Equities Sector Coverage: Facebook's IPO Much Ado About Nothing?

Sector Recap  |

The Facebook (FB) IPO, priced at $38 per share with a record market cap at $104 billion The IPO raised $18.4 billion for Facebook. The opening process began at 11:00 AM on the NASDAQ, with a pre-open high at $45.00. The opening trade was $42.05 at 11:30 AM, and shares declined to the $38 offering price. Facebook was trading right at $38.00 into the final half hour of trading. The Dow Jones Industrial Average traded up to 12,492.97 then declined to 12,355.91 as the Facebook IPO drifted up and down. The NASDAQ traded then up to 2827.28 then declined to 2778.23.70 into the final half hour of trading.

Asian stocks were lower on Friday. The Nikkei 225 ended their session at 8,611 – down 2.99% on the day. The Hang Seng ended their session at 18,952 – down 1.30% on the day. European exchanges opened lower on Friday, recovered to the flat line, then closed lower. The FTSE 100 ended their session at 5,267 – down 1.33% on the day. The DAX ended their session at 6,271 – down 0.60% on the day. The CAC 40 ended their session at 3,008 – down 0.13% on the day. The yield on the 10-Year US Treasury traded between 1.743 percent and 1.692, well below its 50-day and 200-day simple moving averages at 2.037 and 2.020.

Gold traded up from $1567.8 the Troy ounce to $1597.5 well below the “Death Cross” 50-day and 200-day simple moving averages at $1641.3 and $1696.6. Crude oil traded up from $91.60 per barrel to $92.88 then down to $91.08 below its 200-day simple moving average at $96.24. The euro versus the dollar traded up from 1.2646 to 1.2784 well below its 50-day simple moving average at 1.3116.

Energy

Yingli Green Energy (YGE) fell 13% on Thursday on news that the US government’s imposition of anti-dumping tariffs on Chinese solar firms. The stock rose by 2.9% after hours after the company announced that the tariff would be less than expected. Kinder Morgan (KMI) replaces El Paso in the S&P 500 index on May 24. KMI is acquiring EP and shares were up 3.7% in after hours trading Thursday evening. GT Advanced Technologies (GTAT) declined 16% on Thursday on FQ1 results that were well below Street expectations as its photovoltaic equipment business suffered under a global slowdown in solar product demand. SunPower (SPWR) spikes higher by 10.6% after Reuters reported that Apple (AAPL) will use its solar modules to power its giant Maiden, NC data center. Dow components – Chevron (CVX) down 0.14%, Exxon Mobil (XOM) up 0.60%.
Energy Select Sector SPDR (XLE) was trading at $63.95 at 3:30 PM on Friday, down 0.61% on the day – down 7.49% year-to-date.

Materials

Silvercorp Metals (SVM) missed FQ4 EPS estimates by two cents with a 4.5% rise in revenue. Schnitzer Steel's (SCHN) sees nonferrous selling prices increasing 5% to10%, offset by nonferrous volumes expected to decline 10%-15% due to high FQ2 production levels. Operating income per ferrous ton expected to be 35% lower quarter over quarter. BHP Billiton (BHP) has been upgraded to Outperform from Sector Perform at RBC Capital, which cites an impressive valuation. Dow components – Alcoa (AA) up 0.24%, DuPont (DD) down 0.55%.
The Materials Select Sector SPDR (XLB) was trading at $32.75 at 3:30 PM on Friday, down 0.46% on the day – down 2.24% year-to-date.

Industrials

General Motors (GM) will sell its first vehicle under the historic SS nameplate. The high-performance 2014 Chevrolet SS will sport a V8 engine and arrive in showrooms in late 2013. Donaldson (DCI) beat FQ3 EPS estimates by three cents with a miss on the revenue line. Canadian Pacific (CP) has been upgraded to Buy from Neutral at Citigroup. Kansas City Southern (KSU) has been upgraded to Market Perform from Underperform at BMO Capital. Dow components – Boeing Co (BA) up 0.13%, Caterpillar (CAT) up 1.50%, General Electric (GE) up 0.48%, 3M Company (MMM) down 0.14%, United Technologies (UTX) down 0.57%.
The Industrial Select Sector SPDR (XLI) was trading at $34.12 at 3:30 PM on Friday, down 0.50% on the day – up 1.10% year-to-date.

Consumer Discretionary

Pacific Sunwear (PSUN) reported a lower than expected Q1 loss with relatively flat revenue but the posted strong sales late in the quarter, and the stock popped 23% in after hours trading on Thursday.. Aeropostale (ARO) beat Q1 estimates on revenue as total sales managed a slight 6% gain versus the prior year, shares none-the-less fell by 4.0% in after hours trading on Thursday. Gap (GPS) beat Q1 EPS estimates by a penny with better than expected revenue. Ann (ANN) shares were down 1.2% pre-market even though the retailer cited strong sales of Loft brand and significantly reduced promotions at Ann Taylor store. Brown Shoe (BWS) beat Q1 EPS estimates by fourteen cents with better than expected revenue. Mattel (MAT) has been initiated with a Buy rating at Suntrust, which has a Neutral rating on Hasbro (HAS). Dow Components – Disney (DIS) down 0.81%, Home Depot up 0.64%, McDonalds (MCD) up 1.48%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.08 at 3:30 PM on Friday, down 0.59% on the day – up 7.84% year-to-date.

Consumer Staples

Amazon.com (AMZN) in looking for ways to monetize the Kindle Fire, which sells at a loss. The company is now selling ad space on the Kindle’s welcome screen. Salesforce.com (CRM) rebounded 7.2% in after hours trading on Thursday after the company reports a FQ1 earnings beat and positive guidance. Foot Locker's (FL) reported that store sales rose by +9.7% in Q1 as merchandise inventory fell 1.1% and shares rose by 1.4% premarket. AutoZone (AZO) has been upgraded to Outperform from Neutral at Credit Suisse. Dow components – Kraft (KFT) up 0.79%, Coca Cola (KO) down 1.70%, Procter & Gamble (PG) flat, Wal-Mart (WMT) up 1.35%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.58 at 3:30 PM on Friday, down 0.42% on the day – up 3.35% year-to-date.

Health Care

Osiris Therapeutics (OSIR) has received approval from Health Canada to market its stem cell therapy Prochymal to treat acute graft-vs-host disease in children, and the stock surged 14% in after hours trading on Thursday. Boston Scientific (BSX) was up 4.1% in after hours trading on Thursday, after the FDA approves its Epic vascular stent designed to open blocked arteries in patients with iliac artery stenosis. Sequenom (SQNM) says the recently announced provider network participation agreement with Coventry Health Care (CVH) has been terminated without cause, and shares tumbled 7.8% in after hours trading on Thursday. Cardiovascular Systems (CSII) has been initiated with a Buy target and $17 price target at MLV & Co, saying the company is uniquely positioned to treat calcified plaque in the lower leg. Dow Components – Johnson & Johnson (JNJ) up 0.23%, Merck (MRK) down 0.11%, Pfizer (PFE) flat.
The Health Care Select Sector SPDR (XLV) was trading at $36.06 at 3:30 PM on Friday, down 0.91% on the day – up 3.95% year-to-date.

Financial

JPMorgan (JPM) CEO Jamie Dimon will testify before the Senate Banking Committee. Joining the testimonies are representatives from the relevant regulatory agencies. JP Morgan's Chief Investment Office built positives to over $100 billion in complex, risky bonds and structured products, and now sources say the portfolio size is over $150 billion. Moody's cut its ratings on 17 Spanish banks one-to-three notches. Santander (STD) and BBVA (BBVA) were cut but remain the most creditworthy of Spain’s largest lenders. Morgan Stanley (MS) has been upgraded to Buy from Neutral at UBS. Dow Components – American Express (AXP) up 0.11%, Bank of America (BAC) down 0.17%, JP Morgan Chase (JPM) down 2.00%, Travelers (TRV) down 0.48%.
The Financial Select Sector SPDR (XLF) was trading at $13.77 at 3:30 PM on Friday, down 1.15% on the day – up 5.92% year-to-date.

Information Technology

Marvell (MRVL) on its FQ1 earnings call, gave a positive outlook for sales growth, and shares moved higher by 4.1% in after hours trading. Brocade Communications Systems (BRCD) beat FQ2 EPS estimate by three cents with better than expected revenue. Applied Materials (AMAT) beat FQ2 EPS estimates by three cents with better than expected revenue. Marvell Technology (MRVL) beat Q1 EPS estimates by three cents with better than expected revenue. Autodesk (ADSK) reported in-line Q1 EPS with a beat on the revenue line but shares fell 5% in after hours trading on Thursday. Hewlett-Packard (HPQ) intends to cut 25,000 to 30,000 jobs, which is 10% of its workforce. H-P intends to spend the savings on making its sales force more efficient and on creating new products. Dow Components – Cisco Systems (CSCO) down 0.51%, Hewlett-Packard (HPQ) down 1.90%, IBM (IBM) down 0.48%, Intel Corp (INTC) up 0.50%, Microsoft (MSFT) down 0.94%.
The Technology Select Sector SPDR (XLK) was trading at $27.51 at 3:30 PM on Friday, down 0.79% on the day – up 8.09% year-to-date.

Telecommunication Services

Aruba Networks (ARUN) reported FQ3 in-line with estimates, but shares slumped 7.2% in after hours trading on Thursday on disappointment because earnings whisper number was stronger than reality.. Sprint Nextel (S) has been upgraded to Buy from Neutral at Guggenheim. Dow components – AT&T (T) up 1.10%, Verizon (VZ) up 0.63%.
The NASDAQ Telecommunications Index (IXTC) was trading at $179.09 at 3:30 PM on Friday, down 1.10% on the day – down 9.06% year-to-date.

Utilities

Dominion Resources (D) up 1.00%, Edison International (EIX) up 0.22%, First Energy (FE) flat, PG&E Corp (PCG) up 0.21%, Southern Company (SO) up 0.84%.
The Utilities Select Sector SPDR (XLU) was trading at $35.45 at 3:30 PM on Friday, down 0.11% on the day – down 1.47% year-to-date.

STOCKS: CVX, XOM, YGE, KMI, GTAT, SPWR, AA, DD, SVM, SCHN, BHP, BA, CAT, GE, MMM, UTX, GM, DCI, CP, KSU, DIS, HD, MCD, PSUN, ARO, GPS, ANN, BWS, MAT, HAS, KFT, KO, PG, WMT, AMZN, CRM, FL, AZO, JNJ, MRK, PFE, OSIR, BSX, AQNM, CVH, CSII, AXP, BAC, JPM, TRV, STD, BBVA, MS, CSCO, HPQ, IBM, INTC, MSFT, AMZN, MRVL, BRCD, AMAT, MRVL, ADSK, T, VZ, ARUN, S, D, EIX, FE, PCG, SO

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Companies

Symbol Name Price Change % Volume
MMM 3M Company 209.00 4.09 2.00 2,620,428 Trade
ARO Manulife Financial Corporation n/a n/a n/a n/a
PG Procter & Gamble Company (The) 93.82 -0.01 -0.01 13,013,482 Trade
GE General Electric Company 8.02 -0.15 -1.84 176,608,926 Trade
CRM Salesforce.com Inc 132.55 0.06 0.05 5,126,893 Trade
CVX Chevron Corporation 119.06 2.11 1.80 6,706,879 Trade
SO Southern Company (The) 46.89 0.31 0.67 7,551,984 Trade
PCG Pacific Gas & Electric Co. 24.40 6.66 37.54 54,698,387 Trade
BBVA Banco Bilbao Vizcaya Argentaria S.A. 5.58 -0.06 -1.06 3,218,153 Trade
AZO AutoZone Inc. 827.99 17.95 2.22 363,519 Trade
FB Facebook Inc. 139.53 -4.32 -3.00 37,250,560 Trade
ADSK Autodesk Inc. 134.04 -0.25 -0.19 1,956,400 Trade
JNJ Johnson & Johnson 145.99 1.49 1.03 8,494,311 Trade
WMT Walmart Inc. 97.69 -1.85 -1.86 14,235,231 Trade
AA Alcoa Corporation 35.95 0.01 0.03 3,092,050 Trade
DCI Donaldson Company Inc. 55.49 0.32 0.58 332,816 Trade
INTC Intel Corporation 48.83 0.72 1.50 31,670,572 Trade
IBM International Business Machines Corporation 121.57 0.13 0.11 4,076,315 Trade
D Dominion Energy Inc. 73.61 0.16 0.22 3,683,335 Trade
TRV The Travelers Companies Inc. 128.77 3.18 2.53 2,734,079 Trade
FL Foot Locker Inc. 50.88 -0.52 -1.01 3,620,977 Trade
TTGT TechTarget Inc. 15.32 -0.30 -1.92 431,209 Trade
S Sprint Corporation 6.31 0.19 3.10 23,944,475 Trade
EIX Edison International 54.45 7.26 15.38 8,828,715 Trade
MS Morgan Stanley 44.13 -0.17 -0.38 9,775,079 Trade
JPM JP Morgan Chase & Co. 109.99 -0.08 -0.07 13,798,551 Trade
AXP American Express Company 109.46 -0.14 -0.13 3,486,223 Trade
UTX United Technologies Corporation 130.13 0.40 0.31 5,184,353 Trade
AMZN Amazon.com Inc. 1,593.41 -26.03 -1.61 6,066,080 Trade
CSCO Cisco Systems Inc. 46.35 -0.42 -0.90 31,327,415 Trade
DIS The Walt Disney Company 116.19 -0.92 -0.79 7,142,193 Trade
BSX Boston Scientific Corporation 37.21 0.74 2.03 7,537,552 Trade
VZ Verizon Communications Inc. 60.21 1.13 1.91 19,470,986 Trade
MAT Mattel Inc. 13.73 0.08 0.59 2,359,052 Trade
GM General Motors Company 35.75 0.20 0.56 11,681,458 Trade
BAC Bank of America Corporation 27.75 -0.15 -0.54 52,456,146 Trade
BHP BHP Billiton Limited 47.79 0.67 1.42 2,636,149 Trade
MRVL Marvell Technology Group Ltd. 15.90 -0.20 -1.24 14,017,597 Trade
KMI Kinder Morgan Inc. 17.28 0.11 0.64 10,178,425 Trade
MCD McDonald's Corporation 187.59 4.03 2.20 3,759,462 Trade
YGE Yingli Green Energy Holding Company Limited ADR n/a n/a n/a n/a
SPWR SunPower Corporation 6.51 0.23 3.66 2,133,146 Trade
GPS Gap Inc. (The) 25.90 -0.32 -1.22 6,578,268 Trade
CSII Cardiovascular Systems Inc. 30.49 0.31 1.03 156,784 Trade
AMAT Applied Materials Inc. 35.40 0.38 1.09 28,075,252 Trade
HD Home Depot Inc. (The) 177.02 -0.34 -0.19 6,834,880 Trade
XOM Exxon Mobil Corporation 78.96 0.77 0.98 13,704,889 Trade
PFE Pfizer Inc. 43.51 0.30 0.69 23,343,969 Trade
KSU Kansas City Southern 100.84 0.33 0.33 784,739 Trade
HPQ HP Inc. 24.16 -0.01 -0.04 8,672,140 Trade
BA The Boeing Company 335.95 -5.62 -1.65 4,425,161 Trade
MRK Merck & Company Inc. (new) 76.06 1.22 1.63 13,725,173 Trade
OSIR Osiris Therapeutics Inc. 10.35 -0.18 -1.71 29,513 Trade
FE FirstEnergy Corp. 38.77 -0.05 -0.13 3,203,032 Trade
HAS Hasbro Inc. 97.71 0.15 0.15 1,201,082 Trade
KO Coca-Cola Company (The) 50.17 0.43 0.86 13,405,755 Trade
CP Canadian Pacific Railway Limited 209.82 0.32 0.15 641,429 Trade
T AT&T Inc. 30.29 0.17 0.56 28,929,502 Trade
CAT Caterpillar Inc. 129.96 0.54 0.42 5,957,745 Trade
SCHN Schnitzer Steel Industries Inc. 27.67 0.06 0.22 392,401 Trade
PSUN Pacific Sunwear of California Inc. n/a n/a n/a n/a
MSFT Microsoft Corporation 108.29 1.01 0.94 33,502,121 Trade

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Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.