TheChek News Flow

After Hours Summary: ACIA +21%, RUN +15%, JWN +11% on earnings/guidance, SGI +29% on acquisition news... VJET -16.4% and RT -6% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance:  ACIA +21.1%, RIBT +15.7%, RUN +15.3% (also enters into Sales Agreement to offer and sell shares up to $10 mln of its common stock), COSI +11.2% (thinly traded), JWN +10.7% (also continues to explore and consider alternatives, which may include a possible reorganization), AVXL +6%, ITRI +5.3%, JCP +4% (also restating earnings due to error in tax calculation), NVDA +3.2%, PLNT +1.6%, CDXC +1.4%, DAR +0.5%, AZPN +0.3% (ticking higher)

Companies trading higher in after hours in reaction to news: SGI +28.8% (Silicon Graphics to be acquired by Hewlett Packard Enterprise for $7.75 per share in cash; SGI also reported earnings), DK +11.5% and CVI +9.7% (Delek US Holdings higher on NYPost report that CVR Energy is planning to make an offer for the company), JCP +4% (following JWN results - reports earnings tomorrow), RDN +1.2% (EVP/Chief Risk Officer disclosed purchase of 16000 shares, worth total of $206K), CRAY +0.9% (following SGI/HPE acquisition news), BTG +0.9% (enters into $100 mln equity distribution agreement for the issuance and sale of common shares), PBF +0.7% (PBF Logistics announces letter of intent to acquire a 50% interest in Torrance Valley Pipeline Company LLC from an affiliate of PBF Energy for a total consideration of ~$175.0 mln in cash)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ORIG -54.2%, VJET -16.4%, XCOM -15.9% (also provides Phase I trial data for AVXS-101 -- Continued motor function improvement with 25% of patients in the proposed therapeutic dose group in the normal range), RT -6.4%, APDN -5.5% (ticking lower), AMDA -5.3%, AVXS -5.2% (ticking lower), UPLD -4.1%, PTX -4%, UNXL -3.4% (thinly traded), DDS -3.4%, VIAV -3.1%

Companies trading lower in after hours in reaction to news: PBFX -3% (ticking lower - announces letter of intent to acquire a 50% interest in Torrance Valley Pipeline Company LLC from an affiliate for a total consideration of ~$175.0 mln in cash; announces a 4 mln common unit underwritten public offering representing limited partner interests)

Closing Market Summary: Averages Notch Highs as Energy and Discretionary Lead

The Dow Jones Industrial Average (+0.6%) finished ahead of the S&P 500 (+0.5%) and the Nasdaq Composite (+0.5%), but all three indices carved out new all-time closing highs. The benchmark index erased a modest weekly loss as stronger-than-expected earnings results from retail names and a reversal in crude oil spurred a risk rally in the broader market. Other focal points impacting today's trade included a rebound in the dollar and leadership from the heavily-weighted health care (+0.6%), industrial (+0.6%), and consumer discretionary (+1.0%) sectors.

The major averages began the day on a higher note as above-consensus bottom-line results from the likes of Alibaba (BABA 91.77, +4.44), Kohl's (KSS 44.19, +6.15) and Macy's (M 39.81, +5.81) improved investor sentiment. The three names bolstered the consumer discretionary space (+1.0%), which ended among the leaders. Additionally, a rebound in oil futures contributed to a positive bias at the start of today's session.

Crude oil was in focus as investors examined a mixed reading of the International Energy Agency's monthly report and responded to commentary from Saudi Oil Minister Khalid al-Falih. The IEA trimmed its 2017 global oil demand estimate to 1.2 million barrels per day (from 1.3 million barrels), but also stated that it expects the supply overhang to be gone by the end of 2016. Separately, the Saudi oil minister indicated that the current market situation and potential plans to stabilize oil prices would be discussed at the cartel's next meeting on September 26-28. Market participants likely took this news with a grain of salt, remaining skeptical of potential production cuts from the oil collective. Nevertheless, crude oil rallied 4.2% ($43.50/bbl; +$1.74) on the news, likely benefiting from a fair amount of short covering.

The S&P 500 (+0.5%) found resistance near the 2186/2187 price level in the final hour. Nine sectors finished in the green with industrials (+0.6%), health care (+0.6%), consumer discretionary (+1.0%), and energy (+1.3%) leading.

Retail names outperformed in the consumer discretionary space (+1.0%) as the group moved higher in sympathy with Kohl's (KSS 44.19, +6.15) and Macy's (M 39.81, +5.81). Fellow retail name Nordstrom (JWN 47.56, +3.33) rallied 7.5% ahead of this evening's quarterly report. Separately, Netflix (NFLX 95.89, +1.96) jumped 2.1% after a Director disclosed the purchase of 300,000 shares. The purchase is valued at approximately $28.3 million.

In the technology space (+0.5%), software names outperformed as Adobe Systems (ADBE 101.67, +1.05) and Salesforce.com (CRM 81.48, +1.24) moved higher by 1.0% and 1.6%, respectively. The high-beta chipmakers were able to shake early weakness as Cavium Networks (CAVM 50.50, +2.01) topped the PHLX Semiconductor Index (+0.5%). 

The heavyweight health care sector (+0.6%) outperformed as biotechnology displayed relative strength. The iShares Nasdaq Biotechnology ETF (IBB 291.91, +3.10) gained 1.1%, narrowing its weekly loss to 1.7%. In the group, Dow component Merck (MRK 63.63, +0.99) gained 1.6%. On the flipside, Valeant Pharmaceuticals (VRX 24.49,- 2.83) underperformed after reports indicated that the Southern District of New York is investigating the company. The investigation allegedly involves the company's prior relationship with Philidor Rx Services.

The U.S. Dollar Index (95.91, +0.26) ended higher as the pound, euro, and yen each lost ground to the greenback. Cable declined by 0.4% (1.2959) while the single currency lost 0.4% against the buck (1.1139). Conversely, the dollar/Canadian dollar slipped 0.6% (1.2984) amid today's rebound in oil futures.

Treasuries settled near session lows as yields rose throughout the complex. The yield on the 10-yr note finished higher by seven basis points at 1.56%.

Today's participation was below the recent average as fewer than 761 million shares changed hands at the NYSE floor.

Today's economic data was limited to weekly initial claims and Import/Export Prices for July: 

• Initial claims for the week ending August 6 were 266,000 (consensus 266,000) versus a downwardly revised 267,000 (from 269,000) in the prior week.
  • There were no special factors influencing the initial claims reading, which was below 300,000 for the 75th consecutive week -- the longest streak since 1970
  • The four-week moving average increased to 262,750 from 259,750
• Continuing claims for the week ending July 30 increased by 14,000 to 2.155 million 
  • The four-week moving average is 2.143 million, up 500 from the prior week
• Import prices for July increased 0.1% on top of a 0.6% increase in June.
  • The key difference is that the uptick in July was led by increasing nonfuel prices, which were up 0.3% after declining 0.2% in June.
  • Import prices fell 3.7% year-over-year and have not recorded a 12-month advance since two years ago when they rose 0.9% between July 2013 and July 2014
  • Import prices, excluding fuel, were up 0.3% after declining 0.2% in June
  • On a year-over-year basis, import prices, excluding fuel, are down 1.2%
• Export prices for July were up 0.2% after increasing 0.8% in June, led by higher nonagricultural prices
  • Export prices declined 3.0% year-over-year and have not advanced on a year-over-year basis since August 2014
  • Excluding agriculture, export prices were up 0.3% on the heels of a 0.5% increase in June
  • On a year-over-year basis, export prices, excluding agriculture, are down 3.0%

Tomorrow's economic data will include July PPI (consensus 0.0%) and July Retail Sales (consensus +0.4%), which will each cross the wires at 8:30 ET. Separately, the preliminary reading of the Michigan Sentiment Index for August (90.2) and Business Inventories for June (consensus +0.1%) will be released at 10:00 ET.