Equities Sector Coverage: Stocks Rebound as May Starts Off in Green

Sector Recap  |

Construction Spending in March was weaker than expected with a rise of just 0.1%. The ISM manufacturing index was stronger than expected in April at 54.8. The Dow Jones Industrial Average traded down to 13,174.65 then rebounded to 13,338.66 taking out the March 16th high at 13,289.08. The NASDAQ’s traded down to 3041.62 then rebounded to 3085.40 staying below it’s March 27th high at 3134.17.

Asian stocks were mixed on Tuesday. The Nikkei 225 ended their session at 9,351 – down 1.78% on the day. The Hang Seng was closed at 21,094. European exchanges were mixed on Tuesday. The FTSE 100 ended their session at 5,812 – up 1.30% on the day. The DAX was closed at 6,761. The CAC 40 was closed at 3,213. The yield on the 10-Year US Treasury ended the day at 1.952 below its 50-day and 200-day simple moving averages at 2.078 and 2.077.

Gold declined from $1672.3 the Troy ounce to $1657.5 still below the 50-day and 200-day simple moving averages at $1676.2 and $1698.1. Crude oil traded between $104.39 per barrel and $106.43 versus its 50-day simple moving average at $105.21. The euro versus the dollar traded down from 1.3282 to 1.3208 versus its 50-day simple moving average at 1.3210.

Energy

BP's (BP) reported that their clean replacement cost profit fell 12.8% in Q1 to $4.8B but revenue climbed 9.4% to $96.7 billion, as a drop in production following asset sales resulting from the Gulf oil spill offset higher oil prices. Delta Air Lines (DAL) has confirmed it will purchase the Trainer refinery in Philadelphia from ConocoPhillips (COP) saying that by doing so the airline will cut its fuel expenses by $300 million a year. SunCoke Energy (SXC) missed Q1 EPS estimates by two cents but reported better than expected revenue. Valero (VLO) beat estimates by 3 cents and revenue by $9B. Cobalt International Energy (CIE) beat estimates by a penny. Talisman Energy (TLM) missed estimates by 3 cents with revenue in-line with estimates. Comstock Resources (CRK) missed estimates by 3 cents and revenue by $5M. Forest Oil (FST) missed estimates by 9 cents and revenue by $29M. Anadarko Petroleum (APC) beat estimates by 9 cents with revenue in-line with estimates. Cameron International (CAM) is lifted to Overweight from Neutral at HSBC Securities.

Big Movers – Forest Oil (FST) -11%, Chesapeake Energy (CHK) +7.5%.

Dow components – Chevron (CVX) +2%, Exxon Mobil (XOM) +1.3%.

Energy Select Sector SPDR (XLE) was trading at $72.54 at 3:30 PM on Tuesday, up 1.83% on the day – up 4.94% year-to-date.

Materials

P.H. Glatfelter (GLT) beat Q1 EPS estimates by four points but missed on the revenue line. Westlake Chemical (WLK) beat Q1 EPS estimates by a nickel and reported better than expected revenue. Huntsman (HUN) reported Q1 EPS of $0.74 (versus consensus of $0.39), while beating revenue by $90M. Kraton Performance Polymers (KRA) reported Q1 EPS of $0.50 (versus consensus of $0.64), while beating revenue by $64M.
Big Mover – Huntsman (HUN) +10%.
Dow components – Alcoa (AA) +2%, DuPont (DD) +0.7%.
The Materials Select Sector SPDR (XLB) was trading at $36.99 at 3:30 PM on Tuesday, up 0.87% on the day – up 10.40% year-to-date.

Industrials

Delta Air Lines (DAL) has confirmed it will purchase the Trainer refinery in Philadelphia from ConocoPhillips (COP) saying that by doing so the airline will cut its fuel expenses by $300 million a year. Spirit Airlines (SAVE) reported in-line Q1 EPS and in-line revenue. Emerson (EMR) reported weaker than expected earnings due to weakness in Europe, China and Brazil. Emerson Electric (EMR) missed estimates by 6 cents and revenue by $80M. Masco (MAS) beat estimates by 11 cents and revenue by $70M. Genco Shipping (GNK) missed estimates by 17 cents and revenue by $9M.
Big Movers – Avid Budget (CAR) +20%, General Cable (BGC) +10.75%, Genesee & Wyoming (GWR) +10.25%, A123 Systems (AONE) +10%.
Dow components – Boeing Co (BA) +1.2%, Caterpillar (CAT) flat, General Electric (GE) +1.7%, 3M Company (MMM) +0.6%, United Technologies (UTX) +0.3%.
The Industrial Select Sector SPDR (XLI) was trading at $37.18 at 3:30 PM on Tuesday, up 0.43% on the day – up 10.13% year-to-date.

Consumer Discretionary

P.F.Chang's China Bistro (PFCB) missed estimates by a penny and revenue by $2M. Office Depot (ODP) reported Q1 EPS of $0.05 (in-line) and revenue of $2.87B (in-line). Sirius XM Radio (SIRI) beat estimates by a penny and revenue by $2M. The company’s subscriber base rose to an all-time high of 22.3M subscribers. Domino's Pizza (DPZ) missed estimates by 3 cents and revenue by $19M. Texas Roadhouse (TXRH) beat estimates by 2 cents and revenue by $1M. Shutterfly (SFLY) beat estimates by 4 cents and revenue by $6.8M. The company expects Q2 revenue of $90M-$92M and 2012 revenue of $576M-$586M, above Street estimates of $88.4M and $556.3M. Denny's (DENN) beat estimates by a penny, while missing revenue by $1M. WMS Industries (WMS) missed estimates by 2 cents and revenue by $14M. Standard Pacific (SPF) reported Q1 EPS of $0.02 (versus consensus of $0.03), while beating revenue by $7M. Abercrombie & Fitch (ANF) is added to Top Picks Live list at Citigroup and boosted to Buy from Neutral at UBS. American Eagle (AEO) is upgraded to Outperform from Neutral with Wedbush. Texas Roadhouse (TXRH) is moved to Outperform from Market Perform at Raymond James. WMS Industries (WMS) is upgraded to Outperform from Neutral at Credit Suisse. Expedia (EXPE) is downgraded to Underweight from Equal Weight by Barclays.
Big Movers – P.F. Chang’s (PFCB) +29.75%, Sears Holdings (SHLD) +17%, Central European Media Enterprises (CETV) +11%, Exceed Co (EDS) -17%.
Dow Components – Disney (DIS) +2.1%, Home Depot +1.4%, McDonalds (MCD) flat.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.01 at 3:30 PM on Tuesday, up 0.86% on the day – up 17.86% year-to-date.

Consumer Staples

Fresh Del Monte Produce (FDP) beat estimates by 26 cents, while missing revenue by $59M. Avon (AVP) missed estimates by 18 cents with revenue in-line with estimates. Corn Products International (CPO) beat estimates by 4 cents with revenue in-line with estimates. Archer Daniels Midland (ADM) beat estimates by 18 cents, while missing revenue by $400M. Herbalife (HLF) beat estimates by 7 cents, while missing revenue by $29M. The company raised FY12 EPS guidance to a range of $3.58 to $3.74. Costco (COST) is downgraded to Hold from Buy at Deutsche Bank.
Big Movers – Imperial Sugar (IPSU) +57.5%, Herbalife (HLF) -21.5%.
Dow components – Kraft (KFT) flat, Coca Cola (KO) +0.7%, Procter & Gamble (PG) flat, Wal-Mart (WMT) +0.5%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.31 at 3:30 PM on Tuesday, up 0.38% on the day – up 5.60% year-to-date.

Health Care

Teleflex (TFX) beat Q1 EPS estimates by four cents on better that expected revenue. Techne (TECH) beat FQ3 EPS estimates by a penny with a beat on the revenue line. Rigel Pharmaceuticals (RIGL) beat Q1 EPS estimates by a penny with better than expected revenue. Pfizer (PFE) beat estimates by a penny with revenue in-line with estimates. The company expects FY revenue of $58B-$60B versus estimates of $62.1B. Endo Pharmaceuticals (ENDP) beat estimates by a penny, while missing revenue by $9M. Biogen Idec (BIIB) missed estimates by 9 cents and revenue by $20M. Bruker BioSciences (BRKR) beat estimates by 2 cents and revenue by $17M. ViroPharma (VPHM) reported Q1 EPS of $0.37 (versus consensus of $0.42), while missing revenue by $14M. PAREXEL International (PRXL) beat estimates by 2 cents and revenue by $6M. NuVasive (NUVA) beat estimates by 2 cents and revenue by $8M. McKesson (MCK) beat estimates by 5 cents and revenue by $1.4B. Molina Healthcare (MOH) beat estimates by a penny, while missing revenue by $60M. AstraZeneca (AZN) is lifted to Neutral from Underperform at Bank of America-Merrill Lynch. Community Health (CYH) is upgraded to Neutral from Sell at Goldman Sachs. NuVasive (NUVA) is upgraded to Outperform from Perform at Robert W. Baird. Accretive Health (AH) is cut to Neutral from Buy at UBS. Gen-Probe (GPRO) is downgraded to Market Perform from Outperform at Raymond James. Hologic (HOLX) is now Neutral from Outperform at Macquarie. McKesson (MCK) is lowered to Market Perform from Outperform at Raymond James.
Big Movers – NuVasive (NUVA) +23%, InterMune (ITMN) +11%, Savient Pharmaceuticals (SVNT) -21.5%.
Dow Components – Johnson & Johnson (JNJ) +0.2%, Merck (MRK) +0.25%, Pfizer (PFE) +0.25%.
The Health Care Select Sector SPDR (XLV) was trading at $37.69 at 3:30 PM on Tuesday, up 0.45% on the day – up 8.65% year-to-date.

Financials

Bank of America (BAC) plans to cut 2,000 positions at its investment banking, commercial banking and non-U.S. wealth-management businesses. Marsh & McLennan (MMC) beat estimates by a penny with revenue in-line with estimates. Legg Mason (LM) best estimates by 8 cents and revenue by $3M. Extra Space Storage (EXR) reported Q1 EPS of $0.33 (in-line), while beating revenue by $10M. CBL & Associates Properties (CBL) beat estimates by 2 cents and revenue by $5M. CapitalSource (CSE) is upgraded to Buy from Neutral at Sterne Agee, whose target price is $7.50. Diamondrock Hospitality (DRH) is upgraded to Perform from Underperform at FBR Capital. Travelers (TRV) is upgraded by Sanford Bernstein. Duke Realty (DRE) is downgraded to Neutral from Buy at Citigroup.
Big Movers – Radian Group (RDN) -10.5%, FelCor Lodging Trust (FCH) +9%, Lloyds Banking Group (LYG) +8.5%.
Dow Components – American Express (AXP) +1.4%, Bank of America (BAC) +3.6%, JP Morgan Chase (JPM) +2.9%, Travelers (TRV) +0.5%.
The Financial Select Sector SPDR (XLF) was trading at $15.635 at 3:30 PM on Tuesday, up 1.33% on the day – up 20.23% year-to-date.

Information Technology

Allot Communications (ALLT) beat estimates by 4 cents and revenue by $3M. Harris (HRS) beat estimates by 5 cents with revenue in-line with estimates. Sourcefire (FIRE) beat estimates by 3 cents and revenue by $5M. The company is guiding for Q2 revenue of $46.5M-$48.5M and EPS of $0.12-$0.14, compared with a consensus of $46.5M and $0.13. PLX Technology (PLXT) missed estimates by 6 cents and revenue by $1.4M. Advanced Energy Industries (AEIS) beat estimates by 6 cents and revenue by $5.8M. Servicesource International (SREV) beat estimates by a penny and revenue by $2M. Veeco Instruments (VECO) beat estimates by 26 cents and revenue by $14M. The company is guiding for Q2 revenue of $120M-$145M and EPS of $0.29-$0.48, compared with a consensus of $128.2M and just $0.23. PMC-Sierra (PMCS) beat estimates by a penny, while missing revenue by $1.6M. SunPower (SPWR) is boosted to Buy from Neutral at Citigroup, where Yingli Green Energy (YGE) is now Buy from Sell. Qualcomm (QCOM) is moved to Outperform from Neutral at Macquarie. Macquarie takes Texas Instruments (TXN), Altera (ALTR), and Xilinx (XLNX) to Neutral from Outperform.
Big Movers – IPG Photonics (IPGP) +14.25%, Advanced Energy Industries (AEIS) +13.75%, Sourcefire (FIRE) +12.75%, Veeco Instruments (VECO) +12.25%, Suntech Power (STP) +10.75%, ServiceSource (SREV) -15.25%, Integrated Device Technology (IDTI) -10.5%.
Dow Components – Cisco Systems (CSCO) -0.25%, Hewlett-Packard (HPQ) +2.4%, IBM (IBM) +0.75%, Intel Corp (INTC) +2.1%, Microsoft (MSFT) +0.5%.
The Technology Select Sector SPDR (XLK) was trading at $29.99 at 3:30 PM on Tuesday, up 0.57% on the day – up 17.84% year-to-date.

Telecommunication Services

SBA Communications (SBAC) missed estimates by 2 cents with revenue in-line with estimates. Leap Wireless (LEAP) is lowered to Sector Perform from Outperform at RBC Capital.
Dow components – AT&T (T) +1%, Verizon (VZ) +0.9%.
The NASDAQ Telecommunications Index (IXTC) was trading at $211.42 at 3:30 PM on Tuesday, relatively unchanged on the day – up 7.36% year-to-date.

Utilities

NiSource (NI) beat estimates by 4 cents, while missing revenue by $400M. MDU Resources (MDU) missed estimates by 2 cents on revenue of $35.6M.
Dominion Resources (D) +0.6%, Edison International (EIX) +1%, First Energy (FE) +1.25%, PG&E Corp (PCG) flat, Southern Company (SO) +0.6%.
The Utilities Select Sector SPDR (XLU) was trading at $35.875 at 3:30 PM on Tuesday, up 0.60% on the day – down 0.29% year-to-date.

STOCKS: BP, DAL, COP, SXC, VLO, CIE, TLM, CRK, FST, APC, CAM, CHK, CVX, XOM, GLT, WLK, HUN, KRA, AA, DD, SAVE, EMR, MAS, GNK, CAR, BGC, GWR, AONE, BA, CAT, GE, MMM, UTX, PFCB, ODP, SIRI, DPZ, TXRH, SFLY, DENN, WMS, SPF, ANF, AEO, EXPE, SHLD, CETV, EDS, DIS, MCD, FDP, AVP, CPO, ADM, HLF, COST, IPSU, KFT, KO, PG, WMT, TFX, TECH, RIGL, PFE, ENDP, BIIB, BRKR, VPHM, PRXL, NUVA, MCK, MOH, AZN, CYH, AH, GPRO, HOLX, ITMN, SVNT, JNJ, MRK, PFE, BAC, MMC, LM, EXR, CBL, CSE, DRH, TRV, DRE, RDN, FCH, LYG, AXP, JPM, TRV, ALLT, HRS, FIRE, PLXT, AEIS, SREV, VECO, PMCS, SPWR, YGE, QCOM, TXN, XLNX, IPGP, STP, SREV, IDTI, CSCO, HPQ, IBM, INTC, MSFT, SBAC, LEAP, T, VZ, NI, MDU, D, EIX, FE, PCG, SO

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
MMM 3M Company 165.14 -1.19 -0.72 3,605,927 Trade
WLK Westlake Chemical Corporation 68.17 0.02 0.03 603,311 Trade
KRA Kraton Corporation 21.99 -0.06 -0.27 155,872 Trade
MCK McKesson Corporation 152.26 1.56 1.04 1,494,370 Trade
PG Procter & Gamble Company (The) 120.34 -1.95 -1.59 7,094,212 Trade
GE General Electric Company 11.53 0.14 1.23 41,688,757 Trade
DRH Diamondrock Hospitality Company 9.86 -0.08 -0.80 1,875,372 Trade
NI NiSource Inc 26.22 0.16 0.61 4,694,644 Trade
CVX Chevron Corporation 118.77 1.43 1.22 5,810,888 Trade
SO Southern Company (The) 62.68 -0.10 -0.16 2,776,673 Trade
PCG Pacific Gas & Electric Co. 7.01 -0.14 -1.96 11,278,995 Trade
GPRO GoPro Inc. 4.00 -0.02 -0.50 4,835,198 Trade
JNJ Johnson & Johnson 136.44 0.50 0.37 6,424,868 Trade
AA Alcoa Corporation 20.15 -0.22 -1.08 2,489,767 Trade
HLF Herbalife Nutrition Ltd. 44.56 0.29 0.66 348,793 Trade
INTC Intel Corporation 58.22 0.32 0.55 16,139,031 Trade
VLO Valero Energy Corporation 98.41 1.22 1.26 3,127,709 Trade
D Dominion Energy Inc. 83.02 0.12 0.14 2,555,430 Trade
RIGL Rigel Pharmaceuticals Inc. 2.24 -0.11 -4.68 1,757,507 Trade
TRV The Travelers Companies Inc. 134.69 -0.74 -0.55 1,230,648 Trade
PNP:CA Pinetree Capital Ltd. 1.43 0.00 0.00 45
EXPE Expedia Group Inc. 94.70 0.39 0.41 2,572,621 Trade
CBL CBL & Associates Properties Inc. 1.22 -0.10 -7.58 2,104,501 Trade
XLNX Xilinx Inc. 90.46 -0.55 -0.60 2,512,370 Trade
DAL Delta Air Lines Inc. 55.31 -0.36 -0.65 5,021,257 Trade
DPZ Domino's Pizza Inc 284.05 -4.19 -1.45 1,068,485 Trade
EIX Edison International 71.01 0.09 0.13 2,385,966 Trade
RDN Radian Group Inc. 25.51 0.03 0.12 733,632 Trade
WMS Advanced Drainage Systems Inc. 36.65 -0.03 -0.08 344,684 Trade
ALLT Allot Ltd. 8.58 -0.01 -0.12 21,794 Trade
AEIS Advanced Energy Industries Inc. 60.98 -2.19 -3.47 369,875 Trade
AXP American Express Company 118.80 -0.50 -0.42 2,783,811 Trade
FDP Fresh Del Monte Produce Inc. 31.28 -0.09 -0.29 137,625 Trade
UTX United Technologies Corporation 147.30 0.65 0.44 2,348,099 Trade
AVP Avon Products Inc. 4.41 0.09 2.08 8,205,068 Trade
TXN Texas Instruments Incorporated 116.10 -0.13 -0.11 5,447,650 Trade
HOLX Hologic Inc. 49.50 0.31 0.63 3,500,277 Trade
IPGP IPG Photonics Corporation 138.53 1.39 1.01 274,710 Trade
SREV ServiceSource International Inc. 1.64 -0.03 -1.80 225,062 Trade
TECH Bio-Techne Corp 214.69 -3.44 -1.58 161,257 Trade
BRKR Bruker Corporation 49.50 -0.33 -0.66 574,696 Trade
CSCO Cisco Systems Inc. 44.84 -0.24 -0.53 19,868,780 Trade
CAM Cameron International Corp n/a n/a n/a 0 Trade
COP ConocoPhillips 60.21 0.85 1.43 10,527,375 Trade
LM Legg Mason Inc. 38.15 -0.30 -0.78 298,791 Trade
COST Costco Wholesale Corporation 300.27 -0.30 -0.10 1,303,042 Trade
VZ Verizon Communications Inc. 59.61 0.13 0.22 8,055,988 Trade
MMC Marsh & McLennan Companies Inc. 107.12 -0.04 -0.04 2,059,716 Trade
ODP Office Depot Inc. 2.38 0.08 3.25 9,405,044 Trade
SHLD SHLDQ Sears Holdings Corporation n/a n/a n/a 0
BAC Bank of America Corporation 32.84 0.15 0.46 42,787,633 Trade
GNK Genco Shipping & Trading Limited New (Marshall Islands) 10.35 0.13 1.27 167,529 Trade
TFX Teleflex Incorporated 350.98 -1.99 -0.56 162,125 Trade
MCD McDonald's Corporation 192.35 -1.78 -0.92 3,509,470 Trade
PMCS PMC-Sierra Inc. n/a n/a n/a 0 Trade
YGE Yingli Green Energy Holding Company Limited ADR n/a n/a n/a n/a
CYH Community Health Systems Inc. 3.17 -0.03 -0.94 995,538 Trade
SPWR SunPower Corporation 7.15 -0.27 -3.64 17,598,468 Trade
SXC SunCoke Energy Inc. 5.02 0.02 0.40 1,423,420 Trade
DRE Duke Realty Corporation 34.77 -0.42 -1.19 1,907,365 Trade
EMR Emerson Electric Company 73.56 0.81 1.11 2,116,199 Trade
ADM Archer-Daniels-Midland Company 42.82 0.32 0.75 3,050,382 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 3.00 0.00 0.00 3,518,781 Trade
HRS LHX Harris Corporation n/a n/a n/a 0
DENN Denny's Corporation 19.39 -0.06 -0.31 488,935 Trade
VECO Veeco Instruments Inc. 13.81 -0.57 -3.96 147,075 Trade
HUN Huntsman Corporation 23.14 0.42 1.85 1,630,046 Trade
SIRI Sirius XM Holdings Inc. 6.96 0.06 0.87 24,245,542 Trade
MAS Masco Corporation 46.12 0.36 0.79 2,430,241 Trade
CRK Comstock Resources Inc. 6.75 -0.09 -1.32 329,328 Trade
PFE Pfizer Inc. 37.74 0.69 1.86 19,869,702 Trade
GLT Glatfelter 17.58 -0.02 -0.11 200,219 Trade
BIIB Biogen Inc. 288.46 3.06 1.07 1,292,420 Trade
HPQ HP Inc. 19.65 -0.05 -0.25 12,026,412 Trade
AZN Astrazeneca PLC 47.61 0.60 1.28 2,398,821 Trade
GWR Genesee & Wyoming Inc. Class A 111.34 -0.16 -0.14 339,038 Trade
ENDP Endo International plc 4.55 -0.12 -2.57 4,155,133 Trade
EXR Extra Space Storage Inc 105.64 -1.33 -1.24 833,205 Trade
MRK Merck & Company Inc. (new) 85.46 0.19 0.22 6,865,971 Trade
ANF Abercrombie & Fitch Company 15.76 -0.17 -1.07 2,474,536 Trade
CETV Central European Media Enterprises Ltd. 4.48 0.02 0.45 667,003 Trade
BP BP p.l.c. 38.59 0.08 0.21 7,440,030 Trade
FE FirstEnergy Corp. 46.64 -0.23 -0.49 3,360,434 Trade
SBAC SBA Communications Corporation 237.71 -3.04 -1.26 452,769 Trade
KO Coca-Cola Company (The) 52.96 -0.26 -0.49 7,856,139 Trade
T AT&T Inc.
CAT Caterpillar Inc.
AEO American Eagle Outfitters Inc.
NUVA NuVasive Inc.
MOH Molina Healthcare Inc
QCOM QUALCOMM Incorporated
CAR Avis Budget Group Inc.
SPF null
MSFT Microsoft Corporation
CHK Chesapeake Energy Corporation
CIE Cobalt International Energy Inc. COBALT INTERNATIO
TXRH Texas Roadhouse Inc.
WMT Walmart Inc. 119.86 0.73 0.61 4,302,845 Trade
IBM International Business Machines Corporation 133.84 0.64 0.48 3,345,343 Trade
JPM JP Morgan Chase & Co. 129.93 0.30 0.23 7,705,492 Trade
DIS The Walt Disney Company 146.90 -0.03 -0.02 6,241,359 Trade
XOM Exxon Mobil Corporation 69.67 1.64 2.41 14,080,938 Trade
BA The Boeing Company 366.44 -4.47 -1.21 2,703,757 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

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