Equities Sector Coverage: Bulls Retake Control on Wall Street

Sector Recap  |

Our International Trade Deficit narrowed to $46 billion in February. PPI came in flat in 0.0%, but rose by 0.3% excluding food & energy. Initial Jobless Claims rose to 380,000 staying above the recessionary level at 350,000. The Dow Jones Industrial Average rebounded to 12,986.96 going into the final half hour of trading, but staying below its 50-day simple moving average at 12,991. The NASDAQ’s rebounded to 3058.71 going into the final half hour of trading after holding its 50-day simple moving average at 2997 on Tuesday.

Asian stocks were higher on Thursday. The Nikkei 225 ended their session at 9,525 – up 0.70% on the day. The Hang Seng ended their session at 20,327 – up 0.93% on the day. European stocks were mixed on Thursday before rallying into the green in late trading. The FTSE 100 ended their session at 5,710 – up 1.34% on the day. The DAX ended their session at 6,743 – up 1.03% on the day. The CAC 40 ended their session at 3,270 – up 0.99% on the day. The yield on the 10-Year US Treasury declined from 2.051 percent to 2.010 then rose to 2.065 below its 50-day simple moving average at 2.074.

Gold rebounded from $1651.0 the Troy ounce and $1681.3 staying below its 50-day and 200-day simple moving averages at $1697.6 and $1691.1, which are converging towards a “death cross”. Crude oil traded up from $102.39 per barrel to $104.24 testing its 50-day simple moving average at $104.21. The euro versus the dollar traded up from 1.3105 to 1.3211 testing its 50-day simple moving average at 1.3212.

Energy

Natural gas prices fell to $1.984 per 1M British thermal units on Wednesday on the NYMEX, the first time below $2 in over ten years. Shell (RDS.A) was down 2.7% premarket after a 10 square mile oil slick was spotted near its platforms in the Gulf of Mexico. Goodrich Petroleum (GDP) is initiated with a Buy rating at Deutsche Bank. Whiting Petroleum (WLL) is initiated with a Buy rating at Brean Murray. PetroChina (PTR) has been upgraded to Buy from Neutral at UBS. First Solar (FSLR) declined 5.4% Thursday morning. Dow components - Chevron (CVX) picked up 0.6% with Exxon Mobil (XOM) up 0.8%.
Energy Select Sector SPDR (XLE) was trading at $69.73 at 3:30 PM on Thursday, up 2.12% on the day – up 0.87% year-to-date.

Materials

With the price of gold around $1675 the Troy ounce, the share price of some gold stocks moved higher Thursday morning; Barrick Gold (ABX) was up 2.0%, and Newmont Mining (NEM) was up 2.6%. Dow components - Alcoa (AA) gained 3.0% in morning trading while DuPont (DD) tacked on 1.6%.

The Materials Select Sector SPDR (XLB) was trading at $36.58 at 3:30 PM on Thursday, up 2.78% on the day – up 9.19% year-to-date.

Industrials

Canadian Pacific (CP) is upgraded to Buy from Neutral at Bank of America-Merrill Lynch. Packaging Corp of America (PKG) has been upgraded to Neutral from Underperform at JPMorgan. Dow components - Boeing Co (BA) gained 1.7%, Caterpillar (CAT) rebounded 3.8%, General Electric (GE) tacked on 0.8, 3M Company (MMM) was higher by 1.4%, and United Technologies (UTX) regained 2.2%.

The Industrial Select Sector SPDR (XLI) was trading at $36.75 at 3:30 PM on Thursday, up 2.00% on the day – up 8.89% year-to-date.

Consumer Discretionary

Electronic Arts (EA) is initiated with a Neutral rating at Ascendiant Capital Markets who cites key game and industry sales concerns. Their price target is $16 per share. BJ Restaurants (BJRI) is initiated with an Overweight rating at Barclays. Mattress Firm (MFRM) has been initiated with a Hold rating at Stifel Nicolaus, which notes that the stock is up 132% since November’s Initial Public Offering. Movado Group (MOV), the watchmaker has been added to the Top Picks Live list at Citigroup. Dow Components - Disney (DIS) was higher by 1.1%, and McDonalds (MCD) lost 0.6%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.64 at 3:30 PM on Thursday, up 1.32% on the day – up 14.40% year-to-date.

Consumer Staples

Danone (DANOY) has been upgraded to Buy from Hold at Société Générale. Bed Bath & Beyond (BBBY) has been downgraded to Hold from Buy with a $73 price target at Canaccord Genuity. Dow components - Home Depot (HD) tacked on 1.6%, Kraft (KFT) gained 0.5%, Coca Cola (KO) was flat, Procter & Gamble (PG) declined 1.0% and Wal-Mart (WMT) gained 0.7% in morning trading.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.60 at 3:30 PM on Thursday, up 0.03% on the day – up 3.42% year-to-date.

Health Care

The Department of Veterans Affairs has selected McKesson (MCK) to continue as its primary pharmaceutical supplier in a deal that valued at up to $31.6 billion over as many as eight years. UBS begins Ardea Biosciences (RDEA) with a $31 price target, ARIAD Pharmaceuticals (ARIA) with a $20 price target, and BioMarin Pharmaceutical (BMRN) with a $43 price target and Buy ratings. UBS initiates Achillion Pharmaceuticals (ACHN), Human Genome Sciences (HGSI), Ironwood Pharmaceuticals (IRWD), and InterMune (TMN) with Neutral ratings. ICU Medical (ICUI) is initiated with a Buy rating and $60 price target at Benchmark Company, citing that an aging population will drive an increase in the volume of medical and surgical related procedures. Dow Components - Johnson & Johnson (JNJ) slipped 0.1%, Merck (MRK) lost 0.4%, and Pfizer (PFE) was flat.

The Health Care Select Sector SPDR (XLV) was trading at $36.96 at 3:30 PM on Thursday, up 0.54% on the day – up 6.54% year-to-date.

Financials

Bank of America (BAC) appears to be suing itself over faulty mortgage foreclosures in Florida, with the bank serving as both the loan servicer and the second-lien holder of defaulted mortgages. FBR Capital resumes Outperform ratings on Cardinal Financial (CFNL) with a $13 price target, Virginia Commerce Bancorp (VCBI) with a $10 price target), and State Bank Financial (STBZ) with a $21 price target. FBR Capital has new Market Perform ratings on Eagle Bancorp (EGBN), First Bancorp (FBNC), and Union First Market Bankshares (UBSH). Dow Components - American Express (AXP) was up 1.7%, Bank of America (BAC) rallied by 1.7%, JP Morgan (JPM) gained 1.4%, and Travelers (TRV) gained 1.2%.

The Financial Select Sector SPDR (XLF) was trading at $15.46 at 3:30 PM on Thursday, up 1.78% on the day – up 18.92% year-to-date.

Information Technology

Sony (SNE) has set in motion a five-part restructuring for the company, which includes 10,000 job cuts this fiscal year. Google (GOOG) will report its Q1 2012 earnings after the close today, and analysts expect that EPS grew 19.4% to $9.65 and that revenues climbed 24.7% to $8.15 billion. Netflix (NFLX) is initiated as a new Buy at Suntrust. SunTrust assigns new Neutral ratings on Amazon.com (AMZN), Yahoo (YHOO), Groupon (GRPN), and Pandora (P). SunTrust initiates Google (GOOG) and LinkedIn (LNKD) with Buy ratings. American Superconductor (AMSC) is initiated with a Buy at Maxim Group and $7 price target, as wind power gross margins are estimated at 40%. Dow Components - Cisco Systems (CSCO) gained 0.9%, Hewlett-Packard (HPQ) was up 5.7%, IBM (IBM) gained 0.8%, Intel Corp (INTC) gained 1.2%, and Microsoft (MSFT) gained 1.8%.

The Technology Select Sector SPDR (XLK) was trading at $30.05 at 3:30 PM on Thursday, up 1.31% on the day – up 18.07% year-to-date.

Telecommunication Services

Nokia (NOK) might sell its Navteq map unit, which it bought for about $7.3 billion in 2008. America Movil (AMX), the Mexican telecom firm is initiated with an Outperform rating at Macquarie. AT&T Inc (T) has been upgraded to Overweight from Neutral on improved revenue growth from tablets and price increase efforts. Dow components - AT&T (T) picked up 1.6% while Verizon (VZ) gained 0.2%.

The NASDAQ Telecommunications Index (IXTC) was trading at $212.14 at 3:30 PM on Thursday, up 1.06% on the day – up 7.72% year-to-date.

Utilities

Nokia (NOK) might sell its Navteq map unit, which it bought for about $7.3 billion in 2008. America Movil (AMX), the Mexican telecom firm is initiated with an Outperform rating at Macquarie. AT&T Inc (T) has been upgraded to Overweight from Neutral on improved revenue growth from tablets and price increase efforts. Dominion Resources (D) was down 0.5%, Edison International (EIX) was down 0.6%, First Energy (FE) was flat, and PG&E Corp (PCG) was up 0.7%.

The Utilities Select Sector SPDR (XLU) was trading at $34.43 at 3:30 PM on Thursday, up 0.29% on the day – down 4.31% year-to-date.

STOCKS: CVX, XOM, RDS.A, GDP, WLL, PTR, FSLR, AA, DD, ABX, NEM, BA, CAT, GE, MMM, UTX, CP, PKG, DIS, MCD, EA, BJRI, MFRM, MOC, HD, KFT, KO, PG, WMT, DANOY, BBBY, JNJ, MRK, PFE, MCK, RDEA, ARIA, BMRN, ACHN, HGSI, IRWD, TMN, ICUI, AXP, BAC, JPM, CFNL, VCBI, STBZ, EGBN, FBNC, UBSH, CSCO, HPQ, IBM, INTC, MSFT, SNE, GOOG, NKLX, AMZN, YHOO, GRPN, P, LNKD, T, VZ, NOK, AMX, D, EIX, FE, PCG

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 204.66 -4.95 -2.36 2,716,057 Trade
MCK McKesson Corporation 118.54 -3.69 -3.02 1,115,846 Trade
FBNC First Bancorp 33.51 -1.67 -4.75 157,612 Trade
PG Procter & Gamble Company (The) 101.66 -0.83 -0.81 11,036,296 Trade
GE General Electric Company 9.98 -0.29 -2.82 81,563,530 Trade
CVX Chevron Corporation 123.09 -2.77 -2.20 5,786,776 Trade
PCG Pacific Gas & Electric Co. 19.42 0.37 1.94 9,601,653 Trade
PKG Packaging Corporation of America 95.13 -3.13 -3.19 598,113 Trade
JNJ Johnson & Johnson 136.91 -1.19 -0.86 6,528,782 Trade
AA Alcoa Corporation 28.12 -1.29 -4.39 3,356,052 Trade
INTC Intel Corporation 53.26 -1.38 -2.53 21,438,435 Trade
D Dominion Energy Inc. 75.52 0.41 0.55 5,324,247 Trade
EA Electronic Arts Inc. 102.34 -2.54 -2.42 7,159,188 Trade
ARIA ARIAD Pharmaceuticals Inc. n/a n/a n/a 0 Trade
ESI:CA Ensign Energy Services Inc. 5.73 -0.26 -4.34 249,607
WLL Whiting Petroleum Corporation 25.60 -1.79 -6.54 5,549,966 Trade
EIX Edison International 64.69 -0.29 -0.45 3,340,005 Trade
AXP American Express Company 109.46 -2.36 -2.11 3,737,581 Trade
UBSH Union Bankshares Corporation 30.99 -2.04 -6.18 458,125 Trade
UTX United Technologies Corporation 125.15 -1.73 -1.36 3,872,155 Trade
CSCO Cisco Systems Inc. 52.74 -1.20 -2.22 23,938,450 Trade
PTR PetroChina Company Limited 66.03 -2.38 -3.48 137,686 Trade
VZ Verizon Communications Inc. 59.76 1.47 2.52 25,125,385 Trade
ABX GOLD Barrick Gold Corporation (BC) n/a n/a n/a 0
ICUI ICU Medical Inc. 229.27 -7.02 -2.97 191,561 Trade
BAC Bank of America Corporation 27.01 -1.17 -4.15 118,851,628 Trade
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
NOK Nokia Corporation Sponsored American Depositary Shares 5.88 -0.38 -6.07 95,614,695 Trade
GOOG Alphabet Inc. 1,205.50 -26.04 -2.11 1,714,247 Trade
MCD McDonald's Corporation 186.81 0.44 0.24 3,319,613 Trade
BJRI BJ's Restaurants Inc. 45.40 -0.47 -1.02 479,829 Trade
BBBY Bed Bath & Beyond Inc. 13.70 -0.21 -1.51 3,856,322 Trade
ACHN Achillion Pharmaceuticals Inc. 2.93 -0.20 -6.39 1,405,634 Trade
PFE Pfizer Inc. 41.85 -0.50 -1.18 18,614,890 Trade
IRWD Ironwood Pharmaceuticals Inc. 13.62 -0.49 -3.47 1,450,104 Trade
FSLR First Solar Inc. 52.41 -2.40 -4.38 1,948,425 Trade
EGBN Eagle Bancorp Inc. 49.28 -2.86 -5.49 382,130 Trade
HPQ HP Inc. 19.34 -0.88 -4.35 15,765,553 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
CFNL Cardinal Financial Corporation n/a n/a n/a 0 Trade
MRK Merck & Company Inc. (new) 82.29 -0.66 -0.80 10,152,269 Trade
GRPN Groupon Inc. 3.38 -0.15 -4.25 4,060,464 Trade
FE FirstEnergy Corp. 41.77 0.53 1.29 3,805,192 Trade
BMRN BioMarin Pharmaceutical Inc. 88.05 -2.73 -3.01 1,009,756 Trade
KO Coca-Cola Company (The) 45.93 0.42 0.92 19,055,939 Trade
SNE Sony Corporation 42.03 -1.98 -4.50 1,579,399 Trade
CP Canadian Pacific Railway Limited 200.34 -3.23 -1.59 536,118 Trade
T AT&T Inc. 31.07 0.01 0.03 33,171,404 Trade
CAT Caterpillar Inc. 129.77 -4.29 -3.20 5,745,823 Trade
NEM Newmont Mining Corporation 34.50 0.17 0.50 31,349,184 Trade
MSFT Microsoft Corporation 117.05 -3.17 -2.64 33,624,528 Trade
MFRM Mattress Firm Holding Corp. n/a n/a n/a 0 Trade
WMT Walmart Inc. 98.28 -0.78 -0.79 6,708,131 Trade
IBM International Business Machines Corporation 139.45 -1.99 -1.41 3,877,616 Trade
JPM JP Morgan Chase & Co. 99.76 -3.11 -3.02 31,115,189 Trade
AMZN Amazon.com Inc. 1,764.77 -54.49 -3.00 6,362,983 Trade
DIS The Walt Disney Company 108.23 -0.43 -0.40 24,133,840 Trade
HD Home Depot Inc. (The) 188.75 -1.22 -0.64 5,173,899 Trade
XOM Exxon Mobil Corporation 80.48 -1.31 -1.60 12,497,707 Trade
BA The Boeing Company 362.17 -10.53 -2.83 10,143,922 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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