Equities Sector Coverage: Dow Closes Above 13,000 As Investors Shrug Off More Cliff News

Sector Recap  |

Initial Jobless Claims came in at 393,000 in the latest week, well above the 350,000 recessionary threshold. The Dow Jones Industrial Average rebounded to 13,062.56 then dipped to 12,961.92 then moved back and forth around its 200-day simple moving average at 12,993.05. The Nasdaq rebounded to 3017.18 then dipped to 2996.30 staying above its 200-day SMA at to 2986.02.

Asian stocks were higher on Thursday. The Nikkei 225 closed at 9401 – up 0.99%. The Hang Seng closed at 21,923 – up 0.99%. European exchanges closed higher on Thursday. The FTSE 100 ended the day at 5,870 – up 1.14%. The DAX ended the day at 7,398 – up 0.75%. The CAC 40 ended the day at 3,569 – up 1.53%. The yield on the 10-Year US Treasury declined from 1.645% to 1.608% staying below the 50-day and 200-day simple moving averages at 1.685% and 1.763%. The Preliminary Real GDP for Q3 has been revised to +2.7%, below estimates.

Comex gold rebounded from $1717.7 the Troy ounce to $1729.0 below the 50-day simple moving average at $1739.8 with the 200-day SMA at $1665.6. Nymex crude oil rebounded from $86.55 per barrel to $88.69 still below its 50-day and 200-day simple moving averages at $88.68 and $93.88. The euro versus the dollar rebounded from 1.2942 to 1.3011 back above its 50-day simple moving average at 1.2903 and above the 200-day simple moving average at 1.2795.

Energy

Rio Tinto (RIO) intends to slash $7B of costs, including $5B of operating expense over the next two years and a further $2B in spending cuts mostly at its struggling aluminum and Australian coal operations. Frontline (FRO) missed estimates by 14 cents on revenue of $126.8M. Linn Energy (LINE) is a new Buy at Citigroup. Big Mover – Hercules Offshore (HERO) is up about 10%. Dow components – Chevron (CVX) is up about 0.3%. Exxon Mobil (XOM) is up about 0.2%. Energy Select Sector SPDR (XLE) was trading at $71.01 at 3:30 PM on Thursday, up 0.07% on the day – up 2.72% year-to-date.

Materials

South Africa's Gold Fields (GFI) plans to spin off two mines that were beset by violent strikes in recent months. The KDC and Beatrix mines will be placed under the control of a new company called Sibanye Gold, which will be listed in February. Dow Components – Alcoa (AA) is up about 0.25%. DuPont (DD) is up about 0.75%. The Materials Select Sector SPDR (XLB) was trading at $36.62 at 3:30 PM on Thursday, up 0.55% on the day – up 9.31% year-to-date.

Industrials

Activist fund Relational Investors and the Calpers pension fund yesterday disclosed a combined 6.4% stake in Timken (TKR) and called on the company to spin off its steel business. Lockheed Martin's (LMT) F-35 fighter program is years behind schedule, while expenses have run out of control. The price to build each plane is $137M vs $69M in 2001, and the program will cost $396B if the Pentagon keeps to a plan to build 2,443 jets by the late 2030s. Beacon Roofing (BECN) reported FQ4 EPS of $0.60 (in-line), while missing revenue by $1.5M. Pall (PLL) beat estimates by 11 cents, while missing revenue by $6M. Kansas City Southern (KSU) is a new Equal Weight at Barclays. Box Ships (TEU) and Diana Containerships (DCIX) are both begun with Equal Weights at Barclays. Taser International (TASR) is taken to Neutral from Overweight at JPMorgan. Dow components – Boeing Co (BA) is up slightly. Caterpillar (CAT) is up about 1.5%. General Electric (GE) is up about 0.2%. 3M Company (MMM) is down slightly. United Technologies (UTX) is up slightly. The Industrial Select Sector SPDR (XLI) was trading at $37.17 at 3:30 PM on Thursday, up 0.46% on the day – up 10.13% year-to-date.

Consumer Discretionary

One of GM's (GM) Chinese joint ventures, SAIC-GM-Wuling, intends to invest $1B to build a third commercial-vehicle plant in the southwest of the country. Meanwhile, GM is opening the second phase of a global R&D center in Shanghai as it looks to exploit the vast quantity of engineers in China. Cracker Barrel's (CBRL) Q3 saw comparable store restaurant sales gain 3.3% on a modest lift in store traffic and 2.5% jump in average check. For FY13, the restaurant operator sets lukewarm guidance for total revenue of $2.6B-$2.65B and EPS of $4.50-$4.70. Tiffany (TIF) missed estimates by 14 cents and revenue by $4M. The company sees FY12 EPS of $3.20-$3.40 (lower than prior guidance of $3.55-$3.70 and short of the consensus mark of analysts calling for $3.60). Pier 1 Imports (PIR) reported Q3 EPS of $0.25 (in-line), while beating revenue by $10.1M. Aeropostale (ARO) beat estimates by 2 cents and revenue by $4M. The company now sees Q4 earnings of $0.36 to $0.41 per share (compared with analysts’ expectations of $0.54). La-Z-Boy (LZB) missed estimates by 8 cents and revenue by $3M. Coldwater Creek (CWTR) beat estimates by 30 cents and revenue by $8M. New York & Co. (NWY) beat estimates by a penny and revenue by $4M. Guess (GES) missed estimates by a penny, while beating revenue by $4M. CarMax (KMX) gets increased to Buy from Neutral at Goldman Sachs. DR Horton (DHI) is now Neutral from Sell at Compass Point. Guess Inc. (GES) gets upgraded to Overweight from Neutral at Piper Jaffray. Nike (NKE) gets upgraded to Overweight from Neutral at HSBC Securities. British Sky Broadcasting (BSYBY) gets moved to Underperform from Perform at Jefferies. Big Movers – Coldwater Creek (CWTR) is up about 19.5%. Barnes & Noble (BKS) is down about 11%. La-Z-Boy (LZB) is down about 11%. Kohls (KSS) is down about 10.5%. Dow Components – Disney (DIS) is up about 1.2%. Home Depot (HD) is down about 0.7%. McDonalds (MCD) is down slightly. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.48 at 3:30 PM on Thursday, up 0.25% on the day – up 21.68% year-to-date.

Consumer Staples

Archer Daniels Midland (ADM) is an Equal Weight at Stephens. Dow components – Coca Cola (KO) is up about 0.9%. Procter & Gamble (PG) is up about 0.3%. Wal-Mart (WMT) is up about 0.6%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.845 at 3:30 PM on Thursday, up 0.35% on the day – up 10.33% year-to-date.

Health Care

Jazz Pharmaceuticals (JAZZ) is a new Buy at Citigroup. WuXi PharmaTech (WX) is a new Overweight at Barclays. Dow Components – Johnson & Johnson (JNJ) is up slightly. Merck (MRK) is up about 0.25%. Pfizer (PFE) is up about 0.9%. United Health Group (UNH) is up about 3.2%. The Health Care Select Sector SPDR (XLV) was trading at $40.17 at 3:30 PM on Thursday, up 0.65% on the day – up 15.80% year-to-date.

Financials

The SEC has dropped a long-running investigation into whether Wells Fargo (WFC) misled investors in the sale of mortgage bonds. Still, the SEC did recently win settlements totaling over $400M from JPMorgan (JPM) and Credit Suisse (CS). Ares Commercial Real Estate (ACRE) is begun with a Buy at MLV & Co. AvalonBay (AVB) is raised to Market Perform from Underperform by BMO Capital. Northstar Realty (NRF) is now Outperform from Market Perform at FBR Capital. Public Storage (PSA) is hoisted the company to Hold from Underweight. Dow Components – American Express (AXP) is up about 1.2%. Bank of America (BAC) is up about 1%. JP Morgan Chase (JPM) is up about 1.1%. The Travelers Companies (TRV) is up about 0.5%. The Financial Select Sector SPDR (XLF) was trading at $15.76 at 3:30 PM on Thursday, up 0.38% on the day – up 21.23% year-to-date.

Information Technology

Dell (DELL) is the latest American corporation to be linked with a possible investment in Sharp (SHCAF), adding to speculation of talks between the struggling Japanese firm and Intel (INTC) and Qualcomm (QCOM). Sycamore Networks (SCMR) missed estimates by 7 cents, while beating revenue by $1.5M. Infoblox (BLOX) issued FQ2 guidance for revenue of $50M-$51.5M and EPS of $0.03-$0.04 (above a consensus of $48.3M and $0.01). FY13 guidance is for revenue of $204M-$208M and EPS of $0.17-$0.21 (above a consensus of $199M and $0.06). Workday (WDAY) beat estimates by 20 cents and revenue by $8.6M. The company expects FQ4 revenue of $75M-$79M (above a $70.5M consensus). TiVo (TIVO) reported Q3 EPS of $0.44 (may not be comparable to consensus of by -$0.21), while beating revenue by $22M. EMC Corp. (EMC) is a new Buy at Buckingham. RDA Microelectronics (RDA) is resumed with a Neutral at HSBC Securities. SunTrust starts Maxim Integrated Products (MXIM) with a Buy, has new Neutrals on Altera (ALTR) and Xilinx (XLNX), and resumes Texas Instruments (TXN). Crédit Agricole covers NetApp (NTAP) at Underperform and begins VMware (VMW) with a Buy. Google (GOOG) gets a Buy-from-Hold upgrade at Oracle Research. IAC/InterActiveCorp. (IACI) is moved to Outperform from Market Perform at Wells Fargo. Infoblox (BLOX) is boosted to Outperform from Perform with Wedbush. Micros Systems (MCRS) is moved to Buy from Neutral at Compass Point. Research In Motion (RIMM) is boosted to Buy from Neutral at Goldman Sachs. Activision Blizzard (ATVI) is now Neutral from Buy at Sterne Agee. Cree Inc. (CREE) is cut to Hold from Buy at Deutsche Bank. EZchip (EZCH) is slashed to Sell from Hold at Chardan Capital. Big Movers – OCZ Technology Group (OCZ) is up about 26.5%. Semtech (SMTC) is up about 12%. Liquidity Services (LQDT) is down about 16.5%. Dow Components – Cisco Systems (CSCO) is up about 1.25%. Hewlett-Packard (HPQ) is up about 1.1%. IBM (IBM) is down about 0.3%. Intel Corp (INTC) is down about 2.5%. Microsoft (MSFT) is down about 1.6%. The Technology Select Sector SPDR (XLK) was trading at $29.15 at 3:30 PM on Thursday, up 0.45% the day – up 14.54% year-to-date.

Telecommunication Services

Dow Components – AT&T (T) is up about 1%. Verizon (VZ) is up about 0.9%. The NASDAQ Telecommunications Index (IXTC) was trading at $194.94 at 3:30 PM on Thursday, up 1.05% on the day – down 1.01% year-to-date.

Utilities

New Jersey Resources (NJR) missed estimates by a penny, while beating revenue by $13M. The Big Names – Dominion Resources (D) is up about 0.4%. Edison International (EIX) is up about 0.9%. First Energy (FE) is flat. PG&E Corp (PCG) is up about 0.5%. Southern Company (SO) is up about 1.1%. The Utilities Select Sector SPDR (XLU) was trading at $34.92 at 3:30 PM on Thursday, up 0.49% on the day – down 2.95% 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, RIO, FRO, LINE, HERO, GFI, TKR, LMT, BECN, PLL, KSU, TEU, DCIX, TASR, DELL, SHCAF, INTC, QCOM, GM, CBRL, TIF, PIR, ARO, LZB, CWTR, NWY, GES, KMX, DHI, GES, NKE, BSYBY, BKS, KSS, ADM, JAZZ, WX, WFC, JPM, CS, ACRE, AVB, NRF, PSA, SCMR, BLOX, WDAY, TIVO, EMC, RDA, MXIM, ALTR, XLNX, TXN, NTAP, VMW, GOOG, IACI, MCRS, RIMM, ATVI, CREE, EZCH, OCZ, SMTC, LQDT, NJR

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 192.55 -8.81 -4.38 8,255,645 Trade
UNH UnitedHealth Group Incorporated (DE) 264.86 2.67 1.02 4,081,802 Trade
LMT Lockheed Martin Corporation 321.35 -5.43 -1.66 2,995,685 Trade
ARO Manulife Financial Corporation n/a n/a n/a n/a
PG Procter & Gamble Company (The) 87.16 0.56 0.65 16,269,531 Trade
GE General Electric Company 12.69 0.31 2.50 81,885,020 Trade
RIO Rio Tinto Plc 48.24 -0.86 -1.75 2,484,658 Trade
CVX Chevron Corporation 113.40 -3.81 -3.25 8,095,268 Trade
SO Southern Company (The) 44.73 -0.24 -0.53 5,034,554 Trade
PCG Pacific Gas & Electric Co. 47.29 -0.49 -1.03 4,676,782 Trade
TKR Timken Company (The) 39.62 -0.90 -2.22 656,415 Trade
JNJ Johnson & Johnson 138.93 0.25 0.18 8,282,724 Trade
WMT Walmart Inc. 97.80 0.66 0.68 9,405,824 Trade
AA Alcoa Corporation 37.32 -2.14 -5.42 3,192,870 Trade
INTC Intel Corporation 44.50 -0.51 -1.13 38,590,347 Trade
IBM International Business Machines Corporation 131.21 1.19 0.92 6,463,580 Trade
D Dominion Energy Inc. 72.91 -0.36 -0.49 3,225,548 Trade
TRV The Travelers Companies Inc. 123.80 -0.27 -0.22 2,000,962 Trade
TASR TASER International Inc.
TIF Tiffany & Co. 107.87 -0.14 -0.13 1,541,545 Trade
XLNX Xilinx Inc. 74.80 -0.11 -0.15 2,615,236 Trade
BLOX Infoblox Inc. n/a n/a n/a 0 Trade
EIX Edison International 69.55 -0.31 -0.44 1,138,724 Trade
JAZZ Jazz Pharmaceuticals plc 158.65 1.40 0.89 347,039 Trade
RY.PR.A:CA Royal Bank of Canada Non-Cumulative First Preferred Shares Series AA 25.36 0.03 0.12 200
GES Guess? Inc. 20.38 -0.32 -1.55 806,983 Trade
GFI Gold Fields Limited American Depositary Shares 3.01 0.17 5.99 6,832,914 Trade
JPM JP Morgan Chase & Co. 105.25 -1.11 -1.04 21,407,548 Trade
AXP American Express Company 104.38 -0.13 -0.12 4,223,784 Trade
BECN Beacon Roofing Supply Inc. 28.83 -0.23 -0.79 1,339,206 Trade
UTX United Technologies Corporation 130.02 3.62 2.86 7,030,624 Trade
TXN Texas Instruments Incorporated 100.25 0.53 0.53 13,925,948 Trade
BKS Barnes & Noble Inc. 6.60 0.05 0.76 1,117,609 Trade
VMW Vmware Inc. Class A 145.41 -0.73 -0.50 975,999 Trade
SMTC Semtech Corporation 48.06 -0.67 -1.37 411,789 Trade
CSCO Cisco Systems Inc. 45.42 -0.34 -0.74 21,836,153 Trade
LINE Linn Energy LLC Unit Repstg Ltd Liability Co Ints n/a n/a n/a 0
DIS The Walt Disney Company 117.85 -0.42 -0.36 8,607,373 Trade
VZ Verizon Communications Inc. 57.21 2.23 4.06 29,328,713 Trade
NKE Nike Inc. 73.35 -1.55 -2.07 11,423,769 Trade
GM General Motors Company 32.12 0.78 2.49 16,580,792 Trade
BAC Bank of America Corporation 27.02 -0.36 -1.31 102,392,522 Trade
WX WuXi PharmaTech (Cayman) Inc ADR (Sponsored) Repstg Ord Shs n/a n/a n/a 0 Trade
PSA Public Storage 197.62 1.05 0.53 1,375,956 Trade
GOOG Alphabet Inc. 1,103.69 2.53 0.23 1,848,654 Trade
MCD McDonald's Corporation 177.15 10.52 6.31 12,918,331 Trade
DHI D.R. Horton Inc. 35.68 0.71 2.03 10,296,336 Trade
ADM Archer-Daniels-Midland Company 49.06 0.15 0.31 4,263,428 Trade
ACRE Ares Commercial Real Estate Corporation 13.92 -0.09 -0.64 96,909 Trade
KSS Kohl's Corporation 73.31 0.29 0.40 3,071,139 Trade
ATVI Activision Blizzard Inc 68.98 -0.80 -1.15 6,850,889 Trade
MXIM Maxim Integrated Products Inc. 51.06 -0.26 -0.51 3,627,341 Trade
FRO Frontline Ltd. 6.20 -0.26 -4.02 266,310 Trade
AVB AvalonBay Communities Inc. 173.71 0.87 0.50 494,334 Trade
TEU Box Ships n/a n/a n/a 0
HD Home Depot Inc. (The) 178.53 -0.22 -0.12 7,004,926 Trade
XOM Exxon Mobil Corporation 79.84 -1.31 -1.61 15,465,125 Trade
PFE Pfizer Inc. 44.10 -0.27 -0.61 21,890,987 Trade
ALTR Altair Engineering Inc. 36.80 0.01 0.03 310,416 Trade
KSU Kansas City Southern 103.35 -2.08 -1.97 1,733,173 Trade
WFC Wells Fargo & Company 51.56 -0.09 -0.17 25,529,823 Trade
HPQ HP Inc. 23.94 -0.17 -0.71 9,621,910 Trade
BA The Boeing Company 350.05 -5.93 -1.67 4,389,559 Trade
MRK Merck & Company Inc. (new) 72.10 -0.47 -0.65 11,561,871 Trade
PIR Pier 1 Imports Inc. 1.60 0.01 0.63 559,013 Trade
LQDT Liquidity Services Inc. 5.66 0.08 1.43 37,970 Trade
NJR NewJersey Resources Corporation 46.03 -0.39 -0.84 346,642 Trade
EZCH EZchip Semiconductor Ltd n/a n/a n/a 0 Trade
FE FirstEnergy Corp. 38.24 -0.38 -0.98 3,328,483 Trade
NWY New York & Company Inc. 3.48 0.01 0.29 127,282 Trade
IACI IAC/InterActiveCorp n/a n/a n/a 0 Trade
CBRL Cracker Barrel Old Country Store Inc. 157.39 -2.54 -1.59 294,832 Trade
KO Coca-Cola Company (The) 46.36 0.39 0.85 17,483,862 Trade
KMX CarMax Inc 69.00 0.57 0.83 1,505,902 Trade
T AT&T Inc. 33.02 0.35 1.07 53,428,177 Trade
CAT Caterpillar Inc. 118.98 -9.73 -7.56 24,113,349 Trade
CREE Cree Inc. 37.74 0.25 0.67 2,097,032 Trade
DCIX Diana Containerships Inc. 1.52 -0.05 -3.18 2,466,387 Trade
NTAP NetApp Inc. 77.39 -2.93 -3.65 4,544,833 Trade
QCOM QUALCOMM Incorporated 66.38 0.26 0.39 13,441,036 Trade
EMC EMC Corporation n/a n/a n/a 0 Trade
MSFT Microsoft Corporation 108.10 -1.53 -1.40 43,770,429 Trade
LZB La-Z-Boy Incorporated 28.51 0.67 2.41 383,855 Trade
NRF NorthStar Realty Finance Corp. (New) n/a n/a n/a 0 Trade

Comments

Emerging Growth

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd through its subsidiary operates as a cannabinoid-based research and development company in Canada.