The Dow Jones Industrial Average stayed above 11,800 at Monday’s open and traded up to 11,940.75 nearing its 200-day simple moving average at 11,967. The NASDAQ traded up from 2643.94 to 2703.07 on Monday trading above its 200-day simple moving average at 2692.
Tomorrow, Consumer Confidence will remain subdued at below 50 in October. On Wednesday, Durable Goods Orders will rise 1.0% in October and New Home Sales should rise slightly to an annual rate of 300,000 in September. On Thursday we get the advanced reading for third quarter GDP which is expected to rise 2.7%. On Friday, Personal Income should rise by 0.2% with Spending up 0.7% in September. U.S. Treasury supply will be put to a test with auctions of; $35 billion 2-Year notes on Tuesday, $35 billion 5-Year notes on Wednesday and $29 billion 7-Year notes on Thursday.
Asian stocks were higher on Monday as Japanese exports increased. The Nikkei 225 gained 1.90% to 8,844 with the Hang Seng surging 4.14% to 18,772. European stocks were choppy as hopes of a debt crisis solution offset the decline in Eurozone private sector business activity. The FTSE 100 gained 1.14% to 5,551 with the DAX up by 1.41% to 6,055 and the CAC 40 higher by 1.55% to 3,220. The US Treasury 10-Year yield rose traded between 2.173 percent and 2.243 on Monday. Gold traded up from $1636.6 the Troy ounce to $1663.3 on Monday. Crude oil traded up from $87.00 per barrel to $91.88 on Monday. The euro versus the dollar traded up from 1.3825 to 1.3954 on Monday.
Lufkin Industries (LUFK) gets launched with a Buy rating and $68 price target at Global Hunter Securities. Noble Energy (NBL) is now Oupterform from Market Perform at BMO Capital. Nordic American Tanker (NAT) is upgraded to Hold from Sell at Cantor Fitzgerald. In afternoon trading: Shares of SunPower (SPWRA) are up about 15.5%. Shares of Suntech Power (STP) are up about 15%. Shares of General Maritime (GMR) are up about 12.25%. Shares of Patriot Coal (PCX) are up about 9.75%. Shares of Alpha Natural Resources (ANR) are up about 9.5%. Shares of Kodiak Oil & Gas (KOG) are up about 9.5%.
Energy Select Sector SPDR (XLE) was trading at $69.45 at 4:00 PM on Monday, up 1.31% on the day – up 1.76% year-to-date.
Peabody Energy (BTU) and ArcelorMittal (MT) have obtained a 59.85% majority interest in Australia’s Macarthur Coal (MACDF), ensuring success for their A$4.9B ($5B) bid. Sensient Technologies (SXT) beat estimates by 2 cents, while missing revenue by $8.7M. The company lifted its 2011 EPS guidance to $2.38-$2.42, from a prior $2.32-$2.37. Chemtura (CHMT) is picked up at Perform at Oppenheimer. BHP Billiton (BHP) is upgraded to Buy from Neutral at Goldman, which also adds it to their list of Conviction Buys. Rio Tinto (RIO) and Anglo American are each now Neutral from Buy at Goldman. International Flavors & Fragrances Inc. (IFF) is downgraded to Sector Perform from Outperform at RBC Capital. In afternoon trading: Shares of Silvercorp Metals (SVM) are up about 18%. Shares of Mechel OAO (MTL) are up about 11.25%. Shares of AbitibiBowater (ABH) are up about 10.25%.
The Materials Select Sector SPDR (XLB) was trading at $34.17 at 4:00 PM on Monday, up 2.40% on the day – down 11.04% year-to-date.
Caterpillar (CAT) beat estimates by 7 cents and revenue by $60M. Eaton (ETN) reported Q3 EPS of $1.08 (in-line), while missing revenue by $70M, and sees FY11 EPS of $3.95-$4.05 (versus consensus of $3.99) and Q4 EPS of $1.06-$1.16 (versus consensus of $1.10). Danaher (DHR) beat Q3 estimates and lifted its 2011 EPS guidance, to $2.79-$2.84. FedEx (FDX) is lifted to Buy from Neutral at Lazard. In afternoon trading: Shares of Beacon Power (BCON) are up about 27%. Shares of USG Corp. (USG) are up about 15%. Shares of Titan International (TWI) are up aout 12.5%. Shares of Meritor (MTOR) are up about 11.5%.
The Industrial Select Sector SPDR (XLI) was trading at $33.28 at 4:00 PM on Monday, up 1.87% on the day – down 4.56% year-to-date.
Even though it has alienated customers and investors over the past few months with steep price rises and an aborted attempt to spin off its DVD rental business into a separate website, Netflix (NFLX) is expected to report increased Q3 earnings after the bell today. EPS is forecast to rise to $0.96 from $0.70 and revenues to $813M from $553M. VF Corp. (VFC) beat estimates by 29 cents and revenue by $130M. Home Depot (HD) is begun with a Buy at Citigroup, which has a new Neutral on smaller competitor Lowes (LOW). News Corp (NWSA) is resumed with an Equal Weight at Morgan Stanley. Shaw Communications SJR is lowered to Neutral from Buy by Bank of America-Merrill Lynch. Wendy’s (WEN) is cut to Neutral from Buy at Suntrust. In afternoon trading: Shares of Office Depot (ODP) are up about 13.5%. Shares of Bon Ton Stores (BONT) are up about 13%. Shares of Brown Shoe Company (BWS) are up about 11%. Shares of Pinnacle Entertainment (PNK) are up about 10.5%. Shares of OfficeMax (OMX) are up about 10.25%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.90 at 4:00 PM on Monday, up 1.48% on the day – up 6.66% year-to-date.
Kimberly-Clark (KMB) reported Q3 EPS of $1.26 (in-line), while beating revenue by $90M. Lorillard (LO) missed estimates by 8 cents, while beating revenue by $480M. In afternoon trading: Shares of American Oriental Bioengineering (AOB) are up about 7%. Shares of Pilgrim’s Pride (PPC) are up about 6.5%. Shares of Green Mountain Coffee Roasters (GMCR) are up about 6.25%. Shares of AgFeed (FEED) are down about 7.5%. Shares of Kimberly-Clark are down about 4.5%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $31.25 at 4:00 PM on Monday, down 0.70% on the day – up 6.62% year-to-date.
The FBI is investigating a $687M advisory fee that Japan’s Olympus (OCPNY) paid during its $2B takeover of U.K. company Gyrus Group in 2008. Accretive Health (AH) is assigned an Underweight at Piper Jaffray. Teva Pharmaceuticals (TEVA) is now Neutral from Overweight at Piper Jaffray. In afternoon trading: Shares of Adolor Corp. (ADLR) are up about 143% on news that the company is to be acquired by Cubist Pharmaceuticals (CBST) for $4.25/share in cash. Shares of Healthspring (HS) are up about 34%. Shares of Exelixis (EXEL) are up about 24%. Shares of InterMune (ITMN) are up about 11%. Shares of SXC Health Solutions (SXCI) are down about 20.5%.
The Health Care Select Sector SPDR (XLV) was trading at $33.61 at 4:00 PM on Monday, up 1.51% on the day – up 6.70% year-to-date.
Invesco (IVE) missed estimates by 2 cents and revenue by $314M. LPL Investment (LPLA) is assumed with an Outperform at brokers William Blair. Duke Realty (DRE) is raised to Outperform from Neutral at Brokerage Robert W. Baird with a $14 target. Barclays boosts XL Group (XL), Willis Group (WSH), Marsh & McLennan (MMC), Arthur Gallagher (AJG), and Brown & Brown (BRO), all now Overweight from Equal Weight. Sabra Healthcare REIT (SBRA) is moved to Market Perform from Outperform at JPMorgan. Torchmark (TMK) is taken to Neutral from Buy at Citigroup. In afternoon trading: Shares of The PMI Group (PMI) are down about 14.5% after Arizona insurance regulators seized the main subsidiary of the company. Shares of CBRE Group (CBG) are up about 10%.
The Financial Select Sector SPDR (XLF) was trading at $13.42 at 4:00 PM on Monday, up 2.21% on the day – down 15.86% year-to-date.
Groupon is due to start its IPO roadshow today and hopes to price the offering by November 3 so that shares can begin trading the next day. Within the next two weeks, Google (GOOG) plans to launch an online music store that ties in closely with its Google+ social network. However, the offering may be undermined by the lack of participation of all the four major record labels. Agilent (A) gets begun with a Buy and $43 price objective at UBS. Taleo (TLEO) is named a Long Research Tactical Idea at Morgan Stanley. Power-One (PWER) is initiated with an Underweight at Morgan Stanley. Xilinx Inc. (XLNX) is boosted to Outperform from Sector Perform at Pacific Crest. Energy Conversion (ENER) is lowered to Sell from Neutral at UBS. In afternoon trading: Shares of RightNow Technologies (RNOW) are up about 19.25%. Shares of Motricity (MOTR) are up about 17.25%. Shares of Fusion-io Inc. (FIO) are up about 15%. Shares of Sohu.com (SOHU) are up about 14.5%. Shares of JA Solar (JASO) are up about 13.5%.
The Technology Select Sector SPDR (XLK) was trading at $25.93 at 4:00 PM on Monday, up 1.57% on the day – up 2.94% year-to-date.
Sprint (S) will go before a judge in Washington today requesting that it be able to carry out a lawsuit to block AT&T’s (T) proposed $39B acquisition of T-Mobile USA (DTEGY). Premiere Global Services (PGI) reported Q3 revenue of $119.2M and EPS of $0.18 (beating consensus by $4.3M and $0.01). The company expects 2011 revenue of $469M-$472M and EPS of $0.61-$0.62 (versus consensus of $465.6M and $0.61). In afternoon trading: Shares of Iridium Communications (IRDM) are up about 8%. Shares of Level 3 Communications (LVLT) are up about 7.25%. Actives: Shares of Sprint are down about 2.5%, while shares of AT&T are down about 1.1% and shares of Verizon (VZ) are down about 1.4%.
The NASDAQ Telecommunications Index (IXTC) was trading at $198.86 at 4:00 PM on Monday, up 2.28% on the day – down 11.76% year-to-date.
IdaCorp (IDA) is moved to Market Perform from Outperform with Wells Fargo. In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about 1%. Shares of Southern Co. (SO) are down about 1.3%. Shares of AES Corp. (AES) are up about 0.6%. Shares of Exelon (EXC) are down about 1.2%. Shares of Genon Energy (GEN) are up about 3.2%. Shares of PPL Corp. (PPL) are down about 0.7%.
The Utilities Select Sector SPDR (XLU) was trading at $34.73 at 4:00 PM on Monday, down 0.43% on the day – up 10.82% year-to-date.
STOCKS: LUFK, NBL, NAT, SPWRA, STP, GMR, PCX, ANR, KOG, BTU, MT, MACDF, SXT, CHMT, BHP, RIO, IFF, SVM, MTL, ABH, CAT, ETN, DHR, FDX, BCON, USG, TWI, MTOR, NFLX, VFC, HD, LOW, NWSA, WEN, ODP, BONT, BWS, PNK, OMX, KMB, LO, AOB, PPC, GMCR, FEED, OCPNY, AH, TEVA, ADLR, CBST, HS, EXEL, ITMN, SXCI, IVE, LPLA, DRE, XL, WSH, MMC, AJG, BRO, SBRA, TMK, PMI, CBG, GOOG, A, TLEO, PWER, XLNX, ENER, RNOW, MOTR, FIO, SOHU, JASO, S, T, DTEGY, PGI, IRDM, LVLT, VZ, IDA, DUK, SO, AES, EXC, GEN, PPL