The Federal Reserve released the minutes of its April FOMC meeting at 2:00 PM. It was agreed that no changes to the Committee's asset purchase program or to its target range for the federal funds rate were warranted. The Dow Jones Industrial Average ended Wednesday at 12560 (up 0.65%) with Option Expiration looming on Friday.
Asian stocks rebounded on Wednesday with the Nikkei 225 up 1.0% to 9,662 and with the Hang Seng up 0.5%. A better market moved into the Eurozone with the FTSE 100, the DAX and CAC 40 each up about a percent at 7:00 AM on Wall Street. The FTSE ended the day at 5,923.49 (up 1.07%), the DAX was up 0.65% and the CAC 40 was up 0.92%. The yield on the 10-Year US Treasury note traded as low as 3.088 in early morning trading on Wednesday, versus its 200-day simple moving average at 3.075 before ending the day at 3.175. Comex gold which came close to a test of its 50-day simple moving average at $1467.5 the Troy ounce on Tuesday failed to break above $1500, with an intraday high of $1499.7, as reversal-oriented trading continues for precious metals. Nymex crude oil, which traded as low as $94.63 on May 6th, rallied back above $100 per barrel on Wednesday.
The euro versus the US dollar which traded as low as 1.4052 on Monday failed to break above its 50-day simple moving average at 1.4323 on Wednesday. On Tuesday the Dow Industrial Average declined 60 points to 12,480 while the NASDAQ held up with a gain of a mere point. The Dow’s year to date gain was shaved to 7.8% with the NASDAQ up 4.9%.
Rosneft says its negotiations with BP (BP) about co-operating could continue despite the passing of a deadline for a $16B share swap and Arctic exploration deal between the two companies. BP (BP) and ConocoPhillips (COP) have abandoned plans to build a $35B natural gas pipeline from Alaska to the main part of the U.S., saying they failed to win commitments from producers to buy access to the pipeline. A rival proposal backed by Exxon Mobil (XOM) and TransCanada (TRP) remains in the works. The Senate has blocked a proposal that would repeal about $2B a year in tax breaks for the five biggest oil companies. The measure would have affected Shell (RDS.A), Exxon Mobil (XOM), ConocoPhillips (COP), BP (BP) and Chevron (CVX). Golar LNG Partners (GMLP) gets picked up at a Buy at Citigroup, with Wells Fargo rolling out a less bullish Market Perform. BG Group (BRGYY) is increased to Buy from Neutral at UBS. Trina Solar (TSL) is now Neutral from Negative at Susquehanna. Canadian Natural Resources (CNQ) is added to TD Newcrest’s Action Buy List. In afternoon trading: Shares of CVR Energy (CVI) are up about 7.8%. Shares of Parker Drilling (PKD) are up about 7.4%.
The Energy Select Sector SPDR (XLE) was trading at $74.71 at 4:00 PM on Wednesday, up 2.02% on the day – up 9.47% year-to-date.
CVR Partners (UAN) is a new Neutral at Goldman Sachs. Goldcorp (GG) gets upgraded to Overweight from Neutral at HSBC Securities. In afternoon trading: Shares of Jaguar Mining (JAG) are up about 20% after the Gold producer posted a quarterly profit that beat analysts' estimates helped by surging bullion prices. Shares of ADA-ES (ADES) are up about 10.4%. Shares of China GengSheng Minerals (CHGS) are up about 10%. Shares of Zagg (ZAGG) are up about 7.3%. Shares of Georgia Gulf (GGC) are up about 7.1%. Shares of Yongye International (YONG) are DOWN about 6.5%
The Materials Select Sector SPDR (XLB) traded at $38.91 at 4:00 PM on Wednesday, up 2.23% on the day – up 1.30% year-to-date.
Deere (DE) beat estimates by 6 cents and revenue by $190M. CAI International (CAP) and TAL International (TAL) are upgraded to Outperform from Market Perform at Keefe Bruyette. Nielsen (NLSN) is now Neutral from Buy at Goldman. In afternoon trading: Shares of SatCon Technology (SATC) are up about 19.25%. Shares of Broadwind Energy (BWEN) are up about 6.75%. Shares of CAI International (NYSE: CAP) are up about 6.5%.
The Industrial Select Sector SPDR (XLI) traded at $37.53 at 4:00 PM on Wednesday, up 1.35% on the day – up 7.63% year-to-date.
Target (TGT) beat estimates by 5 cents. Chico's FAS (CHS) beat estimates by a penny, but missed revenue by $7.2M. Dick’s Sporting Goods (DKS) is lifted to Positive from Neutral at Susquehanna, but is now a Sell from Neutral with a $32 objective at Sterne Agee. Under Armour (UA) gets a Buy from Hold boost at Citigroup. KB Home (KBH) is hoisted to Neutral from Sell at UBS. In afternoon trading: Shares of Staples (SPLS) are down about 15.75% after the office supplies company missed estimates by 4 cents and revenue by $20M and cut its 2011 EPS guidance to $1.35-$1.45 from a prior forecast of $1.50-$1.60, with analysts expecting $1.53. Shares of Coldwater Creek (CWTR) are down about 20.5% after announcing a first-quarter loss of $0.32 to $0.34 on revenue of $180 million versus estimates of a loss of $0.10 and revenue of $219 million. Shares of Citi Trends (CTRN) are down about 19.75% after announcing disappointing Q1 2011 results. Shares of TravelCenters of America (TA) are down about 12.75% after announcing a proposed public offering of 10,000,000 common shares. Shares of Eastman Kodak (EK) are UP about 17% after their CEO and other executives make company stock purchases.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $40.53 at 4:00 PM on Wednesday, up 1.17% on the day – up 8.34% year-to-date.
In afternoon trading: Shares of Lifeway Foods (LWAY) are up about 9.7%. Shares of Winn-Dixie (WINN) are up about 8.2%. Shares of USANA Health Sciences (USNA) are up about 6.2%. Actives: Shares of Wal-Mart (WMT) are down about 0.9%. Shares of Procter & Gamble (PG) are down about 0.2%. Shares of Archer Daniels Midland (ADM) are relatively unchanged on the day.
The Consumer Staples Select Sector SPDR (XLP) traded at $32.24 at 4:00 PM on Wednesday, up slightly on the day – up 10.00% year-to-date.
Allscripts-Misys Healthcare (MDRX) is picked up as an Outperform and $27 price objective at Robert W. Baird. Dexcom (DXCM) is a Perform at Oppenheimer. Thoratec (THOR) is a new Outperform at Oppenheimer with a $40 objective. In afternoon trading: Shares of Celldex Therapeutics (CLDX) are down about 14.2%. Shares of Biostar Pharmaceuticals (BSPM) are down about 7.25%. Shares of Gen-Probe (GPRO) are up about 7.2%. Shares of Human Genome Sciences (HGSI) are up about 6.6%. Shares of Avanir Pharmaceuticals (AVNR) are up about 6%. Shares of Allscripts (NASDAQ: MDRX) are up about 5.75%.
The Health Care Select Sector SPDR (XLV) traded at $36.42 at 4:00 PM on Wednesday, up 0.77% on the day – up 15.62% year-to-date.
The Federal Reserve is seeking to impose annual capital tests on banks and to reserve the right to veto dividend payments if they fail. Oaktree Capital Management intends to list on the NYSE in an IPO that would value the asset manager between $8B and $9B. Cedar Shopping Centers (CDR) is moved to Oupterform from Market Perform by BMO Capital. ING Group (ING) is boosted to Market Perform from Underperform at Keefe Bruyette. Kilroy Realty (KRC) is cut to Outperform from Top Pick at RBC Capital Markets. In afternoon trading: Shares of AFLAC (AFL) are down about 7%. Shares of RAIT Financial Trust (RAS) are down about 6.3%. Shares of Cedar Shopping Centers (NYSE: CDR) are up about 6.5%.
The Financial Select Sector SPDR (XLF) traded at $15.94 at 4:00 PM on Wednesday, up 0.44% on the day – down 0.06% year-to-date.
LinkedIn (LNKD) is set to price its IPO after the close of trading today, with a source saying the social network will probably sell its shares at the top end of its modified range of $42-$45 a share. Analog Devices (ADI) beat estimates by 7 cents and revenue by $45M. VeriSign (VRSN) is initiated with an Outperform at Cowen. Research In Motion (RIMM) is raised to Market Perform from Underperform by Sanford Bernstein. Vocus (VOCS) is raised to Outperform from Neutral at Brokerage Robert W. Baird. Hewlett-Packard (HPQ) is cut to Neutral from Overweight at JP Morgan, and is cut to Neutral from Positive at Susquehanna. In afternoon trading: Shares in Dell (DELL) are up about 6% after the PC maker reported that FQ1 net profit nearly tripled to $945M (beating estimates by 11 cents per share) and increased its fiscal 2012 growth outlook for operating income to 12%-18% from 6%-12%. Shares of Quantum (QTM) are up about 12.5%. Shares of Rambus (RMBS) are up about 8%. Shares of GT Solar (SOLR) are up about 7.1%.
The Technology Select Sector SPDR (XLK) traded at $26.27 at 4:00 PM on Wednesday, up 0.73% on the day – up 4.29% year-to-date.
In afternoon trading: Actives: Shares of Sprint Nextel (S) are up about 2.2%. Shares of Level 3 Communications (LVLT) are up about 2.1%. Shares of AT&T (T) are up about 0.3%. Shares of Frontier Communications (FTR) are down about a half of a percent. Shares of Clearwire (CLWR) are up about 4.7%. Shares of MetroPCS (PCS) are up about 3%. Shares of Verizon (VZ) are down slightly.
The NASDAQ Telecommunications Index (IXTC) traded at $222.64 at 4:00 PM on Wednesday, up 0.91% on the day – down 1.21% year-to-date.
Ladenburg launches Connecticut Water (CTWS) at a Neutral and begins California Water (CWT) with a Buy. In afternoon trading: Actives: Shares of AES (AES) are up about 2.1%. Shares of Duke Energy (DUK) are down about 2%. Shares of Genon Energy (GEN) are up about 2.5%. Shares of FirstEnergy (FE) are down about 1.5%. Shares of PPL (PPL) are down about 0.2%. Shares of CenterPoint Energy (CNP) are up about 1.7%.
The Utilities Select Sector SPDR (XLU) traded at $34.09 at 4:00 PM on Wednesday, down 0.32% on the day – up 8.77% year-to-date.
STOCKS: BP, COP, XOM, TRP, RDS.A, CVX, GMLP, BRGYY, TSL, CNQ, CVI, PKD, UAN, GG, JAG, ADES, CHGS, ZAGG, GGC, YONG, DE, CAP, TAL, NLSN, SATC, BWEN, TGT, CHS, DKS, UA, KBH, SPLS, CWTR, CTRN, TA, EK, LWAY, WINN, USNA, WMT, PG, ADM, MDRX, DXCM, THOR, CLDX, BSPM, GPRO, HGSI, AVNR, CDR, ING, KRC, AFL, RAS, ADI, VRSN, RIMM, VOCS, HPQ, DELL, QTM, RMBS, SOLR, S, LVLT, T, FTR, CLWR, PCS, VZ, CTWS, CWT, AES, DUK, GEN, FE, PPL, CNP
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