The S&P Case-Shiller 20-City home price index gained 0.7% in April, but seasonally adjusted it declined by 0.1%, and was down 4.0% year over year. The Conference Board reported that Consumer Confidence fell to 58.5 in June from 61.7 in May the lowest reading since November. Remember that 90 to 120 is the neutral range for Consumer Confidence. Following optimism on a Greek solution and the stronger euro the Dow Jones Industrial Average powered higher on Tuesday to 12,189 in the final hour of trading. The NASDAQ rebounded to 2729 on Tuesday.
Asian stocks were higher on Tuesday with the Nikkei 225 up 0.7%$ and the Hang Seng up just 0.1%. European stocks were higher on Tuesday on hopes that the Greek parliament would adopt the austerity plan that would lead to a financial bailout. The FTSE 100 gained 0.8%. The DAX rose by 0.9%. The CAC 40 surged 1.5%. The yield on the 10-Year US Treasury note rose on Tuesday from 2.910 percent to 3.000 going into today’s 5-Year auction. The US Treasury auctioned $35 billion in new 5-Year notes at a weaker than expected 1.615 percent and with a weaker than normal bid to cover of 2.59 times. The 10-Year yield rose to 3.053 after the auction results were announced.
Comex gold rebounded from $1495.5 the Troy ounce to $1507.0 on Tuesday well below its 50-day simple moving average at $1519.2. Crude oil rebounded from $90.44 per barrel to $92.96 just above its 200-day simple moving average at $92.85. The euro versus the US dollar rebounded on Tuesday from 1.4240 to 1.4395 still below its 50-day simple moving average at 1.4404. US stocks rebounded on Monday week with the Dow Industrial Average up 109 points to 12,044, up 4.0% year to date but down 6.5% since its May 2nd high at 12,876.00. The NASDAQ gained 35 points on Monday to 2688 up 1.3% year to date and down 6.9% since its May 2nd high at 2887.75.
Energy
Tesoro (TSO) and Western Refining (WNR) are new Neutrals at UBS, which has Buys on both Holly (HOC) and Valero Energy (VLO). Rowan Cos (RDC) is raised to Strong Buy from Buy at Duncan-Williams. Yingli Green Energy (YGE) is boosted to Buy from Hold at Brean Murray with a $10 target. In afternoon trading: Shares of Gevo (GEVO) are up about 12.4%. Shares of Holly are up about 7.9%. Shares of Rosetta Resources (ROSE) are up about 7.2%. Shares of Willbros Group (WG) are up about 6.9%. Shares of Patterson-UTI Energy (PTEN) are up about 6.8%. Shares of Clean Energy Fuels (CLNE) are up about 6.6%.
Energy Select Sector SPDR (XLE) was trading at $73.39 at 4:00 PM on Tuesday, up 2.92% on the day – up 7.53% year-to-date.
Materials
AbitibiBowater (ABH) is downgraded to Hold from Buy at TD Newcrest. In afternoon trading: Shares of Horsehead Holding (ZINC) are up about 7.1%. Shares of Endeavour Silver (EXK) are up about 5%. Shares of Headwaters (HW) are up about 4.9%. Shares of Taseko Mines (TGB) are up about 4.6%. Shares of AbitibiBowater (ABH) are down about 6.9%.
The Materials Select Sector SPDR (XLB) traded at $38.28 at 4:00 PM on Tuesday, up 1.94% on the day – down 0.34% year-to-date.
Industrials
Siemens (SI) said it saw continued growth in FQ3 but that momentum in the global economic recovery was easing. The conglomerate expects new orders in the quarter to “significantly” exceed the level of about €19.2B ($27.19B) reached in the same period last year. Sales are expected to be up on year but flat compared with Q2. Acuity Brands (AYI) is a new Hold at KeyBanc Capital. In afternoon trading: Shares of TBS International (TBSI) are up about 23.8%. Shares of Air China (AIRYY) are up about 13.4%. Shares of YRC Worldwide (YRCW) are down about 21.25%. Shares of China Ritar Power (CRTP) are down about 10.9%.
The Industrial Select Sector SPDR (XLI) traded at $36.47 at 4:00 PM on Tuesday, up 1.56% on the day – up 4.59% year-to-date.
Consumer Discretionary
Nike’s (NKE) FQ4 earnings beat expectations by 8 cents as net profit and revenue jumped 14% to $594M and $5.77B respectively. Revenue grew in every market except Japan despite Nike increasing prices to offset higher costs, with an analyst saying the trend demonstrates the strength on Nike’s brand. Dish Network’s (DISH) shopping spree of bankrupt companies looks set to continue with a $1.38B deal to buy satellite communications company TerreStar Networks (TSTRQ:US). Sony (SNE) CEO Howard Stringer has taken a 16% pay cut after the company’s third straight year of losses, although at a shareholders meeting he sidestepped a call for his resignation. TJX Cos (TJX) is upgraded to Buy from Hold at Goldman. In afternoon trading: Shares of E-Commerce China Dangdang (DANG) are up about 12.7%. Shares of Nike are up about 10.5%.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $39.71 at 4:00 PM on Tuesday, up 1.90% on the day – up 6.15% year-to-date.
Consumer Staples
Flowers Foods (FLO) is a fresh Hold at Deutsche Bank. Diageo plc (DEO) gets downgraded to Hold from Buy at Citigroup. In afternoon trading: Shares of The Pantry (PTRY) are up about 5.4%. Shares of Supervalu (SVU) are up about 4.75%. Shares of Winn-Dixie (WINN) are up about 4.7%. Shares of Zhongpin (HOGS) are down about 4.9%.
The Consumer Staples Select Sector SPDR (XLP) traded at $30.81 at 4:00 PM on Tuesday, up 0.20% on the day – up 5.12% year-to-date.
Healthcare
The FDA is due to begin a two-day appeals hearing today about its proposal in December to remove approval for Roche’s (RHHBY:US) Avastin drug for treating breast cancer. InterMune (ITMN) is a new Buy and price objective of $41 at ThinkEquity. In afternoon trading: Shares of Endocyte (ECYT) are up about 6.9%. Shares of Achillion Pharmaceuticals (ACHN) are up about 6.9%. Shares of Accretive Health (AH) are up about 6.3%. Shares of XOMA (XOMA) are down about 6%. Shares of MannKind (MNKD) are down about 5.1%.
The Health Care Select Sector SPDR (XLV) traded at $35.35 at 4:00 PM on Tuesday, up 1.41% on the day – up 12.22% year-to-date.
Financials
The SEC has broadened its investigation into Stifel Financial (SF) to see whether mortgage bonds it sold to five Wisconsin school districts were suitable for them. Accenture (ACN) will join the S&P 500 after the July 5 session, when it will replace Marshall & Ilsley (MI), which is in the process of being acquired by Bank of Montreal (BMO). Visa (V), Western Union (WU), MasterCard (MA) and Total System (TSS) are all initiated with Buys at Jefferies, which has Holds on Global Payment (GPN), Paychex (PAYX), Automatic Data (ADP), and Green Dot (GDOT). Commerzbank AG (CRZBY) is a new Hold at Royal Bank of Scotland. NYSE Euronext (NYX) is upgraded to Outperform from Market Perform at Keefe Bruyette. Prudential PLC (PUK) is lifted to Buy from Neutral at Goldman Sachs.
The Financial Select Sector SPDR (XLF) traded at $14.98 at 4:00 PM on Tuesday, up 0.47% on the day – down 6.08% year-to-date.
Information Technology
Microsoft (MSFT) CEO Steve Ballmer is today scheduled to unveil an online version of Office as the tech giant attempts to answer the success of Google Docs (GOOG). Office 365 is expected to enable customers to use applications such as Word, Outlook, PowerPoint and Excel on a variety of devices over the Internet. The scrutiny over Google’s (GOOG) conduct towards rivals has been ratcheted up a notch after French competitor 1plusV said it would sue the U.S. company for €295M ($417.7M) in lost profits. Accenture (ACN) will join the S&P 500 after the July 5 session, when it will replace Marshall & Ilsley (MI), which is in the process of being acquired by Bank of Montreal (BMO). Visa (V), Western Union (WU), MasterCard (MA) and Total System (TSS) are all initiated with Buys at Jefferies, which has Holds on Global Payment (GPN), Paychex (PAYX), Automatic Data (ADP), and Green Dot (GDOT). LinkedIn (LNKD) is initiated with an Overweight rating and $85 price objective JP Morgan, and a Buy and $90 target price at UBS. Cree Inc (CREE) is a new Buy at KeyBanc with a $41 target. InfoSpace (INSP) is begun with a Buy and $12 target by brokerage firm William Smith & Co. CACI International (CACI) is assumed with an Underperform at Jefferies. Infosys (INFY), Accenture (ACN) and Computer Sciences (CSC) are new Holds at Jeffries. Jefferies is more bullish on Cognizant Tech (CTSH), HiSoft Tech (HSFT), and Amdocs (DOX), assuming all with Buys. Anixter (AXE) is now Outperform from Neutral with an $88 objective at brokers Robert W. Baird. Seagate Technology (STX) is upgraded to Outperform from Sector Perform at FBN Securities. Motorola Mobility (MMI) is moved to Underperform from Market Perform at BMO Capital. JA Solar (JASO) is downgraded to Sell from Hold by Brean Murray, which also takes ReneSola (SOL) to Hold from Buy. In afternoon trading: Shares of Youku.com (YOKU) are up about 33.5%. Shares of RenRen (RENN) are up about 12.5%. Shares of LinkedIn are up about 11.5%. Shares of Omnivision Technologies (OVTI) are up about 10.5%. Shares of Monster Worldwide (MWW) are up about 10.5%.
The Technology Select Sector SPDR (XLK) traded at $25.18 at 4:00 PM on Tuesday, up 1.25% on the day – down 0.04% year-to-date.
Telecommunications Services
Cable & Wireless Worldwide (CBWWF:US) issued its third profit warning in the last year, announced a 50% dividend cut and said it had replaced its CEO. Dish Network’s (DISH) shopping spree of bankrupt companies looks set to continue with a $1.38B deal to buy satellite communications company TerreStar Networks (TSTRQ:US). Those hoping for a major indication about how the FCC might rule on AT&T’s (T) proposed $39B acquisition of T-Mobile USA from Deutsche Telekom (DTEGY:US) were probably disappointed by the FCC’s latest report on the cellular market. In afternoon trading: Shares of TerreStar are down about 64%.
The NASDAQ Telecommunications Index (IXTC) traded at $208.21 at 4:00 PM on Tuesday, up 0.88% on the day – down 7.61% year-to-date.
Utilities
NRG Energy (NRG) is now Buy from Hold at Jefferies. In afternoon trading: Shares of Tri-Tech Holding (TRIT) are up about 8.5%. Shares of Consolidated Water (CWCO) are up about 4.6%. Shares of NRG Energy are up about 3.7%. Actives: Shares of Genon Energy (GEN) are up about 2.2%. Shares of Duke Energy (DUK) are relatively unchanged. Shares of AES Corp (AES) are up about 2.1%. Shares of Exelon (EXC) are up about 0.6%.
The Utilities Select Sector SPDR (XLU) traded at $33.19 at 4:00 PM on Tuesday, up 0.45% on the day – up 5.90% year-to-date.
STOCKS: TSO, WNR, HOC, VLO, RDC, YGE, GEVO, ROSE, WG, PTEN, CLNE, ABH, ZINC, EXK, HW, TGB, ABH, SI, AYI, TBSI, AIRYY, YRCW, CRTP, NKE, DISH, TSTRQ, SNE, TJX, DANG, FLO, DEO, PTRY, SVU, WINN, HOGS, RHHBY, ITMN, ECYT, ACHN, AH, XOMA, MNKD, SF, ACN, MI, BMO, V, WU, MA, TSS, GPN, PAYX, ADP, GDOT, CRZBY, NYX, PUK, MSFT, GOOG, LNKD, CREE, INSP, CACI, INFY, CSC, CTSH, HSFT, DOX, AXE, STX, MMI, JASO, SOL, YOKU, RENN, OVTI, MWW, CBWWF, T, DTEGY, NRG, TRIT, CWCO, GEN, DUK, AES, EXC
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