Fwd:Briefing; WRAPX SCANX; After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +7.7%

After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, RMBS -19.4%, HXL -9.2%, IBM -4.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, SONC +6.7%, GIG +4.3%, ETH +1.7%, CE +1.6%, VLRS +0.8%, STLD +0.8%

Companies trading higher in after hours in reaction to news: ERII +133.7% (signed 15-year license with Schlumberger (SLB) to provide exclusive rights to its VorTeq hydraulic fracturing technology; deal includes $125 mln in upfront payments paid in stages), ONE +21.7% (sold its Campus Labs data analytics business to Leeds Equity Partners, for $91 mln in cash), SNDK +8.0% (Bloomberg reporting co is in discussion to be acquired by Western Digital (WDC)), MPAA +1.6% (to replace OMG in the S&P SmallCap 600), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: RMBS -19.4%, HXL -9.2%, IBM -4.9%, WIBC -1.4%, ETN -1.4%, SIX -0.7%, ELS -0.6%, IEX -0.6%, HA -0.5%

Companies trading lower in after hours in reaction to news: NEOS -17.7% (received notification that the FDA has identified deficiencies that preclude discussion of labeling & postmarketing requirements/commitments for Cotempla XR-ODT), ZGNX -7.4% (co received a request from the FDA for additional information related to the proposed Phase 3 program for ZX008 prior to the FDA declaring the Investigational New Drug Application effective), MSB -4.9% (reported that due to a delay in the reporting of Cliffs Natural Resources (CLF) regarding shipments of iron ore products, no distribution will be paid in November 2015), WDC -1.9% (lower following Bloomberg report that co may acquire SanDisk (SNDK)), SGY -1.4% (filed mixed securities shelf offering)

>>> Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional

Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional share repurchase

Reports Q3 (Sep) earnings of $0.55 per share, $0.04 worse than the Capital IQ Consensus of $0.59; revenues fell 0.7% year/year to $448.8 mln vs the $462.53 mln Capital IQ Consensus.
Co issues downside guidance for FY15, sees EPS of $2.28-2.34 vs. $2.40 Capital IQ Consensus Estimate, down from $2.33-2.43 prior guidance; sees FY15 revs of $1.84-1.86 bln vs. $1.9 bln Capital IQ Consensus Estimate, down from previous guidance of $1.85-$1.9 bln.
HXL notes lowered sales outlook due to lower Space and Defense sales
Says new Commercial Aerospace programs remain on track and Commercial Aerospace sales were 7.4% higher than last year in constant currency.
Board authorizes $250 mln of additional share repurchases, after repurchasing $100 million of shares during quarter.

>>> Rambus misses by $0.01, misses on revs; guides Q4 revs below consensus

Rambus misses by $0.01, misses on revs; guides Q4 revs below consensus

Reports Q3 (Sep) earnings of $0.14 per share, $0.01 worse than the Capital IQ Consensus of $0.15; revenues rose 5.9% year/year to $73.8 mln vs the $76.21 mln Capital IQ Consensus.
Co issues downside guidance for Q4, sees Q4 revs of $71-77 mln vs. $83.50 mln Capital IQ Consensus Estimate. Achieving revenue in this range will require that the Company sign new customer agreements for patent and solutions licensing among other matters.

>>> Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional

Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional share repurchase

Reports Q3 (Sep) earnings of $0.55 per share, $0.04 worse than the Capital IQ Consensus of $0.59; revenues fell 0.7% year/year to $448.8 mln vs the $462.53 mln Capital IQ Consensus.
Co issues downside guidance for FY15, sees EPS of $2.28-2.34 vs. $2.40 Capital IQ Consensus Estimate, down from $2.33-2.43 prior guidance; sees FY15 revs of $1.84-1.86 bln vs. $1.9 bln Capital IQ Consensus Estimate, down from previous guidance of $1.85-$1.9 bln.
HXL notes lowered sales outlook due to lower Space and Defense sales
Says new Commercial Aerospace programs remain on track and Commercial Aerospace sales were 7.4% higher than last year in constant currency.
Board authorizes $250 mln of additional share repurchases, after repurchasing $100 million of shares during quarter.

>>> IBM beats by $0.04, misses on revs; lowers FY15 guidance (149.22 -1.17)

IBM beats by $0.04, misses on revs; lowers FY15 guidance  

Reports Q3 (Sep) earnings of $3.34 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $3.30; revenues fell 13.9% year/year to $19.28 bln vs the $19.64 bln Capital IQ Consensus. Down 1% adjusting for currency (9 points) and the divested System x business (4 points).
Revenues from the Software segment were down 10% to $5.1 bln (down 3% adjusting for currency) compared with the third quarter of 2014.
Revenues from the company's strategic imperatives --- cloud, analytics, and engagement --- increased 17% year-to-year (up 27% adjusting for currency and the divested System x business
Co issues downside guidance for FY15, lowers EPS to $14.75-15.75, excluding non-recurring items, from $15.75-16.50 vs. $15.68 Capital IQ Consensus Estimate; lowers FCF to flat from a modest increase YoY.

>>> US Close DOw+0.08% S&P-0.02% NAsdaq+0.38% Russell +0.16%

Closing Market Summary: S&P 500 Ekes Out Third Consecutive Advance

The stock market began the trading week on a quiet note with the major averages spending the Monday session inside narrow ranges. The S&P 500 settled just above its flat line after climbing off its opening low while the Nasdaq Composite (+0.4%) outperformed.

In some ways, the range-bound action was a bit of a surprise considering investors received China's Q3 GDP report over the weekend. The growth report proved to be a mixed bag as GDP beat estimates (+6.9%; consensus 6.8%), but dipped below the official target growth rate of 7.0% year-over-year.

Asian markets took the data in stride with China's Shanghai Composite and Hong Kong's Hang Seng both ending flat; however, the slowdown in the year-over-year growth rate weighed on commodities, sending crude oil lower by 3.0% to $45.90/bbl.

The sell-off in crude oil futures pressured the energy sector (-2.0%) while a major sector component—Halliburton (HAL 37.36, -0.45)—lost 1.2% in reaction to better than expected earnings on below-consensus revenue.

Similar to energy, the materials sector (-0.8%) ended well behind the broader market while the remaining sectors fared better. The top-weighted technology sector (+0.3%) eked out a modest gain while another influential group—financials (unch)—ended just below its flat line despite a 4.8% dive in the shares of Morgan Stanley (MS 32.32, -1.63) brought on by a disappointing earnings report.

Elsewhere among cyclical sectors, the discretionary space (+0.5%) outperformed throughout the day thanks to strength in retail names. Also in the discretionary sector, Weight Watchers (WTW 13.92, +7.13) soared 105.0% after announcing Oprah Winfrey will purchase newly-issued shares representing 10.0% of all shares outstanding.

Moving to the countercyclical side, the health care sector (+0.3%) settled among the leaders after enduring a volatile session that mirrored the price action in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 315.94, +1.62) was up more than 2.0% at the start, but surrendered that gain after presidential candidate Hillary Clinton sent a letter to the Food and Drug Administration and the Federal Trade Commission, requesting an inquiry into drug pricing. The biotech ETF returned into the green by the closing bell, ending higher by 0.5%.

Similar to stocks, Treasuries maintained narrow ranges throughout the day with the 10-yr yield ending flat at 2.03%.

Today's participation was a bit below average as just over 800 million shares changed hands at the NYSE floor.

Economic data was limited to the NAHB Housing Market Index for October, which rose to 64 from a downwardly revised 61 (from 62) while the consensus expected the reading to come in at 62. Tomorrow's economic data will be limited to September Housing Starts (consensus 1.15 million) and Building Permits (consensus 1.17 million) with both data points set to cross at 8:30 ET.

  • Nasdaq Composite +3.6% YTD
  • S&P 500 -1.2% YTD
  • Dow Jones Industrial Average -3.3% YTD
  • Russell 2000 -3.4% YTD