Equities Sector Coverage: Stocks Trade Higher Ahead of Thanksgiving Holiday

Sector Recap  |

Initial Jobless Claims came in at 410,000 still well above the 350,000 recessionary threshold. The Dow Jones Industrial Average traded up to 12,845.99 staying well below the 200-day simple moving average at 12,991.82. The Nasdaq traded up to 2928.17 below the 200-day SMA at to 2984.97.

Asian stocks were higher on Wednesday. The Nikkei 225 closed at 9,223 – up 0.87%. The Hang Seng closed at 21,524 – up 1.39%. European exchanges closed higher on Wednesday. The FTSE 100 ended the day at 5,752 – up 0.07%. The DAX ended the day at 7,185 – up 0.16%. The CAC 40 ended the day at 3,477 – up 0.44%. The yield on the 10-Year US Treasury traded between 1.642% and 1.695% staying below the 50-day and 200-day simple moving averages at 1.702% and 1.773%.

Comex gold rebounded from $1718.4 the Troy ounce to $1732.0 still between the 200-day and 50-day simple moving averages at $1665.3 and $1743.3. Nymex crude oil rebounded from $86.65 per barrel to $87.89 still below its 50-day and 200-day simple moving averages at $89.57 and $94.20. The euro versus the dollar rebounded from 1.2740 to 1.2831 trading around its 200-day simple moving average at 1.2803.

Energy

Boardwalk Pipeline (BWP) gets lifted to Outperform from Neutral at Credit Suisse. Petróleo Brasileiro (PBR) is reduced to Market Perform from Outperform at Raymond James. LinnCo (LNCO) is begun with a Neutral at Bank of America-Merrill Lynch and an Outperform at Robert W. Baird. Linn Energy (LINE) is a new Neutral at Bank of America-Merrill Lynch, Credit Suisse, and Goldman Sachs. Marathon Petroleum (MPC) is resumed with a Buy at Bank of America-Merrill. Matrix Service (MTRX) is initiated with a Buy at DA Davidson. MPLX LP (MPLX) is begun with a Buy at Citigroup. Pioneer Natural Resources (PXD) is a new Buy at Citigroup. Inergy (NRGY) is now Outperform from Neutral at Robert W. Baird. Inergy Midstream (NRGM) is now Outperform from Perform at Robert W. Baird. Lukoil (LUKOY) is upgraded to Outperform from Market Perform at Credit Suisse. Repsol (REPYY) gets a Buy-from-Hold hoist at brokerage boutique Kepler. Dow components – Chevron (CVX) is up about 0.4%. Exxon Mobil (XOM) is up about 0.4%. Energy Select Sector SPDR (XLE) was trading at $70.54 at 3:30 PM on Wednesday, up 0.44% on the day – up 2.04% year-to-date.

Materials

AK Steel (AKS) is now Neutral from Sell at Goldman Sachs. Cliffs Natural Resources (CLF) is lowered to Sell from Neutral at Goldman Sachs. K+S Aktiengesellschaft (KPLUF) is cut to Underweight from Equal Weight at JPMorgan. Dow Components – Alcoa (AA) is down slightly. DuPont (DD) is down about 0.6%. The Materials Select Sector SPDR (XLB) was trading at $35.88 at 3:30 PM on Wednesday, unchanged on the day – up 7.10% year-to-date.

Industrials

Deere's (DE) FQ4 net profit edged up 2.7% to $687.6M as EPS of $1.75 missed forecasts, although revenue climbed 14% to $9.79B and beat expectations. Joy Global (JOY) is boosted to Market Perform from Underperform at BMO Capital. Emerson Electric (EMR) is downgraded to Perform from Outperform at Oppenheimer. BE Aerospace (BEAV) is an Outperform at Imperial Capital. Wesco Aircraft (WAIR) is a new In-line at Imperial Capital. Dow components – Boeing Co (BA) is up about 0.9%. Caterpillar (CAT) is down slightly. General Electric (GE) is up about 0.3%. 3M Company (MMM) is down slightly. United Technologies (UTX) is up about 1.1%. The Industrial Select Sector SPDR (XLI) was trading at $36.24 at 3:30 PM on Wednesday, up 0.06% on the day – up 7.38% year-to-date.

Consumer Discretionary

Richard Schulze is now reportedly working separately with P-E firms Cerberus, TPG Capital and Leonard Green on a bid for Best Buy (BBY) despite previous speculation saying Cerberus had dropped out. Hedge fund Tiger Global disclosed it had acquired a 9.9% stake in Groupon (GRPN). Apollo (APO) and KKR (KKR) are unlikely to collaborate with Schulze on an offer. News Corp (NWS) is reportedly in preliminary negotiations to acquire CBS's (CBS) Simon & Schuster book business. Kid Brands (KID) missed estimates by 7 cents and revenue by $7M. Zale (ZLC) missed estimates by 20 cents and revenue by $7M. Books-A-Million (BAMM) reported Q3 EPS of -$0.18 on revenue of $104.7M. Coach Inc. (COH) is initiated with an Outperform at Wells Fargo. Deckers Outdoor (DECK) is a new Outperform with Wedbush. Six Flags Entertainment (SIX) is started with a Neutral at Longbow. Expedia (EXPE) is taken to Equal-Weight from Underweight by Barclays. Yum Brands (YUM) is initiated with an Outperform at Macquarie. Penn National Gaming (PENN) is now Buy from Neutral at Lazard Capital. Skechers USA (SKX) is moved to Positive from Neutral at Susquehanna. Big Movers – Zale (ZLC) is down about 26.5%. Groupon (GRPN) is up about 14.5%. Skechers USA (SKX) is up about 10%. Dow Components – Disney (DIS) is up about 0.7%. Home Depot (HD) is up about 0.5%. McDonalds (MCD) is up about 0.4%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.545 at 3:30 PM on Wednesday, up 0.36% on the day – up 19.28% year-to-date.

Consumer Staples

Hostess Brands will again ask bankruptcy Judge Robert Drain to authorize its liquidation after mediation talks with the company's striking bakers' union failed to resolve their differences. Potential suitors for all or part of Hostess' assets include Flowers Foods (FLO), which said on Monday that it has renegotiated lending terms to enable it to borrow additional cash. Archer Daniels Midland (ADM) is upgraded to Outperform from Market Perform by BMO Capital. Whole Foods (WFM) gets upgraded to Buy from Hold at Goldman. Brasil Foods (BRFS) is initiated with a Buy at Citigroup. Hormel Foods (HRL) is cut to Underperform from Outperform at Crédit Agricole. Dow components – Coca Cola (KO) is up about 0.5%. Procter & Gamble (PG) is up slightly. Wal-Mart (WMT) is down slightly. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.132 at 3:30 PM on Wednesday, up 0.09% on the day – up 8.13% year-to-date.

Health Care

Lazard launches Buys on Aetna (AET) and UnitedHealth (UNH). It has a new Neutral on WellPoint (WLP). Medicines Company (MDCO) is a new Outperform at Oppenheimer. Merck (MRK) is moved to Buy from Neutral at MKM Partners. Biogen Idec (BIIB), Celgene (CELG), and Threshold Pharmaceuticals (THLD) are all begun with Buys at Brean Capital. Infinity Pharmaceutical (INFI) is resumed with an Outperform at RBC Capital. Repros Therapeutics (RPRX) is resumed as a Buy at Roth Capital. HeartWare (HTWR) is moved to Market Perform from Outperform with Wells Fargo. St. Jude Medical (STJ) gets moved to Market Perform from Outperform with Wells Fargo. Big Movers – Sequenom (SQNM) is up about 13.5%. Vivus (VVUS) is up about 12.5%. Keryx Biopharmaceuticals (KERX) is up about 10%. St. Jude Medical (STJ) is down about 12%. Dow Components – Johnson & Johnson (JNJ) is down about 0.2%. Merck (MRK) is up about 0.75%. Pfizer (PFE) is up about 0.2%. United Health Group (UNH) is up about 0.8%. The Health Care Select Sector SPDR (XLV) was trading at $39.54 at 3:30 PM on Wednesday, down 0.05% on the day – up 13.98% year-to-date.

Financials

New York Attorney-General Eric Schneiderman reportedly plans to sue Credit Suisse (CS) for allegedly misleading investors who lost over $11.2B on mortgage bonds. A federal judge has allowed a lawsuit from the Federal Housing Finance Agency to go forward against Barclays (BCS) over the sale of $4.9B in questionable mortgage bonds to Fannie Mae (FNMA) and Freddie Mac (FMCC). Richard Schulze is now reportedly working separately with P-E firms Cerberus, TPG Capital and Leonard Green on a bid for Best Buy (BBY) despite previous speculation saying Cerberus had dropped out. Apollo (APO) and KKR (KKR) are unlikely to collaborate with Schulze on an offer. Credit Suisse assigns Outperforms on East West Bancorp (EWBC), First Republic Bank (FRC), Signature Bank (SBNY), and Susquehanna Bank (SUSQ). SVB Financial (SIVB) is taken to Buy from Hold at Citigroup. Realogy (RLGY) is a new Neutral at Citigroup. British Land (BTLCY) is moved to Overweight from Equal Weight at Morgan Stanley. First Republic Bank (FRC) is raised to Buy from Hold at Jefferies. Greenlight Capital (GLRE) gets upgraded to Buy from Neutral at UBS. Lloyds Banking Group (LYG) is lifted to Equal Weight from Underweight at Morgan Stanley. Webster Financial (WBS) is moved to Equal Weight from Overweight at Morgan Stanley. Commerce Bancshares (CBSH) is cut to Underweight from Equal-Weight at Morgan Stanley. Eaton Vance (EV) gets slashed to Sell from Neutral at Citigroup.

Big Movers – Ambac Financial (ABKFQ) is up about 12.5%. MBIA (MBI) is up about 12%. Dow Components – American Express (AXP) is up about 0.2%. Bank of America (BAC) is up about 1.25%. JP Morgan Chase (JPM) is up slightly. The Travelers Companies (TRV) is up about 0.5%. The Financial Select Sector SPDR (XLF) was trading at $15.635 at 3:30 PM on Wednesday, down 0.10% on the day – up 20.276% year-to-date.

Information Technology

Hewlett-Packard (HPQ) has taken an $8.8 billion write-down in its fourth-quarter earnings, including $5.3 billion on its acquisition of software company Autonomy. The FBI is reportedly investigating H-P's accusations of accounting improprieties at Autonomy prior to H-P buying the software company and for which it took an $8.8B charge in FQ4. The company’s Q4 earnings beat estimates by 2 cents, but revenue missed estimates by $430M. Hewlett-Packard (HPQ) is moved to Market Perform from Outperform at Raymond James. H-P is also taken to Underperform from Neutral at Mizuho and to Sector Perform from Outperform at RBC Capital. The FTC is reportedly uncertain that it can successfully sue Google (GOOG) for placing links to its products and services above those of its competitors in search results. A judge has to decide how much Microsoft (MSFT) should pay for the use of Google (GOOG) wireless and video patents following the end of a week-long trial yesterday. Google wants $4B a year, although Microsoft reckons that $1M+ is all that Google deserves. The Department of Justice and the FTC plan to hold informal hearings next month on whether patent trolls, which license IP but don't sell any tangible products, do more harm than good. A crackdown could well hurt the likes of Acacia (ACTG), InterDigital (IDCC) and Rambus (RMBS). Salesforce.com (CRM) beat estimates by a penny and revenue by $10.9M. The company expects FQ4 revenue of $825M-$830M and EPS of $0.38-$0.40 (versus consensus of $829.9M and $0.40). The company is setting FY14 revenue guidance of $3.8B-$3.85B (in-line with a $3.83B consensus). Millennial Media (MM) is a new Buy at Janney Montgomery Scott. NCR Corp. (NCR) is added to JPMorgan’s Focus List of favored equities. Research In Motion (RIMM) is raised to Hold from Underperform at Jefferies. Riverbed Technology (RVBD) is upgraded to Outperform at Northland Securities. ARM Holdings (ARMH) is downgraded to Outperform from Strong Buy at Raymond James. Intel (INTC) gets cut to Neutral from Buy at UBS.

Big Movers – China Digital TV Holdings (STV) is down about 38%. Nokia (NOK) is up about 14.5%. Dow Components – Cisco Systems (CSCO) is up about 0.6%. Hewlett-Packard (HPQ) is up about 2.7%. IBM (IBM) is up about 0.75%. Intel Corp (INTC) is down about 0.8%. Microsoft (MSFT) is up about 1.1%. The Technology Select Sector SPDR (XLK) was trading at $28.398 at 3:30 PM on Wednesday, up 0.35% the day – up 11.58% year-to-date.

Telecommunication Services

America Móvil (AMX) is taken to Neutral from Buy at Citigroup. Dow Components – AT&T (T) is up about 0.3%. Verizon (VZ) is up about 0.6%. The NASDAQ Telecommunications Index (IXTC) was trading at $188.33 at 3:30 PM on Wednesday, up 0.59% on the day – down 4.37% year-to-date.

Utilities

Big Mover – Centrais Eletricas Brasileiras (EBR) is down about 10.5%. The Big Names – Dominion Resources (D) is down about 0.6%. Edison International (EIX) is down about 1.1%. First Energy (FE) is down about 0.9%. PG&E Corp (PCG) is down about 0.8%. Southern Company (SO) is down about 0.9%. The Utilities Select Sector SPDR (XLU) was trading at $34.06 at 3:30 PM on Wednesday, down 0.79% on the day – down 5.34% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KO, PG, WMT, JNJ, MRK, PFE, UNH, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, BWP, PBR, LNCO, LINE, MPC, MTRX, MPLX, PXD, NRGY, NRGM, LUKOY, REPYY, AKS, CLF, KPLUF, DE, JOY, EMR, BEAV, WAIR, BBY, GRPN, APO, KKR, NWS, CBS, KID, ZLC, BAMM, COH, DECK, SIX, EXPE, YUM, PENN, SKX, FLO, ADM, WFM, BRFS, HRL, AET, UNH, WLP, MDCO, MRK, BIIB, CELG, THLD, INFI, RPRX, HTWR, STJ, SQNM, VVUS, KERX, CS, BCS, FNMA, FMCC, EWBC, FRC, SBNY, SUSQ, SIVB, RLGY, BTLCY, FRC, GLRE, LYG, WBS, CBSH, EV, ABKFQ, MBI, HPQ, GOOG, MFST, ACTG, IDCC, RMBS, CRM, MM, NCR, RIMM, RVBD, ARMH, INTC, STV, NOK, AMX, EBR

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
FLO Flowers Foods Inc. 21.48 0.11 0.51 1,609,397 Trade
CBS CBS Corporation Class B 38.57 0.94 2.50 7,693,073 Trade
MMM 3M Company 171.88 0.95 0.56 2,617,728 Trade
UNH UnitedHealth Group Incorporated (DE) 269.40 13.57 5.30 10,138,253 Trade
WBS Webster Financial Corporation 48.28 0.40 0.84 382,332 Trade
DE Deere & Company 174.48 0.10 0.06 1,645,798 Trade
EV Eaton Vance Corporation 48.07 0.23 0.48 709,113 Trade
ACTG Acacia Research Corporation 2.95 -0.04 -1.34 51,514 Trade
BEAV B/E Aerospace Inc. n/a n/a n/a 0 Trade
DECK Deckers Outdoor Corporation 167.41 2.31 1.40 427,450 Trade
PG Procter & Gamble Company (The) 120.54 0.04 0.03 7,108,725 Trade
GE General Electric Company 11.52 0.23 2.04 38,251,542 Trade
CRM Salesforce.com Inc 163.21 0.16 0.10 3,693,291 Trade
CVX Chevron Corporation 120.64 -0.13 -0.11 5,589,793 Trade
BWP BWPPU Boardwalk Pipeline n/a n/a n/a 0
SO Southern Company (The) 62.20 0.43 0.70 5,434,495 Trade
PCG Pacific Gas & Electric Co. 7.42 0.72 10.75 18,479,407 Trade
AKS AK Steel Holding Corporation 2.55 0.02 0.79 4,940,135 Trade
PBR Petroleo Brasileiro S.A.- Petrobras 15.44 0.32 2.12 7,297,415 Trade
RMBS Rambus Inc. 13.82 0.31 2.29 660,699 Trade
ARMH ARM Holdings plc n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 134.94 3.98 3.04 10,495,700 Trade
AA Alcoa Corporation 20.89 -0.10 -0.48 3,304,829 Trade
INTC Intel Corporation 57.96 0.15 0.26 16,113,148 Trade
MPLX MPLX LP Representing Limited Partner Interests 23.65 0.23 0.98 4,205,381 Trade
MBI MBIA Inc. 9.79 -0.10 -1.01 456,860 Trade
D Dominion Energy Inc. 82.11 0.55 0.67 2,859,958 Trade
TRV The Travelers Companies Inc. 133.57 -0.38 -0.28 1,450,033 Trade
MPC Marathon Petroleum Corporation 64.69 0.24 0.37 4,469,459 Trade
EXPE Expedia Group Inc. 95.33 0.09 0.09 2,936,403 Trade
BCS Barclays PLC 8.78 0.05 0.57 2,948,082 Trade
GLRE Greenlight Reinsurance Ltd. 10.35 -0.08 -0.77 65,510 Trade
EIX Edison International 70.10 0.42 0.60 2,123,721 Trade
TGZ:CA Teranga Gold Corporation 5.41 0.02 0.37 178,202
NCR NCR Corporation 33.16 0.44 1.34 1,199,932 Trade
AXP American Express Company 120.76 -0.17 -0.14 2,341,456 Trade
IDCC InterDigital Inc. 58.41 1.81 3.20 290,812 Trade
UTX United Technologies Corporation 149.36 1.25 0.84 1,989,150 Trade
HTWR Heartware International Inc. n/a n/a n/a 0 Trade
MDCO The Medicines Company 51.98 1.09 2.14 2,120,988 Trade
EWBC East West Bancorp Inc. 44.89 0.07 0.16 583,629 Trade
SBNY Signature Bank 123.99 -1.55 -1.23 294,239 Trade
CSCO Cisco Systems Inc. 45.09 0.18 0.40 32,392,507 Trade
LINE Linn Energy LLC Unit Repstg Ltd Liability Co Ints n/a n/a n/a 0
SKX Skechers U.S.A. Inc. 40.47 0.45 1.12 1,203,122 Trade
SQNM Sequenom Inc. n/a n/a n/a 0 Trade
COH T.P Coach Inc. n/a n/a n/a 0
STV China Digital TV Holding Co. Ltd. American Deposit n/a n/a n/a n/a
VZ Verizon Communications Inc. 59.51 0.17 0.29 11,759,002 Trade
BAMM Books-A-Million Inc. n/a n/a n/a 0 Trade
BAC Bank of America Corporation 32.93 0.23 0.70 36,405,643 Trade
YUM Yum! Brands Inc. 98.28 0.17 0.17 2,575,750 Trade
HRL Hormel Foods Corporation 42.38 0.15 0.36 1,664,843 Trade
CBSH Commerce Bancshares Inc. 65.86 -0.28 -0.42 371,176 Trade
NOK Nokia Corporation Sponsored American Depositary Shares 3.45 0.08 2.37 28,512,030 Trade
GOOG Alphabet Inc. 1,334.87 23.41 1.79 1,782,990 Trade
SIVB SVB Financial Group 234.06 1.11 0.48 239,900 Trade
MCD McDonald's Corporation 193.97 -0.03 -0.02 2,991,960 Trade
SIX Six Flags Entertainment Corporation 44.60 -0.30 -0.67 1,105,898 Trade
BRFS BRF S.A. 7.87 0.06 0.77 884,023 Trade
EMR Emerson Electric Company 73.53 0.80 1.10 2,134,196 Trade
ADM Archer-Daniels-Midland Company 42.87 0.09 0.21 7,416,195 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 3.01 0.02 0.67 3,088,039 Trade
RLGY Realogy Holdings Corp. 10.02 0.36 3.73 2,009,217 Trade
VVUS VIVUS Inc. 2.86 0.06 2.14 42,747 Trade
THLD MTEM Threshold Pharmaceuticals Inc. n/a n/a n/a 0
STJ St. Jude Medical Inc. n/a n/a n/a 0 Trade
JOY Joy Global Inc. n/a n/a n/a 0 Trade
BBY Best Buy Co. Inc. 77.09 1.49 1.97 2,206,681 Trade
INFI Infinity Pharmaceuticals Inc. 0.98 -0.00 -0.41 67,416 Trade
WAIR Wesco Aircraft Holdings Inc. 10.99 0.00 0.00 876,221 Trade
PFE Pfizer Inc. 37.28 0.73 2.00 34,515,925 Trade
BIIB Biogen Inc. 282.27 7.12 2.59 1,922,192 Trade
FRC FIRST REPUBLIC BANK 108.79 -0.21 -0.19 637,681 Trade
HPQ HP Inc. 20.18 0.05 0.25 10,628,284 Trade
CELG Celgene Corporation 110.02 0.00 0.00 4,344,837 Trade
MRK Merck & Company Inc. (new) 84.90 0.35 0.41 9,233,008 Trade
EBR Centrais Electricas Brasileiras S A American Depositary Shares (Each representing one) 8.67 0.22 2.60 128,043 Trade
GRPN Groupon Inc. 3.00 0.06 2.04 4,050,126 Trade
CLF Cleveland-Cliffs Inc. 7.18 0.08 1.13 7,282,534 Trade
FE FirstEnergy Corp. 47.04 0.30 0.64 4,621,396 Trade
MTRX Matrix Service Company 19.47 0.57 3.02 223,981 Trade
KO Coca-Cola Company (The) 52.67 0.04 0.08 8,984,206 Trade
PXD Pioneer Natural Resources Company 134.28 1.91 1.44 1,056,051 Trade
T AT&T Inc. 39.50 0.55 1.41 31,476,777 Trade
CAT Caterpillar Inc. 145.31 1.87 1.30 2,827,466 Trade
PENN Penn National Gaming Inc. 21.95 0.23 1.06 1,278,311 Trade
MSFT Microsoft Corporation 149.97 1.91 1.29 23,510,495 Trade
LNCO LinnCo LLC
RPRX Repros Therapeutics Inc.
NWS News Corporation
WMT Walmart Inc. 118.87 -1.78 -1.48 10,146,507 Trade
IBM International Business Machines Corporation 134.40 0.40 0.30 3,262,656 Trade
JPM JP Morgan Chase & Co. 129.53 0.93 0.72 10,163,668 Trade
DIS The Walt Disney Company 144.67 -2.48 -1.69 13,749,421 Trade
HD Home Depot Inc. (The) 237.29 0.74 0.31 3,526,772 Trade
XOM Exxon Mobil Corporation 69.19 0.69 1.01 11,253,689 Trade
BA The Boeing Company 371.68 4.24 1.15 5,496,961 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

     

World Economic Forum at Davos 2019 - Ben Yablon Executive VP Salt Lending

Matt Bird sits down with Ben Yablon - Executive VP of Salt Lending - at the World Economic Forum in Davos January 2019