Equities Daily Stock Sector Coverage: Markets Move Up

Sector Recap |

Wall Street Stock MarketStocks around the globe were mixed Tuesday morning, mostly lower in Asia and rebounding in Europe. The Nikkei 225 declined 1.2% to 9441. U.S. stocks had significant declines on Monday and despite an afternoon recovery the Dow Jones Industrial Average declined 140 points to 12,202 with the NASDAQ down 30 points to 2735. The Dow is a leader still up 5.4% year to date with the NASDAQ up just 3.1%. Financials have become a drag on the stock market with the Regional Banking Index (BKX) down 3.4% year to date. The BKX includes the banks considered “too big to fail”, namely JP Morgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WF). The U.S. Treasury 10-Year yield stabilized on Tuesday between 3.40 percent and 3.35 on a renewed flight to quality. Gold traded to another new all time high of $1500.9 the Troy ounce. Crude oil traded lower to a test of $105.50 per barrel Tuesday morning then rebounded to above $108.00 in the afternoon.

The euro versus the dollar seems to have established a trading range between just below 1.42 and just above 1.45. Housing Starts in March rose 7.2% to an annual rate of 549,000 units with Permits up 11.2% to 594,000. This better than expected housing data precedes Monday’s report that the National Association of Home Builder Housing Market Index remains depressed at 16 in April. U.S. stocks traded higher Tuesday with the Dow Industrial Average staying above its 50-day simple moving average at 12,189 while the NASDAQ stayed below its 50-day at 2754.

Energy

Bronco Drilling (BRNC) gets moved to Market Perform from Outperform at FBR Capital. Cabot Oil & Gas (COG) is cut to Hold from Buy at Stifel Nicolaus. In afternoon trading: Shares of Kodiak Oil & Gas (KOG) are up about 8.1%. Shares of Tesoro (TSO) are down about 4.1%. Shares of Tsakos Energy Navigation (TNP) are down about 5.6%. Shares of InterOil (IOC) are down about 4.5%.

The Energy Select Sector SPDR (XLE) was trading at $76.81 at 4:00 PM on Tuesday, up 1.01% on the day – up 12.54% year-to-date.

Materials

In afternoon trading: Shares of China Shen Zhou Mining (SHZ) are down about 18.5%. Shares of Rare Elements (REE) are down about 6.7%. Shares of Teck Resources Limited (TCK) are up about 7%. Shares of Packaging Corp of America (PKG) are up about 4.8%. Shares of Steel Dynamics (STLD) are up about 4.7%. Shares of United States Steel (X) are up about 4.25%. Shares of AK Steel Holding (AKS) are up about 4%.

The Materials Select Sector SPDR (XLB) traded at $39.50 at 4:00 PM on Tuesday, up 1.78% on the day – up 2.84% year-to-date.

Industrials

Nielsen (NLSN) is a new Outperform at Credit Suisse. Eaton Corporation (ETN) is boosted to Outperform from Perform at Oppenheimer. Navistar (NAV) is now Neutral from Underweight at JPMorgan. Philips Electronics NV (PHG) is reduced to Hold from Buy at ING Group. In afternoon trading: Shares of Zipcar (ZIP) are up about 10%. Shares of YRC Worldwide (YRCW) are up about 6%. Shares of American Superconductor (AMSC) are down about 6%.

The Industrial Select Sector SPDR (XLI) traded at $36.92 at 4:00 PM on Tuesday, up 0.87% on the day – up 5.88% year-to-date.

Consumer Discretionary

The government could step up the pace on unloading its 33% stake in General Motors (GM) in June, August and September - though the automaker's disappointing stock performance means that might deepen U.S. losses on its bailout. Meanwhile, GM says it's raising prices by an average of $123/vehicle - not due to the Japan earthquake, but because of the rising cost of raw materials like petroleum. Toyota (TM) has also recently raised prices. Mattel (MAT) is upgraded to Overweight from Neutral at Piper Jaffray. In afternoon trading: Shares of E-Commerce China Dangdang (DANG) are up about 13.3%. Shares of American Apparel (APP) are up about 9.7%. Shares of Barnes & Noble (BKS) are up about 9%. Shares of Orbitz Worldwide (OWW) are down about 9.7%.

The Consumer Discretionary Select Sector SPDR (XLY) traded at $38.99 at 4:00 PM on Tuesday, up 0.23% on the day – up 4.22% year-to-date.

Consumer Staples

In afternoon trading: Actives: Shares of Altria Group (MO) are down about 1.3%. Shares of Reynolds American (RAI) are down about 0.8%. Shares of Kraft Foods (KFT) are up about 0.3%. Shares of Procter & Gamble (PG) are down about 0.3%. Shares of SuperValu (SVU) are down about 0.5%.

The Consumer Staples Select Sector SPDR (XLP) traded at $30.73 at 4:00 PM on Tuesday, up 0.20% on the day – up 4.84% year-to-date.

Healthcare

Johnson & Johnson (JNJ) posted a profit of $1.25 per share (in-line) and raised guidance. Pacific Biosciences (PACB) is picked up at a Market Perform by brokers William Blair, which assigns an Outperform on Complete Genomics (GNOM). HCA Holdings (HCA) gets initiated with an Outperform at Wells Fargo. Lifepoint Hospitals (LPNT) is launched at a Neutral by Suntrust. Centene (CNC) is initiated with a Market Perform at Wells Fargo. Eli Lilly (LLY) is upgraded to Buy from Hold at Hapoalim. In afternoon trading: Shares of Amarin (AMRN) are down about 8.7%. Shares of Zalicus (ZLCS) are up about 6.1%.

The Health Care Select Sector SPDR (XLV) traded at $33.82 at 4:00 PM on Tuesday, up 0.83% on the day – up 7.37% year-to-date.

Financials

Goldman Sachs (GS) repurchased $5 billion in preferred shares it sold Berkshire Hathaway (BRK.A) in fall 2008, and threw in a 10% dividend ($500 million) besides. In the middle of a stream of divestitures, rescued insurer AIG (AIG) reached a deal reported at $600 million to sell its rail-car leasing unit to Perella Weinberg - which already owns Infinity Transportation, a manager of rail and trucking assets. Citigroup (C) stock was unchanged yesterday as it tried to point to a few signs of improvement in an earnings report that showed profits sank 32% on revenue that dropped 22%. Zions Bancorp (ZION) swung to an unexpected profit on a narrow loan-loss provision. Zions Bancorp reported Q1 EPS of $0.08, which may not be comparable with consensus of -$0.18. Zions Bancorp is upgraded to Outperform from Neutral at FBR Capital with a new target of $30. Goldman Sachs (GS) reported EPS of $1.56 (beating estimates). Bank of New York (BK) reported EPS of 50 cents (versus estimates of 57 cents).

The Financial Select Sector SPDR (XLF) traded at $15.97 at 4:00 PM on Tuesday, up 0.31% – up 0.13% year-to-date.

Information Technology

Texas Instruments (TXN) reported earnings of $0.55/share, vs. consensus of $0.58, on revenue of $3.4 billion, saying it faced production setbacks due to the March 11 earthquake and tsunami in Japan, which damaged two factories and threw off demand. Apple (AAPL) adds to the web of litigation around smartphones and tablets with a patent and trademark suit against fast-growing Samsung Electronics, saying the latter's Galaxy phones and tablets "slavishly" copy the iPhone and iPad. What may really be at stake is the foothold of Google's (GOOG) Android (Samsung's operating system of choice). WebMD Health (WBMD) is initiated with a Buy at Canaccord. Infineon (IFNNY) is upgraded to Buy from Hold at WestLB. Netease.com (NTES) is now Neutral from Outperform at Cowen. In afternoon trading: Shares of Perfect World (PWRD) are up about 10.8%. Shares of GigaMedia Limited (GIGM) are up about 10.4%. Shares of Evergreen Solar (ESLR) are up about 8.1%. Shares of Qlik Technologies (QLIK) are up about 7.5%.

The Technology Select Sector SPDR (XLK) traded at $25.58 at 4:00 PM on Tuesday, up 0.27% on the day – up 1.55% year-to-date.

Telecommunications Services

Frontier Communications (FRT) is started at Neutral by Citadel. In afternoon trading: Shares of Millicom International Cellular (MICC) are up about 5.1%. Shares of Neutral Tandem (TNDM) are up about 4.7%. Shares of Leap Wireless (LEAP) are down about 5%. Shares of Clearwire (CLWR) are down about 4.3%.

The NASDAQ Telecommunications Index (IXTC) traded at $217.45 at 4:00 PM on Tuesday, up slightly on the day – down 3.51% year-to-date.

Utilities

In afternoon trading: Shares of Tri-Tech Holding (TRIT) are up about 9.2%. Shares of Ormat Technologies (ORA) are down about 4%. Actives: Shares of PPL (PPL) are down about 0.4%. Shares of Duke Energy (DUK) are down about 0.3%. Shares of Pepco Holdings (POM) are down about 1.1%. Shares of CenterPoint Energy (CNP) are down slightly.

The Utilities Select Sector SPDR (XLU) traded at $31.83 at 4:00 PM on Tuesday, up slightly on the day – up 1.56% year-to-date.

STOCKS: BRNC, COG, KOG, TSO, TNP, OIC, SHZ, REE, TCK, PKG, STLD, X, AKS, NLSN, ETN, NAV, PHG, ZIP, YRCW, AMSC, GM, TM, MAT, DANG, APP, BKS, OWW, MO, RAI, KFT, PG, SVU, JNJ, PACB, GNOM, LPNT, CNC, LLY, AMRN, ZLCS, GS, BRK.A, AIG, C, ZION, BK, TXN, AAPL, GOOG, WBMD, IFNNY, NTES, PWRD, GIGM, ESLR, QLIK, FRT, MICC, TNDM, LEAP, CLWR, TRIT, ORA, PPL, DUK, POM, CNP

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Companies

Symbol Name Price Change % Volume
PCG.P.C Pacific Gas & Electric Co. 5% 1st Preferred Stock 28.20 0.00 0.00 0

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