Replies to post #8258 on Sector Investing

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Business Cycle & Stock Performance

Because sector funds have a narrow focus, you should be familiar with the factors that may affect the industry in question.

http://personal.fidelity.com/products/funds/content/sector/cycle.shtml

Based on a comprehensive analysis of the relevant facts, you may arrive at a judgment as to what the industry's performance will be like going forward. One technique commonly used by is to monitor the business cycle for clues as to what may be happening in the market.

Business Cycle Basics

By examining empirical evidence, the investor can attempt to create a framework for viewing present and future events as they unfold. There are two key questions the investor may want to ask:

1. Will the historic pattern hold, or will it be altered? To answer that, you'll need to ascertain whether the factors driving today's market are fundamentally unchanged, or whether the situation has evolved incrementally or even been radically changed.

2. Has the market already taken the anticipated future events into account? If the factors driving the industry are the traditional cyclical ones, the market usually will have taken them into account, because they are expected. If the factors represent a new element in the equation, then the market may not be expecting them and may not have adjusted accordingly.

Business Cycle and Relative Stock Performance

The following chart shows a typical business cycle and the points at which various economic sectors tend to outperform the broader market. Click any number in the chart to learn about the cyclical characteristics of a particular industry.



The chart above shows a typical business cycle and the points at which various economic sectors tend to outperform the broader market. Please note that the chart should be used for illustrative purposes only. The chart is a historical representation of stock performance movements relative to the business cycle and is not intended to convey any current or future economic outlook. Choose a Sector for a detail description of its role in the business cycle.
Source: 2000, Standard and Poor's, a division of McGraw-Hill Companies, based on a study analyzing the differences in market returns of 90 Industries vs the S&P 500 during 10 complete economic cycles from December 1945 - December 1995.

Consumer Non-Cyclicals
Stocks in consumer non-cyclicals (food) and consumer growth industries (cosmetics, tobacco, beverages) tend to experience fairly steady demand and are less sensitive to changes in the business cycle. These stocks typically attract investors when the economic cycle or bull market has matured, or is in the early stages of contraction.

I will use the BP Indices and some of the older Amex Industry Holder ETF's to show these relationships. RtS




Consumer Cyclicals (durable & non-durable)
Stocks in this category include durables and non-durables that are sensitive to interest rates as well as the business cycle. Investors typically seek them out when the economy is in the late stages of contraction.




Healthcare
In general, stocks in this sector move similarly to consumer non-cyclicals. This sector is considered defensive, meaning companies in this sector are generally unaffected by economic fluctuations. The healthcare industry consists of pharmaceutical firms, HMOs, biotechnology firms and medical equipment suppliers. Pharmaceutical companies are affected by competitive market shares, the pace of FDA approvals, patent lives, and the strength of the R&D pipelines. Many biotechnology firms are still in the development stage with their fortunes largely determined by investor perceptions of the relative merits of their R&D pipelines. With future new financing likely to be more difficult to obtain than in the past, strategic alliances between major drug companies and biotech firms are expected to increase.




Financials
Stocks in housing-related industries tend to respond well to falling interest rates and are often targeted by investors in the mid to late stages of an economic contraction. Non-mortgage-dependent banks are generally driven by commercial and consumer loan growth, and tend to be favored by investors during the middle of the cycle.




Technology
Technology stocks can be cyclical to the degree that they depend on capital spending and business or consumer demand. However, they may also have long-term growth potential as technological products find broader applications and as new technologies are developed. Technology stocks are usually popular during early to mid stages of an economic expansion.








Basic Industry
Profits of basic industries are driven by high utilization of capacity and strong market demand for products. Therefore, their stocks tend to be popular with investors late in an economic expansion. For basic material companies, the global economic picture and supply/demand equation also affect stock price movements.




Capital Goods
Capital spending tends to increase midway through the business cycle, as the economy is heating up and higher demand for products leads companies to expand their production capacity. Demand in global export markets is key for agricultural equipment, industrial machinery, and machine tools.






Transportation
Railroads and other surface carriers tend to react early to a pickup in the economy. Airlines are subject to cyclical fuel costs, usage versus capacity, and competitive pressures on airfares.




Energy
This category includes large integrated international companies, domestic exploration companies, and energy services companies. Each industry has its own dynamics, but ultimately all are driven by the supply and demand picture for energy worldwide. Political events have historically had a major impact on these industries. Stocks tend to be popular with investors late in the business cycle.





Utilities
Electric companies have historically been very sensitive to interest rates because of the large debt financing costs they must incur in order to build their infrastructures. These stocks tend to perform well in an environment of declining interest rates. Telephone companies may offer attractive long-term growth opportunities, as they diversify and compete in recently deregulated telecommunications markets.




Precious Metals
Precious metals and the stocks of companies that mine and process them can be affected by industrial and consumer demand, but the largest factor contributing to volatility in this category is generally inflationary pressure. Investors often flock to this category late in the expansion cycle.





The Bullish Percent Index (BPI) is a popular market breadth indicator that is calculated by dividing the number of stocks in a given group (an exchange, an industry, etc.) that are currently trading with Point and Figure buy signals, by the total number of stocks in that group. Bullish Percent levels that are above 70% are considered overbought, whereas levels below 30% are considered oversold. Strong buy signals occur when the Bullish Percent Index falls below 30% and then reverses up by at least 6%. Conversely, promising sell signals occur when it goes above 70%, and then reverses down by at least 6%:

I am adding in the Telecom Sector here even though Fidelity left it out. It's my understanding that this is generally a late cycle performer. RtS

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From Briefing.com: 4:20 pm : Stocks traded in an extremely volatile manner on Wednesday as investors digested a coordinated global interest rate cut, economic concerns and turmoil in the financial markets.

The S&P 500 settled with a loss of 1.1% after a surge in selling interest in the final half-hour of trade sank stocks from a 2% gain. The S&P 500 traded as high as 2.5% and down as much as 2.5%. Eight of the ten economic sectors posted a loss in heavy trading volume.

The Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada, and Sveriges Riksbank (Sweden) made an emergency intermeeting coordinated 50 basis point rate cut. Increased economic risks and moderating inflation pressures warranted the move in an effort to improve liquidity and reduce strains in the financial market, the Fed said. The fed funds rate is now at 1.50%, and the discount rate is at 1.75%.

The move to cut interest rates came as global equities tumbled due to tight credit markets and economic worries. Japan's Nikkei plummeted 9.4% and Hong Kong's Hang Seng dropped 8.2%. Europe fell 6.0% as its financial institutions remain troubled -- Britain announced a plan to bailout its banking system, which included a pledge for $87 billion in direct support for eight major banks, according to reports.

In corporate news, Bank of America (BAC 21.97, -1.80) fell 7.6% after its $10 billion common stock offering was priced at a 7.5% discount to yesterday's closing level and a 31.7% discount to BofA's closing level on Monday. BofA plunged more than 25% on Tuesday after announcing disappointing third quarter earnings, giving a dour outlook, cutting its dividend by 50% and announcing the $10 billion common stock offering.

The financial sector (-3.0%) ended the session as a laggard after giving up a 3.9% gain in late-session selling pressure as investors were aware that the SEC short-selling ban is scheduled to expire at midnight tonight.

Dow component Alcoa (AA 14.60, -2.11) marked the start of the third quarter earnings season on a negative note after the aluminum maker's results fell well short of expectations. Third quarter earnings per share dropped 40% year-over-year due to falling aluminum prices, softening demand and higher costs.

Despite the weakness in Alcoa, the material sector outperformed with a gain of 2.6%. Agriculture chemical company Monsanto (MON 81.63, +7.45) pleased investors with its quarterly earnings report.

Several retailers reported a decline in September same-store sales and cut their third quarter earnings outlook. Wal-Mart (WMT 54.57, -0.27) and Costco (COST 56.89, -0.91) both posted solid growth, however, benefiting from bargain-hunting consumers.

In commodity trading, oil prices saw large swings, moving largely in tandem with stocks, as traders speculated how the global economic turmoil will impact demand. The government's weekly energy inventory data showed larger-than-expected increases in crude and gasoline stockpiles. Oil prices fell 1.6% to $88.64 per barrel.

Despite the economic turmoil and uncertainty, Treasuries came under selling pressure after the government sold additional debt to meet high investor demand, according to reports. The 10-year note dropped 46 ticks to send its yield up to 3.67%.

The S&P 500 has posted six consecutive losses -- the longest losing streak since 2002.DJ30 -189.01 NASDAQ -14.55 NQ100 +0.1% R2K -2.2% SP400 -1.2% SP500 -11.29 NASDAQ Adv/Vol/Dec 728/3.52 bln/2054 NYSE Adv/Vol/Dec 749/2.1 bln/2451

6:06PM IBM preannounces Q3 EPS above consensus, revs below; reaffirms FY08 EPS (IBM) 90.55 -5.10 : Co preanounces Q3 EPS above consensus; co sees EPS at $2.05 vs $2.02 First Call consensus. Co provides downside revs guidance; co sees revs of $25.3 bln vs $26.5 bln consensus. Co also reaffirms FY08 EPS of at least $8.75 vs $8.76 consensus. The co's gross profit margin in Q3 was 43.3% compared with 41.3% in Q3 of 2007. Pre-tax income was $3.9 billion, an increase of 19 percent compared with the third quarter of 2007. At the end of the third quarter, IBM's year-to-date free cash flow was ~$6.4 billion and its cash balance was $9.8 bln. The co's gross profit margin in the third quarter was 43.3% compared with 41.3% in Q3 of 2007. Pre-tax income was $3.9 bln, an increase of 19%compared with Q3 of 2007.

5:59PM FormFactor withdraws special meeting proposal (FORM) 16.55 +1.82 : Co announced it has withdrawn its stock option exchange proposal that was scheduled to be considered at a special meeting of stockholders on Wednesday, October 8, 2008. The proposal asked stockholders to approve an opportunity for employees to exchange underwater options for a smaller number of new equity awards. FORM said that although based on preliminary indications the vote would have been very close, the lack of support from some institutional stockholders has caused it to reconsider the terms and timing of the proposal. FormFactor continues to consider the creation of meaningful equity incentives for employees to be important to the co's success.

8:03AM Merix beats by $0.06, beats on revs (MERX) 1.02 : Reports Q1 (Aug) loss of $0.10 per share, $0.06 better than the First Call consensus of ($0.16); revenues rose 3.5% year/year to $90.6 mln vs the $87.3 mln consensus.

8:01AM Broadcom files suit asserting Qualcomm's licensing practices violate U.S. law (BRCM) 14.67 : Co announced that it has filed a complaint seeking a declaratory judgment that the sales and licensing practices of Qualcomm Incorporated (QCOM) amount to patent misuse, that Qualcomm patents are "exhausted" by Qualcomm's practices, and that Qualcomm's patents and patent licenses are unenforceable, under applicable U.S. law. The complaint, filed yesterday in the United States District Court for the Southern District of California in San Diego, asserts, among other things, that Qualcomm's use of "exhausted" patents to control post-sale use of products in the wireless communications industry results in a double recovery of royalties (or other consideration) to Qualcomm for the use of its patents. It further asserts that these practices constitute patent misuse that has brought Qualcomm a financial windfall and brought harm to the industry and consumers.

7:08AM Intl Rectifier says Vishay unable to address fundamental concerns of IRF and its shareholders (IRF) 16.77 : Co announces a series of questions that it and its shareholders deserve answers to regarding Vishay Intertechnology's (VSH) highly conditional proposal to acquire IRF and to interject Vishay-paid nominees onto the IRF Board of Directors. "We are disheartened, but not surprised, by Vishay's deafening silence over the issues of vital importance to the shareholders of International Rectifier. We can only surmise that Vishay has no good answers. The Board and management team have great confidence that our strategic roadmap can deliver greater value for our shareholders than the uncertain $23.00 Vishay proposal, and that our Directors will serve the best interests of all IRF shareholders. Glass Lewis, Proxy Governance and Egan Jones all have scrutinized Vishay's proxy proposals and nominees and found them inadequate. Make no mistake: In this uncertain credit market, an offer without iron-clad financing commitments is just crying wolf."

3:21AM LDK Solar updates Q308 outlook (LDK) 19.32 : Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of $530.0-540.0 mln vs. $491.00 mln First Call consensus. Co estimates wafer shipments between 230 to 240 MW compared to previous guidance of 210-220 MW. Co also announces that it reached the annualized wafer production capacity of 1.2 GW by the end of Q308.

10:06 am KLA-Tencor downgraded to Neutral at BofA- tgt $29: . BofA downgrades KLAC to Neutral from Buy with a $29 tgt given their broader industry cap-ex revision (down 22% vs prior estimate of down 12%), they do not expect KLAC to outperform peers in this environment. The firm notes with the stock down ~43% YTD they believe the downside is limited from here, but fundamentally they do not see any upside from current levels.

08:35 am Fed Funds Rate Cut 50 Basis Points to 1.5%

The Federal Reserve's Federal Open Market Committee has cut the fed funds rate 50 basis points to 1.5%. The move comes as part of a coordinated effort with other central banks to increase liquidity conditions and reduce strain in the financial system.

According to the FOMC, the cut to the fed funds rate was made in light of weakening economic activity and a reduction in inflationary pressures. Reduced inflationary pressure is strongly reflected by lower commodity prices, which have stemmed from the very fear of a global slowdown.

The committee's announcement came earlier this morning, though it was originally scheduled to meet at the end of the month. However, amid recent turmoil in financial markets, pundits called on the committee to make an intermeeting rate cut.

The committee stated that the intensification of turmoil in the financial markets is likely to exert additional restraint on spending as households and businesses are challenged to obtain credit. Tighter credit puts further strain on economic growth.

Alongside the Fed, the European Central Bank, Bank of England, Bank of Canada, and Swiss National Bank are also reducing interest rates for their respective economies.

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From Briefing.com: 4:30 pm : Stocks finished the session near their lows Thursday, despite beginning the trading day with healthy gains. A late-session sell-off took the Dow to its lowest level in more than five years and a long-time Dow component to its worst point since 1950.

Trading was upbeat early on when tech bellwether IBM (IBM 89.00, -1.55) preannounced a third quarter earnings surprise, central banks in the Far East cut interest rates, and investors assessed comments from the Treasury that indicated it may inject capital directly into banks.

Dow component IBM gave investors some temporary reassurance that the tech sector hasn't turned over. IBM said that third quarter earnings would total $2.05 per share, which is more than analysts were expecting. On the downside, the company did fall short of the consensus revenue forecast, but stated it remains confident it will hit its full-year earnings forecast of $8.75 per share.

Tech posted a gain for much of the session, but finished 3.4% lower.

Central banks in South Korea, Hong Kong and Taiwan all moved to cut target interest rates, according to Financial Times. The move came just one day after the Federal Reserve and several other major central banks slashed interest rates in a coordinated effort to mitigate economic risks.

Investors reacted to a speech made yesterday by Treasury Secretary Paulson that the recently approved $700 billion emergency financial rescue plan would permit direct capital infusions into banks. Reuters reported injections could start as soon as the end of the month.

Despite the plan's intent to help shore up balance sheets at financial companies, the sector was hit with heavy selling pressure. It was up 3.6% early on, but closed 11.7% lower as every one of its industry groups floundered. Losses were most significant among regional banks (-15.2%), investment banks and brokers (-15.7%), and insurance companies (-16.8%).

Part of the ongoing efforts to shore up the financial system have the New York Fed entering into an agreement with subsidiaries of AIG (AIG 2.39, -0.80). Their agreement calls for the subsidiaries to exchange investment grade fixed income securities for up to $37.8 billion in cash.

The energy sector (-11.4%) also posted deep losses. The downturn is generally owed to fear of demand destruction for oil amid slower economic activity.

In turn, oil futures were recently indicated below $85 per barrel, down nearly 12% year-to-date. That has OPEC calling for an emergency meeting Nov. 18. It is being presumed that OPEC will agree to cut production.

Thursday marked the first session after the ban on short-selling certain financial stocks expired. The ban was originally limited to 799 financial stocks, but was later expanded to include some nonfinancial companies, such as Dow component General Motors (GM 4.76 -2.15).

Shares of GM have been consistently listed on the Dow since 1925, but slumped to their lowest level since 1950 as participants assess the challenges facing the company. GM was placed on CreditWatch Negative at Standard & Poor's as the firm assessed the weakening state of global automotive markets, along with capital market conditions that remain challenging.

Heavy selling pressure pushed the Dow well below 9000. The index has not been that low since mid-2003. The session's action also had the volatility index, VIX, above 60 for the first time ever.

The latest initial claims report was generally relegated to the back burner since it didn't bring any surprises. Claims for the week ended Oct. 4 fell 20,000 to 478,000, which is generally in-line with the consensus estimate of 475,000. The four-week moving average bumped up to 482,500 and continuing claims hit 3.66 million from 3.60 million the week before. DJ30 -678.91 NASDAQ -95.21 SP500 -75.02 NASDAQ Adv/Vol/Dec 470/2.99 bln/2515 NYSE Adv/Vol/Dec 205/2.00 bln/2859

4:02PM Catalyst Semiconductor stockholders approve acquisition of Catalyst Semiconductor by ON Semiconductor (CATS) 3.19 -0.05 : Co announces that its stockholders voted in favor of the definitive merger agreement providing for the acquisition of CATS by ON Semiconductor (ONNN) in an all-stock transaction during its stockholders meeting today. Under terms of the merger agreement, CATS shareholders will receive 0.706 shares of ONNN common stock for each share of CATS common stock they own at the closing of the merger.

11:30AM Micron announces a restructuring of its memory operations. (MU) 3.93 +0.06 : Co says in response to a challenging global environment for technology products, it announced a restructuring of its memory operations. The combination of declining customer demand and product oversupply in the marketplace has driven selling prices for NAND flash memory significantly below manufacturing costs, particularly for 200 millimeter manufacturing lines. As a result, IM Flash Technologies, a joint venture between Micron and Intel Corporation (INTC), will discontinue the supply of NAND flash memory from Micron's Boise facility. The NAND operation shutdown will reduce IMFT's NAND flash production by approx 35,000 wafers per month. As part of the restructuring, Micron plans to reduce its global workforce by approx 15% during the next two years. Cash restructuring and other related expenses are anticipated to be approx $60 mln, and the next year's cash operating margin benefit is expected to exceed $175 mln

8:35AM On The Wires (WIRES) : Ultratech (UTEK) announces that it has acquired the rights to a collection of patents from IBM (IBM) these include fundamental patents around the area of rapid thermal annealing...

8:01AM Canadian Solar signs 2009 sales contract with Systaic of Germany and announces European Sales to date (CSIQ) 12.76 : "The co announces that it has signed a sales contract with Systaic of Germany. Systaic will purchase 60 MW of regular solar modules for delivery in 2009. To date, CSI's sales contracts in Europe stipulate minimum shipments of approximately 226 MW. These contracts have options for up to an additional 80 MW of purchases for total European sales in the range of 226 - 306 MW out of our planned capacity of 500 - 550 MW. All these contracts were signed in the past month and primarily reflect the demand from large, long-standing customers in Germany. We have also signed sales contracts in Italy, the Czech Republic, Spain, and France, and are on track to increase sales in these countries. We are satisfied with the order booking level we achieved so far and predict it to increase significantly once our many on-going discussions with Spanish and Italian customers conclude in the next a couple of months. Our North American and Asian sales are also on track, which the Company will issue separate update later this Fall. Prices reflect market conditions and are in principle fixed for the first two quarters. Our cost-effective e-Modules are selling at a small discount to the regular high-efficiency polysilicon module. The order books for both products are strong."

6:36AM Intl Rectifier reaffirms Q109 revenue guidance (IRF) 16.41 : Co reaffirms its revenue guidance for Q109 ending September 30, 2008 of 7% to 9% sequential growth, and stated that it expects its results to be on the high end of that range. Richard J. Dahl, Chairman of the Board, said: "IRF has done more than survive a difficult period - it has built a strong foundation for future growth. Having put our financial house in order, we have put in place new leadership, with a new strategy and organization. We have shown early progress on our strategic roadmap, and we are targeting a 45% gross margin and a 20% operating margin in that roadmap."

09:55 am Asian Central Banks Cut Rates

Central banks in South Korea, Hong Kong and Taiwan cut their benchmark interest rates in the face of increased economic risks, the Financial Times reports.

The move follows 50 basis point cuts made Wednesday morning by the Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Canada, and Sveriges Riksbank (Sweden) and a 27 basis point cut by China.

Taiwan lowered its rate by 25 basis points to 3.25%, Korea cut its rate 25 basis points to 5.00% and Hong Kong cut its rate by 50 basis points to 2.00%, following yesterday's 100 basis point rate cut.

In Asian trading, Japan's Nikkei fell 0.5%, Hong Kong's Hang Seng gained 3.3%, Korea's Kospi rose 0.6%, and Taiwan's Taiex fell 1.5%.

09:32 am SEC Short-Selling Ban Expires

At 11:59 ET Wednesday the SEC ban on short-selling on financial stocks was allowed to expire as planned -- three business days after the passage of the financial relief legislation.

The SEC's short-selling ban, implemented on Sept. 19, was to "protect the integrity and quality of the securities market and strengthen investor confidence" as the government worked on a financial relief package.

Short selling was originally banned on 799 financial stocks, and was later expanded to some nonfinancial companies, such as General Motors (GM 6.91).

The measure was set to expire on Oct. 2, but due to the lack of passage of the financial relief plan, the SEC extended the ban to the earlier of three business days after the enactment of the financial relief legislation or Oct 17.

Since the ban's implementation, the financial sector has fallen 23.5%. By comparison, the broader stock market has dropped 18.4%.

Most financial stocks are indicated higher this morning despite the renewed ability to short.

08:28 am IBM (IBM)

IBM (IBM 90.55) preannounced third quarter earnings above the average analyst estimate and stuck by its full year 2008 outlook.

IBM posted a 22% year-over-year increase in earnings from continuing operations to $2.05 per share, topping the consensus estimate of $2.02. Earnings growth was driven by a higher gross profit margin and most likely some share repurchases. Net income increased 20% year-over-year to $2.8 billion.

Revenue growth was less impressive, rising 5% year-over-year to $25.3 billion, which was short of the average analyst estimate of $26.5 billion. Revenue growth would have been only 2% excluding a favorable currency impact.

IBM said its third quarter results were due to a steady base of recurring revenue, investments in emerging markets, and a strong and flexible financial foundation.

CEO and Chairman Samuel Palmisano said "We remain confident in our full-year outlook." That full year outlook calls for earnings of at least $8.75 per share. Wall Street expects full year earnings of $8.76 per share.

IBM is up 4.9% in premarket trading, making it unchanged for the year -- handily outperforming the S&P 500's decline of 33% -- thanks to the company's solid cost controls and favorable currency benefits. However, the dollar has strengthened recently, so IBM may face currency headwinds going into next year.

http://finance.yahoo.com/marketupdate/storystocks

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From Briefing.com: 4:40PM Texas Instruments misses by $0.01, reports revs in-line; guides Q4 EPS below consensus, revs below consensus (TXN) 17.98 +0.33 : Reports Q3 (Sep) earnings of $0.43 per share, $0.01 worse than the First Call consensus of $0.44; revs fell 8% year/year to $3.39 bln vs $3.40 bln First Call consensus. Co issues downside guidance for Q4, sees EPS of $0.26-0.32, excluding non-recurring items, vs. $0.43 consensus; sees Q4 revs of $2.830-3.070 bln vs. $3.34 bln consensus. This Q4 EPS estimate excludes a $0.05 benefit from the reinstatement of the federal research tax credit, which was signed into law in October 2008 and was retroactive to the beginning of the year. The estimate also excludes charges of about $0.01 per share associated with the company's restructuring actions in its Wireless business. "Our outlook for the fourth quarter is for revenue to decline substantially based on weak order trends over the past few months... TI also announced today it is taking actions that will reduce expenses by about one-third, or more than $200 million annualized, in its Wireless business, especially in its cellular baseband operation. The company is also actively pursuing the sale of the merchant portion of this operation and is in discussions with potential buyers. In the custom portion of this operation, TI will continue to support select programs."

4:09PM SanDisk misses by $0.32, beats on revs (SNDK) 14.42 -1.09 : Reports Q3 (Sep) loss of $0.59 per share, excluding non-recurring items, $0.32 worse than the First Call consensus of ($0.27); revenues fell 20.8% year/year to $821.5 mln vs the $778.1 mln consensus. "While third quarter revenue was down year-over-year, record megabyte sales demonstrate the resiliency and breadth of our channels and the elasticity of our end markets in the face of deteriorating global macroeconomic conditions. However, excess inventories resulted in severe pricing pressures and a disappointing loss for the quarter including $109 million of inventory related charges. To further strengthen our balance sheet we are taking decisive actions including: restructuring of our Fab joint ventures, deep cuts to our 2009 fab capacity investments, and substantial expense reduction measures for 2009..."

5:25PM LSI and Seagate extend strategic relationship (LSI) 4.13 +0.06 : LSI announced that Seagate (STX) has awarded the co multiple mainstream desktop and notebook hard disk drive system-on-chip (SoC) design wins for platforms expected to ship in the 2010 and 2011 timeframes. STX has also awarded LSI a SoC design for future solid state drive products. These wins are in addition to two future generations of SoC designs targeting the enterprise space that were previously awarded to LSI and are expected to ship in 2010.

4:15PM Fairchild Semi and Alpha & Omega Semiconductor resolve patent dispute (FCS) 5.64 -0.36 : The co and Alpha & Omega Semiconductor announce that they have signed a settlement and cross license agreement, ending a patent dispute that began in 2007. The settlement encompasses actions that each party has filed in the U.S. as well as in Taiwan. The parties announced that AOS will make a one time non-material payment to Fairchild, but otherwise the terms of the settlement and cross license agreement were not released. The parties will file requests for dismissal of all outstanding lawsuits in the appropriate courts.

4:06PM Volterra Semi reports EPS in-line, beats on revs (VLTR) 9.40 +0.51 : Reports Q3 (Sep) earnings of $0.25 per share, in-line with the First Call consensus of $0.25; revenues rose 62.2% year/year to $30.6 mln vs the $30 mln consensus.

4:20 pm : Stocks rallied Monday as investors welcomed positive developments in the credit markets and Fed Chairman Bernanke supporting the idea of a second fiscal stimulus package.

In the end, the S&P 500 rallied 4.8%, settling at session highs thanks to a late-session surge in buying interest. Strength was mostly broad-based, with all ten sectors posting a gain. Volume, however, was on the light side with only 1.23 billion shares exchanging hands on the NYSE, compared to the one-year average of 1.49 billion.

During testimony to the House Budget Committee, Fed Chairman Bernanke said he feels the government's recent efforts will help restore the financial system, but cautioned the stabilization of the financial system will not quickly eliminate economic challenges.

Given the likelihood of a weak economy for several quarters, Bernanke said it would be appropriate for Congress to consider a second fiscal stimulus. He feels that a fiscal package should be targeted to boost overall spending and economic activity, aimed at improving credit for consumers, home buyers, business and other buyers and limit long-term effects on the government's budget deficit.

Meanwhile, overseas governments took more actions to help alleviate the financial market turmoil. India cut its key lending rate for the first time since 2004, South Korea said it will guarantee some of the foreign debt held by its banks, and the Netherlands is injecting approximately $13 billion in ING (ING 12.93, +2.28).

Credit markets continue to show improvements. Short-term interbank lending in dollars, measured by Libor, declined across all terms. The difference between what banks pay each other for three-month loans and what the government pays, known as the TED Spread, declined 65 basis points to 2.96%. The TED Spread is well off its 4.34% high reached on October 10, but levels remain substantially above the historically average of roughly 0.4%.

In corporate news, utility company Exelon (EXC 54.58, +0.08) made an unsolicited proposal to acquire NRG Energy (NRG 25.00, +5.67) for $26.43 per share, or $6.2 billion, in stock. The offer represents a 37% premium to Friday's closing level. The utilities sector as a whole climbed 8.1%.

Eaton (ETN 45.05, +0.63), Halliburton (HAL 20.80, +2.54), and Hasbro (HAS 28.79, -1.33) topped estimates for their respective latest quarters. On the negative side, Novartis AG (NVS 52.16, +1.22) and Mattel (MAT 14.07, -0.38) reported earnings that fell short of expectations.

The better-than-expected results from Halliburton, and a 3.8% gain in oil prices, helped the energy sector spike 11.2%.

The financial sector (+2.8%) underperformed on a relative basis, with notable weakness in retail (-3.4%) and industrial (-2.1%) REITs.

In economic news, September leading indicators rose 0.3%, although August's decline of 0.5% was widened to 0.9%. Economists had forecast a drop of 0.1% in September. The leading indicators report is mostly a collection of previously announced economic indicators.DJ30 +413.21 NASDAQ +58.74 SP500 +44.85 NASDAQ Adv/Vol/Dec 2099/2.05 bln/696 NYSE Adv/Vol/Dec 2657/1.23 bln/492

3:41AM LDK Solar signs seven-year wafer supply contract (LDK) 20.10 : Co announces that it has signed a seven-year contract to supply multicrystalline solar wafers to Italy-based Helios Technology. Under the terms of the agreement, LDK Solar will deliver approx 70 MW of multicrystalline silicon solar wafers over a seven-year period, commencing in 2009 and extending through 2015.

3:14AM SanDisk and Toshiba restructure flash manufacturing joint ventures (SNDK) 15.51 : Co announces that it has entered into a non-binding memorandum of understanding with Toshiba to sell approx 30% of the current manufacturing capacity of the parties' joint ventures to Toshiba. SanDisk expects to receive cash and reduce equipment lease obligations by approx $1 bln through this transaction.

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Similarity to July 2002 bottom? Is the bottom forming now like that from July 2002? A retest of the recent bottom has already failed on the NASDAQ but the S&P 500 and Industrials may be testing recent lows soon:

2001 Nasdaq versus the VIX:



NASDAQ now with new lines of support and resistance:



S&P 500 now with new lines of support and resistance:



Industrials now with new lines of support and resistance:



Any double bottom that might form now will likely be too quick to be meaningful. That means unless we get a much more severe break downward soon that whatever bottom forms here will likely be taken out in 2009.

As always JMHO, RtS

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From Briefing.com: 4:40 pm : Stocks took out new bear market lows in another volatile session Thursday. News of continued weakness in labor markets underscored ongoing economic concerns while a lack of leadership gave investors little reason to turn about-face.

The latest jobless data ensure an 11th consecutive decline in monthly nonfarm payrolls. Initial jobless claims for the week ended Nov. 15 jumped 27,000 to 542,000. That took the 4-week moving average to 506,500 from 490,750. Continuing claims increased to 4.01 million from 3.90 million.

Mounting jobless claims continue to reflect a downbeat mood among businesses. Layoffs have been on the rise as many businesses look to cut expenses and regain footing despite tenuous economic conditions.

Selling pressure took the S&P 500 down to 747.78 late in the session, which marked the lowest intraday trading level since 1997. All three of the major indices registered new closing lows.

Several marquee stocks also took out record lows this session. General Electric (GE 12.88, -1.57) dropped to its lowest point in more than a decade. A Dow Jones report indicated the company is not seeking equity investments from sovereign wealth funds, which countered earlier reports. Given GE's depressed stock price, shares now carry a dividend yield of almost 10%.

Citigroup (C 4.71, -1.69) shed a quarter of its market cap, despite word that Saudi Prince Alwaleed plans to boost his stake in the financial giant to 5% from under 4%.

Weakness in the financial sector was widespread. The sector closed 10.5% lower; it is now down 68% this year.

Energy posted the largest decline of the session, though. It shed 11.2% and is now down 46% year-to-date.

The steep declines in energy followed losses in crude oil prices. Crude futures fell below $49 per barrel to reach their lowest point in more than three years. The commodity finished the session near its lows.

Uncertainty, which is an enemy of the stock market, continues to surround auto makers. While some reports indicate senators have reached a bipartisan auto aid agreement with wide support, the likelihood that a bill is approved and passed in the immediate future is slim. One senator said an auto industry bailout would use existing $25 billion in loans.

Both Ford Motor Company (F 1.39, +0.13) and General Motors (GM 2.88, +0.09) advanced on the news. However, Standard & Poors lowered its rating on Ford Motor (F 1.45, +0.19) to CCC+ from B-, but removed it from CreditWatch.

Hope that auto makers would receive a bailout helped stocks climb to strong gains midsession. The S&P 500 was actually up 1.7% midday. However, stocks turned lower as the plan became muddled and now leader emerged.

As uncertainty and unease mounted around stocks, government Treasuries caught a strong bid. The benchmark 10-year Note surged 91 ticks and is now yielding just under 3.0%.DJ30 -444.99 NASDAQ -70.30 NQ100 -4.7% R2K -6.6% SP400 -7.8% SP500 -54.14 NASDAQ Dec/Adv/Vol 2458/358/3.15 bln NYSE Dec/Adv/Vol 2986/227/2.23 bln

4:05PM Dell beats by $0.06, misses on revs (DELL) 9.81 -0.54 : Reports Q3 (Oct) earnings of $0.37 per share, $0.06 better than the First Call consensus of $0.31; revenues fell 3.1% year/year to $15.16 bln vs the $16.22 bln consensus. Co said, Global industry demand in the quarter slowed through October, adversely affecting the company's cash conversion cycle, which ended at negative 25 days, and resulted in negative cash flow from operations of $86 million. As company growth stabilizes, more typical cash generation is expected to resume. Year to date, cash flow from operations was $1.2 billion and the company ended the quarter with $8.9 billion in cash and investments. In the quarter, Dell spent $400 million to buy back 21 million shares. Laptop units were flat as the company transitioned to the new Latitude Series E and Dell Precision laptop product lines, ranging from the lightest ultra-portable in the company's history to the most powerful mobile workstation. Server units declined 4 percent and growth in storage revenue was flat. Enhanced services revenue, which is largely driven by Dell's commercial business, was up 7 percent to $1.4 billion. Dell believes that global IT end-user demand will continue to be challenging. Against this backdrop the company will continue to focus on improving competitiveness, lowering costs and improving its mix of products and services to optimize liquidity, profitability and growth. The company will continue to incur costs as it realigns its business to improve competitiveness, reduce headcount in certain areas and invest in infrastructure, growth opportunities and acquisitions.

10:31AM JA Solar and BP intend to form long-term agreement (JASO) 1.92 -0.12 : The co and BP Alternative Energy Holdings Limited, a subsidiary of BP announce their intention to jointly develop and market part of their solar photovoltaic product portfolio over the next five years. The definitive commercial agreement is expected to be entered into before year end. JA Solar is expected to contribute its cost-efficient manufacturing and rapid execution capabilities, plus its access to third party silicon and/or wafers, while BP is expected to bring its access to its own silicon and/or wafer supply, provide access to its global customer portfolio, and leverage its strong brand and sales and marketing capabilities in key markets.

08:17 am Yahoo! upgraded to Buy at Needham; tgt $12: . Needham upgrades YHOO to Buy from Hold and sets target price at $12 saying they believe the significant sell-off in YHOO shares has finally neared a trough, and that downside from here is limited even under their worse-case scenario. The firm says while the economic, consumer and advertising backdrop remains challenged and highly uncertain, a change in leadership, new product launches and the potential for a renewed MSFT deal could all prove positive catalysts for Yahoo and its shares over the next 3-9 months.

08:00 am Broadcom target lowered to $22 at Friedman Billings: . Friedman Billings lowers their BRCM tgt to $22 from $29 following meetings with the CEO and investors on Wednesday. Mgmt would not comment on near-term business trends, though the firm's upcoming analyst day may present an opportunity for mgmt to update expectations if necessary. They think it is likely that Broadcom will preannounce lower 4Q revs in the next several weeks. As such, they are cutting their '09 EPS estimate to $1.05 from $1.50 ($1.38 consensus), which assumes an 8% organic revenue decline, and slower growth in operating expense spending in 2009.

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From Briefing.com: 4:30 pm : Thanks to a late-session surge, the stock market closed at its session high with a gain of 6.3%. Though the rally was impressive, stocks still finished the week 8.4% lower due to heavy losses earlier in the week.

Those heavy losses prompted bargain hunters to bid stocks higher. Whether the push was merely rooted in short-term interest or marked a true turning point for the stock market will only be seen in time.

The move was supported by relatively heavy volume. Nearly 2.4 billion shares traded hands on the New York Stock Exchange this session, compared with average volume of 1.5 billion shares this month.

Despite the strong finish, stocks traded in mixed fashion throughout much of the session, and struggled to find direction. During that time the financial sector stood out as a notable laggard. At one point the financial sector was down 7.5%, which marked the sector's lowest level since 1995. However, it finished 3.4% higher.

Weakness in the financial sector stemmed from the large-cap names included among other diversified financial services companies (-3.8%), such as Citigroup (C 3.75, -0.96). Speculation continues to surround Citi's fate. Reports indicate the financial services giant is weighing its strategic options, but the stock extended its downturn and fell through the prior session's low to its worst level since 1992.

While financials lagged, energy posted the largest advance. Energy finished the session 11.7% higher. A 2% rebound in crude oil futures helped give energy a lift. Crude settled around $50.40 per barrel, though it actually fell to a new multiyear low of $48.25 per barrel midway through the session.

It appeared that Dell (DELL 9.30, -0.51) was going to provide stocks with some support after it posted better-than-expected earnings per share results for the third quarter. However, shares fell under pressure as investors and analysts critiqued the quarterly report.

The tech sector still finished with a 5.8% gain, though, thanks largely to strength among large-cap tech stocks.

The renewed interest in stocks caused Treasuries to fall substantially, especially at the long end of the curve. The 10-year Note fell 49 ticks, while the 30-year Bond dropped 117 ticks. The downturn reverses some of the gains Treasuries made in the prior session.

Investors got a little bit of clarity regarding the future face of the Treasury team; President-Elect Obama has nominated New York Fed President Geitner for Treasury Secretary. Obama is expected to announce the rest of his economic team Monday.DJ30 +494.13 NASDAQ +68.23 NQ100 +4.7% R2K +5.5% SP400 +5.9% SP500 +47.59 NASDAQ Adv/Vol/Dec 1781/3.12 bln/1170 NYSE Adv/Vol/Dec 2019/2.37 bln/975

9:01AM Ixia announces a $25 mln stock buyback (XXIA) 4.90 :

6:12AM Canadian Solar misses by $0.13, beats on revs; guides Q4 revs below consensus; guides FY08 revs below consensus (CSIQ) 3.78 : Reports Q3 (Sep) earnings of $0.41 per share, excluding stock-based compensation, $0.13 worse than the First Call consensus of $0.54; revenues rose 159.1% year/year to $252.4 mln vs the $248 mln consensus. Co issues downside guidance for Q4, sees Q4 revs of $70.0-85.0 mln vs. $270.06 mln consensus. Co issues downside guidance for FY08, sees FY08 revs of $650.0-750.0 mln vs. $901.87 mln consensus. Q308 gross margin was 15.5%, compared to 15.8% for Q208. Given the uncertainty of project and customers' financing coupled with softening solar market demand in Europe and USA at the year-end, co has shifted its short-term operational emphasis to preserving cash and minimizing risk from the credit environment. Based on this adjustment, Q4 shipments are estimated to be approx 20 - 25 MW. This will result in revenues of approx $70.0-85.0 mln, as noted above. Accordingly, CSIQ is returning to its previously stated May annual revenue estimate of $650.0-750.0 mln, as noted above. The co anticipates that it will have $40 mln available in unused credit lines by the end of Q4 and is actively negotiating more credit facilities with local banks. For FY09, CSIQ is maintaining its guidance of 500-550 MW with margins of 13-15%.

08:08 am Oppenheimer downgrades select solar stocks: . Oppenheimer downgrades Suntech Power (STP), Canadian Solar (CSIQ) and JA Solar (JASO), to Perform from Outperform based on murky fundamentals, given a volatile euro, tight credit markets and sub-$50 oil; firm prefers to wait for the euro stabilize or improve, credit markets to loosen or poly pricing to stay consistently below $200/kg before turning more positive ($150/kg poly would make them very bullish, assuming stable FX).

08:07 am Microsoft upgraded to Outperform at Oppenheimer- tgt $22: . Oppenheimer upgrades MSFT to Outperform from Perform and sets a $22 tgt, as they believe business is less insulated from the macro-headwinds vs their previous outlook yet feel the recent sell-off in its shares makes for an attractive entry point.

08:03 am Dell downgraded to Market Perform at Friedman Billings- tgt cut to $15: . Friedman Billings downgrades DELL to Market Perform from Outperform tgt cut to $15 from $20 following yesterday's guidance. The firm says while Dell made great margin progress this quarter, they believe inconsistent execution and rapidly growing competition from Acer, Asus, and Apple will keep investors wary, despite Dell's attractive valuation

08:51 am Dell (DELL)

Dell (DELL 9.81) reported better-than-expected third quarter earnings, but only because of intense cost cutting measures as revenue fell more than $1 billion short of estimates.

Third quarter revenue dropped 3.1% year-over-year to $15.16 billion, which missed the $16.22 billion consensus estimate.

Unit shipment growth of 3% was offset by lower selling prices. Desktop PC net revenue (-14%) continues to drop as consumer preferences shift toward mobile products and businesses pare spending. The decline in Desktop PC sales was partially offset by a 3% increase in mobile net revenue and a 2% increase in software and peripherals net revenue.

Despite the revenue drop, earnings per share increased 11% year-over-year to $0.37, beating the expected earnings of $0.31. How does Dell increase earnings per share when revenue unexpectedly declined? Cost cutting and share repurchases.

The company's total headcount stands at 80,800, as Dell slashed 2,200 jobs in the second quarter, bring its total cuts to 8,300 from the prior year. This helped selling, general and administrative expenses fall $169 million, or to 6.7% of revenue from 11.2% of revenue in the year-ago quarter.

Product mix was also better, with more sales of higher margin software, peripherals and services helping to increase gross margin to 18.8% from 18.5%.

Dell spent $400 million to repurchase 21 million shares in the third quarter, with the number of diluted outstanding shares falling 2% from the second quarter and 14% from the prior year. This gave EPS a boost of about $0.04 compared to the year-ago quarter. Net income, which is not impacted by share buybacks, fell 5% to $727 million compared to the previous year.

The company's cash conversion cycle, which is negative unlike most companies' because Dell sells products quicker than it pays suppliers, rose to -25 days from -35 days, resulting in a decrease of $86 million in operating cash flow. Dell said the negative operating cash flow was due to slowing global industry demand in October. Dell continue to have a strong liquidity position with $8.9 billion in cash and investments.

Dell did not give guidance, but did note that it expects global IT end-user demand will continue to be challenging. In turn, Dell will continue to cut costs and has implemented a hiring freeze across the company.

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We could rebound for a short term rally any time but this feels worse than over to me. I think we could easily be headed into a second recession. A bottom will not form if that is true until all the panic selling is out of the way. It won't happen until the Investors Intelligence Poll has more Bears than Bulls. Again these numbers update every Wednesday though much later than the market open:

http://www.schaeffersresearch.com/streetools/market_tools/investors_intelligence.aspx



Another hallmark of a market bottom it a high volume 90% upside day. Unfortunately yesterday was a 90% downside day on high volume. Panic selling can help form a short term bottom. Long tern bottom form after the selling dries up and all that is left is apathy.




If you will recall prior to the last market bottom in 2009 we had a lot of 90% downside days. I follow the downside days using data supplied by Yahoo and Briefing.com here on the left side of the page:

http://finance.yahoo.com/marketupdate/overview

What we are looking for to help us determine a long term market bottom is a lot of things like at least two 90% downside days in close proximity followed quickly by a 90% upside day. We got this in March of 2008:

http://caps.fool.com/blogs/90-upsidedownside-day-rule/39493

I posted this on March 11, 2009 which was the last actual long term bottom for the market:

http://www.siliconinvestor.com/readmsg.aspx?msgid=24392582

Today's 90% upside volume day, following right on the heels of yesterday's 90% downside day and low-volume retest of the January lows, suggests that we may finally have a bottom of some import here. Time will tell if the major indexes can take out the major resistance that lies ahead, but the preliminary verdict is a positive one.

http://www.internetnews.com/bus-news/article.php/3733511/Technical+Analysis+Fed+Gets+It+Right.htm

Long term bottom take a long time to form.They can be followed on long term charts. Right now there is no clear indication that we could form a long term bottom now. I fear that while we have not seen all the clear hallmarks of a market top previous to this current sell off that there is little reason to believe the market can rebound from here to new highs without further selling first.



As always JMHO, RtS

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From Briefing.com: Weekly Recap - Week ending 12-Aug-11

Following a week of extreme volatility, trading calmed down Friday. The U.S. major averages ended the week with two positive sessions, the first back-to-back gains since the recent correction began. That helped minimize the weekly decline following Monday's plunge and Wednesday's extension lower.

The S&P 500 lost 1.7% on the week, with nine of the 10 sectors declining. Financials (-5.0%) saw by far the largest decline after Bank of America (BAC) led U.S. banks lower on worries regarding its Countrywide segment and potential capital issues and European financials sold off aggressively on concerns regarding the banking systems in a number of countries, particularly France. Materials eked out a gain of 0.2%.

The market's focus to begin the week was domestic after Standard & Poor's became the first agency to downgrade the sovereign credit rating of the United States. The downgrade over the weekend from AAA to AA+ on political risks and the country's rising debt burden caused U.S. equity markets to nosedive Monday. The S&P 500 lost 6.7%.

The FOMC responded on Tuesday when it attached a time frame to its federal funds target for the first time, calling for exceptionally low levels at least through mid-2013.

Treasury yields did not spike following the S&P downgrade, and then surged to record lows on Tuesday (10-year 2.03%) after the FOMC made monetary policy more accommodative for a longer-than-expected period.

Treasury auctions were also in focus this week, with mixed results. Following fairly solid support for the 3-year sale on Tuesday, the 10-year auction experienced strong demand on Wednesday, only to have the 30-year sale see exceptionally low demand on Thursday.

Those results did not impact equity trading, though, as the U.S. major averages extended their recent declines Wednesday on the European banking concerns, only to regain that sharp sell-off on Thursday.

The economic calendar was thin this week, but contained some notable results.

Initial jobless claims hung around 400,000 for a third straight week, suggesting nonfarm payrolls could exceed 100,000 again in August, while retail sales was a second positive report for July.

Somewhat offsetting that data was Michigan sentiment. The first economic data point for August plunged to 54.9, the lowest level since April 1980, though it is not surprising when one considers the survey was conducted during the debt ceiling fiasco.

With fears of a slowing U.S. economy rising, next week's economic calendar takes on added importance. It includes housing starts and industrial production on Tuesday, PPI on Wednesday and CPI, jobless claims and existing home sales on Thursday. Developments out of Europe will also be in focus.

Finally, even though second quarter earnings season has drawn to a close, a number of notable retailers report next week, including Lowe's (LOW), Home Depot (HD), Wal-Mart (WMT), Dell (DELL), Target (TGT) and HP (HPQ).

 
 Index	Started Week  Ended Week   Change % Change  YTD % 
 DJIA	    11444.61	11269.02  -175.59   -1.5   -2.7 
 Nasdaq	     2532.41	 2507.98   -24.43   -1.0   -5.5 
 S&P 500	  1199.38     1178.81   -20.57   -1.7   -6.3 
 Russell 2000  714.63	  697.50   -17.13   -2.4  -11.0

12:15 pm Technology Stocks Trading Higher Today Along With Broader Market )HPQ)

The tech sector is trading higher today, just behind the broader market. Semiconductors are showing relative weakness in the tech space with the Philly Semi Index trading only 0.2% higher. Among chips in the index, MKSI (-2.0%) is a notable laggard, while AVGO (+2.2%) is outperforming. Among other major indices, the S&P 500 is trading 1.3% higher, while the NASDAQ is trading 1.1% higher. The QQQ, meanwhile, is trading 1.3% higher. Among tech bellwethers, AAPL (+1.5%) is showing relative strength, while ORCL (-0.4%) is under pressure.

In earnings last night, NVDA (-0.8%) reported roughly inline Q2 results and guided Q3 higher. In news, TIVO (+6.7%%) authorized a stock repurchase plan of up to $100 mln.

Among notable analyst upgrades this morning, HPQ (+3.8%) was upgraded to Buy at Jefferies, FFIV (+8.0%) was upgraded to Outperform at William Blair, Stifel Nicolaus upgraded CHKP (+2.3%) to Buy, ORCL (-0.5%) and VRSN (+2.5%) were upgraded at Credit Agricole, and FXCM (+17.6%) was added to Focus List at JP Morgan.

In downgrades this morning, LLNW (+3.6%) and AKAM (+0.9%) were downgraded at Raymond James, STM (+1.9%), ARMH (+2.0%), SANM (-2.7%), PLXS (+0.4%), and FLEX (+2.7%), and RBC Capital Mkts downgraded ADBE (+0.8%), CNQR (+0.4%), and ORCL (-0.5%).

Last night, NVIDIA (NVDA $12.98 -0.43) reported second quarter GAAP earnings of $0.25 per share, in-line with the Capital IQ consensus of GAAP $0.25, while revenues rose 25.3% year/year to $1.02 billion versus the $1 billion consensus. The company issued upside guidance for the third quarter with revenues of +4-6% quarter over quarter which equates to approximately $1.057-$1.077 billion versus the $1.05 billion consensus.

TiVo (TIVO $8.06 +0.40) authorized a stock repurchase plan of up to $100 million. This program shall be effective on August 29, 2011.

Check Point Software (CHKP $54.80 +1.51) was upgraded to Buy from Hold at Stifel Nicolaus with a target price of $65. The firm said the company provides a more attractive risk/reward profile from here as they believe Check Point has a more favorable fundamental outlook while trading at similar valuation levels relative to Websense (WBSN $21.69 +0.39). As such, they are taking advantage of the recent pull back in Check Point to increase their exposure to both network security and quality.

Oracle (ORCL $27.50 -0.20) was downgraded to Sector Perform from Outperform at RBC Capital Markets. The firm also lowered their target to $30 from $36 saying Oracle's acquisition of Sun positioned it to become an integrated systems provider combining both software and hardware into a one-stop customer solution. The firm says the rationalization of Sun and business process improvements have been the main drivers behind the improvement which they believe is likely to peak over the next twelve months or at a minimum be factored into buy-side models.

Adobe Systems (ADBE $24.17 +0.18) was downgraded to Underperform from Sector Perform at RBC Capital Markets. The firm also lowered their target to $22 from $32 saying they believe the transition from a perpetual model to reoccurring revenue based on a 12-month release cycle, while positive for the long-term, will likely create near-term volatility compounded by macro issues which could cause the stock to test and even break valuation levels seen in 2008/2009.

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From Briefing.com: 4:10 pm : Stocks finished near their worst levels of the session as renewed concerns over the situation in Europe weighed on the major averages. Today’s news that spooked investors included reports that deposits at the European Central Bank hit a record high EUR452 billion and that the central bank’s balance sheet has expanded to a record EUR2.73 trillion. The Dow finished with a loss of 140 points as all of the major averages lost at least 1.1%.

European financials were under pressure as Barclays (BCS 10.71, -0.42) and Deutsche Bank (DB 37.08, -1.59) lost 3.8% and 4.1% respectively.

Shares of Mead Johnson Nutrition (MJN 67.98, -1.10) erased early gains after headlines surfaced that the Food and Drug Administration was inspecting the company’s Michigan plant today. The stock tumbled more than 20% late last week on reports an infant’s death had been linked to the company’s Enfamil powdered formula, but rallied almost 6% during yesterday’s session after the company announced a new round of tests confirmed the safety of the product.


Casino stocks were weak after yesterday’s outperformance following the news that the U.S. Justice Department reversed a previous ruling and will now let states decide if they want to legalize internet poker. Las Vegas Sands (LVS 42.40, -1.59), Wynn Resorts (WYNN 109.22, -4.31), and MGM Resorts International (MGM 10.09, -0.33) all closed lower after rallying on yesterday’s decision.

Google (GOOG 639.70, -0.55) hit its best level in almost four years today as earlier buying ran it to a session high of $645.00. The technology giant is now trading approximately 14% off its November 2007 high of $747.24.

Utility stocks outperformed the major averages as the S&P 500 Utilities Index finished down 0.6%. The sector has been the top performer in 2011 and as recently as today was trading at its best level in 39 months. Northeast Utilities (NU 35.84, -0.01) was the best performer in the space, finishing little changed.

Treasuries saw strong gains as heavy buying dropped the 10-yr yield 10 basis points to 1.908%. An advance of 0.9% ran the dollar index above 80.50 as European worries weighed on the euro and the pound. The euro lost 135 pips to finish near 1.2935 while the pound shed 220 pips and closed at 1.5445.DJ30 -139.94 NASDAQ -35.22 SP500 -15.79 NASDAQ Adv/Vol/Dec 523/1.06 bln/2086 NYSE Adv/Vol/Dec 628/542.5 mln/2419

2:14PM Newport reported that it has entered into a definitive agreement to acquire ILX Lightwave for $9.3 mln in cash; NEWP expects the acquisition to be accretive to its earnings immediately after closing (NEWP) 13.79 -0.43 : Co reported that it has entered into a definitive agreement to acquire ILX Lightwave. Co expects the acquisition to be accretive to its earnings immediately after closing. The consideration to be paid by Newport in the transaction is $9.3 mlnin cash, subject to adjustment based on ILX's net assets at closing. The transaction is expected to close in January 2012.

1:33 pm S&P Tech Sector Trades Lower, Slightly Outperforming The S&P 500
The tech sector is trading lower today, just ahead of larger losses in the broader market. Semiconductors are trading inline with in the tech space with the Philly Semi Index trading 0.9% lower. RBCN (+2.2%) is bucking the trend, while NXPI (-3.2%) is a notable laggard in the chip index. Among other major indices, the S&P 500 and the NASDAQ are trading 1.1% lower, while the QQQ is 1.0% lower on the session. Among tech bellwethers, only GOOG (+0.2%) is showing strength, while CSCO (-1.8%) is a notable underperformer.

In earnings last night, CAVM (-1.8%) lowered its Q4 rev guidance below consensus.

09:48 am Cavium Networks Recovers, But Still Down Modestly After Lowering Guidance Late Yesterday (CAVM)
Cavium Networks (CAVM 28.33 -0.15) is trading lower this morning, but has recovered about 2 pts., after lowering its fourth quarter guidance below consensus after the close yesterday.

Late yesterday, the company lowered its fourth quarter revenue guidance to $56 million to $57 million from $60.9 million to $62.3 million (-8 to -10% QoQ) versus $61.68 million Capital IQ Consensus Estimate.

The company noted that revenues have been weaker than expected across both the enterprise and service provider as well as the broadband and consumer market segments, and further exasperated by a larger than expected impact of a hub transition at one of its major customers. The co believes that it under shipped to customer end demand in Q4. Gross margins for Q4 are expected to be ~one percentage point lower than the co's previous guidance, due to the lower sales volume.

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From Briefing.com: 4:30 pm : Choppy, listless trade today kept the stock market near the neutral line, but a late flurry of selling resulted in a modest loss.

Amid a dearth of headlines and directional cues this morning stocks started the session essentially unchanged. Financials had offered some support, but the sector soon faltered. Although it failed to recover, the Financial sector was able to limit downward movement. It settled with a 0.4% loss.

Energy stocks had a more adverse influence over broad market trade, though. Since the open Energy had to wrestle with stiff selling, making it the worst performing sector for virtually the entire session. As a group Energy stocks shed 1.0%, but oil and gas equipment and services plays encountered the most pronounced pressure. Their weakness came despite a marked push by oil prices up above $107 per barrel.

Earnings were limited to only a handful of companies. Oracle (ORCL 29.41, -0.69) was among them. Shares initially benefited from a positive response to better-than-expected bottom line results, but enthusiasm died and the stock descended steadily into the close, settling with a sizable loss only narrowly above session lows. The rest of the Tech sector, which finished with a 0.1% loss, saw gains evaporate in response to selling in the final stretch of trade.

Volatility was down sharply amid the stock market's lackluster action, but some late selling pressure caused the Volatility Index to move back above 15. By the closing bell it was still down more than 3% for the day, though.

The dollar didn't do much today. It made a couple of modest moves up from the flat line, but by session's end it led a basket of competing currencies by less than 0.1%.

While oil had a strong session, most other commodities staged varied gains after suffering from aggressive selling pressure in the prior session. Still, the CRB Index only eked out a gain of 0.1%.

Treasuries attracted buyers after the yield on the 10-year Note traded near a multi-month high near 2.40% yesterday. The advance today took the yield on the benchmark Note back down to about 2.30%.

Economic data was limited in scope. It featured monthly existing home sales numbers, which showed that unit sales hit an annualized pace of 4.59 million units in February. That's on the order of the 4.60 million units that had been broadly expected. As an aside, the prior month's pace was revised upward to 4.63 million. Comments from Fed Chairman Bernanke and Treasury Secretary Geithner in a testimony on Europe's economic crisis did nothing to swing stocks or other assets.

Advancing Sectors: Telecom +0.3%, Consumer Staples +0.1%, Consumer Discretionary +0.1%
Unchanged: Industrials, Materials
Declining Sectors: Tech -0.1%, Health Care -0.1%, Utilities -0.2%, Financials -0.4%, Energy -1.0%DJ30 -45.57 NASDAQ +1.17 NQ100 +0.0% R2K +0.1% SP400 -0.1% SP500 -2.63 NASDAQ Adv/Vol/Dec 1275/1.53 bln/1216 NYSE Adv/Vol/Dec 1469/726 mln/1498

4:05PM SunPower appoints Charles D. Boynton CFO (SPWR) 6.86 -0.45 : Co announced that Charles (Chuck) D. Boynton has been named SunPower's new executive vice president and chief financial officer (CFO). He will lead the co's global finance, planning and accounting organizations. Boynton joined SunPower in June of 2010, serving as the company's vice president of corporate finance and corporate development, with global responsibility for finance, planning and analysis and leading strategic investments, joint ventures, and mergers and acquisitions.

10:35AM JDS Uniphase jumps to the highs on a pick up in opening volume as it lifts back up toward its March high of $14.45 (JDSU) 14.30 +0.20 : FNSR is a peer.

O2Micro International (OIIM) was issued 22 claims under a US patent for its Battery Cell Balancing System.

8:45AM Hewlett-Packard confirms it will combine its HP's Imaging and Printing Group and its Personal Systems Group (HPQ) 23.98 : As part of this realignment, HP's Imaging and Printing Group and its Personal Systems Group are joining forces to create the Printing and Personal Systems Group. The combined entity will be led by Todd Bradley, who has served as the executive vice president of PSG since 2005. In addition to combining PSG and IPG, HP also is taking steps to unify and streamline certain key business functions. (See our 13:20 comment from yesterday and our 5:49 comment from today)

8:01AM Broadcom to acquire privately held Broadlight, Inc. for ~$195 mln (BRCM) 38.39 : Co announced it has signed a definitive agreement to acquire BroadLight, Inc., a Delaware corporation with an Israel-based subsidiary. BroadLight is a privately held provider of highly integrated networking and fiber access Passive Optical Network processors. In connection with the acquisition, Broadcom currently expects to pay approximately $195 million, net of cash assumed, to acquire all of the outstanding shares of capital stock and other equity rights of BroadLight. Excluding any purchase accounting related adjustments and fair value measurements, Broadcom expects the acquisition of BroadLight to be roughly neutral to earnings per share in 2012.

6:49AM Trina Solar executives comment on preliminary determination of countervailing duty in the U.S. (TSL) 8.38 : On March 20, 2012, a preliminary determination was announced by the Department of Commerce in Washington, DC regarding the exportation of Crystalline Silicon Photovoltaic Cells and Modules from China. The ruling establishes a preliminary rate of 4.73% for Trina Solar applicable to the importation of solar cells and modules/panels produced in China. Last night Jifan Gao, Chairman and Chief Executive Officer, said in a press release, "Trina Solar is committed to providing high-quality modules and services to the United States market for the long term, where we value our customer base and supply chain business partners." Mark Kingsley, Chief Commercial Officer, added, "We are working to ensure that our U.S. team will continue to grow our North American business in order to meet our customers' expanding service needs. As applicable to the rest of the solar industry, this preliminary determination is only the first step, and is subject to further examination and final determination later this year by the DOC. Moreover, the determination of whether injury has been found or not is dependent upon the International Trade Commission's subsequent ruling."

Jabil Circuit (JBL $26.57 +0.08) reported second quarter earnings of $0.58 per share, excluding non-recurring items, $0.01 better than the Capital IQ consensus of $0.57, while revenues rose 7.8% year/year to $4.24 billion versus the $4.09 bln consensus. The company issued in-line guidance for the third quarter with EPS of $0.60-0.70, excluding non-recurring items, versus the $0.64 consensus and revenues of $4.2-4.4 billion versus the $4.34 billion consensus.

FSI Intl (FSII $50.09 +0.48) reported second quarter earnings of $0.09 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.05, while revenues rose 25.0% year/year to $38.5 million versus the $32.09 million consensus. The company issued upside guidance for third quarter with revenues that should exceed $50 million versus the $36.34 million consensus.

Oracle (ORCL $30.57 +0.48) reported third quarter earnings of $0.62 per share, $0.06 better than the consensus of $0.56, while revenues rose 3.4% year/year to $9.06 billion versus the $9.03 bln consensus. Oracle reported new software license revenue growth of +8% in constant currency vs +2-12% guidance. "Oracle is on track to deliver the highest operating margins in our history this year... Oracle can achieve these record margins as an integrated hardware and software company because we are focusing on high margin systems where hardware and software are engineered to work together... Hardware revenue for our engineered systems grew 139% this quarter and going into Q4, we have a record pipeline... In applications, Fusion in the Cloud is winning with great success against niche HCM cloud vendors in the US and worldwide. Our modular, integrated platform of 100 apps available in the cloud or on-premise is a key differentiator."

11:48 am Technology Sector Trading lower today ahead of market

The tech sector is trading just higher today, outpacing marginal losses in the broader market. Semiconductors are showing slight relative strength in the tech space with the Philly Semi Index trading 0.3% higher. MU (+3.3%) is a notable leader in the chip index, while WFR (-2.8%) is showing weakness. Among other major indices, the SPY is trading 0.1% lower, while the the QQQ and the NASDAQ are trading 0.1% higher on the session. Among tech bellwethers, OGG (+0.5%) is showing notable strength today, whereas TXN (-0.7%) is under pressure.

In earnings last night, ORCL (+0.2%) posted a modest Q3 beat and offered Q4 EPS guidance at high end of expectations, while Q4 rev guidance came in a little light of expectations. Elsewhere, JBL (-0.5%) also posted a slight quarterly beat and guided the following qtr in line with consensus. SAI (+5.4%), on the other hand, posted a miss and issued mixed guidance. SAI did announced a buyback, however. In news, MU (+3.4%) has offered $1.5 bln for Japan based Elpida Memory, according to reports. Also, HPQ (-2.0%) confirmed it will combine its HP's Imaging and Printing Group and its Personal Systems Group.

Among notable analyst upgrades this morning, LNKD (+8.5%) was upgraded to Buy at Goldman, The Benchmark Company upgraded OPEN (+4.8%) to Buy, SAI (+5.4%) was upgraded to Sector Perform at RBC Capital and OSUR (+4.7%) was upgraded to Buy at MLV. Among downgrades, PWRD (-2.1%) was downgraded to Neutral at Nomura and CHA (-4.1%) was downgraded to Neutral at JP Morgan.

There are no notable names in tech scheduled to report results today after the close.

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From Briefing.com: Weekly Recap - Week ending 01-Mar-13

Dow +35.17 at 14089.66, Nasdaq +9.55 at 3169.74, S&P +3.52 at 1518.2

Stocks finished the first session of the month on a positive note despite showing early weakness. The downbeat start took place as the markets digested disappointing PMI readings from China and the United Kingdom. In China, the country's manufacturing PMI slipped to 50.1 from the 50.2 reported in the flash reading. The report was notable as PMI fell back to 50, a level which draws a line between contraction and expansion.

Meanwhile, the United Kingdom saw its PMI slide to 47.9 while the general consensus had expected a reading of 51.0. The disappointing report weighed on European markets as well. Also note the British pound slid to a fresh multi-year low following the data.

Combined with euro softness, the weakness in the sterling pushed the dollar index higher. The greenback held the bulk of its gains throughout the day and settled higher by 0.4% at 82.27.

The cautious overseas trade carried over into the start of the U.S. session. However, bargain hunters were quick to scoop up shares at a perceived discount even as all indications suggested the sequester will hit tonight at midnight.

Interestingly, the financial sector was the biggest laggard at the start, but ended among the day's top performers. Bank of America (BAC 11.34, +0.11) was the top performer among the majors while the SPDR Financial Select Sector ETF (XLF 17.64, +0.05) added 0.3%.

The financial space was not the only cyclical sector which outperformed. Consumer discretionary shares saw strength among retailers after both Gap (GPS 33.87, +0.95) and Deckers Outdoor (DECK 46.62, +6.21) beat on earnings. Additionally, Gap topped off its earnings report with a 20% dividend hike to $0.60 per share.

Best Buy (BBY 17.16, +0.17) was another sector component which outperformed on better-than-expected earnings. However, the company warned it expects to face significant first quarter pressure and said founder Richard Schulze has ended his attempt to purchase the retailer.

Consumer discretionary and financials were the only cyclical sectors which outperformed. Growth-sensitive technology stocks lagged behind the broader market and the largest sector component, Apple (AAPL 430.47, -10.93), lost 2.5%. Meanwhile, chipmakers also saw relative weakness with the PHLX Semiconductor Index settling lower by 0.4%.

Salesforce.com (CRM 182.00, +12.78) was a notable sector outperformer after the business software company beat on its bottom line.

Energy stocks also lagged, and spent the duration of the day in negative territory as weakness in the price of crude contributed to the underperformance. The energy component lost 1.2% and settled just under $91.00.

Looking back at the S&P 500 sector performance, health care (+0.8%), consumer discretionary (+0.6%), telecom (+0.4%), and consumer staple (+0.3%) finished ahead of the broader market. Meanwhile, industrial (-0.3%), energy (-0.2%), and technology (+0.1%) underperformed.

Volume was right in line with average as 734 million shares changed hands on the floor of the New York Stock Exchange.

Economic data released today was plentiful.

Personal income fell 3.6% in January after increasing 2.6% in December. The Briefing.com consensus expected income to fall 2.4%. The expiration of the payroll tax cut and the giveback following the December boost to asset receipts were expected to lower income levels in January. Those two components accounted for 3.5 percentage points of the January pullback. More concerning was that the remainder of the decline in income was the result of a 0.4% drop in employee compensation.

The final reading of the February University of Michigan Consumer Sentiment Index improved to 77.6 from a preliminary reading of 76.3.

Construction spending took a sizable hit in January as spending fell 2.1% after increasing an upwardly revised 1.1% (from 0.9%) in December. The Briefing.com consensus expected construction spending to increase 0.5%. Both private (-2.6%) and public (-1.0%) spending contracted in February.

Manufacturing activity strengthened in February as the ISM Manufacturing Index increased from 53.1 in January to 54.2. That is the strongest reading since June 2011.

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

On Tuesday, the February ISM Services Index will be reported at 10:00 ET.

Week in Review: Stocks Endure a Week of Indecision

On Monday, equities endured a broad sell off which saw the S&P 500 drop 1.8%. Bearish sentiment built into the afternoon as the likely deadlock in the Italian general election weighed on markets. Stocks got off to a broadly higher start as early "instant polls" suggested Pier Luigi Bersani, who is a supporter of reforms started by Mario Monti, was destined for full control of the government. However, once the initial reports were followed by exit polls indicating a much closer race, European markets surrendered the bulk of their gains. Being one of the first lines of defense in the face of economic or political uncertainty, financials lagged. Morgan Stanley (MS 22.43, -0.12) lost 6.6% and the SPDR Financial Select Sector ETF fell 2.7%.

Tuesday saw the S&P 500 end with a gain of 0.6% despite enduring some early weakness. The benchmark average started the day on a positive note with upbeat economic data proving insufficient in staving off the early selling pressure. However, markets staged a rebound in afternoon trade with the key indices climbing to fresh highs. Strong housing data coupled with a healthy rise in December home prices provided support for homebuilders as the SPDR S&P Homebuilders ETF (XHB 28.39, +0.09) advanced 3.0%.

Wednesday's session was an extension of Tuesday's buying as the S&P 500 managed to erase the remainder of its losses from Monday. The broad rally occurred with six of 10 sectors adding in excess of 1.0%. Cyclical stocks led the way with industrials and materials exhibiting relative strength from the start of the session. Joy Global (JOY 62.06, -1.28) jumped 5.8% after its quarterly report beat on earnings and revenue.

On Thursday, equities ended February on a negative note as the S&P 500 settled with a slim loss of 0.1%. The key averages saw some morning indecision but late afternoon buying pushed the benchmark index to session highs before the index surrendered its gains. J.C. Penney's (JCP 17.69, +0.12) quarterly earnings caught the attention of investors in early trade. Shares of the retailer plunged 17.0% after the company reported a loss of $1.95 on below-consensus revenue. In response, S&P cut the company's debt rating to 'CCC+' from 'B-' and assigned a negative outlook.

 
 Index	  Started Week	 Ended Week  Change  % Change	YTD % 
 DJIA	    14000.57	 14089.66    89.09	0.6	7.5 
 Nasdaq	     3161.82	  3169.74     7.92	0.3	5.0 
 S&P 500	1515.60	  1518.20     2.60	0.2	6.5 
 Russell 2000  916.15	   914.73    -1.42     -0.2	7.7

4:47PM 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).

Today's top 20 % gainers

Technology: WBMD (22.46 +35.58%), FIRE (54.1 +26.93%), ARUN (25 +19.81%), AVG (15.79 +19.57%), HPQ (20.15 +17.78%), FARO (44.28 +17.31%), RKUS (20.28 +16.79%), GWRE (35.87 +15.55%), EBIX (15.33 +14.5%)
Services: BKS (15.63 +19.33%), ATSG (5.52 +16.7%)
Industrial Goods: XIN (5.9 +25.17%)
Healthcare: SGMO (10.33 +15.53%)
Financial: CWH (23.77 +42.9%), RDN (9.17 +14.27%)
Consumer Goods: TPX (40.7 +15.56%)
Basic Materials: SLCA (24 +38.07%), REN (10.06 +20.33%), COG (63.4 +15.06%), CRZO (22.93 +14.81%)

Today's top 20 % losers

Technology: BSFT (21.37 -34.21%), FSLR (25.35 -24.91%), CBB (3.01 -22.8%), GRPN (5.1 -21.9%), YGE (2.4 -16.11%), TRLA (27.18 -15.46%), TEO (12.82 -14.65%), NIHD (4.96 -13.77%), JASO (4.46 -13.59%)
Services: ESI (13.56 -25.55%), AH (9.44 -21.92%), JCP (17.69 -18.47%), VSI (52.55 -16.27%)
Industrial Goods: GTI (6.97 -16.5%)
Healthcare: DVAX (1.98 -30.61%), VVUS (10.34 -16.85%), MMSI (11.95 -13.81%)
Consumer Goods: BDBD (9.13 -31.79%), TWI (21.66 -17.25%)
Basic Materials: YPF (13.6 -17.32%)

8:10AM Best Buy beats by $0.11, beats on revs; co expects Q1 to be under significant pressure (BBY) 16.41 : Reports Q4 (Jan) earnings of $1.64 per share, excluding non-recurring items, $0.11 better than the Capital IQ Consensus Estimate of $1.53; revenues rose 0.2% year/year to $16.71 bln vs the $16.29 bln consensus. "Fourth quarter Domestic comparable store sales increased 0.9%, with an overall 10 basis point decline in the gross profit rate. Domestic online revenue increased 11%."

It is important to note, however, that comparable store sales in the quarter benefitted from an estimated 35 basis points due to a calendar shift in this year's "pre-Super Bowl" sales from Q1 FY14 to Q4 FY13.

Adjusted (non-GAAP) Domestic gross profit rate was 22.4% (22.4% on a GAAP basis) vs. 22.5% (22.3% on a GAAP basis) last year. This 10 basis point decrease is a net impact of two business drivers. The first, which represents a 40 basis point decrease, is higher promotional activity principally in home theater, that was partially offset by lower sales in gaming which sells at a lower gross profit rate. The second is a 30 basis point benefit from a periodic profit sharing payment that was earned by the co based on the long-term performance of the co's externally managed extended service plan portfolio.

Adjusted free cash flow FY13 was $965 million vs. the most recently provided guidance of $500 million. This better-than-expected outcome was primarily driven by an aggressive inventory reduction plan and an intense focus on working capital and cash flow mgmt initiatives that were both implemented after the co's last financial press release, in addition to the impact of better-than-expected Q4 FY13 earnings. To build on this momentum in fiscal 2014, we remain intently focused on the two problems we have to solve: stabilizing and improving our comparable store sales and increasing profitability across our global businesses. We recognize, however, that fiscal 2014 is a year of transition and that further investment will be required to advance our Renew Blue transformation.

"From a revenue and earnings perspective in fiscal 2014, we will not be providing financial guidance. Directionally, however, we do expect the first quarter to be under significant pressure due to 1) the absence of an additional week and the impact of this year's "pre-Super Bowl" sales shifting into Q4 FY13 versus Q1 FY14 (an impact of ~$0.14 in diluted EPS); 2) a less favorable product and services mix due to the timing of high velocity product launches that occurred in Q1 FY13 that are not expected to recur in Q1 FY14; 3) the first quarter carry-over effect of sales and marketing investments that were implemented in the second and third quarters of FY13; 4) greater investment in price competitiveness, including the impact of the company's recently launched price match program; and 5) the timing and impact of capital and SG&A investments in the P&L versus the timing of the realization of the benefits (including the insourcing of IT and replatforming of bestbuy.com)."

Reports out last night indicate talks with Founder Schulz to take the co private have ended.

10:35 am S&P Information Technology Index trading -0.5%
The tech sector is trading lower today, just trailing narrower losses in the broader market. Semiconductors are showing relative weakness as well with the SOX trading 1.2% lower. Within the chip index, CRUS (-3.9%) is a notable laggard. Among other major indices, the SPY is trading 0.3% lower today, while the QQQ is down 0.3% and the NASDAQ is trading 0.5% lower on the session. Among tech bellwethers, QCOM (+0.4%) and ORCL (+0.4%) are bucking the trend, while AAPL (-1.8%) is under pressure.

In tech earnings last night, CRM (+4.8%) reported a solid Q4 beat and guided inline, SPLK (+4.8%) posted beat with upside guidance, OVTI (-12.6%) topped Q3 estimates but guided well below consensus, and PANW (+0.3%) reported a slight beat and guided inline. In news, FB (-1.4%) confirmed its purchase of MSFT's (-0.8%) Atlas Advertiser Suite. Among notable analyst upgrades this morning in the tech space, ADSK (+1.0%) was upgraded to Buy at Jefferies and ALU (-1.5%) was upgraded to Mkt Perform at Bernstein. Among downgrades, MCRS (-2.2%) was downgraded to Hold at Jefferies and OVTI (-12.7%) was downgraded to Mkt Perform at Raymond James. There are no notable names in tech scheduled to report quarterly results today after the close.
Palo Alto Networks (PANW) reported second quarter earnings of $0.05 per share, $0.01 better than the Capital IQ consensus of $0.04, while revenues rose 70.2% year/year to $96.5 million versus the $93.28 million consensus. "During the quarter, we again added over 1,000 new customers for the fifth consecutive quarter. This rate of adoption plus continued strong expansion in our existing accounts reinforces our position as the global leader in next- generation enterprise network security." "In the second fiscal quarter we delivered strong revenue growth and continued to improve our operating margin on a sequential basis, demonstrating our ability to substantially outgrow the competition while driving increased leverage. Deferred revenue grew 92.2 percent year-over-year to reach $188.2 million, and we generated cash flow from operations of $34.5 million in the second fiscal quarter."

Splunk (SPLK) reported fourth quarter earnings of $0.03 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.02, while revenues rose 50.9% year/year to $65.2 million versus the $59.87 million consensus. The company issued upside guidance for the first quarter sees Q1 revs of $52-54 mln vs. $51.61 mln Capital IQ consensus. Non-GAAP operating margin is expected to be between negative 10% and negative 12%. Co issues in-line guidance for FY14, sees FY14 revs of $260-270 million versus the $260.76 million consensus Estimate. Non-GAAP operating margin is expected to be approximately zero.

Salesforce.com (CRM) reported fourth quarter earnings of $0.51 per share, $0.11 better than the Capital IQ consensus of $0.40, while revenues rose 32.1% year/year to $835 million versus the $830.9 million consensus. Deferred Revenue: Deferred revenue on the balance sheet as of January 31, 2013 was $1.86 billion, an increase of 35% on a year-over-year basis. Current deferred revenue increased by 39% year-over-year to $1.80 billion, benefited in part by longer invoice durations. Non-current deferred revenue decreased by 27% year-over-year to $64 million. Unbilled deferred revenue, representing business that is contracted but unbilled and off balance sheet, ended the fourth quarter at approximately $3.5 billion, up from approximately $2.2 billion at the end of the fiscal 2012. Cash: Cash generated from operations for the fiscal fourth quarter was $282 million, an increase of 17% on a year-over-year basis. For the full fiscal year 2013, operating cash flow totaled $737 million, up 25% year-over-year. Total cash, cash equivalents and marketable securities finished the quarter at $1.8 billion. Co issues in-line guidance for Q1, sees EPS of $0.40-0.42 vs. $0.42 Capital IQ consensus and revenues of $882-887 million versus the $886.27 million consensus. The company issued in-line guidance for fiscal year 2014 with EPS of $1.93-1.97 versus the $1.97 consensus and revenues of $3.82-3.87 billion (prior $3.80-385 billion) versus the $3.86 billion consensus. EPS estimates assume a GAAP tax rate of approximately negative 54%, which reflects the estimated annual change in the tax valuation allowance, and a non-GAAP tax rate of approximately 35%. Due to the tax valuation allowance, however, the GAAP tax rate could be volatile and is therefore difficult to forecast. The GAAP EPS calculation assumes an average basic share count of approximately 150 million shares, and the non-GAAP EPS calculation assumes an average fully diluted share count of approximately 161 million shares.

OmniVision (OVTI) reported third quarter of $0.56 per share, excluding non-recurring items, $0.15 better than the Capital IQ consensus of $0.41, while revenues rose 128.7% year/year to $423.5 million versus the $411.48 million consensus. GAAP gross margin for the third quarter of fiscal 2013 was 16.9%, as compared to 16.6% for the second quarter of fiscal 2013 and 24.2% for the third quarter of fiscal 2012. The company issued downside guidance for the fourth quarter sees EPS of $0.14-0.29, excluding non-recurring items, versus the $0.32 Capital IQ Consensus Estimate, revenues of $300-330 million versus the $372.20 million consensus.

Groupon (GRPN) announced a leadership change in which Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis have been appointed to the newly created Office of the Chief Executive, effective immediately, replacing Andrew Mason. Lefkofsky and Leonsis will serve in this role on an interim basis. The Board has commenced a search for a new Chief Executive. The company's guidance for first quarter and full year 2013 outlined in yesterday's earnings announcement remains unchanged.

http://finance.yahoo.com/marketupdate/techstocks

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From Briefing.com: 4:15 pm : Equities ended the day with slim gains and the S&P 500 settled higher by 0.1%.

Like the previous two sessions, today's action got off to a lower start before bargain hunters stepped in and helped the major averages climb to fresh highs.

After turning positive in early afternoon trade, equities stumbled briefly before ending near their highs.

As the broader market climbed off its early lows, industrials and discretionary stocks paced the rebound.

The industrial sector outperformed as transportation-related stocks saw broad strength. The Dow Jones Transportation Average climbed 1.6% with 19 of 20 components registering gains. Airlines and truckers were among the index leaders as Alaska Air (ALK 59.46, +2.43) and JB Hunt (JBHT 74.44, +3.94) settled with respective gains of 4.3% and 5.6%.

Including today's advance, the transportation average has added more than 17.0% since the start of the year.

In addition to transports, defense stocks also supported the industrial sector. The PHLX Defense Index gained 1.1%.

Elsewhere, discretionary shares garnered buying interest after the February retail sales report exceeded expectations. As a result, retailers received a day-long bid, and the SPDR S&P Retail ETF (XRT 70.19, +0.92) advanced 1.3%. Though most retail stocks benefitted from today's economic data, Express (EXPR 18.25, -0.60) did not partake in the rally. The apparel retailer slid 3.2% after its cautious first quarter and full-year earnings guidance provided some worry to investors.

While cyclical industrials and consumer stocks fueled the morning rebound, the defensively-oriented utilities also finished among the leaders. This suggests some indecision was present as the market struggled to find direction. The SPDR Utilities Select Sector ETF (XLU 38.13, +0.17) rose 0.5%.

On the downside, the materials sector ended with a slim loss as steelmakers weighed. The Market Vectors Steel ETF (SLX 44.81, -0.91) lost 2.0%.

Today's trading volume was well below average as 585 million shares changed hands on the floor of the New York Stock Exchange. Notably, today's tally was the second lowest total observed this year, taking the back seat only to the February 11 session.

Reviewing today's economic data, retail sales increased a solid 1.1% in February after rising an upwardly revised 0.2% (from 0.1%) in January. The Briefing.com consensus expected retail sales to increase 0.5%.

Notably, the report suggests the effect of the tax increases following the fiscal cliff deal has not stunted overall demand. The strong gains in wages that were detailed in the February employment report also played an important part in keeping consumption levels higher than expected. Those gains allowed consumers to spend more while also adding to their savings.

Export prices, excluding agriculture, increased by 0.6% in February after they had increased 0.5% during the prior month. Excluding oil, import prices were unchanged, which follows the 0.2% increase experienced in the prior month.

Total business inventories increased 1.0% in January after increasing an upwardly revised 0.3% (from 0.1%) in December. The Briefing.com consensus expected business inventories to increase 0.3%.

The February Treasury Budget showed a deficit of $203.50 billion, ahead of the deficit of $205 billion expected by the Briefing.com consensus.

In tomorrow's economic data, weekly initial and continuing claims, February PPI, core PPI, as well as the fourth quarter current account balance will all be reported at 8:30 ET.DJ30 +5.22 NASDAQ +2.80 SP500 +2.04 NASDAQ Adv/Vol/Dec 1384/1.52 bln/1046 NYSE Adv/Vol/Dec 1689/584.7 mln/1300

3:30 pm :

Apr crude oil advanced to a session high of $93.40 per barrel shortly after floor trade opened. However, prices retreated and fell into negative territory in afternoon action as a stronger dollar index and weaker than anticipated inventory data that showed a build of 2.624 mln barrels when a build of 2.3 mln barrels was anticipated put pressure on the energy component. Crude oil dipped to a session low of $91.91 per barrel and eventually settled with a 0.1% loss at $92.46 per barrel.
Apr nautral gas traded higher for its entire floor session. It touched a session high of $3.70 per MMBtu in afternoon floor trade and settled with a 1.1% gain at $3.68 per MMBtu.
Apr gold fell into negative territory despite trading as high as $1598.80 per ounce in early morning action. A stronger dollar index following upbeat retail sales data put pressure on the yellow metal. Gold dipped to a session low of $1584.40 per ounce and eventually settled with a 0.2% loss at $1588.00 per ounce.
May silver also slid into the red and brushed a session low of $28.83 per ounce. After chopping around slightly above that level for the remainder of pit trade, it settled with a 0.7% loss at $28.96 per ounce.

4:31PM IPG Photonics acquires Mobius Photonics to accelerate UV laser development (IPGP) 62.68 +0.43 : Co announced the acquisition of privately held Mountain View, California-based Mobius Photonics to accelerate its entry into the UV laser market and deepen IPG's development team. Mobius provides high-power pulsed UV fiber lasers for micromachining, such as dicing and scribing of wafers, and VIA drilling and solar hybrid panel processing. In the acquisition, IPG acquired an exclusive license of U.S. Patent No. 5,745,284, an early and broad patent claiming pulsed fiber lasers with frequency conversion into UV light, as well as other Mobius patents, licenses and trade secrets. The employees from Mobius will become part of the IPG Silicon Valley Technology Center. Mobius had revenue from operations of approximately $1.4 million for 2012.

4:03PM Anadigics announces proposed public offering of common stock; size not disclosed (ANAD) 2.21 +0.01 : Needham & Company, LLC is acting as the sole bookrunning manager of the offering. Craig-Hallum Capital Group LLC is acting as co-manager. Co intends to use the net proceeds from the offering for working capital and general corporate purposes.

Cree (CREE) announced the release of its second generation SiC MOSFET enabling systems to have higher efficiency and smaller size at cost parity with silicon-based solutions.

8:34AM MEMC Elec guides Q1, FY13 semi rev, solar shipments (sees growth in both segments in FY13); proposes name change to SunEdison (WFR) 5.43 : Co sees Q1 semi rev $228-235 mln, FY13 $940-990 mln (FY12: $918 mln). Slower 1H 2013, stronger 2H 2013 expected based on industry recovery.

Sees Q1 adj. solar energy systems MW sold: 10-38, FY13 420-490 (FY12: 383). 2H 2013 stronger due to stronger development spend in 2H 2012.

The co also announced today its plan, subject to shareholder approval, to change its name to SunEdison, Inc. The full proposal will be outlined in a preliminary proxy statement filing to be made on or about March 28, 2013. If approved by shareholders, the name change would be effective after the company's annual meeting of shareholders on May 30, 2013.

09:19 am Integrated Silicon initiated with a Buy at The Benchmark Company; tgt $13: . The Benchmark Company initiates ISSI with a Buy and price target of $13. The firm's investment thesis recognizes that the company does not have to be on the forefront for memory chip development in order to generate superior returns on invested capital. ISSI has a four-pronged strategy to grow the business. As ISSI has proven, this strategy can be very profitable, and as the number of memory IC suppliers has consolidated, ISSI's growth opportunities have expanded.

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From Briefing.com: Weekly Recap - Week ending 15-Mar-13

Dow -25.03 at 14514.11, Nasdaq -9.86 at 3249.07, S&P -2.53 at 1560.7

The major averages finished the week on a lower note and the S&P 500 shed 0.2%. Elsewhere, the Dow Jones Industrial Average declined 0.2% and snapped its streak of ten consecutive gains.

Equities slipped out of the gate with today's quadruple witching providing additional volume at the start. The lower open was then followed by another slip when the University of Michigan Consumer Sentiment Survey was reported below expectations. For March, the preliminary Survey fell to 71.8 from 77.6. Meanwhile, the Briefing.com consensus expected the reading to remain at 77.6.

After receiving the final economic data point of the day, the S&P 500 reversed and headed back towards yesterday's close.

By midday, the index was able to climb within one point of its flat line. However, the average could not muster additional strength, and instead began a steady slide back towards its lows.

The S&P 500 did see its now-familiar final-hour wave of buying, but that effort was merely able to bring the index back to the middle of today's range.

A handful of items made the session notable. The first noteworthy item was the lack of defined sector leadership. During this year's market rally, most sessions ended with either cyclical or defensively-oriented sectors clustered in the lead. Today, utilities and financials ended atop sector rankings.

The defensively-oriented utilities sector saw a steady morning bid before spending the afternoon near its best level of the day. The SPDR Utilities Select Sector ETF (XLU 38.13, +0.25) ended higher by 0.7%.

Financials were in focus after the Federal Reserve released the second part of its CCAR report. The results of the stress test showed that only Ally Financial and BB&T (BBT 30.98, -0.75) failed to meet requirements. Meanwhile, Goldman Sachs (GS 154.84, +0.82) and JPMorgan Chase (JPM 50.02, -0.98) will need to resubmit capital plans by the end of the third quarter. Shares of Goldman Sachs ended with modest gains while JPMorgan Chase slid 1.9% after bank executives testified before a Senate subcommittee regarding losses stemming from last year's "London Whale" trade.

Another item of note was the mixed performance observed within the technology sector. The SPDR Technology Select Sector ETF (XLK 30.20, -0.12) lost 0.4% while its largest component, Apple (AAPL 443.66, +11.16), found buyers who helped the stock rise 2.6%.

The relative strength of Apple prevented the tech sector from logging wider losses. Major components traded lower as Google (GOOG 814.30, -7.24) and International Business Machines (IBM 214.92, -0.88) saw respective losses of 0.9% and 0.4%. In addition, chipmakers were broadly weaker and the PHLX Semiconductor fell 1.7%.

The selloff in microchip manufacturers may be perceived as a sign of exhaustion after the 30-stock group had risen more than 13.0% since the start of the year. Meanwhile, the entire tech sector has only gained 4.2% so far in 2013.

The final noteworthy item was the lack of a significant move in the CBOE Volatility Index (VIX 11.42, +0.12). With stocks spending the day in negative territory, the short-term volatility measure added just over 1.0%, suggesting downside protection was not being sought out actively. Including today's gain, VIX remains at levels last seen in early 2007.

In addition to the previously mentioned University of Michigan Survey, the market received a heavy dose of economic data today.

A surge in energy costs led to the CPI increasing 0.7% in February after reporting no growth in January. The Briefing.com consensus expected the CPI to increase 0.5%. Gasoline prices increased 9.1% in February, which was the largest monthly gain since increasing 20.5% in June 2009. Meanwhile, food prices rose 0.1% after holding flat in January.

Excluding food and energy, core prices increased 0.2% in February, down from a 0.3% gain in January and exactly in-line with consensus expectations.

Industrial production increased 0.7% in February after reporting no growth in January. The Briefing.com consensus expected an uptick of 0.4%. Capacity utilization rates rose from an upwardly revised 79.2% (from 79.1%) in January to 79.6% in February. The consensus expected utilization rates to increase to 79.4%.

The Empire Manufacturing Survey for March registered a reading of 9.2, which was down from the prior month's reading of 10.0. Economists polled by Briefing.com had expected that the survey would slip to 6.5.

January net long-term TIC flows report indicated a $25.7 billion inflow of foreign capital into U.S. denominated assets. This follows the prior month's $64.2 billion inflow.

On Monday, the March NAHB Housing Market Index will be reported at 10:00 ET.

Week in Review: S&P 500 Hovers Near Record Levels

On Monday, equities finished a very quiet session near their highs and the S&P 500 gained 0.3%, bringing the index within 10 points of record closing highs. The major averages began the day with slim losses. The cautious early trade followed downbeat overseas action where investors responded to disappointing industrial production news out of France and a series of below-consensus data points from China. Dick's Sporting Goods (DKS 47.00, -0.52) fell 10.9% after its earnings and revenue fell short of the Capital IQ consensus. Additionally, guidance issued by the company was also below analyst expectations.

The major averages finished Tuesday's session on a mixed note. The Dow registered a slightly higher close while the S&P 500 and Nasdaq ended in the red. The financial sector underperformed amid weakness in major bank names. Morgan Stanley (MS 23.59, +0.79) lost 1.9% while the broader SPDR Financial Select Sector ETF (XLF 18.44, +0.07) slipped 0.5%.

Wednesday ended with slim gains and the S&P 500 settled higher by 0.1%. The industrial sector outperformed as transportation-related stocks saw broad strength. The Dow Jones Transportation Average climbed 1.6% with 19 of 20 components registering gains. Airlines and truckers were among the index leaders as Alaska Air (ALK 59.24, -0.31) and JB Hunt (JBHT 74.00, -0.51) settled with respective gains of 4.3% and 5.6%.

On Thursday, the major averages ended with modest gains. The S&P 500 advanced 0.6%, and settled within three points of a record close. Meanwhile, the Dow Jones Industrial Average registered its 10th consecutive gain. The energy sector saw broad strength and the SPDR Energy Select Sector ETF (XLE 79.60, -0.06) advanced 1.4% to end at its best level since July 2011.

 
 Index	  Started Week	 Ended Week  Change  % Change	YTD % 
 DJIA	    14397.07	 14514.11    117.04	0.8	10.8 
 Nasdaq	     3244.37	  3249.07      4.70	0.1	7.6 
 S&P 500	1551.18	  1560.70      9.52	0.6	9.4 
 Russell 2000  942.50	   952.48      9.98	1.1    12.1

http://finance.yahoo.com/marketupdate/update

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From Briefing.com: Weekly Recap - Week ending 12-Apr-13

Dow -0.08 at 14865.06, Nasdaq -5.21 at 3294.95, S&P -4.52 at 1588.85

After logging four consecutive gains, the S&P 500 entered the weekend on a lower note. The benchmark average shed 0.3% while the Dow Jones Industrial Average ended flat.

Equities ended lower as two economically-sensitive sectors pressured the broader market. The notable underperformance of energy and materials was largely due to the weakness in the commodity complex.

Crude oil fell 2.8% to $90.93, and the weakness weighed on the energy sector, which ended lower by 1.3%.

Meanwhile, the materials sector was the worst performer as industrial and precious metals endured a rough session. Gold futures fell nearly 6.0% to $1488.20 while silver dropped 5.8% to $26.09. In addition, copper lost 2.8%, and settled near its 52-week low. As a result of the broad weakness in commodities, the SPDR Materials Select Sector ETF (XLB 38.74, -0.58) settled lower by 1.5%.

While energy and materials were the clear laggards, the tech space underperformed the broader market as well. Major sector components saw general weakness as Apple (AAPL 429.80, -4.53) lost 1.0%. Notably, Infosys (INFY 43.10, -11.24) plunged 20.7% after the company reported a revenue miss, and guided full-year 2014 revenue below consensus.

Interestingly, today's three weakest sectors are also the three biggest laggards of the month. Energy and materials are both down 1.4% so far in April while the technology sector is off by 0.6% month-to-date. For comparison, the S&P 500 remains higher by 1.3% in April. Meanwhile, the Russell 2000 has told a different tale so far this month. The small cap index is down 0.9% month-to-date.

Financials also finished among the laggards after JPMorgan Chase (JPM 49.01, -0.30) and Wells Fargo (WFC 37.21, -0.30) reported their first quarter results. Although both banks beat their bottom-line estimates, their revenues fell short of expectations. In addition, net income margins continued to trend lower for both.

As most cyclical sectors trailed behind the broader market, the growth-oriented consumer discretionary group ended in the lead. Discretionary stocks outperformed despite today's disappointing March retail sales report and a cautious April consumer sentiment survey from the University of Michigan.

Retailers appeared unfazed by the disappointing reports as the SPDR S&P Retail ETF (XRT 73.02, +0.05) ended with a gain of 0.1%. Today's relative strength of the retail space becomes even more impressive when factoring in yesterday's 2.0% rise in the retail ETF and the lack of a profit-taking trade today in the face of disappointing news.

Excluding discretionary stocks, other outperformers were of the defensive variety as consumer staples, health care, utilities, and telecom all settled with gains.

Today's volume surpassed yesterday's total, and finished in-line with the 200-day average as 700 million shares changed hands on the floor of the New York Stock Exchange.

Reviewing the day's economic data, February business inventories rose 0.1%, which was lower than the 0.4% increase expected by the Briefing.com consensus.

March retail sales declined 0.4%, while the Briefing.com consensus expected an unchanged reading. The prior month's reading pointed to an increase of 1.0%. Excluding autos, retail sales declined 0.4%, which was lower than the expected unchanged reading.

The preliminary University of Michigan Survey for April came in at 72.3, which was lower than the 78.6 that was posted in the prior month, and worse than the reading of 78.0 that had been expected by the Briefing.com consensus.

March producer prices declined 0.6%, which was cooler than the downtick of 0.1% forecast by the Briefing.com consensus. Core producer prices rose 0.2%, while the Briefing.com consensus expected an uptick of 0.1%.

On Monday, April Empire Manufacturing Survey will be reported at 8:30 ET. February net long-term TIC flows and the April NAHB Housing Market Index will be released at 9:00 ET and 10:00 ET, respectively.

Week in Review: S&P Resumes Steady Climb

Stocks spent the bulk of Monday's session in negative territory before afternoon buying lifted the major averages out of the red. As a result, the S&P 500 settled higher by 0.6%. Although stocks finished with gains, leadership was mixed, suggesting a certain level of indecision was present among market participants. Both consumer sectors ended ahead of the broader market with the defensively-oriented staples in the lead. Coca-Cola (KO 41.08, -0.10) rose 2.0% and Philip Morris (PM 96.44, +0.84) advanced 1.9%.

On Tuesday, equities settled just off their best levels of the session with the S&P 500 gaining 0.4%. After opening on a higher note, stocks alternated between gains and losses until afternoon action sent the major indices to their highs. Steelmakers rallied across the board as the Market Vectors Steel ETF (SLX 42.25, -0.44) surged 3.4% to record its second largest one-day advance of the year.

Wednesday saw the S&P 500 rise 1.2% as technology, health care, and industrials outperformed the broader market. Notably, the Dow Jones Transportation Average stood out with a gain of 1.8%. On the downside, homebuilders sat out the broad market rally as Taylor Morrison Home Corporation (TMHC 24.30, +0.29) made its debut as a publically traded company.

On Thursday, the S&P 500 rose 0.4%, but technology stocks did not participate in the advance. The sector was under pressure after the International Data Corporation indicated first-quarter PC shipments plunged 14%. This marked the largest decline on record since IDC began tracking shipments in 1994, and pressured major tech names. Hewlett-Packard (HPQ 20.90, +0.02) fell 6.5% while Intel (INTC 21.68, -0.15) and Microsoft (MSFT 28.79, -0.14) settled with respective losses of 2.0% and 4.4%.

 
 Index	  Started Week	 Ended Week  Change  % Change	YTD % 
 DJIA	    14565.25	 14865.06    299.81	2.1	13.4 
 Nasdaq	     3203.86	  3294.95     91.09	2.8	 9.1 
 S&P 500	1553.28	  1588.85     35.57	2.3	11.4 
 Russell 2000  923.28	   942.85     19.57	2.1	11.0

4:19PM 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: NIHD (7.06 +52.86%), FSLR (37.11 +40.55%), YGE (2.12 +26.16%), RMBS (6.93 +22.97%), GTAT (3.64 +22.36%), ADTN (22.61 +20.41%)
Services: EVC (3.44 +32.13%), TVL (13.12 +24.56%), RAD (2.32 +23.26%), NXST (21.92 +19.28%), ERA (24.92 +19.24%), SBGI (27.6 +18.51%)
Healthcare: ACAD (12.54 +70.35%), ASTX (6.38 +21.03%)
Financial: IEP (67.28 +24.08%), NBG (0.85 +20.51%), NMR (7.8 +19.87%)
Basic Materials: LUFK (88 +38.12%), KWK (2.8 +18.91%)

This week's top 20 % losers

Technology: RDWR (29.31 -21.69%), FFIV (74.98 -16.06%), FTNT (18.77 -14.88%), SWI (51.98 -10.76%), BBRY (13.64 -9.61%), AMBA (13.99 -8.59%)
Services: TITN (21.89 -16.84%), MG (20.49 -12.46%), MATX (23.53 -9.77%), TTEK (25.45 -9.63%)
Healthcare: RIGL (4.62 -37.85%), SGYP (5.4 -14.74%), HMA (10.86 -12.85%), IART (33.88 -12.13%), BRLI (24.72 -9.96%), QCOR (28.26 -8.7%)
Basic Materials: SHLM (25.9 -16.16%), KOG (8.32 -11.98%), NG (2.63 -10.68%), ABX (22.62 -8.44%)

10:28 am S&P Technology Sector -0.5%, trading lower today and behind the broader market
The tech sector is trading lower today, trailing narrower losses in the broader market. Semiconductors are showing relative weakness as well with the SOX trading 0.7% lower. Within the chip index, AMD (-2.8%) is a notable laggard. Among other major indices, the SPY is trading 0.3% lower today, while the QQQ is down 0.2% and the NASDAQ is trading 0.3% lower on the session. Among tech bellwethers, VZ (+0.2%) is showing notable strength, while CSCO (-1.4%) is under pressure.

In tech earnings, HRS (-5.3%) issued downside Q1 guidance last night. XXIA (-1.2%) also lowered its Q1 estimates. INFY (-19.2%) posted a mixed Q4 and guided lower, as well. In news, LNKD (-0.9%) acquired Pulse in a deal valued at ~$90 mln. Also, BBRY (+2.5%) announced it would seek SEC and Ontario Securities Commission review of a false and misleading report about retail return rates for the Company's new BlackBerry Z10 smartphone. The Co also stated that says 'Sales of the BlackBerry Z10 are meeting expectations'. Among IPOs, RALY (+28.7%) opened for trading at $17.26 after pricing at $14. Among rumors, AAPL (-0.4%) and Universal Music agreement on streaming iRadio service imminent, according to report. Among notable analyst upgrades this morning in the tech space, Oppenheimer upgraded PANL (+3.9%) to Outperform and Stifel upgraded RLD (+1.6%) and RATE (+4.0%) to Buy. Among downgrades, FISV (-0.7%), EEFT (-5.6%), and FIS (-1.1%) were downgraded to Neutral at Sterne Agee and MSFT (-0.1%) was downgraded to Outperform at Credit Agricole. There are no notable names in tech scheduled to report quarterly results today after the close.

09:25 am Universal Display upgraded to Outperform at Oppenheimer; tgt $37: . Oppenheimer upgrades PANL to Outperform from Perform and sets target price at $37 following its market review on the growth trajectory of the OLED display market. Near term, firm believes strong smartphone shipments will help small OLED display area grow at a CAGR of 42% from 2012 to 2015. Longer term, adoption of OLED TV should help total shipment area grow at a CAGR of 70% in the same period. Despite its lower TV growth trajectory, firm believes leverage in the operating model and the lack of real competition in POLED material will help PANL achieve substantial earnings growth through 2015.

NXP Semi (NXPI) announced the realignment of several product lines to better reflect underlying market dynamics, product complexity and the management of the business. The changes include: Movement of product line General Purpose Logic (GPL) from segment High Performance Mixed Signal (HPMS), end-market Portable & Computing to segment Standard Products. Movement of product line NXP Software from Corporate and Other to segment HPMS, end-market Industrial & Infrastructure. In addition, to enable improved comparisons of underlying operating performance relative to industry peers, the company will exclude stock-based compensation from its GAAP to non-GAAP reconciliation. Q4 non-GAAP EPS now $0.56 (was formerly $0.50) due to reclassification.

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From Briefing.com: 4:15 pm : After yesterday's session saw the S&P 500 log its second-largest one-day advance of the year, today's action was dictated by the sellers. The S&P fell 1.4% as all ten sectors ended in the red.

There was no single catalyst responsible for today's decline. Instead, persistent global growth concerns coupled with rumors of a possible downgrade of France and Germany set the stage for a sharply lower open. Meanwhile, the pre-market downgrade rumors were partially realized before the close when Egan Jones downgraded Germany's rating to 'A' from A+.'

Technology stocks felt the brunt of today's drop as the SPDR Technology Select Sector ETF (XLK 29.62, -0.62) lost 2.1%. Apple (AAPL 402.80, -23.44) dipped below $400 for the first time since December 2011, and settled lower by 5.5%. In addition to the broad market pressure, disappointing guidance from Apple supplier Cirrus Logic (CRUS 18.05, -3.36) fueled speculation regarding the health of its largest customer.

Intel (INTC 21.93, +0.02) was a bright spot among tech shares after the company reported in-line earnings and revenue. However, other chipmakers did not benefit from Intel's results as the PHLX Semiconductor Index lost 3.3%.

Financials also finished among the weakest performers as the SPDR Financial Select Sector ETF (XLF 18.02, -0.34) shed 1.9%. Bank of America (BAC 11.70, -0.58) tumbled 4.7%, and ended below its 50-day moving average after missing on earnings.

Energy and materials led the market to the downside on Monday, and the two remained weak today. The energy sector lost 1.9% as crude oil declined as well. The energy component slid 2.2% to $86.74 per barrel.

Elsewhere, the materials space underperformed amid weakness in metals. Copper slumped 3.8% to end at levels not seen since September 2011 while gold slipped 1.1% to $1373.00. Steelmakers also echoed the ongoing growth concerns as the Market Vectors Steel ETF (SLX 39.78, -1.08) sank 2.6%. Meanwhile the SPDR Materials Select Sector ETF (XLB 37.43, -0.56) shed 1.5%.

Due to the continued weakness in materials, the space is the only S&P sector trading in the red this year.

Worries surrounding global growth have also had an impact on the industrial sector. Transportation-related stocks saw intraday underperformance, but the Dow Jones Transportation Average ended the session in-line with the broader market, closing down 1.5%.

After soaring more than 40.0% on Monday, the CBOE Volatility Index (VIX 16.50, +2.54) crept above those highs before ending below 17.

Today's selling took place on heavy volume as 866 million shares changed hands on the floor of the New York Stock Exchange.

Tomorrow, weekly initial and continuing claims will be reported at 8:30 ET while March leading indicators and the April Philadelphia Fed Survey are both set to cross the wires at 10:00 ET. Among earnings of note, Freeport-McMoRan (FCX 28.00, -1.25) and PepsiCo (PEP 78.85, -1.15) will report their results before the opening bell.DJ30 -138.19 NASDAQ -59.96 SP500 -22.56 NASDAQ Adv/Vol/Dec 474/1.84 bln/2009 NYSE Adv/Vol/Dec 685/866.0 mln/2373

3:30 pm :

May crude oil fell for a fourth consecutive session, trading as low as $86.06 per barrel in afternoon floor trade. Weakness came on a stronger dollar index and inventory data released this morning. Although crude oil inventories were bullish, distillates had an unexpected build of 2.364 mln barrels vs expectations for a draw of 0.325 mln barrels. The energy component settled 2.3% lower at $86.66 per barrel.
May natural gas briefly dipped into the red and to a session low of $4.15 per MMBtu in morning floor trade. However, it quickly recovered into the black and trended higher for the remainder of its session. It settled at its session high of $4.22 per MMBtu for a 1.4% gain.
June gold chopped around between positive and negative territory during today's floor session. It brushed a session low of $1374.10 per ounce at pit trade open and touched a session high of $1395.20 per ounce in morning action. Unable to hold on to a gain, the yellow metal settled 0.4% lower at $1382.10 per ounce.
May silver lifted off its session low of $22.90 per ounce set at pit trade open and inched higher during early morning action. However, prices fell back into negative territory after peaking at $23.67 per ounce and trended lower until silver settled with a 1.6% loss at $23.29 per ounce.

4:10PM SanDisk beats by $0.06, beats on revs; Non-GAAP gross margins slightly ahead of guidance range; SNDK to guide on CC at 17:00 (SNDK) 55.72 -1.77 : Reports Q1 (Mar) earnings of $0.84 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.78. Revenues rose 11% YoY to $1.341 bln versus $1.304 bln Capital IQ consensus.

SanDisk reports Q1 non-GAAP gross margin of 40.5% versus guidance of 38% +/- 200 bps versus 36% in the same quarter as last year

"Our SSD products drove 20 percent of sales and we delivered a record first quarter retail revenue," said Sanjay Mehrotra, president and chief executive officer of SanDisk. "Our strong results reflect an improved product mix and continued favorable industry supply and demand conditions. We believe our position in enterprise and client SSD markets, differentiated retail brand and continued focus on profitable growth provide us with solid momentum for continued gains in 2013."

SNDK conference call begins at 17:00. On the call, The company is expected to guide on the call for FY13 revenue where consensus stands at $5.654 bln (Prior guidance $5.3-5.6 bln). In addition, the company is expected to guide for Q2 revenue stands at $1.345 bln. Some peers in the space include: WDC, STX, MU


4:04PM Plexus beats by $0.01, misses on revs; guides Q3 EPS in-line, revs in-line (PLXS) 25.33 -0.07 : Reports Q2 (Mar) earnings of $0.52 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.51; revenues fell 2.9% year/year to $557 mln vs the $566.68 mln consensus. Co issues in-line guidance for Q3, sees EPS of $0.55-0.62 vs. $0.58 Capital IQ Consensus Estimate; sees Q3 revs of $550-580 mln vs. $590.06 mln Capital IQ Consensus Estimate.

"Fiscal second quarter revenues were up 5% sequentially to $558 million, with diluted EPS of $0.52. Revenue performance in our Networking/Communications sector was meaningfully below our expectations as several customers struggled with end-market demand. While we experienced forecast volatility in other sectors, the end results for the quarter were relatively in line with our guidance. The previously disclosed disengagement of Juniper Networks remains on track, with production expected to cease as of the end of our fiscal third quarter of 2013."

LSI Corp. (LSI) is working with Nebula to simplify the deployment of scalable storage in private cloud computing infrastructures, while maintaining enterprise-level storage reliability.

Sanmina (SANM) announced that its Wuxi, China Printed Circuit Board facility has achieved AS9100 certification.

Arteris and ARM (ARMH) have signed a multi-year agreement that expands Arteris' access to ARM processor core IP. The two cos have broadened their cooperation to aid the development of future Arteris coherent interconnect IP products that more closely integrate with Arteris' FlexNoC network-on-chip technology and ARM's processor IP.
Microchip Technology (MCHP) announced the OS81118, the first MOST150 Intelligent Network Interface Controller with a USB 2.0 high-speed device port and an integrated coax transceiver.

Microsoft (MSFT) and HonHai signed a worldwide patent licensing agreement that provides broad coverage under MSFT's patent portfolio for devices running the Android and Chrome OS, including smartphones, tablets and televisions.

1:33AM ASML outlines CEO succession plan; Peter Wennink to become CEO July 1; announces new EUR1 bln buy back (ASML) 67.78 : Co announces it has decided upon the new leadership of the company, as the contract of Eric Meurice, President and Chief Executive Officer, ends next year. As of 1 July 2013, ASML's leadership will be comprised as follows:

CFO Peter Wennink will be President and Chief Executive Officer.
Martin van den Brink will be President and Chief Technology Officer.
Eric Meurice will be Chairman of ASML Holding and act as adviser to the new leadership and the Supervisory Board until the end of his contract on 31 March 2014
Peter Wennink will act as interim Chief Financial Officer until a successor has been appointed.

New share buyback program
In addition, co announces its intention to purchase up to an amount of EUR 1.0 bln of its own shares within the 2013-2014 timeframe, starting 18 April 2013.

07:52 am Linear Tech shares fall 3% despite beat on earnings
Linear Tech (LLTC $35.60 -1.08) reported third quarter GAAP earnings of $0.46 per share, $0.03 better than the Capital IQ consensus of $0.43, while revenues rose 0.7% year/year to $314.54 million versus the $313.54 mln consensus. Non-GAAP EPS was $0.54 vs $0.44 Capital IQ Consensus Estimate. The current year fiscal quarter benefited from a lower tax rate of 12.75% as compared to 27% in the previous period and 23.75% in the prior year quarter. The Company's tax rate is lower primarily due to the reinstatement of the federal R&D tax credit and secondarily due to the release of estimated tax liabilities for fiscal years that are no longer subject to audit. During the third quarter the Company's cash, cash equivalents and marketable securities increased by $155.1 million over the second quarter of fiscal year 2013 to $1.455 billion net of spending $24.2 million to purchase approximately 640,000 shares of its common stock in the open market.Co sees Q4 revs +1% to 4% QoQ (calcs to ~$317.65-327.08 million versus the $329.36 million Capital IQ Consensus Estimate).

07:50 am Intel shares down by 1% despite beat on earnings
Intel (INTC $21.78 -0.14) reported first quarter earnings of $0.40 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.40; revenues fell 2.5% year/year to $12.58 billion versus the $12.6 billion consensus. PC Client Group revenue of $8.0 billion, down 6.6% sequentially and down 6.0% year-over-year. Data Center Group revenue of $2.6 billion, down 6.9% sequentially and up 7.5% year-over-year. Other Intel Architecture Group revenue of $1.0 billion, down 3.9% sequentially and down 9.0% year-over-year. Gross margin of 56%, down 2%age points sequentially and down 8%age points year-over-year. Co issues in-line guidance for Q2, sees Q2 revs of $12.4-13.4 bln vs. $12.87 bln Capital IQ Consensus Estimate. Gross margin%age: 58%, plus or minus a couple%age points. Reaffirms FY13 low single digit rev growth (consensus +0.5%), 60% gross margin (+/- few % pts). "Amidst market softness, Intel performed well in the first quarter and I'm excited about what lies ahead for the co. We shipped our next generation PC microprocessors, introduced a new family of products for micro-servers and will ship our new tablet and smartphone microprocessors this quarter. We are working with our customers to introduce innovative new products across multiple operating systems. The transition to 14nm technology this year will significantly increase the value provided by Intel architecture and process technology for our customers and in the marketplace."

LDK Solar (LDK) announced Anhui LDK New Energy Co., Ltd. signed an agreement to sell and transfer all its equity interest in its wholly owned subsidiary, LDK Solar High-Tech (Hefei) Co., Ltd., located in Hefei City of Anhui Province in China, to an affiliate of the Hefei City government, Hefei High Tech Industrial Development Social Service Corporation, for approximately RMB 120 million. Based on the Company's book value, LDK Solar expects to realize a net loss in the range of USD 80 million to USD 90 million for this transaction. Previously, LDK Solar announced a purchase agreement in January 2013 with Shanghai Qianjiang Group, with its consummation subject to relevant governmental approvals. Shanghai Qianjiang Group failed to secure such government approvals by the expiration date of March 30, 2013. "We will do our best to assure a smooth closing of this transaction."

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From Briefing.com: 4:10 pm : Today proved to be a one-sided affair as equities climbed throughout the session. As a result, the S&P 500 settled higher by 0.7% to notch a fresh record close while the Nasdaq rose 0.9%.

The Nasdaq displayed relative strength from the onset as technology stocks paced today's advance. Major sector components Apple (AAPL 430.12, +12.92), Google (GOOG 819.06, +17.64), and Microsoft (MSFT 32.61, +0.82) all settled with gains of at least 2.5%.

Chipmakers also displayed broad strength as the PHLX Semiconductor Index ended higher by 1.3%.

Although the tech sector was able to register a firm gain, the group was unable to overcome its month-to-date losses as it still holds a loss of 0.3%.

Meanwhile, strength in basic materials producers helped the sector erase its April losses. Steelmakers saw gains across the board and the Market Vectors Steel ETF (SLX 41.96, +0.61) ended higher by 1.5%. Metal prices also provided support as gold rose 1.2% to $1470.70 per troy ounce while copper added 0.7% to $3.211 per pound.

Gains in commodities also helped the energy sector as crude oil rose 1.4% to end at $94.32 per barrel.

Even though three cyclical sectors ended atop today's leaderboard, other growth-oriented groups trailed behind the broader market.

The discretionary sector underperformed as homebuilders and retailers weighed. The SPDR S&P Retail ETF (XRT 73.02, 0.00) ended flat even as J.C. Penney (JCP 17.19, +0.19) advanced 1.1% as reports indicated two hedge funds bought shares of the retailer.

With all ten sectors registering gains, defensively-geared consumer staples and telecom were the weakest performers as both settled higher by 0.3%.

Today's volume was well below average as 598 million shares changed hands on the floor of the New York Stock Exchange.

In the Treasury market, the 10-yr note ended flat with its yield at 1.670% after bouncing around a two point range for the duration of the day.

Looking back on today's economic data, personal income and spending both rose 0.2% in March. The Briefing.com consensus expected income to increase 0.3% and spending to rise 0.1%. The March income and spending data were already incorporated in the first quarter GDP report that was released last Friday. The only new information was that January income growth was revised up to -3.6% from -3.7% and that January spending growth was revised down to 0.3% from 0.4%. The February growth rates were unrevised.

In addition, pending home sales for March rose 1.5%, which was better than the 0.1% increase forecast by the Briefing.com consensus. Today's reading follows last month's decline of 0.4%.

Tomorrow, the first quarter employment cost index will be reported at 8:30 ET while February Case-Shiller 20-city Index and April Chicago PMI will be released at 9:00 ET and 9:45 ET, respectively. The day's economic data will be topped off with the 10:00 ET release of April consumer confidence. On the earnings front, Marathon Petroleum (MPC 82.41, +1.06) and Pfizer (PFE 30.43, +0.34) will report their quarterly results prior to the opening bell.DJ30 +106.20 NASDAQ +27.76 SP500 +11.37 NASDAQ Adv/Vol/Dec 1680/1.47 bln/789 NYSE Adv/Vol/Dec 2215/598.7 mln/791

3:30 pm :

June crude oil advanced during today's pit trade, gaining support from a weaker dollar index. The energy component lifted off its session low of $93.18 per barrel and trended higher as the session progressed. It booked a gain of 1.6% as it settled at $94.46 per barrel, slightly below its session high of $94.69 per barrel.
June natural gas extended Friday's gains as it came off its session low of $4.29 per MMBtu and trended upwards for its entire session. It settled 3.8% higher at its session high of $4.39 per MMBtu.
June gold traded higher during today's floor trade as the weaker dollar index boosted prices. Investors are also awaiting Wednesday's FOMC statement. The yellow metal traded as high as $1476.60 per ounce in early morning floor trade and settled with a 1.0% gain at $1467.70 per ounce. o July silver also spent its entire pit session in the black. It climbed to a session high of $24.48 per ounce and ultimately booked a gain of 1.6% as it settled at $24.17 per ounce.
July corn rose by the daily exchange limit (+ $0.40) today to $6.60 per bushel as planting delays continue, booking a 6.5% gain for the session. The advance also came ahead of the USDA's weekly crop progress report which will be released today at 4:00pm ET.

5:11PM Advanced Energy beats by $0.12, misses on revs; guides Q2 EPS in-line, revs above consensus (AEIS) 18.47 +0.25 : Reports Q1 (Mar) earnings of $0.29 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus Estimate of $0.17; revenues fell 88.8% year/year to $11.8 mln vs the $110.64 mln consensus. Co issues mixed guidance for Q2, sees EPS of $0.18-0.28, excluding non-recurring items, vs. $0.22 Capital IQ Consensus Estimate; sees Q2 revs of $132-145 mln vs. $131.90 mln Capital IQ Consensus Estimate.

4:11PM Riverbed Technology misses by $0.01, misses on revs (RVBD) 14.85 -0.04 : Reports Q1 (Mar) earnings of $0.23 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.24; non-GAAP revenues rose 38% year/year to $253 mln; GAAP rev +35% to $246 mln; not clear which is comparable to $261.21 mln consensus.

"Non-GAAP revenue grew thirty-eight percent over the prior year and ten percent without the benefit of $52 million contributed by OPNET in the quarter. Despite weak government spending and general economic softness impacting results, WAN optimization revenue increased six percent year-over-year. Our market expanding products outside of WAN optimization and OPNET generated more than 40% year-over-year growth. Over the long-term, we believe our multi-product strategy to deliver unmatched application performance will allow us to accelerate the company's revenue growth."

4:06PM Intl Rectifier beats by $0.11, misses on revs; guides Q4 revs above consensus (IRF) 19.64 +0.40 : Reports Q3 (Mar) loss of $0.29 per share, $0.11 better than the Capital IQ Consensus Estimate of ($0.40); revenues fell 9.6% year/year to $224.3 mln vs the $229.03 mln consensus.

Co issues upside guidance for Q4, sees Q4 revs of $255-265 mln vs. $251.10 mln Capital IQ Consensus Estimate.
Sees Q4 gross margin 28% to 30%; Research and development expense (14-week quarter) $32 million; Sales, general and administrative expense (14-week quarter) $47 million; Asset impairment, restructuring and other charges $1 to $2 million; Amortization of acquisition related intangibles $1.7 million Other expense, net $1 million Tax expense $4 million

4:04PM Peregrine Semi beats by $0.05, beats on revs; guides Q2 revs in-line (PSMI) 10.65 -0.07 : Reports Q1 (Mar) earnings of $0.01 per share, $0.05 better than the Capital IQ Consensus Estimate of ($0.04); revenues rose 27.0% year/year to $46.6 mln vs the $44.35 mln consensus.

Gross margin on a non-GAAP basis for the first quarter of 2013 was 42.9% of revenue, compared to 31.0% of revenue for the same period in 2012. Gross margin on a GAAP basis for the first quarter of 2013 was 42.5% of revenue, compared to 30.6% of revenue for the same period in 2012.

Guidance: Co issues in-line guidance for Q2, sees Q2 revs of $48-$50 mln vs. $49.42 mln Capital IQ Consensus Estimate. Second quarter GAAP gross margin is expected to be in the range of 39% to 41%.

4:03PM Integrated Device reports EPS in-line, beats on revs (IDTI) 6.93 : Reports Q4 (Mar) earnings of $0.01 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.01; revenues fell 8.9% year/year to $108.5 mln vs the $107.12 mln consensus.

"Despite a challenging fiscal year 2013, revenue from new product categories grew 56 percent year-over-year and represented 18 percent of total revenue, in line with our projections from our analyst day a year ago. This highlights the success we are seeing in these new areas but that growth was offset by declines in our base and core businesses, reflecting a difficult demand environment across all of our end markets. We also drove gross margins to 10-year highs in fiscal 2013 by adopting a fabless model and focusing on higher margin products. As we enter fiscal 2014, we believe that the continued momentum of new product adoption, recovery in our core and base businesses, continued strength in gross margins and planned reductions in operating expenses will enable us to expand our operating margins throughout the year."

4:02PM Anadigics reports EPS in-line, misses on revs (ANAD) 1.97 +0.05 : Reports Q1 (Mar) loss of $0.20 per share, excluding non-recurring items, in-line with the Capital IQ Consensus Estimate consensus of ($0.20); revenues fell 6.8% year/year to $26.4 mln vs the $26.9 mln consensus.

4:02PM Monolithic Power beats by $0.01, reports revs in-line; guides Q2 revs in-line (MPWR) 23.29 +0.22 : Reports Q1 (Mar) earnings of $0.17 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 2.0% year/year to $51.5 mln vs the $51.14 mln consensus. Gross margin was 53.2% compared with 53.0% in the fourth quarter of 2012 and 52.3% in the first quarter of 2012.

Co issues in-line guidance for Q2, sees Q2 revs of $55-59 mln vs. $56.81 mln Capital IQ Consensus Estimate. Sees Gross margin between 53% and 54%. Sees GAAP research and development and selling, general and administrative expenses between $25.0 million and $27.5 million. Non-GAAP(1) research and development and selling, general and administrative expenses between $20.5 million and $22.5 million. This excludes an estimate of stock-based compensation expense in the range of $4.5 million to $5.0 million.

Cadence Design Systems (CDNS) announced that GLOBALFOUNDRIES has collaborated with Cadence to provide pattern classification data for manufacturing processes of 20 and 14 nanometers.

Rudolph Technologies (RTEC) has purchased selected assets, including a strong patent portfolio, relating to metrology capability from Tamar Technology, Newbury Park, Calif

Micrel (MCRL) announced that they have signed Phoenics Electronics, a fully franchised, technically supportive, stocking distributor of semiconductor and board level solution

Kopin (KOPN) announced the partnership with Edmund Optics to distribute the RUBY Module, an SVGA (600 x 800) microdisplay module offered in full-color and monochrome versions.

Extreme Networks (EXTR) announced that the co's Open Fabric data center switching portfolio was tested and turned in 'remarkable' results following the latest round of Lippis Report's evaluation of data center Ethernet switches and "Active-Active" cloud fabric technology. Participants in the test included Extreme Networks, Arista, Brocade and Avaya.

MidAmerican Solar and SunPower (SPWR) marked the start of major construction at the Antelope Valley Solar Projects - two projects co-located in Kern and Los Angeles counties in California - with a community celebration.

[ReturntoSender]

InvestmentHouse Weekend Market Summary

http://www.investmenthouse.com/weekendmarketsummary.htm

- Another soft start and choppy morning, but buyers return as growth leads again.
- NASDAQ, SP400 bumping trendline but don't appear afraid of it.
- Hilsenrath WSJ tapering article released after the close. Restates the obvious but will lofty, liquidity driven markets get rattled?
- ECB, South Korea, now Vietnam and Poland cut rates.
- Interesting economic facts: stock market participation, foreclosures, unemployment.
- History repeats: after a 4 year run stock ownership is at its lowest since 1998. The masses miss out and that begs the question what wealth effect?
- After a lull, a huge week for data.

Stocks chopped around in rather violent swings all morning; two up and two down. The indices were mostly positive at the open but by lunch east coast time two big moves took the futures modestly negative. A surge by PCLN could not offset a 29% jump in Chinese loan delinquencies or a Japanese bond market that again closed limit down.

Bernanke spoke in the morning and investors wondered what he would say about the economy. His talk was on prevention of too big to fail problems and only tangentially touched upon what the Fed's policy would be. Those polices were of particular interest to investors given the rumor tweet Thursday about a WSJ tapering article.

Bernanke avoided the area for the most part, stating the obvious: the economy has not fully recovered the jobs lost in the recession. The economy is still struggling with the effects of 2007 and 2008.

No kidding about the jobs. Construction lost 2m jobs and has recovered 200K. Middle tier jobs suffered the majority of jobs losses in the collapse; low tier jobs have replaced them, no small part due to the President's healthcare law that forces companies to hire more low pay workers and work them less in order to reduce costs as much as possible. They are not evil companies not hiring just to hurt people or make the President look bad; they are just doing what they must to compete in the environment the President's law has created. And that means more lower paying jobs with workers working less.

The interesting thing is, even those in that tier of jobs see what is going on. I was talking with a fellow looking for work this past week about jobs and he commented that the companies were hiring more people but working them less. He also said there was no chance for advancement in the jobs anymore, at least nothing significant. He wasn't sure why until I mentioned how the healthcare law worked. You could see the light come on.

That makes you look at the jobs numbers in an entirely new light. When the government boasts of 6m jobs created, just where are those jobs and what do they pay? The majority of jobs lost were from the mid-range. The majority of the replacement jobs are from the low-range with lower hours and little advancement opportunity. After all, if you advance someone far enough they have to work more to earn that higher wage and there you go, potentially getting in trouble with the hours worked.

In any event, given Bernanke did not talk about tapering per the Thursday tweet, the market first jumped. Then it dumped. Another jump, another dump, all before lunch. As lunch started in the east, however, stocks found bottom and rallied into the afternoon, matching morning highs. A good old last hour sprint upside took the indices to session highs to close out the week.

SP500 7.03, 0.43%
NASD 27.41, +0.80%
DJ30 35.87, 0.24%
SP400 0.61%
RUTX 0.92%
SOX 0.89%

Friday volume as trade levels fell. The price moves were solid, however, with NASDAQ and SP400 running back up to their trendlines a day after showing doji at that level. Perhaps they do want to run higher along the trendline as in January and February.

The 'taper article' is out.

After hours the Hilsenrath rumor story was released. As with Bernanke's speech and Q&A, it didn't have much new to offer, but the effect of his stories is that he is accorded some status as the Fed's press mouthpiece.

The article states the Fed has mapped out a winding down strategy, one that will preserve flexibility and manage highly unpredictable market expectations. I will tell you why they are so unpredictable: because given all the intervention, the signposts the market used to be able to read and trust are distorted by years of zero interest rates, bond buying, etc. But I digress.

Timing, as always, is the key. After discussing how the Fed plans to reduce bond buying carefully and in halting steps based upon how the job market is doing vis- -vis inflation, the starting point, i.e. when it starts, is STILL BEING DEBATED. In other words nothing will be coming from the Fed anytime soon.

Reaction to tapering as other central banks ease more.

How will markets react? US futures fell after the news hit. It is official now apparently, even though various Fed officials gave interviews that discussed the need to taper sooner than later. Still, there is the old theory versus reality. Theory means nothing; reality is what you pay for.

It could be the Fed feels things are about to get out of control, perhaps not in the US but the rest of the world.

The ECB cut rates. Australia cut rates. Japan is in a whole separate league of monetary policy with $75B in bond buys per month and a bond market that has come uncorked.

South Korea pulled a surprise cut.

Vietnam cut rates Friday late. Poland cut rates.

New Zealand intervened in its currency market to devalue. Chile said it may intervene as well.

The US bond market, while not bouncing off the walls, just sold back sharply this week, pulling a round trip and more from the past two weeks where bonds surged back up. The LAST THING the Fed wants to see is a US bond market getting away from it with rates rushing to the upside and the Fed unable to rein them in.

If stock investors get a sense the Fed is worried about losing grasp of bond yields, the rally starts giving back gains. It is, as shown on Thursday, still just a liquidity driven market.

OTHER MARKETS

Dollar stronger again: 1.2977 versus 1.3033 versus 1.3156. A significant and rapid decline.

Bonds sharply weaker: 1.89% versus 1.81%: 1.76%: 1.78%: 1.76%: 1.74%; 1.63%; 1.63%; 1.67%; 1.67%; 1.67%; 1.72%; 1.69%; 1.70%; 1.69%; 1.71%; 1.69%; 1.70:; 1.72%; 1.69%; 1.72%; 1.79%; 1.81% 10 year Treasury. 1.81% vs 1.76%

A round trip and more on bonds as they sell off in the currency war turmoil.

Oil off: 96.04, -0.35

Gold crushed: 1436.60, -32.00

US Stock ownership at another record low.

US stock ownership at its lowest rate since 1998. At 52% ownership is the lowest since the Gallup poll began in 1998, 1% lower than last year's 53%. In 2007 just before the crash, 65% owned stocks.

Shockingly to all of those expecting an influx of money from the retail investor, only 17% said they were more likely to invest in the stock market. Money is a factor. With tepid and low quality job creation to replace those jobs lost in the huge collapse, even those working at jobs again do not have the money to invest. No money, no stocks, no 'wealth effect.'

Greece unemployment: New record at 27%. Ages 15 to 24: 64.2%, up 5% month/month. Austerity does not work WHEN the populace does not have the entrepreneurial spirit such as the US. In the US when the government cuts back on spending, stops taking so much in taxes, and reduces regulation, we create new businesses and grow the economy.

Foreclosure filings at a 6 year low in the US (Bloomberg). Yes, but what happens when the mortgage companies end the self-imposed moratorium?

IRS targets groups it doesn't like. Tea Party and Patriot groups were forced to provide voluminous amounts of information, much more than typical, in attempting to gain tax exempt status during the 2012 election. As if the IRS does not stifle economic activity enough in this country, it is prosecuting an ideological vendetta and using unconstitutional power to do so. Oh yes, and thousands of more agents are hitting the streets to enforce the healthcare law.

TECHNICAL SUMMARY

INTERNALS

NASDAQ
Stats: +27.41 points (+0.8%) to close at 3436.58
Volume: 1.673B (-6.9%)

Up Volume: 1.31B (+414.69M)
Down Volume: 370.82M (-537.64M)

A/D and Hi/Lo: Advancers led 1.95 to 1
Previous Session: Decliners led 1.55 to 1

New Highs: 203 (+20)
New Lows: 23 (+1)

S&P
Stats: +7.03 points (+0.43%) to close at 1633.7
NYSE Volume: 574M (-7.72%)

A/D and Hi/Lo: Advancers led 1.47 to 1
Previous Session: Decliners led 1.83 to 1

New Highs: 485 (-156)
New Lows: 52 (+1)

DJ-30
Stats: +35.87 points (+0.24%) to close at 15118.49

BREADTH: Very decent on NASDAQ at 1.95:1 but the NYSE fumbled at a mere 3:2.

VOLUME: Down 7% to 8% on the indices as they rallied. Friday.

THE CHARTS

SP500. After the Thursday pause a nice rally to close the week at a new closing high. Lighter trade but it was Friday after a good run. Still room in the range but also still creeping higher above the 200 day SMA where it gets wobbly.

NASDAQ. Came right back from that Thursday tombstone doji at the trendline and put in a higher high, trying to crack the upper channel line. It is attempting, for now, to ride higher along that uptrend line.

DJ30. Taking a back seat but following along nonetheless. As with SP500, still plenty of upside in the channel but also almost 11% above its 200 day SMA.

SP400. Riding up the November trendline, coming right back from the Thursday pullback.

RUTX. Nice break to a new high after a day off Thursday.

SOX. A third solid upside session in a row as SOX breaks free from the November trendline. It is just over 8 points from the prior recovery high post-bear market.

Summary: NASDAQ moved past the doji and looks as if it wants to glide along the upper channel line. SP400 looks as if it wants to do the same along its November trendline. SOX put in a solid week and the NYSE indices are following along well. Good run, most expect a test, but they can just slide higher up the trendline. The reaction to the 'tapering article' will tell more as well.

LEADERSHIP

Some are saying the market is setting up for a new pullback because they see stocks that have rallied well and are ripe. Those stocks may indeed pull back some. But, this market has also shown that when leaders pullback, money goes to new stocks and new leaders. That is the difference between this market and prior runs.

Perhaps it does top out. One fellow is saying PCLN is in a double top. I say it is breakout from a cup with handle base. I am not smart enough to know if it has topped but I will know when I can play it again and make money. Right now I feel that will be an upside play.

AAPL is in a good pullback. STX is testing a breakout. AMCC is in great position to continue higher.

As long as this market produces stocks in great position to run and then they break higher, the rally continues. When investors fear liquidity is leaving, they will sell. That may happen this week. It may happen in a month. We just need to play good stocks when they set up and then if things change, we protect our money, sell out when needed, and then play the other side if it develops.

THE MARKET

SENTIMENT INDICATORS

VIX: 12.59; -0.54
VXN: 14.34; -0.15
VXO: 11.63; -0.77

Put/Call Ratio (CBOE): 0.75; -0.25

Bulls versus Bears

Big spike in bears over 50%, pushing those September levels where the stock market struggled and faded into November. Bears higher as well; they are not as sanguine about the gains, indeed even more pessimistic.

Bulls: 52.1% versus 47.9% versus 44.3% versus 47.4% versus 50.5% versus 52.0% versus 49.5% versus 47.4% versus 50.00% versus 44.2% versus 46.3% versus 48.4% versus 52.6% versus 54.7% versus 54.3% versus 53.2% versus 51.1% versus 47.8% versus 46.8% versus 45.7% versus 43.6% versus 39.3% versus 37.2% versus 38.3% versus 43.6. Has hit a soft patch. Higher then rolling over below the January and February highs. That market hiccup ahead of and to the Jobs Report. Now back up so . . . probably hangs over 50. Background: Undercut 35%, the threshold for bullishness, in early June. As noted, hit 34% in early June. It did its job and the market is on the rally. Hard drop to 34 from 39.3% as economic reality and a choppy stock market hit. Off the 55+ level hit in late February. That was the highest level since April and May of 2011, the peak of the post-bear market high. 35% is the threshold level suggesting bullishness. To be seriously bearish it needs to get up to the 60% to 65% level.

Bears: 19.8% versus 18.8% versus 19.6% versus 20.6% versus 20.6% versus 19.4% versus 19.6% versus 18.6% versus 18.8% versus 21.1% versus 21.1% versus 22.1% versus 21.1% versus 21.1% versus 22.3% versus 22.3% versus 23.4% versus 24.5% versus 24.5% versus 23.4% versus 25.5% versus 27.7% versus 27.7% versus 28.7% versus 27.7%. Summary: Over 35% is the threshold to be really be a good upside indicator. For reference, bearishness hit a 5 year high at 54.4% the last week of October 2008. The move over 50 took bearish sentiment to its highest level since 1995. Extreme negative sentiment. Prior levels for comparison: Bearishness peaked at 37.4% in September 2007. It topped the June 2006 peak (36%) on that run. That June peak eclipsed the March 2006 high (33%) and well above the 2005 highs that spawned new rallies (30% in May 2005, 29.2% in October 2005). That was a huge turn, unlike any seen in recent history.

MONDAY

Earnings are on the wane but after a week that saw less economic data, this week there is piling on. Retail sales on Monday, PPI, Production, Capacity, Chicago and Philly PMI, Housing starts, Michigan sentiment. Friday is also expiration (Saturday really, but you cannot trade Saturday).

In addition to the economic data there is a ton of political intrigue and the usual (it seems) geopolitical issues. The IRS targeting conservative groups in one of the worst breaches of authority by an agency that is already unconstitutional in the exercise of its mandate. Republicans are demanding hearings and they should do it. As Juan Williams, a liberal said last night, this is not a party issue but an American one where such a powerful entity is targeting people on their beliefs.

Of course, the Department of Homeland defense is already doing that; if you are in a conservative group you are considered a potential domestic terrorist.

Then there is Benghazi. When the first hints of a cover up appeared I told many readers this was going to be a huge scandal. It has all the earmarks now. Then on Saturday, the White House briefs SOME reporters in private in what was first called 'off the record' but changed (a la the Benghazi attack talking points) to 'deep information' briefing under the requirement that no sources be cited. So, off the record was right. Then a press conference where only certain media is invited. The death of the US as a liberty loving country occurred when the press abdicated its role and decided to not cover news relating to one person and on issues that would potentially damage that person. It could be democrat or republican. When the press starts investigating or reporting, or NOT, based solely on the person, the topic, and its effect on its favorites, liberty is lost. Hello Pravda.

Okay, okay. I digress. But I am mad. We should all be mad this is happening. It damages our institutions. It makes businesses worried. When they are worried they don't spend. That impacts the economy, and stocks pick up on that first. So anyone reading this report should be burning up the phone and the keyboard calling and writing their Congressional reps.

Stocks ended the week refuting any weakness shown earlier. NASDAQ blew past its Thursday doji and SP400 is not recoiling from its trendline. SOX is stellar.

That doesn't mean they won't have pauses or pullbacks, but as seen in January and February, they can rally up their trendlines for a long time. Friday they shows flashes of that.

The question now is whether the 'taper' article has any impact. Stocks tend to overreact to such stories, but when the move is driven totally by liquidity, that is understandable.

If there is weakness things are trickier. The market has met any pullback with buying on the dips. If the market is worried about the Fed tapering, even if it knows it won't happen soon based upon, if you believe it, the Hilsenrath article, investors may decide not to enter on the dip next time.

So, we have been taking gain on the upside as stocks hit logical targets. We have already banked great gain on many positions, but the newer ones are not there yet. Thus we have good stop loss points in place. If there is selling, given the unknown if stocks will come back this time given a possible change in the landscape, it is best to honor those and then if things hold up, buy back in.

There are still MANY stocks in great position to buy. That can, of course, change rapidly if the news is bad enough. Given what the article said, i.e. nothing really new, the market may not view it as anything significantly new. After all, the Fed minutes talked of this kind of taper and the market is hitting new highs yet again.

Thus be logical and reasonable. Keep good stops and be ready to buy in again if stocks sell but then recover. If they don't that is a different story and we will play it. If stocks hold up, we can continue to look for opportunity because, as noted there are still many excellent buy possibilities.

Have a great Mother's Day!

Support and resistance

NASDAQ: Closed at 3436.58

Resistance:
3436 is the upper channel line for the November 2012 to present uptrend

Support:
3401 is the May 2000 closing low
3321 from April 2000
3318 is the November 2012 up trendline
The 50 day EMA at 3271
3227 is the April 2000 intraday low
3197 is the September 2012 post-bear market high
The 2011 up trendline at 3197
3171 is the October intraday high
3134 is the March 2012 post-bear market peak
3130 from some January 2013 lows
3104-3112 from August and mid-October peaks.
The 200 day SMA at 3110
3101 is the August 2012 high
3090 is the mid-March interim high
3076 is the late April 2012 high and the 1/2013 low after gapping higher
3062 is the December 2012 prior peak
3042 from 5/2000 low and several other price points
3024 is the gap point from early May
3000 is the February 2012 post-bear market high
2999 is the bottom of the August 2012 consolidation
2988 is the July 2012 high
2977 to 2980 is the bottom of the late October 2012 consolidation, July 2012 peak
2962 is the April 2012 low
2950 is the mid-April closing low
2942 is the mid-June 2012 high
2900 is the March 2012 intraday low
2858 is the late July 2011 peak
2847 is the mid-May 2012 low
2838 from the July 2012 lows

S&P 500: Closed at 1633.70

Resistance:
1662 is the upper trendline in the channel

Support:
1598 is the April 2013 high and former all-time high
The November up trendline at 1592
1576 from October 2007, the prior all-time high
The 50 day EMA at 1570
1556 from July 2007
1539 from June 2007
1531 is the recent high
1499 from January 2008
1475 is the September 2012 high
1471 is the October 2012 intraday high
The 200 day SMA at 1471
1466 is the September 2012 closing peak and rally closing high
1440 from November 2007 closing lows
1434 from early November 2012
1433 from August 2007 closing lows
1427 is the August 2012 peak
1425 from May 2008 closing highs and the October 2012 low
1408 is the late October 2012 range closing low
1406 is the early May 2012 peak
1402.22 - 1400 is the closing low of the August 2012 lateral consolidation
1378 is the February 2012 peak
1375 is the early July 2012 peak
1371 is the May 2011 peak, the post-bear market high
1363.46 is June 2012 high
1359 is the April 2012 low
1357 is the July 2011 peak
1344 is the February 2011 peak
1340 is the early April 2011 peak
1332 is the early March 2011 peak

Dow: Closed at 15,118.49

Resistance:
15,360 is the upper channel line for the trend off the November low.

Support:
14,888 is the April peak and prior all-time high
The November up trendline at 14,775
The 50 day EMA at 14,597
14,198 from the October 2007 high
14,149 is the February 2013 high
14,022 from 7-07 peak
14,010 from the early February 2013 consolidation
13,784 is the late February 2013 closing low
13,692 from 6-2007 peak
13,668 from 12-2007 peak
13662 is the October 2012 intraday high
The 200 day SMA at 13,657
13,653 is the September 2012 high
13,557 to 13,662
13,413 from the late September 2012 low
13,300 to 13,331 is the August 2012 post-bear market high
13,297 is the April 2012, prior post bear market high
13,058 from the May 2008 peak on that bounce in the selling
13,056 is the February 2012 high
12,716 is the April 2012 closing low
12,524 is a range of support from early 2012 and summertime 2012

Economic Calendar

May 13 - Monday
- Retail Sales, April (8:30): -0.3% expected, -0.4% prior
- Retail Sales ex-auto, April (8:30): -0.2% expected, -0.4% prior
- Business Inventories, March (10:00): 0.3% expected, 0.1% prior

May 14 - Tuesday
- Export Prices ex-ag., April (8:30): -0.2% prior
- Import Prices ex-oil, April (8:30): -0.2% prior

May 15 - Wednesday
- MBA Mortgage Index, 05/11 (7:00): 7.0% prior
- PPI, April (8:30): -0.5% expected, -0.6% prior
- Core PPI, April (8:30): 0.1% expected, 0.2% prior
- Empire Manufacturing, May (8:30): 3.5 expected, 3.1 prior
- Net Long-Term TIC Fl, March (9:00): -$17.8B prior
- Industrial Production, April (9:15): -0.2% expected, 0.4% prior
- Capacity Utilization, April (9:15): 78.3% expected, 78.5% prior
- NAHB Housing Market Index, May (10:00): 44 expected, 42 prior
- Crude Inventories, 05/11 (10:30): 0.230M prior

May 16 - Thursday
- Initial Claims, 05/11 (8:30): 330K expected, 323K prior
- Continuing Claims, 05/04 (8:30): 3005K expected, 3005K prior
- CPI, April (8:30): -0.2% expected, -0.2% prior
- Core CPI, April (8:30): 0.2% expected, 0.1% prior
- Housing Starts, April (8:30): 970K expected, 1036K prior
- Building Permits, April (8:30): 950K expected, 902K prior
- Philadelphia Fed, May (10:00): 2.5 expected, 1.3 prior
- Natural Gas Inventor, 05/11 (10:30): 88 bcf prior

May 17 - Friday
- Michigan Sentiment, May (9:55): 78.5 expected, 76.4 prior
- Leading Indicators, April (10:00): 0.3% expected, -0.1% prior

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KLIC Short Sale 5000 shares@12.09 - If it moves up towards 13 again I plan to short another 5000 above 12.90.

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NYSE MARGIN DEBT for April is out. Predictably it is the highest ever at $384,370 million.

http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=3153&category=8

That's even higher than the $381,370 million figure in July of 2007 3 months before the market topped back then.

http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=table&key=278&category=8

Expect to see more stories warning about MARGIN DEBT soon:

https://www.google.com/search?q=margin+debt&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a

RtS

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From Briefing.com: 4:10 pm : Equities settled near their highs, but came up a bit short in their attempt to erase yesterday's losses. The S&P 500 climbed 1.0% as all ten sectors ended with gains.

The majority of today's advance occurred in the first 90 minutes of the session amid a global rebound. Notably, China's Shanghai Composite shed 0.2% after being down as much as 5.7%. The rally off lows unfolded amid speculation The People's Bank of China will step in to resolve the ongoing liquidity crisis. However, the central bank has since reiterated its intention to remain on the sidelines. The overnight SHIBOR eased 75 basis points to 5.74% while the 1-week interbank rate rose 33 basis points to 7.64%.

Elsewhere, most European markets registered gains, but Italy's MIB fell 0.4% amid comments from an analyst at Italy's second largest bank, Mediobanca. The bank representative said the country's macroeconomic outlook has not improved and a bailout request will become inevitable. Italy's benchmark 10-yr yield rose seven basis points to 4.87%.

On a related note, U.S. Treasuries were in demand overnight, but surrendered all of their gains shortly after the open. As a result, the benchmark 10-yr yield ended higher by four basis points at 2.589%.

Interestingly, two rate-sensitive sectors vaulted to the top of this month's leaderboard despite the continued climb in Treasury yields. The telecom services sector rose 2.0%, which turned its month-to-date loss to a gain of 1.0%.

Also of note, the utilities space advanced 1.2% to trim its June loss to 1.1%.

Other defensive sectors trailed behind the broader market as consumer staples tacked on 0.1% while health care added 0.4%.

Meanwhile, cyclical groups were led by a 1.9% gain in financials. Transportation-related names displayed comparable strength as the Dow Jones Transportation Average jumped 1.9%.

Major homebuilders saw early strength before ending in mixed fashion. DR Horton (DHI 20.91, -0.01) shed 0.1%; Lennar (LEN 35.23, +0.24) gained 0.7% on better-than-expected earnings; while the broader iShares US Home Construction ETF (ITB 22.03, +0.24) added 1.1%.

A fair portion of today's economic data focused on housing. The April Case-Shiller 20-city Home Price Index rose 12.1% while a 10.5% increase had been expected by the Briefing.com consensus. This follows the previous month's increase of 10.9%.

Separately, April Housing Price Index from the FHFA increased 0.7%, which follows a 1.3% increase observed during the prior month.

Also of note, new home sales topped expectations increasing from an upwardly revised 466,000 (from 454,000) in April to 476,000 in May. The Briefing.com consensus pegged new home sales at 460,000.

Durable goods orders increased 3.6% for a second consecutive month in May. The Briefing.com consensus expected durable goods orders to increase 3.0%.

As expected, a large portion of the gain came from the transportation sector. Defense and nondefense aircraft orders increased 39.2% in May after increasing 23.6% in April.

Surprisingly, the gains in durables did not end with the transportation sector. Excluding transportation, durable goods orders rose 0.7% in May after increasing 1.7% in April. The consensus expected these orders to fall 0.5%.

The Conference Board's Consumer Confidence Index rose to 81.4 in June, up from 74.3 in May and at the highest point since January 2008. The Briefing.com consensus expected consumer confidence to weaken slightly and drop to 75.0.

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while the third estimate of first quarter GDP will be released at 8:30 ET.DJ30 +100.75 NASDAQ +27.13 SP500 +14.94 NASDAQ Adv/Vol/Dec 1779/1.60 bln/709 NYSE Adv/Vol/Dec 2478/810.0 mln/591

3:30 pm :

Aug crude oil rose today following economic data released this morning that showed durable goods orders increased 3.6% for a second consecutive month in May. The energy component pulled back from its session high of $96.08 per barrel set at pit trade open as a stronger dollar index pressured prices. It dipped to a session low of $94.72 per barrel but recovered into the black moments later. It eventually settled 0.2% higher at $95.33 per barrel.
Aug natural gas fell for a fourth consecutive session as it slid from its session high of $3.77 per MMBtu. It attempted to erase some of the loss in late morning action but ultimately settled 2.4% lower at its session low of $3.67 per MMBtu. o Better-than-anticipated economic data released this morning and a stronger dollar index put pressure on precious metals. New home sales topped expectations as did the Consumer Confidence Index which rose to its highest level since January 2008.
Aug gold retreated from its session high of $1285.60 per ounce and brushed a session low of $1270.70 per ounce in morning action. Unable to regain momentum, it settled 0.1% lower at $1275.20 per ounce.
July silver also pulled back from its session high of $19.74 per ounce and spent most of its pit trade chopping around just above the unchanged level. The lackluster action left silver to settle just 0.1% higher at $19.52 per ounce.

4:31PM TTM Tech announces departure of COO (TTMI) 8.11 +0.07 : Co announced that Shane Whiteside, the company's Executive Vice President and Chief Operating Officer has resigned from the company to pursue other interests. Mr. Whiteside will remain with the company through July 5, 2013. TTM's president, Thomas Edman will assume Mr. Whiteside's responsibilities.

4:30PM Intl Rectifier and Efficient Power Conversion Corporation reach settlement and royalty agreement (IRF) 20.70 +0.40 : Co announced that it has entered into a settlement agreement with Efficient Power Conversion Corporation that will result in the payment of royalties to IR on the sale of Gallium Nitride (GaN) on Silicon based power devices from 2015-2023, subject to an offset in certain cases. The settlement agreement resolves all disputes between EPCC and certain of EPCC's principals, including Alex Lidow, and IR without judicial determination of the merits of any party's claims or defenses. Other terms of the agreement are confidential.

2:12PM SolarCity: Wal-Mart and SCTY announce completion of 10 new solar installations in Maryland (SCTY) 34.87 +1.97 : WMT and SCTY announced the completion of projects at eight Walmart stores and two Sam's Clubs across the state of Maryland that will generate clean, renewable electricity. The energy produced by the new solar installations will generate approximately 4.1 million kilowatt hours (kWh) of electricity annually -- enough energy to power nearly 370 homes -- and are expected to supply between 5-20 percent of each store's overall electricity use.

NVIDIA (NVDA) launched the new NVIDIA GeForce GTX 760 GPU, which offers PC gaming performance, smooth frame rates and exclusive GeForce GTX features for $249.

8:36AM BlackBerry confirmed the availability of a new security solution that separates work and personal apps and data on iOS and Android devices (BBRY) 14.10 : Secure Work Space for iOS (AAPL) and Android (GOOG) is a new option with BlackBerry Enterprise Service 10 (version 10.1.1) that offers customers with a BYOD (Bring Your Own Device) policy, a solution with the best combination of security, user experience and total cost of ownership. BlackBerry designed Secure Work Space to meet the management, security and cost needs of the CIO, and the user experience and functionality that employees demand. The BlackBerry Enterprise Service 10 server software is free to download. Annual client access licenses for Secure Work Space are $99 (MSRP) per year per device. BlackBerry Enterprise Service 10 is also available as a sixty day free trial bundle that includes 50 EMM Corporate CALs (providing device management for BlackBerry 10, iOS, and Android devices) and 50 Secure Work Space CALs.

OmniVision Technologies (OVTI) announced the OV8865, a new low-power, high-performance 8-megapixel CameraChip sensor.

MLNX +2% (Globes Online discusses Clal Finance comments suggesting MLNX is likely involved in huge Microsoft server farm )

ARMH +2.8% (upgraded to Buy from Hold at Investec)

09:20 am First Solar upgraded to Hold at Maxim Group: . Maxim upgrades FSLR to Hold from Sell. With the Hold rating, firm no longer has a price target on the company. However, its previous $42 price target had established a reasonable fair value for the company in mid-CY14, and firm believes investors should wait for a price in the mid-$30's before considering the company on the long side. Other than having raised $420M in a secondary offering and diluting its shareholders by approximately 10%, firm does not believe much has changed for the company.

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From Briefing.com: 4:15 pm : The S&P 500 settled higher by 0.1% to mark its eight consecutive advance. The utilities sector ended atop today's leaderboard with a gain of 1.6%, but the relative strength of three influential sectors (financials, industrials, and technology) helped the S&P end at a fresh record high of 1682.50, less than five away from its May 22 all-time intraday high of 1687.18.

Financials provided the broader market with an opening boost after Citigroup (C 51.81, +1.00) reported better-than-expected earnings on above-consensus revenue. Citigroup rose 2.0% while the broader sector added 0.4%, but neither was able to close above its opening high.

Technology shares (+0.3%) also outperformed the broader market as major components provided the sector with a measure of support. Apple (AAPL 427.44, +0.93), IBM (IBM 194.00, +1.93), and Microsoft (MSFT 36.17, +0.50) all gained between 0.2% and 1.4%. However, chipmakers underperformed as the PHLX Semiconductor Index slipped 0.1%.

Industrials and materials climbed after China's second quarter GDP growth of 7.5% met expectations after some feared the reading could disappoint. In addition, the industrial sector received a boost from Dow component Boeing (BA 105.66, +3.79) after it was determined that Friday's fire aboard a 787 Dreamliner at London's Heathrow Airport was not caused by battery issues. Afternoon reports from the Wall Street Journal have suggested an emergency locator transmitter made by Honeywell (HON 82.30, -0.07) may have been the culprit.

While most cyclical sectors finished ahead of the broader market, the energy space ended lower by 0.1% and the discretionary sector shed 0.3%. Homebuilders lagged with the iShares Dow Jones US Home Construction ETF (ITB 23.11, -0.47) falling 2.0%.

With regards to countercyclical groups, the utilities sector stood out while consumer staples and health care were little changed. For its part, the telecom services sector lost 0.7% as AT&T (T 35.55, -0.26) and Verizon (VZ 49.96, -0.45) weighed. Over the weekend, AT&T offered to acquire Leap Wireless (LEAP 16.95, +8.97) for $15 per share, representing an 88.0% premium to Leap's Friday closing price.

Today's session featured below-average participation as only 567 million shares changed hands on the floor of the New York Stock Exchange. This total was only 85 million above the holiday-shortened session on July 3. However, the remainder of the week should prove to be more active as second quarter earnings pour in. In addition, Federal Reserve Chairman Ben Bernanke will appear before Congress on Wednesday and Thursday to take part in a semi-annual testimony.

Economic data of the day pointed to a 0.4% increase in June retail sales. That was below the Briefing.com consensus estimate, which called for an increase of 0.7%. Excluding autos, retail sales were flat, which was disappointing relative to the 0.4% consensus estimate.

Separately, May business inventories ticked up 0.1% after increasing 0.2% in April. The Briefing.com consensus expected inventory levels to decline 0.1%.

Tomorrow, June CPI and core CPI will be reported at 8:30 ET; May net long-term TIC flows will be announced at 9:00 ET; while June industrial production and capacity utilization will be released at 9:15 ET. The day's economic data will be topped off by the 10:00 ET release of the July NAHB Housing Market Index. On the earnings front, Coca-Cola (KO 41.01, -0.02), Goldman Sachs (GS 163.00, +2.89), and Johnson & Johnson (JNJ 90.40, +0.41) will report their results before the opening bell.DJ30 +19.96 NASDAQ +7.41 SP500 +2.31 NASDAQ Adv/Vol/Dec 1624/1.40 bln/873 NYSE Adv/Vol/Dec 1891/566.6 mln/1128
3:35 pm : Commodities ended the day mostly higher, with crude oil and natural gas gaining steam in the afternoon session and nat gas rallying into the close.

Natural gas rallied into the end of floor trading, rising 3.7% off its LoD to finish the day $0.03 higher at $3.67/MMBtu. Crude oil rose in the afternoon and into the close as well, coming back from below the $105 level and ended $0.37 higher at $106.30/barrel.

In the metals space, precious metals ended modestly higher, while copper prices lost one penny. Aug gold finished $6.30 higher at $1283.70/oz, while Sept silver ended $0.04 higher at $19.84/oz. Sept copper fell one penny to finish at $3.14/lb.

5:22PM Emulex announces leadership transition: Jeffrey W. Benck Appointed President and Chief Executive Officer; sees Q4 revs and EPS in-line with estimates (ELX) 8.32 +0.04 : Co announced that its board of directors has unanimously approved a leadership succession that will ensure a seamless transition and continued strong leadership at Emulex. As part of this, Jeffrey W. Benck, Emulex's current president and chief operating officer (COO), has been appointed president and chief executive officer (CEO) of Emulex and a member of the board of directors, effective immediately. James M. McCluney, who has served as Emulex's CEO since 2006, has been named executive chairman of the board, also effective immediately. Paul Folino will step down from his role as chairman and will continue as a director. Mr. Benck joined Emulex in 2008 as COO, and was promoted to president in 2010.

"Preliminary results for the fourth quarter include total net revenues of $119 to $120 million (vs $119.83 mln Capital IQ Consensus Estimate), which is at the midpoint of our May guidance of $118 to $122 million. Preliminary estimated Non-GAAP diluted earnings per share for the quarter are also expected to be in line with our May guidance of $0.11 to $0.13 per share (vs $0.12 Capital IQ Consensus Estimate)."

4:51PM MagnaChip Semi announces pricing of $225 mln of senior notes (MX) 19.12 +0.04 : Co announced today that it has priced a private offering of $225 million of its 6.625% Senior Notes due 2021 at an issue price of 99.5% of principal amount. The offering is expected to close on July 18, 2013. The net proceeds of this offering will be used to redeem all of its subsidiaries' outstanding $203.7 million in aggregate principal amount of 10.500% Senior Notes due 2018, including applicable premium and accrued interest, and to pay transaction fees and expenses related to the offering.

4:15PM Marvell appoints co-founder Dai as President (MRVL) 11.97 -0.04 : Co announced that its Board of Directors has appointed Weili Dai as president of the company, effective July 14, 2013.

Mid Cap Gainers

SUNE (9.52 +8.06%): Bloomberg reporting that China plans to increase solar capacity by 5x by 2015

LSI (LSI) introduced the LSI SAS 9300 host bus adapter family, the industry's first 12Gb/s solution for high-performance servers, workstations and external storage systems.

9:02AM Cohu's Semiconductor Equipment Group receives multi-unit order for next generation T-Core thermal subsystem (COHU) 13.25 : Co announced a multi-unit order for T-Core thermal subsystems that optimize testing of application processors used in mobile computing. The company's T-Core thermal technology enables higher test yield for ICs that power a wide range of smartphones, tablets, and other consumer devices. T-Core can be integrated in Cohu's production test handlers or in batch test systems for cost-effective, parallel testing of hundreds of ICs.

Cadence Design Systems (CDNS) announced that Ricoh selected the Cadence Palladium XP verification computing platform for its multifunction printer system-on-chip development, after an extensive competitive benchmarking process.

sTec (STEC) announced that Fujitsu Limited has selected sTec solid-state disks with the SAS interface and MLC multi-level cell technology as the core storage for its ETERNUS DX series storage systems.

10:02 am Riverbed Technology downgraded to Hold at Wunderlich: . Wunderlich downgrades RVBD to Hold from Buy. The firm says, checks indicate RVBD is achieving growing success with the 15+ mo. old Granite product line based on the value proposition of consolidating remote office servers, which it uniquely enables. They expect positive outlook commentary for the company's other green shoots as well,including Stingray applications, delivery controllers for cloud computing, and Riverbed Performance Management. However,they do envision sufficient upside for continued purchase at the current time and price level.

10:01 am V.F. Corp tgt raised to $220 at TAG ahead of earnings: . TAG is raising their tgt to $220 from $195; they are raising their 2Q13 EPS estimate by $0.05 to $1.16, on a higher operating margin forecast of 8.6% (vs. 8.2% previously), or roughly 70 bps above 7.9% a year ago. They remain positive on the VF story and continue to view the stock as a core holding in the apparel sector.

10:01 am 3D Systems tgt raised to $56 at Maxim Group: . Maxim Group raises their DDD tgt to $56 from $54; end-to-end portfolio of printers, materials and services position the co well for the long run opportunity.

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From Briefing.com: 4:10 pm : The S&P 500 ended lower by 1.4% as broad-based weakness persisted throughout the session. Stocks slumped at the open after disappointing guidance from Cisco Systems (CSCO 24.48, -1.89) and Wal-Mart (WMT 74.41, -1.99) combined with a spike in Treasury yields pressured the major averages.

Networking company Cisco reported a slight earnings beat, but its cautious demand outlook coupled with news of 4,000 layoffs caused the stock to slump 7.2%.

Separately, Wal-Mart fell 2.6% after reporting in-line results, and saying current quarter same-store sales are expected to be essentially flat.

In addition, the 10-yr yield spiked to its highest level in two years after today's jobless claims, in-line inflation, and the better-than-expected Empire Manufacturing data were perceived as supportive of the Fed cutting back on its asset purchases as early as September. The benchmark 10-yr yield ended higher by six basis points at 2.78% after climbing as high as 2.82%. Although yields ended off their highs, stocks settled on their lows.

All ten sectors finished in the red with seven of ten groups posting losses larger than 1.0% while, energy (-0.7%), materials (-0.8%), and telecom services (-0.9%) outperformed.

Of the three sectors, the materials space staged a notable partial recovery off its opening lows as gold miners contributed to the rebound. The Market Vectors Gold Miners ETF (GDX 30.43, +1.73) jumped 6.0% as gold futures advanced 2.2% to $1362.50 per troy ounce. Despite today's decline, the materials sector continues to hold an August gain of 1.4%.

Outside of materials, only the technology sector remains in positive territory for the month (+0.6%). However, the group led to the downside today as all top components registered losses. High-beta chipmakers underperformed as well with the PHLX Semiconductor Index falling 2.2%.

The technology sector was followed closely by the discretionary space. Although the sector tumbled 1.8%, homebuilders registered broad gains. The iShares Dow Jones US Home Construction ETF (ITB 21.30, +0.49) gained 2.4% after declining steadily through the first half of the month. Despite today's advance, the home builders ETF remains lower by 4.4% in August, and essentially flat for the year. The industry group rallied today after the August NAHB Housing Market Index rose to 59 from 56.

Today's opening sell off caused the CBOE Volatility Index (VIX 14.55, +1.51) to break out of its recent range after spending the entire month between 11.83% and 13.91%. The near-term volatility measure ended at its best level since mid-July as participants scrambled in search of protection.

Economic data was plentiful. The initial claims level fell to 320,000 for the week ending August 10 from an upwardly revised 335,000 (from 333,000) for the week ending August 3. That was the lowest initial claims reading since October 2007. The Briefing.com consensus expected the initial claims level to increase to 339,000. More importantly, the Department of Labor announced that there was nothing unusual in the claims data. The large drop in layoffs was a result of improvement in labor conditions and not from statistical anomalies.

Industrial production was flat in July after increasing a downwardly revised 0.2% (from 0.3%) in June. The Briefing.com consensus expected industrial production to increase 0.4%. The report serves as a prime example of why we do not follow the ISM and regional manufacturing surveys very closely.

According to the surveys, production levels in July increased to their highest point since May 2004 and had the largest one-month gain since June 2009. If these surveys accurately portrayed the manufacturing sector, then the manufacturing component of industrial production should have risen by at least 1.0% in July. In actuality, manufacturing production declined 0.1% in July after rising a downwardly revised 0.2% (from 0.3%) in June.

Moving on, the Philadelphia Fed's Business Outlook dropped from 19.8 in July to 9.3 in August. The consensus expected the index to fall to 10.0.

Also of note, consumer prices rose 0.2% in July. That was down from a 0.5% gain in June and exactly what the Briefing.com consensus expected. Energy prices were up 0.2% after increasing 3.4% in June. Gasoline costs increased 1.0%, but much of that gain was offset by a 2.8% decline in residential natural gas prices. Food prices rose 0.1%. Excluding food and energy, core prices rose 0.2% for a third consecutive month, which is what the consensus expected.

Tomorrow, July housing starts, building permits, second quarter productivity, and unit labor costs will all be reported at 8:30 ET. In addition, the preliminary reading of the August Michigan Consumer Sentiment Survey will cross the wires at 9:55 ET.DJ30 -225.47 NASDAQ -63.16 SP500 -24.07 NASDAQ Adv/Vol/Dec 479/1.68 bln/2069 NYSE Adv/Vol/Dec 456/721.2 mln/2638

3:35 pm :

Sep crude oil rose for a fifth consecutive session as supply concerns increased over the escalating violence in Egypt. The energy component traded as high as $107.85 per barrel and settled with a 0.4% at $107.34 per barrel.
Sep natural gas gained support on inventory data that showed a build of 65 bcf when a larger build of 69-70 bcf was anticipated. Prices rose as high as $3.43 per MMBtu from a session low of $3.31 per MMBtu.
Natural gas settled 2.4% higher at $3.42 per MMBtu.
Dec gold and Sep silver slipped to their respective session lows of $1317.90 and $21.70 per ounce following numerous economic data released this morning that included Initial Claims and CPI. However, both metals found buying support and lifted into positive territory.
Gold surged in a late rally to a session high of $1367.90 per ounce as chatter circulated that a tier 1 firm was buying gold and while the dollar index sold off sharply. It settled with a 0.4% gain at $1359.70 per ounce.
Silver popped to a session high of $23.19 per ounce and settled with a solid 5.2% gain at $22.91 per ounce.

4:12PM Applied Materials misses by $0.01, misses on revs; guides Q4 EPS below consensus, revs below consensus (AMAT) 15.33 -0.41 : Reports Q3 (Jul) earnings of $0.18 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.19; revenues fell 15.7% year/year to $1.98 bln vs the $2.06 bln consensus.

Co issues downside guidance for Q4, sees EPS of $0.16-0.20, excluding non-recurring items, vs. $0.21 Capital IQ Consensus Estimate; sees Q4 revs of ~flat compared to prev quarter or ~$1.975 bln vs. $2.14 bln Capital IQ Consensus Estimate.

Applied generated orders of $2.00 bln, down 12 percent from the prior quarter as a seasonal decline in foundry bookings was partially offset by growth in memory and logic orders along with higher bookings in the Display Group and Applied Global Services.

Silicon Systems Group orders were $1.20 bln, down 22 percent, due to a decrease in foundry orders, partially offset by increases in memory and logic orders. Net sales of $1.27 bln declined 1 percent. Display orders were $256 mln, up 31 percent led by a recovery in TV equipment demand.

Gross margin was 42.9 percent on a non-GAAP adjusted basis, down slightly from 43.2 percent in the prior quarter.

"Consumers' appetite for mobile devices and larger TVs is driving healthy demand for our semiconductor and display equipment...We are seeing stronger investment by our memory customers, and our display business booked its highest orders in over two years."

4:02PM Applied Materials names Gary E. Dickerson as Chief Executive Officer; Michael R. Splinter to Serve as Executive Chairman (AMAT) 15.33 -0.40 : Co announced that its Board of Directors has appointed Gary E. Dickerson as president and chief executive officer (CEO) and Michael R. Splinter as executive chairman of the Board of Directors, effective September 1, 2013. Mr. Dickerson also was elected a member of the Board of Directors, effective at the same time. Mr. Dickerson is currently president of Applied Materials and succeeds Mr. Splinter who has served as the Company's CEO since 2003.

4:06PM Dell beats by $0.01, beats on revs (DELL) 13.71 -0.02 : Reports Q2 (Jul) earnings of $0.25 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.24; revenues rose 0.2% year/year to $14.51 bln vs the $14.15 bln consensus.

Operating Segments Summary:

Enterprise Solutions Group revenue was $3.3 billion, an 8% increase. Operating income for the quarter was $137 million, a 9% decrease. Dell server, networking and peripherals revenue increased 10%, the fifth consecutive quarter of growth for this business, driven by continued strength in hyper-scale data center servers. Dell networking continued to grow, with a 19% revenue increase. Dell storage revenue declined 7%.

Dell Services revenue was $2.1 billion, up 2%, driven by a 3% increase in support and deployment revenue and a 5% increase for infrastructure, cloud and security services revenue. Applications and business process services revenue declined 6%. Total Services operating income was $339 million, a 1% increase.

Dell Software revenue was $310 million, and recorded an operating loss. The co is continuing to enhance its software capabilities with investments in this business that increase R&D and sales capacity.

End User Computing revenue was $9.1 billion in the quarter, a 5% decrease. Operating income for the quarter was $205 million, a 71% decrease. Dell desktop and thin client revenue increased 1%, mobility revenue declined 10%, and revenue from software from third parties and peripherals declined 5%. Dell was the only vendor among the top five worldwide to increase PC unit-shipment share both year over year and sequentially in the past two calendar quarters, according to IDC.

Given the co's announcement on Feb. 5 of a definitive merger agreement to take Dell private, the co is not providing an outlook.

3:32PM Photronics correction: Co did not acquire a building in Plymouth, MN to expand Protomold capacity (PLAB) 7.57 -0.24 : The comment should have been posted under Proto Labs (PRLB); the original comment has been deleted.

Large Cap Gainers

KSS (53.1 +4.45%): Reported EPS in-line, revs in-line; guided Q3 EPS below consensus, revs in-line; lowered top end of FY14 EPS below consensus; Q2 comps +0.9%.
EL (68.33 +4.91%): Beat on EPS by $0.03, reported revs in-line; guided Q1 and FY14 EPS below consensus.
TU (31.15 +4.64%): Co to purchase up to 6.5 mln common shares under its normal course issuer bid through private agreements.

Large Cap Losers

CSCO (24.72 -6.29%): Beat on EPS by $0.01, reported revs in-line; sees Q1 revs in the range of 3-5% y/y vs $12.46 bln (~ +4.9% y/y) Capital IQ Consensus Estimate, sees Q1 non-GAAP EPS of $0.50-0.51 vs $0.51 Capital IQ Consensus Estimate; said it will reduce its workforce by about 5%; upgraded to Neutral from Cautious at ISI Group; heard defended at Deutsche Bank; heard BofA/Merrill said expectations were too high, reiterated Buy rating.
MU (14.19 -4.25%): Downgraded to Neutral from Outperform at Robert W. Baird.
TRIP (71.42 -2.9%): Heard ests lowered at Barclays on more muted Q3 outlook.

Mid Cap Gainers

DDS (84.58 +7.12%): Beat on EPS by $0.05, missed on revs.
SLW (26.05 +3.62%): Missed on EPS by $0.05, missed on revs; reported record Q2 production: attributable silver equivalent production of 8.6 mln ounces vs 6.7 mln in prior year; declared dividend of $0.10 vs $0.12 prior dividend.
JCP (13.6 +3.74%): DailyMail discussed speculation that Bill Ackman will soon be working with PE firms to take JCP private at 'substantial premium'; Soros disclosed new ~20 mln share stake.

Mid Cap Losers

PPC (16.66 -10.33%): Downgraded to Equal Weight at boutique firm.
VIPS (41.58 -9.52%): Beat on EPS by $0.02, beat on revs; guided Q3 revs in-line.
ONXX (115.53 -7%): Lower on reports of stalled merger with AMGN; heard ISI Research defending ONXX; believes deal will go through; heard defended at Deutsche Bank; M&A looks likely.

11:19AM Floor Talk (TALKX) : It has been a trend down day since the opening bell as sellers have controlled the action. There are manifold reasons for the broad-based weakness that has each of the major averages down at least 1.2%, but there are several clear-cut reasons why the stock market is struggling today:

Both Cisco (CSCO 24.43, -1.95) and Wal-Mart (WMT 74.65, -1.75) fueled growth concerns with their disappointing guidance and cautious-sounding remarks about customer demand
The S&P 500 broke through some minor support levels, as well as its 50-day ema at 1666/1664
The yield on the 10-yr note has spiked to 2.80%

The jump in long-term rates has been an especially interesting development as it is presumably predicated on the belief that the Fed is going to make a tapering announcement at next month's FOMC meeting. That view was cast after the encouraging report this morning on initial claims, which fell to their lowest level since October 2007. The industrial production report for July, however, provided a counterpoint to the tapering expectation since it showed production was unchanged last month, led by a 0.1% decline in manufacturing output, and that capacity utilization slipped to 77.6% from 77.7%.

Notwithstanding today's mixed batch of economic data that also included an in-line CPI report, a better-than-expected Empire Manufacturing Index, a higher-than-expected NAHB Housing Market Index, and a weaker-than-expected Philadelphia Fed Index, the Treasury market still remains pinned to the mat of September tapering expectations, having garnered little buying interest in the face of the stock market's notable weakness today.

There are some irreconcilable messages, though, in the similarly weak showings by the stock and bond markets. If there is a true tapering trade in Treasuries, that would be based on the recognition that the economy is strengthening -- something that should be viewed as a positive development by the stock market given the favorable implications for corporate profits. Cisco's and Wal-Mart's guidance, though, have undercut that macro view, which leads one to wonder if the weakness in Treasuries today could also be a function of concerns that the Fed is losing its grip on things.

In the same vein, the stock market is no doubt grappling with the concern that a rise in long-term rates threatens to slow the economic recovery, and an even bigger concern today in thinking the Fed risks really putting a break on things with a tapering in September given the inconclusive messages in the data about economic activity. So, one could argue that the stock market is being buffeted today by weak guidance at the micro level and concerns the macro picture isn't yet strong enough to handle higher interest rates that come either via the Fed's hand or the market's own hand.

11:01AM Agilent announces expanded business relationship with Gradient Design Automation (A) 47.67 +1.16 : Co announced a new agreement that expands its business relationship with Gradient Design Automation. As part of the agreement, Agilent has increased its financial commitment in exchange for increased access to Gradient's technology.

ANADIGICS (ANAD) announced that the co's AWL9581 front-end integrated circuit enables 5 GHz 802.11ac WiFi connectivity in the new G2 by LG Electronics.

9:12AM JDS Uniphase plans to offer up to $575 mln principal amount of its Senior Convertible Debentures due 2033 (JDSU) 14.23 : The interest rate, initial conversion rate and other terms of the notes will be determined by negotiations between JDSU and the initial purchasers of the notes. Co plans to use up to $100 million of the net proceeds from the offering of the notes to repurchase shares of its outstanding common stock in privately negotiated, transactions, which may be effected through one or more of the initial purchasers of the notes or their respective affiliates, concurrently with the consummation of the offering. The remaining net proceeds will be used for general corporate purposes including potential strategic transactions. Contingent and effective upon the closing of the offer and sale of the notes, JDSU intends to terminate its existing $250 million revolving credit facility, which currently has no amounts outstanding.

9:03AM Canadian Solar announced that it has filed a prospectus supplement to sell up to an aggregate of $50.0 mln of its common shares through an at-the-market equity offering program (CSIQ) 12.00 : Co announced that it has filed a prospectus supplement to sell up to an aggregate of US$50.0 million of its common shares through an at-the-market equity offering program. The common shares will be offered through Credit Suisse as sales agent. Sales, if any, of the common shares under the at-the-market equity offering program will be made from time to time, at the Co's discretion, by means of ordinary broker transactions, including on the NASDAQ, in negotiated transactions at market prices, or as otherwise agreed with the sales agent. Canadian Solar intends to use the net proceeds from the sales of its common shares for general corporate purposes, which may include solar power project development expenses and working capital.

7:46AM Volterra Semi to be acquired by Maxim Integrated (MXIM) for $23/share; Maxim expects transaction to be immediately accretive to GAAP EPS, excluding special items (VLTR) 14.80 : Co announced it has entered into a definitive agreement to acquire Volterra Semiconductor (VLTR) for $23 per share, which represents a 55% premium to Volterra Semiconductor's closing share price on August 14, 2013. The transaction value is ~$605 mln equity value or $450 mln net of Volterra's cash position of ~$155 mln. Pending regulatory approvals, Maxim's acquisition of Volterra is expected to close early in the December quarter. Transaction valued at $605 mln equity value; $450 mln enterprise value.

TranSwitch (TXCC) is working with InFocus to leverage HDplay technology in several upcoming projectors.

Agilent (A $48.45 +1.94) reported third quarter earnings of $0.68 per share, excluding non-recurring items, which is better than expected, while net revenues fell 4.1% year/year to $1.65 billion which is line with expectations. The company issued fourth quarter EPS of $0.75-0.77 which is line with expectations, with revenues of $1.70-1.72 billion which is line with expectations. The company reported orders of $1.60 billion down 4% YoY. "Although we are operating in a very challenging economic environment, we are pleased with our operational performance, as we continue to make progress improving our manufacturing efficiency and streamlining our expense structure. The result has been better than forecasted operating margins."

07:47 am Cisco Systems shares fall 7% following inline earnings/guidance and workforce reductions
Cisco Systems (CSCO $24.35 -2.03) reported fourth quarter earnings of $0.52 per share, excluding non-recurring items, which is better than expected, while revenues rose 6.2% year/year to $12.42 billion which is line with expectations. Cash flows from operations were $4.0 billion for the fourth quarter of fiscal 2013, compared with $3.1 billion for the third quarter of fiscal 2013, and compared with $3.1 billion for the fourth quarter of fiscal 2012.

Cash and cash equivalents and investments were $50.6 billion at the end of the fourth quarter of fiscal 2013, compared with $47.4 billion at the end of the third quarter of fiscal 2013, and compared with $48.7 billion at the end of the fourth quarter of fiscal 2012. Cisco repurchased approximately 47 million shares of common stock under the stock repurchase program at an average price of $24.80 per share for an aggregate purchase price of $1.2 billion.

On the conference call the company guided for first quarter revenues in the range of 3-5% y/y which is within the range of expectations with Non-GAAP EPS of $0.50-0.51 which is line with expectations.

The company also announced it is rebalancing costs with work force reduction (approximately 4K employees or 5% of workforce) starting in Q1.

07:45 am NetApp shares fall 4% following better than expected earnings
NetApp (NTAP $40.64 -1.69) reported first quarter earnings of $0.53 per share, which is better than expected, while revenues rose 4.9% year/year to $1.52 billion which is below expectations. The company issued guidance for the second quarter with EPS of $0.60-0.65 which is line with expectations, with revenues of $1.56-1.66 billion which is line with expectations.. "NetApp delivered solid results and innovation with the latest release to our clustered Data ONTAP operating system... Despite an uneven macro environment, our branded business was strong, with 9% year-over-year growth. This is evidence of the tremendous value we are delivering to customers today and their confidence in our long-term strategy to enable them to navigate the future."

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From Briefing.com: 4:20 pm : The S&P 500 settled higher by 0.3% to follow yesterday's 1.6% slide. Although the benchmark index advanced, it was unable to retake its 100-day moving average.

Eight of ten sectors finished in positive territory with energy leading the way. The sector displayed significant strength, climbing 1.8%, after outperforming during yesterday's session. Thanks to today's jump, energy is the only sector trading in positive territory this month.

On a related note, crude oil rose 0.4% to $109.40 per barrel, and has gained almost 12.0% so far this quarter amid increased tensions in the Middle East. Oil prices bear watching over the coming days as the continued strength has the potential to pose as a headwind to economic growth.

The Dow Jones Transportation Average is one of the groups with increased sensitivity to energy prices. The bellwether complex underperformed with a loss of 0.1% after falling 2.6% during yesterday's session. The weakness in transports weighed on the industrial sector, which added less than 0.1%.

Overall, today's rebound was not very robust. Yesterday, six sectors lost more than 1.0%, and today, none of those six advanced more than 0.4%. Outside of energy, only health care and discretionary shares finished ahead of the S&P.

The health care space advanced 0.4% as biotechnology rallied. The iShares Nasdaq Biotechnology ETF (IBB 193.32, +2.05) rose 1.1%, which helped the Nasdaq outperform the broader market.

Elsewhere, the discretionary space gained 0.4% as retailers displayed strength. Express (EXPR 21.10, +1.30) jumped 6.6% following its in-line report while the SPDR S&P Retail ETF (XRT 77.79, +0.43) finished higher by 0.6%. While most discretionary components advanced, home builders lagged as the iShares Dow Jones US Home Construction ETF (ITB 20.56, -0.10) slipped 0.5%.

Countercyclical sectors ended in mixed fashion as utilities (+0.3%) settled in-line while consumer staples (-0.7%) and telecom services (-0.5%) lagged.

Treasuries finished on their lows with the benchmark 10-yr yield tacking on six basis points to 2.78%.

Today's session saw below-average trading volume as less than 600 million shares changed hands on the floor of the New York Stock Exchange.

The weekly MBA Mortgage Index remained in a downtrend with today's 2.5% fall marking the fourteenth decline out of the past sixteen readings including last week's 4.6% slide.

Separately, July pending home sales fell 1.3%, which was worse than the 0.2% increase forecast by the Briefing.com consensus. Today's reading follows last month's decrease of 0.4%.

Tomorrow, weekly initial claims and the second estimate of second quarter GDP will be reported at 8:30 ET.

The U.S. Treasury will auction $29 billion in 7-yr notes.DJ30 +48.38 NASDAQ +14.83 SP500 +4.48 NASDAQ Adv/Vol/Dec 1454/1.33 bln/1057 NYSE Adv/Vol/Dec 1672/598.8 mln/1329

3:30 pm :

Oct crude oil rose for a fifth consecutive session on continued concerns over unrest in the Middle East. The energy component chopped around near the $110.00 per barrel level after pulling back from a high of $112.24 per barrel set in overnight action, its highest level since May 2011. It eventually settled at $110.07 per barrel, or 1.0% higher
Sep natural gas erased earlier losses after trading as low as $3.51 per MMBtu in morning pit trade. It broke into positive territory in last half hour of the floor session and closed 0.3% higher at $3.58 per MMBtu
Precious metals retreated into negative territory as the dollar index gained strength
Dec gold pulled back from its session high of $1431.00 per ounce and eventually settled with a 0.1% loss at $1418.70 per ounce
Sep silver brushed a session low of $24.22 per ounce after trading as high as $25.00 per ounce earlier in the session. It closed 1.1% lower at $24.38 per ounce

4:16PM Altera Board increases share repurchase authorization by an additional 30 mln shares to 41.1 mln (13% of shares outstanding) (ALTR) 34.79 +0.26 :

Atmel (ATML) is shipping in production quantities its new Atmel SAM D20, the first series in a new family of ultra-low power embedded Flash microcontrollers based on the ARM CortexM0+ processor.

07:24 am Arch Coal resumed with a Outperform at FBR Capital; tgt $6: . FBR Capital resumes coverage of ACI with a Outperform and sets target price at $6 after the co closed the divestiture of its Canyon Fuel subsidiary to Bowie Resources for $423M in net proceeds. They are also introducing our pro forma estimates to reflect the removal of expected earnings contributions from the divested assets. They continue to believe that the co has done a good job of extending debt maturities to wait for improvement in coal markets and selectively trimming the asset portfolio to opportunistically de-leverage the balance sheet. With the completion of the divestiture, Arch Coal has a pro forma cash balance of $1.3B (including marketable securities), a majority of which could be used to pay down debt once coal markets stabilize and ACI resumes FCF generation.

Market Summary
[Edit]
streaming quotes: ON
Chart for NASDAQ Composite Index (^IXIC)
Chart for Dow Jones Industrial Average Index (^DJI)
Symbol Last Change
Dow 14,824.51 Up 48.38(0.33%)
Nasdaq 3,593.35 Up 14.83(0.41%)
S&P 500 1,634.96 Up 4.48(0.27%)
10-Yr Bond 2.7820% Up 0.0610
NYSE Volume 0
Nasdaq Volume... 0
Indices: US - World | Most Actives
Advances & Declines
NYSE NASDAQ
Advances 2,206 (53%) 1,427 (55%)
Declines 1,843 (44%) 1,073 (41%)
Unchanged 134 (3%) 94 (4%)
Up Vol* 1,655 (53%) 892 (66%)
Down Vol* 1,391 (45%) 440 (33%)
Unch. Vol* 71 (2%) 18 (1%)
New Hi's 56 63
New Lo's 171 48
*in millions
more...
Most Actives
NYSE LAST CHANGE
BAC 14.12 Up 0.07%
VXX 16.48 Down 0.30%
F 16.02 Up 0.88%
JCP 12.76 Down 3.11%
C 48.31 Up 0.15%
Nasdaq LAST CHANGE
FB 40.55 Up 2.29%
MSFT 33.02 Down 0.72%
MU 13.24 Up 0.46%
BBRY 10.30 Up 2.70%
INTC 22.28 Up 0.42%

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Does this index indicate an impending market top?



RtS

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Market tops are made as market breadth weakens when compared to previous strength. Although I have been highly skeptical of this market advance almost since the day it began in March of 2009 it's not likely done making new highs before it tops.

The Fed has done a tremendous job of making the stock market look attractive to investors. There are a lot of warning signs out there to me. We've been discussing them for some time.

My recent research indicates that if the next market top comes with poor market breadth then it might be the final nail. But that would be true only if the next top comes with a huge drop in new highs for the market.

There are 1514 stocks on the NYSE:

http://en.wikipedia.org/w/index.php?title=Category:Companies_listed_on_the_New_York_Stock_Exchange&pagefrom=United+Continental+Holdings#mw-pages

On average the last 14 major market tops since 1900 were formed while only about 6% of the listed stocks were hitting new highs. At the most recent high for the NYSE almost 400 stocks hit new highs on the day.



That was about 25% of the stocks on the NYSE hitting new highs on that day. This may be the most insightful post I have ever shared here because I do think it helps to clear up why the bulls are still right for now. It does not matter how valid our worries might be about the market as long as it can see that kind of participation while making new highs the bull is healthy.

RtS

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From Briefing.com: 4:20 pm : The S&P 500 settled higher by 0.8%, regaining its 100-day moving average (1640/1641) shortly after the open. The Dow and S&P started the session by chopping around their respective flat lines before the two indices began tracking the Nasdaq, which outperformed with a gain of 1.0%.

This morning, reports from Fox News indicated Senator John McCain was set to oppose the current Syria proposal after saying he would do so if the plan was not forceful enough. However, an afternoon vote containing two McCain amendments passed through the Senate Foreign Relations Committee by a 10-7 vote. The full Senate is expected to have a say on the measure next week.

Stocks slipped from their highs in reaction to the results of the afternoon vote, but still managed to hold the vast majority of their gains. Meanwhile, Treasuries did not reflect much of a safety bid as the complex remained pinned to its lows. The benchmark 10-yr yield ended higher by 5 basis points at 2.894%. More notable was the move in the 2-yr yield, which added four basis points to end at 0.462%, the highest since June 2011.

Nine of ten sectors posted gains with health care (+1.1%) ending in the lead. The sector received significant support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 201.38, +3.53) climbed 1.8%.

The outperformance of biotech and technology helped the Nasdaq settle ahead of the other indices. The largest tech component, Apple (AAPL 498.69, +10.11) advanced 2.1% following reports suggesting the company will unveil a new TV set-top box at its September 10 press event.

Today's Nasdaq strength was not an unusual development. The tech-heavy index has outpaced the other indices throughout the third quarter. The index is higher by 7.2% since the end of June while the Dow is essentially unchanged (+0.1%) over that time.

Outside of health care and technology, industrials (+1.0%), materials (+0.9%), telecom services (+1.3%), and discretionary shares (+1.0%) settled ahead of the broader market. The financial sector (+0.8%) was the early leader, but surrendered its spot as the afternoon progressed.

The utilities space (-0.1%) was the lone decliner while consumer staples (+0.5%) and energy (+0.5%) underperformed. On a related note, crude oil slid 1.1% to $107.35 per barrel.

Participation in today's session was in-line with longer-term averages as just under 730 million shares changed hands on the floor of the New York Stock Exchange.

The Federal Reserve's September Beige Book did not send any shockwaves through the market as the central bank struck a familiar tone. The Fed said, "The economy has continued to expand at a modest to moderate pace" while residential real estate activity, "Increased moderately in most Districts." Lending activity was described as "mixed" with little change observed in lending standards.

With regards to employment and inflation, the Fed said hiring "held steady or increased modestly" while upward price pressures "remained subdued."

Today's economic data was limited to the July trade deficit, which widened to $39.1 billion from an upwardly revised $34.5 billion in June (from -$34.2 billion). The Briefing.com consensus expected the deficit to come in at $38.2 billion.

The widening in the deficit resulted from imports increasing $3.5 billion versus June and exports decreasing $1.1 billion. The drop in exports was paced by a $1.6 billion decline in exports of capital goods, excluding automotive, and a $1.36 billion decline in exports of consumer goods, the bulk of which stemmed from a pullback in exports of jewelry, gem diamonds, and artwork, antiques and stamps.

Conversely, imports increased on the back of a near $2.0 billion jump in imports of industrial supplies and materials, a $0.8 billion increase in imports of automotive vehicles, and a $0.7 billion increase in consumer goods, most of which stemmed from imports of artwork, antiques and stamps. The widening in the trade deficit is going to factor negatively in GDP models for the third quarter.

Tomorrow, August Challenger Job Cuts will be reported at 7:30 ET, August ADP Employment Change will cross the wires at 8:15 ET, and weekly initial claims will be released at 8:30 ET. Also at 8:30 ET, revised second quarter productivity and unit labor costs will be reported. The busy day of data will be topped off with the 10:00 ET release of July factory orders and the August ISM Services report.DJ30 +96.91 NASDAQ +36.43 SP500 +13.31 NASDAQ Adv/Vol/Dec 1650/1.74 bln/867 NYSE Adv/Vol/Dec 2150/728.1 mln/859

3:30 pm :

Crude oil and precious metals traded lower today despite a weaker dollar index. Investors reacted to opposition to an attack on Syria.
Reports indicated that Russian President Vladimir Putin said the U.S. had no right to strike Syria without UN approval. In addition, Fox News reported that Senator John McCain is opposing the current Syria proposal.
Dec gold fell back below $1400.00 per ounce, dipping to a session low of $1384.60 per ounce. It settled at $1390.10 per ounce, booking a 1.6% loss.
Dec silver retreated from its session high of $23.80 per ounce and settled 1.4% lower at $23.43 per ounce.
Oct crude oil pulled back from its session high of $108.14 per barrel set at pit trade open and dipped as low as $106.84 per barrel. It eventually settled at $107.19 per barrel, or 1.3% lower.
Natural gas, on the other hand, extended yesterday's gains despite spending most of its session in negative territory. It came off its session low of $3.64 per MMBtu and broke into the black as it headed towards the close, settling with a 0.3% gain at $3.68 per MMBtu.

4:35PM JinkoSolar Holding to supply 23 MW PV modules to Swinerton Builders for California solar farm (JKS) 18.99 +0.62 : Co announced that it will supply 23MW of Solar PV modules to Swinerton Builders, a leading US Engineering and Construction Company and Clenera, a clean energy finance and management firm. According to terms of the agreement, deliveries will be completed during the 4th quarter of 2013. Swinerton will utilize JinkoSolar's 300W 72 cells high-efficiency PV modules in its construction of the Westland Solar Farms, LLC ground-mounted solar plant in Fresno County, California. When completed, this Utility Scale Solar Farm will provide electricity to PG&E.

2:18PM Qualcomm confirms its wholly-owned subsidiary, Qualcomm Connected Experiences, will release a Qualcomm branded smartwatch in Q4 of 2013 (QCOM) 67.34 +0.59 : Designed to serve as a second display to a smartphone, the Qualcomm Toq smartwatch will feature proprietary Qualcomm MEMS Technologies' Qualcomm Mirasol display technology, a reflective, low-power display that enables an always on viewing experience, wireless charging by Qualcomm WiPower LE technology and a true stereo Bluetooth audio experience, all while offering its wearer long battery life with seamless connectivity to their smartphone.

Large Cap Gainers

DG (56.61 +5.07%): Beat quarterly EPS by $0.03 ($0.77 ex items vs $0.74 estimate), revs rose 11.3% yoy to $4.39 bln vs $4.36 bln estimate; reaffirmed FY14 EPS of $3.15-3.22 ex items vs $3.21 estimate, revs +10-11% (~$17.62-17.78 bln) vs $17.72 bln estimate; Q2 same store sales rose 5.1%
MET (48.92 +3.89%): Upgraded to Overweight from Equal-Weight at Barclays
MU (14.49 +3.41%): Reports earlier said competitor SK Hynix experienced a fire at one of its plants in China; recent speculation that there was little damage caused stock to give up some gains

Large Cap Losers

RYAAY (44.85 -8.20%): Co said it could miss its full-year profit forecast following a decline in bookings due to competition and weakness in the British Pound; downgraded to Neutral from Buy at UBS
KMI (36 -4.18%): Initiated with a Hold at Jefferies; KMP also initiated with a Hold at Jefferies
MSFT (31.22 -2.07%): Downgraded to Equal-Weight from Overweight at Morgan Stanley

Mid Cap Gainers

CIEN (23.12 +11.79%): Beat quarterly EPS by $0.07 ($0.23 vs $0.16 estimate), revs rose 13.6% yoy to $538.4 mln vs $533.51 mln estimate; sees Q4 revs of $550-580 mln vs $550.91 mln estimate
ETFC (15.75 +8.32%): Subsidiary E*TRADE Bank has received regulatory approval to dividend capital to the company's parent; $100 mln capital distribution will take place during September
JCP (13.59 +6.84%): Glenview Capital reported a 9.1% stake

Mid Cap Losers

NAV (31.93 -6.12%): Reported Q3 loss of -$2.94 per share (may not compare to -$1.30 estimate), revs fell 11.9% yoy to $2.86 bln vs $2.97 bln estimate
SAI (14.32 -5.45%): Missed quarterly EPS by $0.10 ($0.13 vs $0.23 estimate), revs fell 12.5% yoy to $2.47 bln vs $2.56 bln estimate; sees FY14 EPS of $0.95-1.03 vs $1.15 estimate, revs of $9.7-10.2 bln vs $10.37 bln estimate
GWRE (44.43 -4.41%): Beat quarterly EPS by $0.11 ($0.25 ex items vs $0.14 estimate), revs rose 43.3% yoy to $96.9 mln vs $93.1 mln estimate; sees FY14 EPS of $0.20-0.24 vs $0.44 estimate, revs of $328.5-340.5 mln vs $348.02 mln estimate; sees Q1 EPS of -$0.18 to -$0.15 vs $0.03 estimate, revs of $61.4-63.4 mln vs $72.02 mln estimate; downgraded to Sell from Neutral at Citigroup

7:32AM Microchip narrows Q2 revenue guidance in line with consensus (MCHP) 39.19 : Co narrows guidance for Q2 (Sep), sees Q2 (Sep) revs of +3-5% to ~$476-485 mln vs. $476.00 mln Capital IQ Consensus Estimate. Microchip previously provided guidance on July 31, 2013 for net sales to be up between 2% and 6% sequentially.

"Bookings activity in our business has been strong in July and August. The September quarter is progressing as we expected and we are narrowing the range of our revenue guidance, but leaving the midpoint of our guidance unchanged,"

7:08AM Ciena beats by $0.07, reports revs in-line; guides Q4 revs above consensus (CIEN) 20.68 : Reports Q3 (Jul) earnings of $0.23 per share, $0.07 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 13.6% year/year to $538.4 mln vs the $533.51 mln consensus. Two customers accounted for greater than 10% of revenue and represented 31.8% of total revenue

Co issues guidance for Q4, sees Q4 revs of $550-580 vs. $550.91 mln Capital IQ Consensus Estimate.
Sees adjusted (non-GAAP) gross margin in the low 40s percent range
Sees adjusted (non-GAAP) operating expense in the high $190s million range]

08:56 am Nokia downgraded to Hold at Argus on Microsoft's handset purchase: . Argus downgrades NOK to Hold from Buy following the announced sale of Nokia's handset business to Microsoft. Following the handset divestiture, which is likely to take place in calendar 1Q13, Nokia will remain a leader in wireless networks and location (mapping) services while retaining a significant intellectual property portfolio. Nokia is also licensing its handset patent portfolio to Microsoft. The deal immediately provides Nokia access to 1.5 billion euros in short-term financing, which it may use to buy out Siemens' interest in the NSN venture. Deal terms also provide Nokia with a $750 million payment if the deal is blocked by regulators.

SAIC (SAI) awarded contract by LSB Industries worth approximately $118 mln over two years. Under the contract, co will provide EPC services, including foundations, structural steel, electrical, and instrumentation; cost control and scheduling; quality control; and overall project construction for the 1350-ton-per-day ammonia plant. This ammonia plant will provide feedstock for other units at the facility with excess production used to supply an ammonia pipeline or other customers.

LinkedIn (LNKD) announced proposed follow-on offering; announced that it is commencing an underwritten registered public offering of $1 billion of shares of its Class A common stock. The principal purposes of the offering are to increase co's financial flexibility and to further strengthen its balance sheet. Co intends to use the net proceeds of the offering primarily for general corporate purposes, including working capital, expansion of its product development and field sales organizations, international expansion, general administrative matters and for capital expenditures, including infrastructure. It may also use a portion of the net proceeds from the offering for potential strategic acquisitions of, or investments in, complementary businesses, technologies or other assets. The lead bookrunning managers of the proposed offering are J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. Goldman, Sachs & Co. and BofA Merrill Lynch are acting as joint bookrunning managers of the proposed offering. Allen & Company LLC is acting as co-manager.

Guidewire Software (GWRE) reported fourth quarter earnings of $0.25 per share, excluding non-recurring items, which was better than expected, while revenues rose 43.3% year/year to $96.9 million which is higher than expected. Total license revenue, including term and perpetual licenses, for Q4 was $49.1 million, an increase of 70% YoY. Recurring term license revenue was $44.9 million, a 64% increase from a year ago and revenue from perpetual licenses was $4.2 million compared with $1.6 million a year ago. Maintenance revenue was $9.9 million, up 26% from the comparable period in fiscal 2012, and services revenue was $38.0 million, up 23% from the comparable period in fiscal 2012. Rolling four-quarter recurring term license and maintenance revenue was $150.4 million, an increase of 44% from the comparable period in fiscal 2012. The company sees FY14 revs of $328.5-340.5 million which is below expectations with first quarter revenues of $61.4-63.4 million which is below expectations. The company sees FY14 non-GAAP EPS of $0.20-0.24 which is below expectations with Non-GAAP EPS of ($0.18)-($0.15) which is below expectations.

SciQuest (SQI) announced it had acquired CombineNet, a provider of advanced sourcing software to large companies with complex procurement needs. SciQuest purchased 100% of the outstanding stock of CombineNet, Inc. for total consideration of approximately $43 million comprised of approximately $26 million in cash and approximately 820,000 shares of common stock. SciQuest expects CombineNet to generate approximately $1 million of non-GAAP revenues per month during the remainder of 2013. Inclusive of integration costs, the Company expects the acquisition to have an approximately neutral impact in the third quarter and full year 2013 on non-GAAP diluted net income per share and adjusted free cash flow. Over time, SciQuest expects to be able to increase CombineNet's revenue growth rate, operating margins and free cash flow margins to be in-line with those of the overall company. The financial impact of the acquisition on a GAAP basis cannot be estimated until the allocation of the purchase price is made following the closing of the acquisition.

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From Briefing.com: 4:20 pm : The S&P 500 added 0.4%, snapping its five-day losing streak that saw the index surrender almost 2.0%. Although the benchmark average settled in the green, it was unable to maintain all of its early gain or register a close above the 1,700 level.

In general, some of today's price action resembled that of yesterday with the S&P making two unsuccessful runs at 1,700. However, unlike yesterday, the major averages ended in positive territory with the Nasdaq in the lead (+0.7%).

The tech-heavy index benefitted from the outperformance of biotech as the iShares Nasdaq Biotechnology ETF (IBB 210.16, +3.40) climbed 1.6%. Meanwhile, major traditional tech companies were mixed. Apple (AAPL 486.22, +4.69) advanced 1.0% and Intel (INTC 23.41, -0.29) lost 1.2%. The broader tech sector added 0.3%.

Today's performance of financials also marked a departure from yesterday as top components ended mixed. Citigroup (C 48.93, -0.33) was the weakest performer among the majors while the sector ended little changed. Despite yesterday's rebound, the sector is down almost 3.5% since last Thursday.

On a related note, JPMorgan Chase (JPM 51.89, +0.19) President and Chief Executive Officer Jamie Dimon met with Attorney General Eric Holder to discuss a potential settlement in a mortgage-backed securities issuance case brought against the bank. However, no announcement was made today.

Remaining cyclical sectors were mixed as energy (+0.1%) lagged; consumer discretionary (+0.9%) and materials outperformed (+0.6%); and industrials (+0.4%) ended in-line with the S&P.

Notably, the discretionary sector received support from apparel manufacturers with Nike (NKE 70.34, +1.42) rising 2.1% ahead of its quarterly earnings report, scheduled for an after-hours release.

Even though equities posted gains, it was the final-hour rally that saved the market from ending on session lows. With choppy price action abound, the CBOE Volatility Index (VIX 14.05, +0.04) added 0.3% as participants adjusted their near-term volatility expectations.

Treasuries posted slim losses with the benchmark 10-yr yield rising one basis point to 2.65%.

Trading volume was below average as only 603 million shares changed hands on the floor of the NYSE.

This morning, market participants heard from Minneapolis Fed President Narayana Kocherlakota, who said low inflation levels give the Fed room to expand the scope of its policy reach. Mr. Kocherlakota channeled his inner Mario Draghi by adding that the central bank will do "whatever it takes" to achieve the goal of higher employment.

In overseas news of note, Italian markets lagged amid reports President Giorgio Napolitano cancelled a planned appearance at an event due to a "disturbing" political development. After European markets closed for the day, a separate report indicated Prime Minister Enrico Letta called a summit of the parties for a 'government check-up.' These developments followed yesterday's comments from PDL lawmakers who reiterated their intention to quit the government should Silvio Berlusconi be banned from office. In reaction, Italy's benchmark 10-yr yield rose seven basis points to 4.30%.

In today's economic data, the weekly initial claims level fell to 305,000 from an upwardly revised 310,000 (from 309,000). The Briefing.com consensus expected the initial claims level to increase to 325,000. There were no special factors that impacted the initial claims this week. The computer glitches, which caused biases over the previous two weeks, have been corrected. As such, the report suggests real improvement in labor conditions in September.

Separately, the third estimate for second quarter GDP was little changed at 2.5%. The GDP price deflator, though, was revised down to 0.6% from 0.8%.

Also of note, pending home sales for August fell 1.6%, which was better than the 2.3% decrease expected by the Briefing.com consensus. Today's reading followed last month's decrease of 1.3%.

Tomorrow, August personal income, personal spending and core PCE prices will be reported at 8:30 ET while the final reading of the September University of Michigan Consumer Sentiment Survey will be released at 9:55 ET.

Large Cap Gainers

COG (37.27 +4.78%): Established initial 2014 production growth guidance of 30-50%, reaffirmed 2013 production guidance.
BBBY (77.27 +4.11%): Beat on EPS by $0.01, reported revs in-line; guided Q3 EPS in-line, Q4 below - raised low end of FY14 EPS guidance; sees Q3 comp store sales +1% to +3%; sees Q4 comp store sales +3.5% to +5.5%.
APD (110.7 +3.15%): Co to add three new independent directors; John McGlade to retire in 2014; co to commence CEO search.

Large Cap Losers

HTZ (22.27 -13.63%): Co lowered FY13 guidance.
LLY (50.49 -4.03%): Announced second positive ramucirumab Phase III gastric cancer study met primary endpoint; Phase III Lilly/TRIO breast cancer study missed primary endpoint; data presented at 49th EASD Annual Meeting show treatment with Lilly's investigational dulaglutide resulted in improved patient-reported health outcomes.
WDC (63.81 -2.48%): CFO Wolfgang Nickl to resign in November to assume CFO position at ASML in the Netherlands.

Mid Cap Gainers

JCP (11.07 +9.39%): Co issued response to inquiries; still anticipates it will experience positive comparable store sales trends coming out of the third quarter and throughout the fourth quarter of 2013; Ullman said that co does not see conditions this year where the co will need to raise capital; said will see how co does in Q4 - CNBC; tgt to $7 from $11 at Citigroup.
FUL (43.56 +7.77%): Beat on EPS by $0.07, beat on revs; guided Q4 EPS in-line; narrowed FY13 EPS above consensus.
PCYC (128.48 +7.98%): Initiated with a Buy at Deutsche Bank; initiated with a Overweight at JP Morgan.

Mid Cap Losers

CZR (19.3 -7.74%): Announced offering of 10 mln shares of common stock.
JBL (22.15 -7.71%): Beat on EPS by $0.02, beat on revs; guided Q1 EPS below consensus, revs below consensus; sees 2013 restructuring plan expenses of $140-160 mln.
AWAY (29.03 -5.47%): Downgraded to Equal-Weight from Overweight at Morgan Stanley.

oday's top 20 % gainers

Technology: CYOU (34.95 +6.95%), YGE (6.28 +6.8%), NTLS (18.35 +6.56%), IMMR (13.88 +5.95%)
Services: JCP (11.16 +10.28%), DANG (10.39 +8%), SBGI (33.94 +7%), GTN (7.93 +6.73%), KNX (17 +6.28%), GDOT (26.41 +5.94%), CMLS (5.48 +5.59%)
Industrial Goods: JKS (21.33 +6.97%)
Healthcare: PCYC (128.73 +8.19%), GERN (3.36 +7.69%), HALO (10.32 +5.85%)
Consumer Goods: FN (16.22 +9.67%), DMND (23.74 +7.66%)
Basic Materials: FUL (43.79 +8.34%), WLT (14.54 +5.75%)

Today's top 20 % losers

Technology: JBL (22.34 -6.92%), AWAY (29.23 -4.82%)
Services: CRRS (2.56 -14.55%), HTZ (22.61 -12.3%), CZR (19.3 -7.74%), CAR (28.79 -4.35%)
Industrial Goods: XONE (45.35 -5.02%), LNN (85.11 -3.56%)
Healthcare: LLY (50.45 -4.11%)
Financial: FUR (11.26 -6.63%), WMC (16.58 -5.99%), AI (25.16 -5.84%), GCAP (13.66 -4.54%), MTGE (20.17 -4.45%), AGNC (23.05 -4.12%), HTS (18.96 -3.51%)
Consumer Goods: WPRT (24.96 -8.57%), PBH (30.07 -4.47%), BERY (19.93 -4.37%)
Basic Materials: SA (10.63 -4.83%)

Microsemi (MSCC) announced the availability of its IGLOO2 FPGA Evaluation Kit, providing customers with a PCI Express compliant form factor evaluation platform.

Raptr and AMD (AMD) today unveiled the AMD Gaming Evolved App Powered by Raptr, which was designed to make PC gaming as simple to use as consoles.

NXP Semiconductors (NXPI) announced that it has strengthened its presence in Asia by establishing Singapore as its Global Headquarters for Standard Products, Global Headquarters for Operations, and ASEAN Headquarters for Sales & Marketing. This move brings NXP closer to its growing number of Asian customers, and establishes a base for further growth in the region.

LDK Solar (LDK) announced that it has entered into a 30-day forbearance arrangement with holders of a majority of the aggregate principal amount of its US$-Settled 10% Senior Notes due 2014

07:39 am Jabil Circuit shares fall 3% following disappointing guidance
Jabil Circuit (JBL $23.11 -0.89) reported fourth quarter earnings of $0.56 per share, excluding non-recurring items, which is better than expected, while revenues rose 11.0% year/year to $4.81 billion which is higher than expected. The company issued downside guidance for the first quarter with EPS of $0.50-0.60, which is below expectations with revenues of $4.35-4.65 billion which is line with expectations. "Delivering record revenues, generating more than a billion dollars of cash flow from operations, and achieving a core return on invested capital of 21 percent are clear highlights of our fiscal year...In addition, we are pleased to return nearly $200 million in capital to shareholders through dividends and share repurchases, while continuing to thoughtfully invest capital back into the business, both organically and acquisitively, with an eye on long-term earnings growth,"

The company disclosed that it was previously announced that charges related to the 2013 Restructuring Plan, excluding asset charges, were expected to result in cash expenditures of approximately $140 million that would be payable over the course of the Company's fiscal years 2013, 2014 and 2015. Although the expected time period has not changed, the 2013 Restructuring Plan is now expected to result in cash expenditures in a range of $140 million to $160 million.

Market Summary
[Edit]
streaming quotes: ON
Chart for NASDAQ Composite Index (^IXIC)
Chart for Dow Jones Industrial Average Index (^DJI)
Symbol Last Change
Dow 15,328.30 Up 55.04(0.36%)
Nasdaq 3,787.43 Up 26.33(0.70%)
S&P 500 1,698.67 Up 5.90(0.35%)
10-Yr Bond 2.6430% Up 0.0290
NYSE Volume 0
Nasdaq Volume... 0
Indices: US - World | Most Actives
Advances & Declines
NYSE NASDAQ
Advances 2,499 (60%) 1,487 (57%)
Declines 1,488 (36%) 1,010 (39%)
Unchanged 153 (4%) 110 (4%)
Up Vol* 1,709 (56%) 1,137 (63%)
Down Vol* 1,236 (41%) 617 (34%)
Unch. Vol* 95 (3%) 37 (2%)
New Hi's 144 151
New Lo's 83 31
*in millions
more...

[ReturntoSender]

From Briefing.com: 4:20 pm : The S&P 500 settled lower by 0.7% after contradicting headlines from Washington fostered volatile price action throughout the session.

Equity indices displayed modest losses at the open, but were able to turn positive by late afternoon. The rebound was predicated on optimism associated with budget talks in Washington after Senate Majority Leader Harry Reid was quoted as saying 'tremendous progress' had been made.

However, contradicting headlines from House Republicans began pouring in during the early afternoon, and House Speaker John Boehner called the Senate proposal a 'hand grenade' during a closed-door meeting with Republican lawmakers. To counter this 'hand grenade,' the House is expected to vote on its own bill later today.

Selling pressure intensified during the final 90 minutes of the session amid headlines indicating the Senate has halted its negotiations pending the outcome of the House vote. California Senator Dianne Feinstein weighed in on the situation, saying budget talks have 'all fallen apart.'

All ten sectors ended in the red with countercyclical consumer staples (-0.9%) and utilities (-1.4%) leading to the downside. Among staple stocks, Coca-Cola (KO 37.66, -0.25) lost 0.7% following its in-line earnings report.

Elsewhere, the industrial sector slid 0.9% as the underperformance of defense contractors outweighed the relative strength of transports. FLIR (FLIR 28.59, -4.58) tumbled 13.8% after announcing restructuring plans and issuing below-consensus guidance while the broader PHLX Defense Index slumped 2.3%. Meanwhile, the Dow Jones Transportation Average ended with a modest loss of 0.2%, drawing strength from the 4.1% gain in the shares of FedEx (FDX 120.08, +4.71) after the company authorized a 32 million share buyback program.

Also of note, the financial sector (-0.8%) underperformed the broader market after Citigroup (C 48.86, -0.74) reported a 7.8% year-over-year decline in revenue.

With regard to commodities, crude oil fell 1.3% to $101.08 per barrel while gold futures added 0.3% to $1281.00 per troy ounce.

Treasuries ended near their lows with the 10-yr yield up four basis points at 2.73%. More notably, short-term debt was pressured with traders dumping the paper amid the increased probability of a default. The 4-week yield ended higher by 6.5 basis points at 0.317% while both the 3-month (+3 bps to 0.09%) and 6-month (+5 bps to 0.124%) bills were the subject of some selling.

Trading volume was below average as 690 million shares changed hands on the floor of the New York Stock Exchange.

On the economic front, today's data pointed to a bit of a slowdown in manufacturing growth in the New York Fed region as The Empire Manufacturing Survey for October registered a reading of 1.5. This was down from the prior month's reading of 6.3 while economists polled by Briefing.com had expected that the survey would slip to 4.5.

As a result of today's decline, the S&P 500 trimmed its year-to-date gain to 19.1%.DJ30 -133.25 NASDAQ -21.26 SP500 -12.08 NASDAQ Adv/Vol/Dec 733/1.68 bln/1790 NYSE Adv/Vol/Dec 685/690.4 mln/2345

3:30 pm :

In afternoon action, energy commodities weakened, while precious metals gained steam as headlines about the govt shutdown kept hitting the market. The dollar index continued to trade just under the HoD, but dropped about an hour ago, erasing about half of its gains
Gold and silver hit new highs for the day about 45 minutes ago and are now mixed in electronic trade. Dec gold ended $3.3 lower to finish at $1273.30/oz, while Dec silver ended $0.16 lower at $21.19/oz.
Crude oil was in the red all day, excluding one brief moment overnight where it was up a few cents. Crude oil extended losses in today's afternoon session and about 10 after floor trading ended, crude broke below the $101/barrel level. At the end of floor trading session, crude oil ended $1.22/barrel lower at $101.17/barrel
Natural gas was higher overnight, but lost steam and sold 20-25 minutes after floor trading began this morning. After that sell off, nat gas spent the rest of the day in the red, closing three cents lower at $3.79/MMBtu.

5:04PM Linear Tech misses by $0.01, reports revs in-line; guides Q2 revs below consensus (LLTC) 39.55 -0.46 : Reports Q1 (Sep) earnings of $0.45 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.46; revenues rose 1.6% year/year to $340.4 mln vs the $339.27 mln consensus.

Co issues downside guidance for Q2, sees Q2 revs flat to down 4% from Q1 which equates to $326.8-340.4 mln vs. $342.63 mln Capital IQ Consensus Estimate.
"For our first fiscal quarter, we grew revenue sequentially over the prior quarter by 4% which was at the high end of our guidance and represented a good September quarter for us. "
Once again, growth in our major end-markets was lead by Automotive and Industrial. The Automotive end-market represented 19% of bookings in the first quarter, which was a historical high for the Company. We added a full point to operating margin, which is an industry leading 45.9%.
Looking ahead, our second fiscal quarter has been challenging over the past three years partially due to the December quarter being a historically slow quarter for the automotive and industrial end-markets.
Our book to bill ratio for the first quarter was slightly positive, however, bookings normally weaken the last month of the December quarter due to the holiday period. =

4:15PM Yahoo! Correction: Beats by $0.01, reports revs in-line -- guidance out soon (YHOO) 33.38 -0.62 : Reports Q3 (Sep) earnings of $0.34 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.33; rev ex-TAC fell 0.7% year/year to $1.08 bln vs the $1.09 bln consensus.

Display: GAAP display revenue was $470 mln for Q3, a 7% decrease y/y. Display revenue ex-TAC was $421 mln for Q3, a 7% decrease y/y. The Number of Ads Sold (excluding Korea) increased ~1% compared to the third quarter of 2012. Price-per-Ad (excluding Korea) decreased approximately 7 percent compared to the third quarter of 2012.
Search: GAAP search revenue was $435 mln for the third quarter of 2013, an 8% decrease y/y. Search revenue ex-TAC was $426 mln for Q3, a 3% increase y/y. Paid Clicks (excluding Korea) increased ~21% compared to the third quarter of 2012. Price-per-Click (excluding Korea) decreased ~4% compared to the third quarter of 2012.

Cash Balance: Cash, cash equivalents, and investments in marketable securities were $3.2 bln as of Sept 30, 2013 compared to $6 bln as of December 31, 2012, a decrease of $2.8 bln. During the third quarter of 2013, Yahoo repurchased 59 mln shares for $1,685 mln and used a net $163 mln for acquisitions.

"In Q3, we generated free cash flow of $249 mln and returned an additional $1.7 bln to shareholders through buybacks. As we exit Q3, we are extremely pleased with the strength of our balance sheet, with nearly $3.2 bln in cash and securities, and we are well positioned with ample liquidity to fund our future investments for growth."

Our previous comment ahs been removed.

4:10PM Intel beats by $0.05, reports revs in-line; guides Q4 revs in-line; Q3 gross margins above midpoint of co's guidance (INTC) 23.39 -0.06 : Reports Q3 (Sep) earnings of $0.58 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 0.2% year/year to $13.48 bln vs the $13.45 bln consensus. Co issues in-line guidance for Q4, sees Q4 revs of $13.2-14.2 bln vs. $13.99 bln Capital IQ Consensus Estimate.

PC Client Group revenue of $8.4 bln, up 3.5 percent sequentially and down 3.5 percent year-over-year.
Data Center Group revenue of $2.9 bln, up 6.2 percent sequentially and up 12.2 percent year-over-year.
Intel reports Q3 gross margins of 62.4% versus Street expectations of ~60.7% (INTC guided for margins of 61% +/- 200 bps)
Co sees Q4 Gross margin percentage: 61 percent, plus or minus a couple of percentage points.
"The third quarter came in as expected, with modest growth in a tough environment...We're executing on our strategy to offer an increasingly broad and diverse product portfolio that spans key growth segments, operating systems and form factors. Since August we have introduced more than 40 new products for market segments from the Internet-of-Things to datacenters, with an increasing focus on ultra-mobile devices and 2 in 1 systems."

Large Cap Gainers

SCHW (23.28 +5.79%): Beat on EPS by $0.02, beat on revs; reaffirmed guidance.
FDX (121.08 +4.95%): Authorized new share repurchase program of up to 32 mln shares of common stock; shares augment the remaining 7.4 mln shares under the existing buyback.
TSLA (186.26 +3.64%): Upgraded to Outperform from Neutral at Wedbush.

Large Cap Losers

TTM (31.2 -3.47%): Weakness in India names (HDB and IBN also lower).
SI (122.03 -1.91%): Co plans to sell water technologies unit to PE firm for $800 mln, according to reports; entered into agreement with Accenture (ACN) to form a JV in the smart grid field.
CTSH (86.64 -1.79%): Tgt raised to $92 from $80 at UBS.

Mid Cap Gainers

DXCM (30.14 +3.79%): Initiated with a Buy at The Benchmark Company; tgt $37.
SD (6.38 +3.07%): Leon Cooperman discussed bullish view of SD.
HFC (43.49 +2.35%): Upgraded to Sector Outperform at Howard Weil; tgt $47.

Mid Cap Losers

TDC (44.01 -16.31%): Cut Q3 and FY13 guidance below consensus; announced additional $300 mln buyback; target lowered to $52 from $60 at Mizuho; downgraded at Goldman, Credit Suisse, Sterne Agee, Morgan Stanley; tgt lowered to $59 from 469 at Stifel.
CZR (19.74 -11.84%): Disclosed it entered into a first lien credit agreement governing its new $2.769 bln senior secured credit facilities.
FLIR (29.65 -10.61%): Announced that it is realigning multiple production and engineering organizations; sees $27-30 mln Q4 charge as a result; sees Q3 EPS and revs below consensus (results impacted due to exposure to Federal Government); lowered FY13 guidance.

STMicroelectronics (STM) has revealed the industry's first complete smart-meter System-on-Chip that combines precision metering with flexible, programmable processing and PLC subsystems along with advanced security in a single device.

9:07AM Emulex raises Q1 EPS and rev guidance (ELX) 7.83 : Co issues upside guidance for Q1 (Sep), raises EPS to $0.12-0.13, excluding non-recurring items, from $0.09-0.11 vs. $0.10 Capital IQ Consensus; raises Q1 (Sep) rev to $113-114 mln from $109-111 mln vs. $111.65 mln Capital IQ Consensus Estimate.

"We were able to achieve these results by delivering stronger than expected top line performance as well as tighter operational control," Benck concluded. Emulex expects to announce its final first quarter results on October 30, 2013 and will provide additional information and commentary on that quarterly conference call.

9:03AM CalAmp and General Dynamics (GD) Broadband announce partnership to bring wireless 4G LTE products to customers worldwide (CAMP) 23.63 : Co announced a partnership with General Dynamics (GD) Broadband to provide customized versions of CalAmp's high-performance, multi-carrier broadband routers for use with GD Broadband LTE communications systems supporting mission-critical public safety, defense and industrial applications worldwide. "GD Broadband products and technologies can be found in public safety networks worldwide," said Chris Marzilli, president of General Dynamics C4 Systems.

Marvell (MRVL) announced the availability of a new generation of Xelerated AX and HX families of network processor and traffic management solutions optimized specifically to enable a new class of efficient, flexible and scalable network infrastructure equipment used to facilitate the explosive growth of the mobile Internet.

Analyst comments: VECO -3% (ticking lower, downgraded to Perform from Outperform at Oppenheimer), NSM -1.2% (downgraded to Market Perform from Outperform at Wells Fargo), AAP -0.4% (initiated with an Underperform at Wedbush), RIG 0% (downgraded to Hold from Buy at Argus)

Broadcom (BRCM) announced the architecture for a new generation of multicore processors, featuring the industry's highest performance 64-bit ARM core

Serus announced that Micron Technology (MU) has selected the Serus solution to optimize its global supply chain. Micron intends to implement the Serus cloud-based solution across its global operations.

Microsemi (MSCC) expanded its silicon carbide Schottky product family with a new line of 650 volt solutions. The new diodes are targeted at high-power industrial applications including solar inverters.

1:12AM Universal Display: EPO issues decision affirming patent coverage for Iridium L2MX composition patent (OLED) 32.91 : Co announcesthat the European Patent Office issued a decision on the Company's European Patent No. 1933395. After considering legal and technical arguments from Sumitomo Chemical Company, Merck Patent GmbH and BASF SE in support of their request for a complete invalidation of the claims, the EPO panel issued a decision that affirms the basic inventions and broad patent coverage in the '395 patent, but narrows the scope of the original claims.

Universal Display likely will appeal the ruling to reinstate a broader set of claims. This patent, as originally granted by the EPO, would be deemed valid during the pendency of an appeals process. Ultimately though, the Company does not expect the final outcome of any one patent in any one jurisdiction to have a material impact on the Company's commercial business.