6%) ended in the green.

The economically-sensitive financial sector (-2.8%) demonstrated broad-based weakness as it traded lower in sympathy with European banking names. In the sector, asset management companies and life insurance names showed the largest losses as Bank of New York Mellon (BK 35.88, -2.11) and MetLife (MET 36.53, -2.91) fell 5.6% and 7.4%, respectively. Elsewhere, Dow component American Express (AXP 57.67, -2.39) finished at the bottom of the price-weighted index.

The high-beta chipmakers demonstrated relative weakness, evidenced by the 4.0% decline in the PHLX Semiconductor Index. The Semiconductor Index has lost 7.3% this month, compared to a loss of 4.6% in the benchmark index over that time. In the technology space (-2.3%), large cap components Microsoft (MSFT 48.43, -1.40) and Facebook (FB 108.99, -3.08) underperformed, declining 2.8% apiece.

The energy sector (-2.5%) ended its day under pressure as investors weighed a 2.4% ($46.48/bbl; -$1.12) decline in crude oil. In the group, independent oil and gas names underperformed as the sub-group faces steeper downside risks from a prolonged downturn in crude oil. Elsewhere, Dow component Exxon Mobil (XOM 8886, -0.53) lost 0.6%.

The Dow Jones Transportation Average (-3.1%) finished behind the benchmark index as airlines underperformed. The U.S. Global Jets ETF (JETS 19.85, -0.82) lost 4.0% today, extending its monthly decline to 13.7%.

The U.S. Dollar Index (96.43, +0.98) ended higher by 1.0% as the greenback gained over commodity currencies, the euro, and the pound. The euro/dollar pair ended lower by 0.9% (1.1020) while sterling lost 3.4% (1.3209) against the buck. Separately, the dollar lost 0.1% against the safe haven yen (102.09).

The Treasury complex ended near its best level of the day as the yield on the 10-yr note slipped ten basis points to 1.46%.

Today's participation was above the recent average as more than 1.2 billion shares changed hands on the NYSE floor.

Today's economic data was limited to the International Trade in Goods Report for May:

May International Trade in Goods showed a deficit of $60.59 billion, compared to the April deficit of $57.53 billion.

Tomorrow's economic data will include the third estimate of first quarter GDP (Briefing.com consensus 1.0%) and the third estimate for the first quarter GDP deflator (Briefing.com consensus 0.6%), which will both be released at 8:30 ET. Separately, the Case-Schiller 20-city index for April (Briefing.com consensus 5.5%) and Consumer Confidence for June (Briefing.com consensus 93.1) will cross the wires at 9:00 ET and 10:00 ET, respectively.

Nasdaq -8.3% YTD
Russell 2000 -4.0% YTD
S&P 500 -2.1% YTD
Dow Jones -1.6% YTD

DJ30 -260.51 NASDAQ -113.54 SP500 -36.87 NASDAQ Adv/Vol/Dec 437/2.147 bln/2149 NYSE Adv/Vol/Dec 586/1.271 bln/2496

3:30 pm :

The dollar index continues clocking in massive gains, up another +1% in addition to Friday's +2% gains, near the 96.46 level, weighing on commodities
Commodities, as measured by the Bloomberg Commodity Index, are down -0.3% at 86.66
Crude oil closes near session lows, seeing a sharp spike within the last 10 min of pit trading close, possibly due to short covering
August crude oil futures fell $1.12 (-2.4%) to $46.48/barrel
EIA crude oil inventory data is scheduled to be released Wednesday at 10:30 am ET
API data is scheduled to be released tomorrow at 4 pm ET
Reminder: Friday's Baker Hughes total U.S. rig count was down 3 to 421 rigs following last week's increase of 10 rigs
Monthly IEA data is scheduled to be released on July 13
Natural gas rallies and closes near fresh session highs despite extremely notable strength in the dollar index
August natural gas closed $0.05 higher (+1.9%) at $2.74/MMBtu
EIA natural gas inventory data is scheduled to be released Thursday at 10:30 am ET.
In precious metals, gold manages to close higher despite extremely notable strength in the dollar index as investors/traders flee to safety amidst a broad market sell-off
August gold ended today's session up $2.10 (+0.2%) to $1324.60/oz
On Friday, gold futures closed up +5% for the day
The dollar index is up +1%, around the 96.37 level
Silver trades near parity with the previous close, down slightly on the day
July silver closed today's session $0.03 lower (-0.2%) at $17.75/oz
Base metal copper inches higher in afternoon pit trading
July copper closed $0.01 higher (+0.5%) at $2.12/lb
Corn & soybean futures close higher while wheat futures closed lower ahead of the USDA crop report to be released today at 4 pm ET
December corn closed $0.01 higher (+0.3%) at $3.86/bushel
Corn has changed its front month to December from July, as indicated by the active amount of volume in the contracts
Corn prices have declined in the past five consecutive sessions, falling $0.53, or 12.1%, to $3.85/bushel, largely as the supply outlook for some crops have improved
September wheat closed $0.07 lower (-1.5%) at $4.58/bushel
November soybeans closed $0.23 higher (+2.1%) at $11.07/bushel
Recent weather highlights:
In the Corn Belt, additional showers on top of recent locally heavy rain are further improving moisture supplies for corn and soybeans from eastern Iowa into Ohio
Soil moisture remains limited, however, across central and southern Michigan and on the triple point between Iowa, Missouri, and Illinois
In the South, showers and thunderstorms linger in the northern Delta and along the central Gulf Coast. Moderate to severe drought persists, however, from the eastern Delta into the southern Appalachians.

European equity markets moved lower overnight, extending sharp losses from the prior week. Specifically, European banking names were under pressure as participants began to weigh the potential timing and terms of the U.K.'s formal exit from the single market. On that note, Royal Bank of Scotland (RBS 4.69, -0.74) and Barclays (BCS 7.03, -1.85) have declined 13.63% and 20.83%, respectively.

The second day of negative bias swept through the broader market today following last week's UK referendum voting results. The broader market finished Monday under intense pressure, with the Nasdaq Composite shedding a further 113.54 points (-2.41%) to 4594.44. The S&P 500 was down 36.87 points (-1.81%) to 2000.54 when the day was done, and the Dow Jones Industrial Average lost a further 260.51 points (-1.50%) to 17140.24. Just two days ago, the Dow was north of 18K and the S&P was topping 2111, but a historic move in the past two sessions has taken US equities to near three-month lows.

Technology (XLK 41.42, -0.86 -2.03%) was again weak as components Western Digital (WDC 42.18, -5.66 -11.83%) and Seagate Tech (STX 20.87, -2.29 -9.89%) saw pressure in reaction to their exposure to the European market. Other sectors as measured by the S&P closed the session XLU +0.83% XLP -0.22% XLV -1.31% XLY -1.81% XLI -2.35% XLF -2.85% XLE -3.20% XLB -3.37% as Utilities were the only safe haven today with Materials pressuring.

In the S&P 500 Information Technology (680.24, -16.17 -2.32%) sector, we saw another day of losses as component Skyworks (SWKS) was -5.8% lower following a bearish initiation at Morgan Stanley. Other names in the space which edged lower today included MU -7.34%, NTAP -7.12%, ADSK -6.42%, TDC -6.29%,HPQ -5.79%, CSRA -5.46%, JNPR -5.39%, HPE -5.29%, XRX -5.19%, RHT -4.73%.
Other notable news items among sector components:

IBM (IBM 143.50, -3.09 -2.11%) received contract from the Dept. of Defense with a ceiling value of about $320 million.
Qualcomm (QCOM 51.14, -0.98 -1.88%) along with its subsidiary, Qualcomm Technologies, Inc., announced Qualcomm Technologies' 5G New Radio (NR) prototype system and trial platform. The 5G NR prototype system operates in the sub-6 GHz spectrum bands and is being utilized to showcase the Company's innovative 5G designs to efficiently achieve multi-gigabit per second data rates and low latency.
Harris (HRS 78.49, -2.49 -3.07%) received a $27 million order to deliver maritime electronic warfare payloads for the U.S. Naval Research Laboratory's Advanced Decoy Architecture Project program.
8point3 Energy Partners LP (CAFD 14.77, +0.21 +1.44%) removed Joseph Kishkill from the Board of Directors of the General Partner effective July 5, 2016. It also removed Mr. Kishkill from the Board pursuant to the exercise by First Solar (FSLR 44.23, -1.79 -3.89%) of its right to request the removal of any director that FSLR had designated to serve on the Board. The company noted there were no disagreements between Mr. Kishkill and the General Partner or any officer or director of the General Partner which led to Mr. Kishkill's removal from the Board. Additionally, the company announced the removal of Mark Widmar as CFO, who will be replaced by Bryan Schumaker effective July 5, 2016.
Elsewhere in the tech space:

Synopsys (SNPS 51.33, -0.75 -1.44%) and Lattice Semiconductor (LSCC 4.94, -0.47 -8.69%) extended their multi-year OEM agreement for FPGA design software.
Vectrus (VEC 26.96, +0.32 +1.20%) announced the US Court of Appeals issued a decision reversing the decision of the Court of Federal Claims.
Genpact (G 25.41, -0.81 -3.09%) acquired PNMsoft. Financial terms of the deal were not disclosed, and the deal is not expected to be material to financial performance.
Immersion (IMMR 7.18, -0.32 -4.27%) signed a multi-year license agreement with Lenovo (LNVGY 11.68, -0.27 -2.26%) for the use of TouchSense haptic technology for Windows and Android smartphones/tablets. Financial terms of the deal were not disclosed.
INTL FCStone (INTL 25.56, -0.52 -1.99%) to acquire Sterne Agee's correspondent securities clearing business and the independent wealth management business from Stifel Financial (SF 30.31, -2.24 -6.88%). Financial terms of the deal were not disclosed.
Izea (IZEA 7.59, -0.11 -1.43%) filed for a $75 million common stock shelf offering.
Callidus Software (CALD 18.31, -0.73 -3.83%) acquired Badgeville Technology for $7.5 million.
Intelsat (I 2.15, -0.15 -6.52%) disclosed discussions with certain unaffiliated investment funds concerning a proposed issuance of secured notes.
Zix Corp (ZIXI 3.62, -0.10 -2.69%) appointed David Rockvam as CFO.
Analyst actions:
P was upgraded to Overweight from Equal Weight at Morgan Stanley,
AMAT was upgraded to Buy from Neutral at DA Davidson,
BT was upgraded to Buy from Neutral at Citigroup;
BT was downgraded to Neutral from Outperform at Credit Suisse,
MXIM, NXPI and ADI were downgraded to Neutral from Buy at BofA/Merrill,
ANET was downgraded to Underperform from Buy at BofA/Merrill,
CNSL was downgraded to Hold from Buy at Drexel Hamilton;
AVGO was initiated with an Overweight at Morgan Stanley,
QRVO was initiated with an Equal Weight at Morgan Stanley,
SWKS was initiated with an Underweight at Morgan Stanley

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From Briefing.com: Weekly Recap - Week ending 05-Aug-16

The stock market entered Friday with a modest weekly loss, but a rally that developed in the wake of a better than expected Employment Situation Report for July (255,000; Briefing.com consensus 185,000) helped the S&P 500 log its fifth weekly gain in the past six weeks. The benchmark index added 0.4% for the week while the Nasdaq Composite (+1.1%) outperformed. Both indices marked fresh all-time highs on Friday.

Investors received another heavy dose of quarterly earnings, but the latest batch of results came from companies that had little market-moving cachet. At the end of the week, nearly 90.0% of S&P 500 components had reported earnings, showing a 3.5% decline in blended earnings, which was worse than the 3.2% contraction projected by FactSet.

In addition to earnings, investors received the latest policy statement from the Bank of England, which proved to be a dovish surprise. The central bank lowered its key rate by 25 basis points to 0.25%, increased its purchase program to GBP435 billion from GBP375 billion, and announced it will buy up to GBP10 billion of corporate debt. The news pressured the pound into the 1.31 area against the dollar, but somewhat surprisingly, the stepped up easing efforts had little impact on global equity markets.

The S&P 500 advanced to a new record high on Friday after the Employment Situation report for July (255,000; Briefing.com consensus 185,000) beat estimates, showing above-consensus average hourly earnings growth of 0.3% (Briefing.com consensus 0.2%). Over the past year, average hourly earnings have risen 2.6%, but rate hike expectations remain subdued with the fed funds futures market not pricing in a 50.0%+ chance or a rate hike until March 2017 (51.2%).
Index Started Week Ended Week Change % Change YTD %
DJIA 18432.24 18543.53 111.29 0.6 6.4
Nasdaq 5162.13 5221.12 58.99 1.1 4.3
S&P 500 2173.60 2182.87 9.27 0.4 6.8
Russell 2000 1219.94 1231.09 11.15 0.9 8.4

4:15 pm Closing Market Summary: Nasdaq & S&P Notch New Highs After Jobs Report (:WRAPX) :

The stock market ended the week on a higher note as a positive reading of the Employment Situation Report for July helped the Nasdaq Composite (+1.1%) and the S&P 500 (+0.9%) notch new all-time closing highs. The upbeat employment report elicited buying interest while diminishing on-going concerns regarding the strength of the U.S. labor market. Other factors impacting today's trade included weakness from the oil pit, continued strength in the dollar, and sector leadership from the heavily-weighted financial (+1.9%), technology (+1.2%), and consumer discretionary (+1.1%) sectors. The tech-heavy Nasdaq (+1.1%) finished ahead of the Dow Jones Industrial Average (+1.0%) and the S&P 500 (+0.9%).

Today's session began on a higher note as a better-than-expected reading of the Employment Situation Report for July helped reduce concerns regarding the hiring landscape. The report showed that nonfarm payrolls (255K; Briefing.com consensus 185K) and nonfarm private payrolls (217k; Briefing.com consensus 171k) each came in stronger-than-expected despite the impressive rebound in the June report. Furthermore, average hourly earnings (+0.3%; Briefing.com consensus +0.2%) also came in better-than-expected, which could pave the way to an increase in inflation expectations.

The positive employment report brought forward rate hike expectations, but the fed funds futures market still does not believe that a rate hike will happen before the end of 2016. The fed funds futures market currently estimates the odds of a rate hike at the December meeting at 46.5%, rising from yesterday's implied probability of 32.1%. The dollar strengthened in response while gold fell and the economically-sensitive financial sector (+1.9%) led today's rally.

Equity indices extended their advance through the session, shrugging off potential headwinds from a strengthening dollar and weakness in oil futures. The benchmark index hovered in the area of its record high for most of the session, notching a new all-time intraday high (2182.86) in the final hour. The S&P 500 (+0.9%) finished near its best level of the day as eight sectors ended in the green. The heavyweight financial (+1.9%), technology (+1.2%), and consumer discretionary (+1.1%) sectors outperformed while defensively-oriented telecom services (-0.2%) and utilities (-1.4%) ended in the red.

The financial sector (+1.9%) demonstrated broad-based strength as money center banks, investment brokerages, and life insurance names each outperformed. JPMorgan Chase (JPM 66.30, +1.74) and Citigroup (C 45.72, +1.88) finished higher by 2.7% and 4.3%, respectively. Separately, MetLife (MET 41.14, +1.60) finished the day higher by 4.1%, rebounding from yesterday's 8.7% decline. The economically-sensitive group finished the week higher by 1.4%, erasing its year-to-date loss.

The influential technology sector (+1.2%) finished ahead of the broader market as top-weighted Apple (AAPL 107.48, +1.61) gained 1.5%. The stock extended its recent rally, jumping 11.2% since reporting above-consensus bottom-line results on July 26. The high-beta chipmakers also outperformed, evidenced by the 1.3% gain in the PHLX Semiconductor Index. The price-weighted index erased a modest weekly loss to finish the week higher by 0.9%.

The Dow Jones Transportation Average (+1.9%) outperformed amid strength in rail names and airlines. The U.S. Global Jets ETF (JETS 22.32, +0.52) finished the day higher by 2.4%, trimming its weekly loss to 0.9%. Separately, railroads settled higher as Canadian Pacific (CP 144.04, +0.86) rebounded 0.6%. The name was under pressure yesterday after announcing a 9.8 million share public offering on behalf of Pershing Square.

The countercyclical health care sector (+0.3%) ended the day on a flat note as Bristol-Myers (BMY 63.28, -12.04) underperformed. The company announced that its lung-cancer treatment, Opdivo, failed to meet its primary endpoints. On the flipside, Dow component Merck (MRK 63.86, +6.02) topped the price-weighted index as investors looked to diminishing competition for its Keytruda drug.

The U.S. Dollar Index (96.24, +0.48) ended off its best level of the day, but the greenback still finished with gains against the pound, yen, and euro. Cable ended lower by 0.3% (1.3070) while the single currency declined 0.4% against the buck (1.1085). Separately, the dollar gained 0.5% against the safe-haven yen (101.76).

Treasuries ended the day on a lower note as yield rose across the curve. The yield on the 10-yr note settled higher by eight basis points, rising to 1.59%.

Participation was in-line with the recent average as more than 842 million shares changed hands at the NYSE floor.

Today's economic data included the Employment Situation Report for July, the June Trade Balance, and June Consumer Credit:

Nonfarm payrolls increased by 255,000 (Briefing.com consensus 185,000). Over the past three months, job gains have averaged 190,000 per month.
June nonfarm payrolls revised to 292,000 from 287,000
May nonfarm payrolls revised to 24,000 from 11,000
Private sector payrolls increased by 217,000 (Briefing.com consensus 171,000)
June private sector payrolls revised to 259,000 from 265,000
May private sector payrolls revised to -1,000 from-6,000
Unemployment rate was 4.9% (Briefing.com consensus 4.8%) versus 4.9% in June
Persons unemployed for 27 weeks or more accounted for 26.6% of the unemployed versus 25.8% in June
July average hourly earnings were up 0.3% (Briefing.com consensus 0.2%) after being up 0.1% in June
Over the last 12 months, average hourly earnings have risen 2.6%
The average workweek was 34.5 hours (Briefing.com consensus 34.4) versus 34.4 hours in June
July manufacturing workweek was unchanged at 40.7 hours
Factory overtime was up 0.1 to 3.3 hours
The labor force participation rate was 62.8% versus 62.7% in June
The trade deficit in June widened to $44.5 billion (Briefing.com consensus -$42.7 billion) from -$41.0 billion in May.
The widening was a byproduct of imports increasing by $4.2 billion month-over-month to $227.7 billion and exports increasing by only $0.6 billion month-over-month to $183.2 billion.
There was a $2.30 billion jump in imports of industrial supplies and materials, more than half of which was owed to imports of crude oil (+$1.43 billion), petroleum products (+$0.44 billion), and fuel oil (+$0.29 billion).
Capital goods imports, excluding automotive, were up $1.0 billion, with civilian aircraft (+$0.7 billion) accounting for much of that increase.
Imports of consumer goods increased $1.9 billion, paced by a robust $1.4 billion increase in pharmaceutical preparations and a $1.1 billion increase in cell phones and other household goods.
The export side of the equation featured a $0.6 billion increase in foods, feed, and beverages, a $0.4 billion increase in consumer goods, and a $0.3 billion increase in capital goods, excluding automotive, which was offset in part by a $0.4 billion decline in exports of autos, parts, and engines.
On a year-over-year basis, imports are down 2.4% while exports are down 3.8%.
Total outstanding consumer credit increased by $12.3 billion in June after increasing a downwardly revised $18.0 billion (from $18.6 billion) in May. The Briefing.com consensus estimate for June was $16.2 billion.
In the preceding 12-month period leading up to June, consumer credit had risen by an average of $17.7 billion.
The growth in June was driven by a $7.7 billion increase in revolving credit, which rose to $960.8 billion, and a $4.6 billion increase in nonrevolving credit to $2673.1 billion.
In June, consumer credit increased at an annual rate of 4.0%. For the second quarter, consumer credit increased at a seasonally adjusted annual rate of 5.25%.

There is no economic data of note scheduled to be released on Monday.

Today's flat performance in the broader market comes on the heels of the Bank of England's decision to lower its key interest rate to a record-low 0.25% from 0.50% and ahead of tomorrow's influential Employment Situation Report for July. Further, the BoE voted to increase its U.K. government bond purchases by GBP60 billion and to purchase up to GBP10 billion of U.K. corporate bonds. The accommodative monetary policy decision follows the surprise Brexit vote in late June.

Also, market data today came in the form of July Challenger Job Cuts which were 45,300, compared to the prior month's reading of 38,500. Additionally, initial claims increased by 3,000 to 269,000 for the week ending July 30. Continuing claims decreased by 6,000 to 2.138 million for the week ending July 23. Factory orders declined 1.5% in June on the heels of a downwardly revised 1.2% decline (from -1.0%) in May.

Thursday concluded a mixed session as morning weakness cooled into the afternoon and ultimately ended on a modestly lower tick. Leading the day higher, the Nasdaq Composite added 6.51 points (+0.13%) to 5166.25. Helping the Nasdaq outperform today, top Nasdaq 100 components TSLA +2.1%, PYPL +2.0, NVDA +1.9%, AVGO +1.8%, MAR +1.3% all finished with strong days. The S&P 500 was up less than a point (+0.02%) when the day was done to 2164.25, and the Dow Jones Industrial Average was the lone laggard, shedding 2.95 points (-0.02%) to 18352.05.

As it were, S&P sectors were also scattered as a whole with XLB +0.37%, XLP +0.24%, XLI +0.03%, XLU -0.06%, XLY -0.06%, IYZ -0.09%, XLV -0.15%, XLE -0.18%, XLF -0.30%. Technology (XLK 46.58, +0.23 +0.50%) was the best performing S&P sector, ending just off highs of the day. Component Western Union (WU 20.69, +0.77 +3.89%) posted a strong Thursday following better than expected Q2 earnings.

In the S&P 500 Information Technology (772.10, +3.79 +0.49%) sector, trading came to a close slightly off highs after tepid morning action. Component First Solar (FSLR 43.72, -5.52 -11.21%) was the worst performing component following its latest quarterly print; the company beat market expectations on the top and bottom lines for Q2 but worries about margins and commentary regarding a very competitive pricing environment held the stock lower today. Other names in the space which outperformed today included PYPL +1.97%, TDC +2.02%, NVDA +1.85%, AVGO +1.75%, STX +1.72%, FB +1.51%, YHOO +1.38%, MSI +1.36%, LRCX +1.26%, SWKS +1.20%, HPE +1.16%.
Notable news items among tech companies:

CSRA (CSRA 25.85, -0.25 -0.96%) announced it received a contract to support the Air Force Research Laboratory in conducting human-centered research and development to improve and protect mission-critical processes and tools used by airmen. The single-award contract is valued at $7.5 million over a six-year period.

RadiSys (RSYS 4.72, +0.01 +0.21%) filed for a $100 million mixed securities shelf offering.

Novatel Wireless (MIFI 2.00, +0.12 +6.38%) disclosed a restructuring plan including the reduction of the workforce by about 24%.

TerraForm Global (GLBL 3.36, -0.03 -0.88%) disclosed the receipt of a letter from SunEdison (SUNEQ 0.12, flat) purporting to terminate the Interest Payment Agreement dated as of August 5, 2015.

Elli Mae (ELLI 98.50, +5.98 +6.46%) priced a follow-on offering of 2.75 million shares of its common stock at a price to the public of $90 per share.

Guidewire Software (GWRE 61.31, +0.38 +0.62%) to acquire FirstBest. Financial terms of the deal were not disclosed.

Zynga (ZNGA 2.97, +0.01 +0.34%) appointed Matt Bromberg as COO effective August 8.

BlackBerry (BBRY 7.76, -0.02 -0.26%) commenced a normal course issuer bid to purchase up to $125 million principal amount of its 6% unsecured convertible debentures.

In reaction to quarterly results:

BCE Inc (BCE 47.94, +0.68 +1.44%) reported better than expected Q2 EPS of C$0.94 and in-line revenues of C$5.34 billion. The company also reaffirmed FY16 EPS and revenue guidance of C$3.45-3.55 and growth of 1-3%, respectively.

Nokia (NOK 5.50, -0.19 -3.34%) reported in-line Q2 EPS of EUR0.03 on worse than expected revenues which rose 91.3% versus a year ago to EUR5.58 billion.

Equinix (EQIX 371.40, +1.06 +0.29%) reported Q2 funds from operations of $3.55 per share on revenues of $900.5 million. The company also sees Q3 revenues of $915-921 million on adjusted EBITDA of $419-425 million. For FY16, the company expects revenues of $3.59-3.61 billion on adjusted EBITDA of $1.658-1.668 billion.

CenturyLink (CTL 30.25, -0.26 -0.85%) reported better than expected Q2 EPS of $0.63 on in-line revenues of $4.4 billion. For Q3, CTL sees EPS worse than market expectations at $0.52-0.57 on in-line revenues of $4.35-4.40 billion.

Western Union (WU) reported better than expected Q2 EPS of $0.42 on revenues which came in at $1.38 billion. For FY16, the company sees EPS of $1.60-1.70 compared to prior expectations of $1.58-1.70.

TripAdvisor (TRIP 63.59, -5.90 -8.49%) reported worse than expected Q2 EPS and revenues of $0.38 and $391 million, respectively.

First Solar (FSLR) reported better than expected Q2 EPS and revenues of $0.87 and $934 million, respectively. For FY16, the company sees better than expected EPS of $4.20-4.50, prior guidance was $4.10-4.50 on revenues of $3.8-4.0 billion.

GoDaddy (GDDY 31.78, +3.47 +12.26%) reported a Q2 loss per share of $0.11 on better than expected revenues which rose 15.6% compared to a year ago to $456.2 million. The company also sees Q3 revenues of $468-471 million. For FY16 revenues, GDDY sees $1.84-1.847 billion.

Companies scheduled to report quarterly results tonight/tomorrow morning: TWOU ATVI ACXM MDRX AMBR ASYS AAOI ANET TEAM ABTL RATE WIFI ECOM CPSI CSOD DMD FEIC FEYE GSAT HDP IMMR IMPV SAAS INAP KTOS LNKD MRIN MELI MSI EGOV PCLN RBCN SHOR SWIR SSNI SMCI SYMC TTWO TRMR TRUE UBNT OLED WEB ZG ZNGA/CTSH TDS USM

Analyst actions:

TXN was upgraded to Neutral from Underperform at Exane BNP Paribas,
IPAS was upgraded to Buy from Neutral at Chardan Capital Markets,
NSIT was upgraded to Mkt Perform from Underperform at Raymond James,
LMOS was upgraded to Buy from Hold at Jefferies,
IL was upgraded to Buy from Hold at Craig Hallum;
RUBI was downgraded to Neutral from Buy at Citigroup and to Hold from Buy at Needham,
INOV was downgraded to Underweight from Neutral at Piper Jaffray and to Neutral from Buy at Goldman, TNET was downgraded to Equal Weight from Overweight at Morgan Stanley,
FLTX was downgraded to Equal Weight from Overweight at Barclays

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From Briefing.com: Weekly Recap - Week ending 23-Sep-16The stock market registered its second consecutive weekly gain with the S&P 500 climbing 1.2%. Thanks to the rally, the index is back to little changed for the month of September (-0.3%).

The advance in the market was broad-based as most sectors gained at least 0.4% for the week. Rate-sensitive sectors like real estate and utilities both advanced more than 3.0% for the week while energy (+0.1%) and technology (+0.4%) were the only two that failed to climb more than 1.0%. The underperformance in the technology sector masked a 20.0%+ spike in the shares of Twitter (TWTR) after CNBC reported that Salesforce (CRM) and Alphabet (GOOG) have expressed interest in the social media site.

Equity indices retreated early in the week, but buyers piled back into stocks after Wednesday's FOMC announcement called for no change to monetary policy once again. In addition to holding off on the next hike, the FOMC lowered its median policy rate projections for 2016, 2017, and 2018. However, the Fed statement was not unequivocally dovish, revealing three dissenting votes at the September meeting.

Federal Reserve Chair Janet Yellen discussed the FOMC decision, suggesting that a rate hike could take place in December. However, rate hike expectations, as expressed by the fed funds futures market, did not change much from last week. In fact, they receded a bit as the implied likelihood of a December hike ticked down to 54.2% from 55.5% at the end of last week.

Index Started Week Ended Week Change % Change YTD %
DJIA 18123.18 18261.65 138.47 0.8 4.8
Nasdaq 5244.57 5305.75 61.18 1.2 6.0
S&P 500 2139.11 2164.71 25.60 1.2 5.9
Russell 2000 1223.10 1255.11 32.01 2.6 10.5

4:11 pm Closing Market Summary: Averages Settle Lower as Apple and Oil Weigh (:WRAPX) :

The stock market ended an upbeat week on a lower note as the major averages pulled back from their recent risk rally. Other factors impacting today's trade included a downturn in crude oil futures and the underperformance of the heavyweight industrial (-0.6%), financial (-0.7%), and technology (-1.0%) sectors. The Dow Jones Industrial Average (-0.7%) finished behind both the S&P 500 (-0.6%) and the Nasdaq Composite (-0.6%). The three indices added between 0.8% and 1.2% for the week.

Equity indices stumbled at the start of the session as investors looked to lock in some profits in the wake of the recent Fed-induced rally. The Federal Reserve spurred risk appetite on Wednesday by voting to leave its key policy rate unchanged. The central bank also lowered the median projection for the fed funds rate for the years ahead. Diminished rate hike expectations eased market concerns over the potential sooner-than-expected removal of policy accommodations.

The broader market extended its loss near midday as the commodity complex came under pressure. Commodities were in focus as participants pored over proposed rule changes designed to limit the physical commodity activities of financial holding companies. Specifically, the Federal Reserve proposed strengthening existing capital requirements and quantitative limits on such companies.

Participants also expressed some misgivings about next week's OPEC meeting. Reports indicated that Saudi Arabia does not expect to make a production decision at this meeting. Separately, Russia indicated that it would not join plans with other oil producers until OPEC agreed on a supply agreement between its own members. The oil collective is scheduled to meet in Algiers, Algeria between September 26 and September 28. WTI crude ended the day lower by 3.9% ($44.53/bbl; -$1.80), but still finished the week up 3.5%.

The benchmark index settled near its session low after failing to reclaim technical support in the area of its 50-day simple moving average (2169). Nine sectors ended in the red with industrials (-0.6%), financials (-0.7%), technology (-1.0%), and energy (-1.3%) rounding out the board. On the flipside, defensively-oriented real estate (+0.3%) and telecom services (+0.4%) finished with the only gains.

The heavily-weighted technology sector (-1.0%) underperformed as large cap components Facebook (FB 127.96, -2.12) and Apple (AAPL 112.71, -1.91) weighed. Facebook was under pressure after reports indicated that the company overstated video ad view times to advertisers. Meanwhile, top-weighted Apple fell 1.6% after GfK stated that launch weekend iPhone sales fell approximately 25.0% year-over-year. Recall that the Dow component rallied 11.4% in the prior week on the heels of some bullish revisions to iPhone sales estimates. Separately, Salesforce.com (CRM 70.39, -4.20) fell 5.6% after reports speculated that the company may attempt to acquire Twitter (TWTR 22.62, +3.99). Alphabet (GOOG 786.90, -0.31) was also mentioned as a potential suitor in the CNBC report.

In the financial sector (-0.7%), investment brokerages and asset management names underperformed after the Federal Reserve released the proposed changes for holding companies. BlackRock (BLK 365.65, -8.22) and Franklin Resources (BEN 35.19, -0.87) ended lower by 2.2% and 2.4%, respectively. The broader sector gained 0.8% this week, but sports a month-to-date loss of 2.6%. This compares to a loss of 0.3% in the benchmark index.

Retail names demonstrated relative strength in the consumer discretionary space (-0.2%). Gap (GPS 22.62, +0.04) and L Brands (LB 75.20, +0.92) finished higher by 0.2% and 1.2%, respectively. On the flipside, athletic retailer Finish Line (FINL 22.75, -1.24) weighed as in-line earnings and a reaffirmed full-year outlook failed to impress investors.

Treasuries ended on a mostly higher note with the short end of the curve outperforming. The yield on the 2-yr note finished lower by two basis points (0.76%) while the yield on the 10-yr note finished flat (1.62%).

Today's participation was below the recent average as fewer than 804 million shares changed hands on the NYSE floor.

There was no economic data of note released today.

Monday's economic data will be limited to the New Home Sales Report for August (Briefing.com consensus 585k), which will be released at 10:00 ET.

Russell 2000: +10.6% YTD
Nasdaq: +6.0% YTDS&P 500: +5.9% YTD
Dow Jones: +4.8% YTD
Week in Review: Stocks Climb After Fed Holds

The stock market registered its second consecutive weeklygain with the S&P 500 climbing 1.2%. Thanks to the rally, the index isback to little changed for the month of September (-0.3%).

The advance in the market was broad-based as most sectorsgained at least 0.4% for the week. Rate-sensitive sectors like real estate andutilities both advanced more than 3.0% for the week while energy (+0.1%) and technology(+0.4%) were the only two that failed to climb more than 1.0%. Theunderperformance in the technology sector masked a 20.0%+ spike in the sharesof Twitter (TWTR) after CNBC reported that Salesforce (CRM) and Alphabet (GOOG) have expressed interest in the social media site.

Equity indices retreated early in the week, but buyers piledback into stocks after Wednesday's FOMC announcement called for no change tomonetary policy once again. In addition to holding off on the next hike, theFOMC lowered its median policy rate projections for 2016, 2017, and 2018.However, the Fed statement was not unequivocally dovish, revealing threedissenting votes at the September meeting.

Federal Reserve Chair Janet Yellen discussed the FOMCdecision, suggesting that a rate hike could take place in December. However, ratehike expectations, as expressed by the fed funds futures market, did not changemuch from last week. In fact, they receded a bit as the implied likelihood of a December hike ticked down to 54.2%from 55.5% at the end of last week.

2:55 pm Floor Talk: Cooling Off (:TALKX) :

The major indices started today's session on a defensive note, paced mostly by a profit-taking bid after the mini-bender the stock market went on following the latest FOMC meeting. The ability to bounce back from that initial selling pressure, however, has been impeded by several factors today that have led to a cooling-off period for the market:

A sharp reversal in oil prices ($44.48, -$1.84, -4.0%)Reports indicated that Saudi Arabia pooh-poohed the idea of any production cap agreement happening at next week's OPEC meeting. New rules proposed by the Federal Reserve, which would strengthen existing requirements and limitations on the physical commodities activities of financial holding companies, were also deemed a negative developmentWeakness in shares of Apple (AAPL 112.87, -1.75, -1.5%) following a market research report suggesting iPhone 7 sales have been weak. That report has run counter to other reports last week from mobile carriers highlighting record pre-orders.Facebook (FB 127.96, -2.12, -1.6%) has been a high-profile, large-cap laggard throughout the day following the news that the company overestimated video average viewing timeRenewed frustration over the seesaw communication from Fed officialsBoston Fed President Rosengren, who cast a dissenting vote at this week's meeting, reiterated his belief that the time is now for a rate hike to get in front of the economy and asset prices overheating
Dallas Fed President Kaplan (an FOMC voter in 2017) said the economy is not overheating and that the Fed can afford to be patient in raising rates
It probably hasn't been lost on today's participants either that the first presidential debate is on Monday. It should be entertaining -- and perhaps not in a good way -- but some political angst ahead of that debate has likely tempered the interest level of buy-the-dip proponents today.

12:53 pm Earnings Calendar for the week of September 26th (:SUMRX) :

Confirmed companies reporting earnings next week include:

Monday (September 26)Pre-Market: CCL, CALM, MTNAfter-Hours: SNX, THOTuesday (September 27)Pre-Market: FDS, INFO, NEOGAfter-Hours: NKE, CTAS, LNDC Wednesday (September 28)Pre-Market: PAYX, FGP, BBRY, ATUAfter-Hours: PIR, PRGSThursday (September 29) Pre-Market: PEP, ACN, CAG, CMNAfter-Hours: CAMP, COST Friday (September 30)Pre-Market: MKC

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Equities End the Week on a Lower Note
18-Aug-17 16:30 ET
Dow -76.22 at 21674.51, Nasdaq -5.39 at 6216.51, S&P -4.46 at 2425.51
https://www.briefing.com/investor/markets/stock-market-update/2017/8/18/equities-end-the-week-on-a-lower-note.htm

[BRIEFING.COM] The major averages finished in negative territory for the second day in a row on Friday, adding to their losses for the week. The Dow led the retreat, losing 0.4%, while the S&P 500 and the Nasdaq finished lower by 0.2% and 0.1%, respectively. For the week, the Dow, the S&P 500, and the Nasdaq finished with respective losses of 0.8%, 0.7%, and 0.6%.

Equities opened modestly lower, but retraced those early-morning losses and moved into positive territory following an Axios report that suggested White House Chief Strategist Steve Bannon would be let go--and indeed he was with the official notice crossing the wires in the afternoon.

Mr. Bannon has been described as perhaps the most polarizing figure within President Trump's inner circle, so it could be argued that his departure will make it easier for Mr. Trump to find common ground with Congress. However, it could also be argued that the headline simply provided a good excuse for some buying following Thursday's big sell off.

Regardless, the bears cut into the modest gains on Friday afternoon and eventually dragged the major averages into the red. Only three sectors--energy, utilities, and materials--finished in the green.

The utilities and energy spaces finished at the top of the day's leaderboard, adding 0.6% apiece. Crude oil underpinned the energy group, jumping 3.2% to $48.57/bbl. The commodity benefited from rumors that one of the largest oil refineries in the U.S. has been shut down. Despite Friday's advance, crude oil still finished 0.5% lower for the week.

As for the remaining sectors, materials (+0.1%) eked out a small victory while financials (-0.1%), consumer discretionary (-0.5%), industrials (-0.3%), technology (-0.1%), health care (-0.4%), consumer staples (-0.4%), telecom services (-0.5%), and real estate (-0.7%) finished in the red.

In corporate news, Foot Locker (FL 34.38, -13.32) plunged 27.9% to its lowest level in nearly four years after the shoe apparel retailer missed both top and bottom line estimates and reported far worse-than-expected same-store sales. Athletic merchandise suppliers like Nike (NKE 54.95, -2.51) and Under Armour (UAA 17.12, -0.69) also sold off, dropping 4.4% and 3.9%, respectively.

Deere (DE 117.31, -6.67) also finished solidly lower, losing 5.4%, after reporting better than expected earnings but worse than expected revenues. Conversely, Ross Stores (ROST 59.02, +5.69) jumped 10.7% after reporting better than expected earnings and revenues.

U.S. Treasuries finished Friday on a mixed note after backing off their morning highs; the 2-yr yield climbed one basis point to 1.31% while the 10-yr yield dropped one basis point to 2.19%.

Reviewing Friday's economic data, which was limited to the preliminary reading of the University of Michigan Consumer Sentiment Index for August:

The preliminary reading of the University of Michigan Consumer Sentiment Index for August rose to 97.6 (Briefing.com consensus 94.0) from 93.4 in July.
The August increase was fueled by a rebound in the Expectations Index, which returned to levels from the start of 2017.

Investors will not receive any economic data on Monday.

Nasdaq Composite +15.5% YTD
Dow Jones Industrial Average +9.7% YTD
S&P 500 +8.3% YTD
Russell 2000 +0.1% YTD

Week In Review: Playing Politics

Wall Street had another disappointing week, its second in a row, as investors continued to drag the major U.S. indices from their all-time highs. The Dow, the S&P 500, and the Nasdaq finished with losses of 0.8%, 0.7%, and 0.6%, respectively, while the small-cap Russell 2000 underperformed (-1.2%), dropping to its flat line for the year.

Five sectors settled the week in the green--utilities (+1.3%), materials (+0.4%), real estate (+0.2%), consumer staples (+0.1%), and technology (unch)--while six groups finished in the red--energy (-2.7%), telecom services (-1.8%), consumer discretionary (-1.8%), industrials (-1.1%), health care (-0.8%), and financials (-0.5%).

The week's most notable headlines in chronological order:

Monday--S&P 500 +1.0%, Nasdaq +1.3%, Dow +0.6%
Investors breathed a sigh of relief after a quiet weekend in regards to North Korea
Tuesday--S&P 500 -0.1%, Nasdaq -0.1%, Dow unch
North Korea decided against executing last week's threat to launch missiles towards the U.S. territory of Guam
July Retail Sales came in hotter than expected (+0.6% actual vs +0.3% Briefing.com consensus)
Wednesday--S&P 500 +0.1%, Nasdaq +0.2%, Dow +0.1%
President Trump ended his Manufacturing Council and Strategy & Policy Forum following the departure of several CEOs
The FOMC minutes from the July meeting showed concerns about softer than expected inflation readings
Thursday--S&P 500 -1.5%, Nasdaq -1.9%, Dow -1.2%
Rumors that NEC Director Gary Cohn plans to resign circulated; the White House said the rumors are false
Terrorist attacks in Spain killed 14 and left more than 100 injured
Friday--S&P 500 -0.2%, Nasdaq -0.1%, Dow -0.4%
President Trump fired White House Chief Strategist Steve Bannon
The SPDR S&P Retail ETF (XRT) settled at its worst level since February 2016 following this week's batch of earnings

Thursday's session was perhaps the most notable of the week as the S&P 500 registered its second-worst performance of the year. The major indices opened Thursday's session with modest losses, but moved deeper into negative territory following a rumor that President Trump's chief economic advisor Gary Cohn plans to resign from his position following the president's controversial comments regarding last weekend's events in Charlottesville, VA. The White House later declared that the rumor was "100% false", but it did little to reverse the market's downward trend.

True or not, the rumor didn't do much to dispel the notion that working with the president could be a political liability, especially considering that it came on the heels of Mr. Trump's Wednesday decision to disband his Manufacturing Council and Strategy & Policy Forum in response to several CEOs leaving the two groups. The chief executives cited Mr. Trump's controversial Charlottesville comments as the reason for their departures. If Republicans in Congress start distancing themselves from Mr. Trump, it will be that much harder for him to push through his pro-growth agenda.

However, those concerns eased a bit on Friday after President Trump fired White House Chief Strategist Steve Bannon, a decision that was well received by the market. Mr. Bannon was the chief executive of Mr. Trump's presidential campaign and has been described as perhaps the most polarizing figure within President Trump’s inner circle. Therefore, in the absence of Mr. Bannon, the thinking is that the president might dial back his rhetoric a bit, making it easier for the White House to work with Congress in passing the president's pro-growth agenda.

Following this week's events, the fed funds futures market now points to the March 2018 FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 51.5%. Last week, the market expected the next rate hike to occur in June 2018 with an implied probability of 57.5%.

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Wall Street Takes August Jobs Report in Stride
01-Sep-17 16:30 ET
Dow +39.46 at 21988.86, Nasdaq +6.67 at 6435.31, S&P +4.90 at 2478.00
https://www.briefing.com/investor/markets/stock-market-update/2017/9/1/wall-street-takes-august-jobs-report-in-stride.htm

[BRIEFING.COM] Equities ended another positive week on a positive note as investors took a relatively disappointing August jobs report in stride, pushing the Nasdaq (+0.1%) to a new record high (6,435.33). The S&P 500 and the Dow climbed 0.2% apiece, ending the day in the middle of their trading ranges. Trading volume was especially light as many investors got a jump start on the extended Labor Day weekend.

The Employment Situation Report for August disappointed on nonfarm payrolls (156K actual vs 183K Briefing.com consensus), nonfarm private payrolls (165K actual vs 173K Briefing.com consensus), the unemployment rate (4.4% actual vs 4.3% Briefing.com consensus), and the average workweek (34.4 actual vs 34.5 Briefing.com consensus). However, another tepid average hourly earnings reading (+0.1% actual vs +0.2% Briefing.com consensus) overshadowed the less-than-stellar metrics.

Average hourly earnings have been reluctant to pick up despite a tightening of the labor market, effectively tempering inflation and, therefore, the market's rate-hike expectations. The fed funds futures market currently places the chances of an additional rate hike this year--which the Fed needs to meet its forecast of three rate hikes in 2017--at 41.4%.

Treasury yields moved solidly higher on Friday to end the week relatively flat. The 10-yr yield climbed four basis points to 2.16%, registering a weekly loss of one basis point, while the 2-yr yield jumped three basis points to 1.35%, settling the week higher by one basis point. Meanwhile, the U.S. Dollar Index (92.77, +0.18) added 0.2% to end the week higher by 0.1%.

Seven of the eleven sectors settled Friday's session in positive territory, but the underperformance of the influential health care (-0.1%) and technology (-0.2%) spaces kept the broader market's gain in check. Still, the two groups ended the week at the top of the leaderboard--in first and second place, respectively. Health care climbed 3.0% for the week while technology added 2.1%.

The energy sector (+0.8%) was the top performer on Friday, followed closely by the financials (+0.4%), consumer discretionary (+0.5%), and materials (+0.7%) groups. Within the consumer discretionary space, automakers outperformed after reporting their U.S. sales for the month of August.

Fiat Chrysler (FCAU 15.86, +0.73), Ford Motor (F 11.35, +0.32), and General Motors (GM 37.36, +0.82) showed notable strength, climbing 4.8%, 2.9%, and 2.2%, respectively. However, GM was the only one to report an increase in sales (+7.5%). FCAU and F reported respective year-over-year declines of 11.0% and 2.1%.

On the earnings front, lululemon athletica (LULU 61.68, +4.13) jumped 7.2% after beating both top and bottom line estimates and issuing above-consensus guidance. The SPDR S&P Retail ETF (XRT 39.70, +0.53) finished higher by 1.4%.

In Washington, reports indicate that the White House will not shut down the government in October in an attempt to gain funding for President Trump's promised barrier along the U.S.-Mexico border. The decision will potentially make it easier for Congress to reach a deal on a short-term budget.

Reviewing Friday's economic data, which included the Employment Situation Report for August, the August ISM Manufacturing Index, July Construction Spending, and the final reading of the University of Michigan Consumer Sentiment Index for the month of August:

The August Employment Situation Report:
August nonfarm payrolls hit 156,000 while the Briefing.com consensus expected a reading of 183,000. The prior month's reading was revised to 189,000 from 209,000. Nonfarm private payrolls added 165,000 while the Briefing.com consensus expected an increase of 173,000. The previous month's reading was revised to 202,000 from 205,000.
The unemployment rate rose to 4.4% (Briefing.com consensus 4.3%). Average hourly earnings increased 0.1% (Briefing.com consensus +0.2%), while the previous month's reading was left unrevised at 0.3%. The average workweek was reported at 34.4 (Briefing.com consensus 34.5). The previous month's reading was left unrevised at 34.5.
The key takeaway from the report is that wage inflation is still not picking up despite the low unemployment rate. That will keep the Goldilocks narrative in place, which has served as a perfectly-cooked bowl of porridge for a stock market that has feasted on a backdrop of modest growth and low inflation.
The ISM Index for August rose to 58.8 from an unrevised reading of 56.3 in July while the Briefing.com consensus expected an uptick to 56.8.
The key takeaway from the survey is that it connotes a manufacturing sector running with a full head of steam, although that interpretation conflicts somewhat with the drop in the manufacturing workweek reported in the Employment Situation report for August.
The Construction Spending report for July declined 0.6% while the Briefing.com consensus expected an increase of 0.5%. The prior month's reading was revised to -1.4% from -1.3%.
The key takeaway from the report is that the decline in construction spending will act as a drag on Q3 GDP forecasts.
The final reading of the University of Michigan Consumer Sentiment Index for August declined to 96.8 (Briefing.com consensus 97.1) from 97.6 in the preliminary reading.
The key takeaway from the report is that consumer sentiment remains at high levels despite the (geo)political drama as consumers reportedly have maintained a favorable assessment of their own financial situations.

The U.S. equity market will be closed on Monday in observance of Labor Day.

Nasdaq Composite +19.6% YTD
S&P 500 +10.6% YTD
Dow Jones Industrial Average +11.3% YTD
Russell 2000 +4.2% YTD

Week In Review: Back to Record Territory

The stock market moved notably higher for the second week in a row as investors continued to buy the mid-August dip that pulled the major averages from their all-time highs. The Nasdaq moved back into record territory, climbing 2.7% to settle the week at a new all-time high. Meanwhile, the Russell 2000, the S&P 500, and the Dow added 2.6%, 1.4%, and 0.8%, respectively.

Eight sectors settled the week in the green--health care (+3.0%), technology (+2.1%), industrials (+1.5%), materials (+1.9%), consumer discretionary (+1.6%), energy (+0.8%), consumer staples (+0.5%), and real estate (+0.4%)--while three groups finished in the red--financials (-0.1%), utilities (-0.6%) and telecom services (-1.4%).

The week's most notable headlines in chronological order:

Monday--S&P 500 +0.1%, Nasdaq +0.3%, Dow unch
Crude futures drop and gasoline futures rise after Hurricane Harvey, which hit the Texas coast over the weekend, forced the closure of many oil refineries.
Reports indicate that Apple (AAPL) will hold a product event on September 12, in which the company is expected to unveil its much-anticipated iPhone 8.
Gilead Sciences (GILD) announces that it will acquire Kite Pharmaceuticals (KITE) for approximately $11.9 billion, or $180.00 per share, in cash.
Tuesday--S&P 500 +0.1%, Nasdaq +0.3%, Dow +0.3%
North Korea fires a ballistic missile over the Japanese island of Hokkaido, marking the first time since 2009 that Pyongyang has fired over Japan's main islands.
President Trump says "all options are on the table" in response to North Korea's latest missile test.
Wednesday--S&P 500 +0.5%, Nasdaq +1.1%, Dow +0.1%
Second estimate of second quarter GDP beats estimates (3.0% actual vs 2.7% Briefing.com consensus).
ADP National Employment Report for August comes in better than expected (237,000 actual vs 180,000 Briefing.com consensus).
Thursday--S&P 500 +0.6%, Nasdaq +1.0%, Dow +0.3%
The latest reading of the core PCE Price Index shows that consumer prices decelerated on a year-over-year basis in July--dropping to +1.4% from +1.5% in June.
July personal income beats estimates (+0.4% actual vs Briefing.com consensus +0.3%) while personal spending falls short (+0.3% vs Briefing.com consensus +0.4%).
Friday--S&P 500 +0.2%, Nasdaq +0.1%, Dow +0.2%
The Employment Situation Report for August misses estimates; nonfarm payrolls (156K actual vs 183K Briefing.com consensus).
The ISM Manufacturing Index comes in better than expected (58.8 actual vs 56.8 Briefing.com consensus).
Reports indicate that the White House will not attempt to shut down the government, even if it doesn't secure funding for a barrier along the U.S.-Mexico border.

Economic data was the focal point this week as investors received a slew of economic reports--the most notable of which were the Employment Situation Report for August and the core PCE Price Index for July. Both reports helped ease the market's rate-hike concerns, providing further evidence that inflation has been, and will continue to be, relatively sluggish.

The core PCE Price Index, which excludes food and energy, increased by 0.1% in July (Briefing.com consensus 0.1%), but dropped on a year-over-year basis to +1.4% from +1.5% in June. The Fed has set a year-over-year target of 2.0% for inflation so July's deceleration doesn't bode well for the notion that the Fed will be able to follow through with its forecast of one additional rate hike this year.

In addition, the August jobs report provided no signs of a pick up in inflation in the near term as it showed another relatively weak increase in average hourly earnings (0.1% actual vs 0.2% Briefing.com consensus). On a year-over-year basis, average hourly earnings have risen 2.5%, unchanged from the 12-month period ending in July.

The fed funds futures market currently places the chances of another rate hike this year at 41.4% and considers the June 2018 FOMC meeting as the most likely time for the next rate-hike announcement with an implied probability of 54.4%. Last week, the market expected the next rate hike to occur in June 2018 with an implied probability of 58.0%.

Looking ahead, the market's attention will likely shift from rate hikes to the Fed's balance sheet during the next FOMC meeting, which is scheduled to take place September 19-20, as the U.S. central bank is expected to announce the start of a plan to reduce its massive $4.5 trillion balance sheet.