From Briefing.com: 4:35 pm : Pleasing quarterly results from a couple of key industry players and some strong consumer spending numbers compelled market participants to push stocks higher for the fifth straight session to a new 18-month high.
The tone of trade was set last evening when tech bellwether Intel (INTC 23.52, +0.75) announced that it brought in $0.43 per share on $10.3 billion in revenue to exceed Wall Street's consensus estimate. Intel even issued a strong forecast for its second fiscal quarter. The numbers helped INTC build on its gain from the prior session to set a new annual high and also lead the Philadelphia Semiconductor Index up 4.3%, its best percentage gain in almost nine months, to a new 52-week high of its own.
Shares of JPM Chase (JPM 47.73, +1.86) were propelled to their best single-session percentage gain in six months after the company beat the consensus forecast this morning with first quarter earnings of $0.74 per share and revenue of $28.2 billion. In doing so, JPMorgan sets the bar for other major banks, like Bank of America (BAC 19.40, +0.73), which reports Friday morning.
Investor favor for financials helped Bank of America and Citigroup (C 4.93, +0.31) lead the KBW Bank Index to a 3.4% gain and an annual high. Citi announced that it has entered into a definitive agreement to sell to SkyBridge Capital certain hedge fund businesses. Shares of C were the most actively traded by volume in the broader market this session.
Collective strength among tech stocks and financial issues, which represent the two largest sectors by market weight in the S&P 500, helped push the S&P 500 through near-term resistance at 1200 all the way up to 1210 for the first time since September 2008. Despite such an impressive feat, many pundits continue to call for a correction since the stock market has now climbed more than 15% from its February low and more than 80% since it set multiyear lows in March 2009.
Despite such dizzying gains, data added to conviction among buyers.
Advance retail sales for March increased 1.6%, which exceeded the 1.2% increase that had been widely forecast. Excluding autos, retail sales for March increased 0.6% when a 0.5% increase had been expected.
Consumer prices in March increased an 0.1% month-over-month. That was in-line with expectations. Excluding food and energy, consumer prices were flat for the month, but the consensus had called for a 0.1% increase in core consumer prices.
Cool consumer prices and no mention of inflationary pressures in the latest Fed Beige Book left the dollar without much support, especially as participants showed less interest in defensive-oriented holdings. Instead, the buck fell to a 0.4% loss against competing currencies.
Little attention was paid to February business inventories, which increased a slightly stronger-than-expected 0.5%.
Fed Chairman Bernanke offered a testimony to the Joint Economic Committee today. Bernanke said he is particularly concerned about the fact that in March 44% of the unemployed had been without a job for six months or more, but offered no new position on Fed thinking.
Advancing Sectors: Financials (+2.6%), Tech (+1.7%), Consumer Discretionary (+1.5%), Industrials (+1.3%), Energy (+0.9%), Materials (+0.9%)
Declining Sectors: Health Care (-0.4%), Telecom (-0.1%)
Unchanged: Utilities, Consumer Staples DJ30 +103.69 NASDAQ +38.87 NQ100 +1.3% R2K +2.2% SP400 +1.5% SP500 +13.35 NASDAQ Adv/Vol/Dec 2155/3.00 bln/565 NYSE Adv/Vol/Dec 2356/1.14 bln/697
11:47AM Research In Motion announces purchase for cancellation 2.0 million of its outstanding common shares (RIMM) 73.46 +0.87 : Co announced that it has agreed to purchase for cancellation 2.0 million of its outstanding common shares, representing approximately 0.36% of its common shares outstanding at April 5, 2010, pursuant to private agreements between RIM and a non-related third-party financial institution. The purchases were made pursuant to an issuer bid exemption order issued by the Ontario Securities Commission. The common shares repurchased through the private agreements, together with the 3,935,800 million shares that RIM has repurchased through the facilities of the NASDAQ Stock Market since the beginning of April 2010, substantially complete the $1.2 billion share repurchase program announced on November 5, 2009.
8:30AM Apple says iPad demand is far higher than co predicted and will likely continue to exceed its supply over the next several weeks (AAPL) 242.43 : The co says "Although we have delivered more than 500,000 iPads during its first week, demand is far higher than we predicted and will likely continue to exceed our supply over the next several weeks as more people see and touch an iPad. We have also taken a large number of pre-orders for iPad 3G models for delivery by the end of April. Faced with this surprisingly strong US demand, we have made the difficult decision to postpone the international launch of iPad by one month, until the end of May. We will announce international pricing and begin taking online pre-orders on Monday, May 10. We know that many international customers waiting to buy an iPad will be disappointed by this news, but we hope they will be pleased to learn the reason--the iPad is a runaway success in the US thus far."
Ascent Solar Technologies (ASTI) announces that Samsonite has selected flexible light-weight CIGS modules from Ascent Solar to be integrated into its new line of solar consumer products being initially rolled out this summer...
2:31AM ASML Holding beats by EUR 0.02, beats on revs; issues upside 2Q10 revenue guidance (ASML) 35.99 : Reports Q1 (Mar) earnings of EUR 0.25 per share, EUR 0.02 better than the Thomson Reuters consensus of EUR 0.23; revenues rose 304.0% year/year to EUR 741.8 mln vs the EUR 728.8 mln consensus. ASML's order backlog as of March 28, 2010 was EUR 2,170 million, totaling 85 systems with an average selling price of EUR 25.5 million. ASML's backlog as of December 31, 2009 was valued at EUR 1,853 million, totaling 69 systems with an average selling price of EUR 26.8 million. Q1 2010 gross margin was 40.3% compared with the Q409 gross margin of 38.0%. Co issues upside guidance for Q2; sees net sales of approx EUR 1.0 bln vs Thomson-Reuters consensus of EUR 972.98 mln. This guidance is EUR 50 mln higher than guided at the publication of 4Q09 results.
10:04 am KLIC Guides Q3 Revs Significantly Above Consensus
After the close yesterday, Kulicke & Soffa (KLIC 9.27, +1.41) announced revenue of approximately $153 million for its second quarter, which is above the current Thomson Reuters consensus of $146.4 million Thomson Reuters consensus.
In addition, the company guided third quarter revenue of $205 million, which is well above the current consensus of $143.1 million.
The company said, "We are able to give revenue guidance for the June quarter a few weeks earlier than normal because of unprecedented demand for both ball bonders and wedge bonders. Based on booked orders, we expect June quarter revenue of approximately $205 million. This same strength in demand gives us visibility into the beginning of the September quarter and while it is too early to give guidance for that quarter, so far we are seeing a continuation of current customer demand patterns."
09:46 am INTC Sees Q2 Revs Above Consensus
Intel (INTC 23.53, +0.76) reported earnings after the close yesterday, which beat Wall Street expectations. The company also provided second revenue guidance, which is higher than the current consensus.
The company reported first quarter earnings of $0.43 per share, $0.05 better than the Thomson Reuters consensus of $0.38. Revenues rose 44.2% year-over-year to $10.3 billion versus the $9.83 billion consensus.
Intel reported first quarter gross margins of 63% versus the 61.3% consensus. The average selling price (ASP) for microprocessors was slightly up.
For the second quarter, the company expects revenue to be in the range of $9.8 billion to $10.6 billion, which is above the $9.69 billion Thomson Reuters consensus. Second quarter gross margins are expected to be 64%, plus or minus a couple percentage points, versus 60.4% consensus. For the fiscal year 2010, Intel sees gross margins at 64%, plus or minus a couple percentage pts, versus 61.6% consensus, up from 61%, plus or minus 3% pts.
Spending (R&D plus MG&A) was $12.4 billion, plus or minus $100 million. The company's prior expectation was $11.8 billion, plus or minus $100 million. R&D spending was approximately $6.4 billion. Tax rate was approximately 31% for the second, third and fourth quarters. Depreciation was approximately $4.4 billion, plus or minus $100 million. Capital spending is expected to be $4.8 billion, plus or minus $100 million.
Intel said, "The investments we're making in leading edge technology are delivering the most compelling product line-up in our history. These leadership products combined with growing worldwide demand and continued outstanding execution resulted in Intel's best first quarter ever. Looking forward, we're optimistic about our business as Intel products are designed into a variety of new and exciting segments."
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