Equities Sector Coverage: Flat Day Ends Bullish Week For Investors

Sector Recap  |

The Unemployment Rate in November declined to 8.6% from 9.0% as the labor force contracts. Non-farm payrolls rose by 120,000 with private sector jobs up 140,000. The Dow Jones Industrial Average traded up to 12,146 68 then consolidated that move. The NASDAQ traded up to 2659.23 then declined to 2629.45.

Asian stocks were modestly higher on Friday with the Nikkei 225 at 8,644 - up 0.54% and the Hang Seng at 19,040 – up 0.20%. European stocks rebounded on the positive employment data in the US.  The FTSE 100 ended the day at 5,552 – up 1.15%; the DAX ended the day at 6,081 – up 1.12%; and the CAC 40 ended the day at 3,165 – up 1.12%. The yield on the US Treasury 10-Year note rose from 2.079 percent to 2.167 then came down to 2.052 as stocks faded. Gold traded up from $1741.7 the Troy ounce to $1767.1 then consolidated that gain. Crude oil traded between $99.76 per barrel and $101.56. The euro versus the dollar traded down from 1.3537 to 1.3366.

Energy

Green Plains Renewable Energy (GPRE) gets assigned an Outperform and $16 objective with Wedbush. In afternoon trading: Shares of Penn Virginia (PVA) are up about 9.5%. Shares of Goodrich Petroleum (GDP) are up about 7.25%. Shares of Ship Finance International (SFL) are up about 7.25%. Shares of Lucas Energy (LEI) are up about 7.25%.

Energy Select Sector SPDR (XLE) was trading at $70.42 at 4:00 PM on Friday, down slightly on the day – up 3.18% year-to-date.

Materials

Louisiana-Pacific (LPX) is reduced to Sector Perform from Outperform at RBC Capital. In afternoon trading: Actives: Shares of Alcoa (AA) are up about 1.7%. Shares of Freeport McMoran (FCX) are up about 1.25%. Shares of United States Steel (X) are up about 4.9%. Shares of Vale SA (VALE) are up about 2%.

The Materials Select Sector SPDR (XLB) was trading at $34.00 at 4:00 PM on Friday, down 0.87% on the day – down 11.48% year-to-date.

Industrials

Major railway companies, including CSX (CSX) and Union Pacific (UNP), appear to have avoided a damaging pre-Christmas strike of almost 50,000 workers next week after reaching tentative labor deals with two big unions. Atlas Air Worldwide (AAWW) is begun with a Buy and $51 price objective at Maxim Group. Beacon Roofing Supply (BECN) is cut to Hold from Buy at Keybanc. In afternoon trading: Shares of Navios Maritime Partners (NMM) are up about 12.5%. Shares of Eagle Bulk Shipping (EGLE) are up about 7.25%.

The Industrial Select Sector SPDR (XLI) was trading at $33.71 at 4:00 PM on Friday, down 0.21% on the day – down 3.33% year-to-date.

Consumer Discretionary

Thomson Reuters (TRI) is replacing CEO Tom Glocer with COO James Smith following a slump in its share price. Big Lots (BIG) missed estimates by 8 cents, while beating revenue by $10M. Zumiez (ZUMZ) beat estimates by 4 cents and revenue by $1M. H&R Block (HRB) missed estimates by 3 cents, while beating revenue by $9M. Ulta Salon’s (ULTA) Q3 beats on a per share basis but comes up short on revenue. PVH (PVH) beat estimates by 8 cents with revenue in-line with estimates. Domino’s Pizza (DPZ) is a Hold at KeyBanc Capital. Energizer (ENR) is initiated with a Buy at Janney Montgomery Scott, which has a new Neutral on Helen of Troy (HELE). Steven Madden, Ltd (SHOO) is a new Buy at Canaccord Genuity. Lowe’s (LOW) is lifted to Buy from Neutral at Goldman. Lululemon Athletica (LULU) is lifted to Overweight from Equal Weight at Barclays, to Buy from Neutral at Janney Capital, and Buy from Underweight at Keybanc. Guess (GES) is lowered to Neutral from Buy at Citigroup. Rolls Royce PLC (RYCEY) is moved to Sell from Neutral at UBS. In afternoon trading: Shares of Zumiez are up about 22.25%. Shares of Barnes & Noble (BKS) are up about 12.25%. Shares of Teavana Holdings (TEA) are down about 10.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.07 at 4:00 PM on Friday, up 0.77% on the day – up 4.44% year-to-date.

Consumer Staples

Energizer (ENR) is initiated with a Buy at Janney Montgomery Scott, which has a new Neutral on Helen of Troy (HELE). In afternoon trading: Shares of Imperial Sugar (IPSU) are up about 15.75%. Shares of China-Biotics (CHBT) are up about 15.5%. Shares of Central European Distribution (CEDC) are up about 7%. Shares of AgFeed Industries (FEED) are down about 12.75%. Shares of Universal Corp. (UVV) are down about 7.75%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.74 at 4:00 PM on Friday, down 0.35% on the day – up 8.29% year-to-date.

Healthcare

Anthera Pharmaceuticals (ANTH) is a new Buy and $13 target price at Collins Stewart. MAP Pharmaceuticals (MAPP) is picked up at an Overweight by JPMorgan. Celldex Therapeutics (CLDX) is a new Buy at Jefferies. Sirona Dental Systems (SIRO) is pulled from Goldman’s Conviction Buy List. In afternoon trading: Shares of Tenet Healthcare (THC) are down about 10%. Shares of Health Management Associates (HMA) are down about 9.75%. Shares of Exelixis Inc. (EXEL) are down about 8.75%. Shares of HCA Holdings (HCA) are down about 8%.

The Health Care Select Sector SPDR (XLV) was trading at $33.51 at 4:00 PM on Friday, down 1.24% on the day – up 6.38% year-to-date.

Financials

Regulators are considering new rules for brokerages following MF Global’s (MFGLQ) collapse, with the CFTC due to vote next week on restricting the use of customer money and the SEC looking to enforce new accounting disclosures. Bank of Nova Scotia (BNS) missed estimates by C$0.01, while beating revenue by $50M. Allstate (ALL) is upgraded to Buy from Hold at Deutsche Bank. Sun Life Financial (SLF) is moved to Equal Weight from Underweight at Morgan Stanley. Canadian Imperial Bank of Commerce (CM) is now Neutral from Buy at UBS. Cash America (CSH) is cut to Neutral from Buy at Sterne Agee. Franklin Resources (BEN) is moved to Neutral from Buy at Ticonderoga. In afternoon trading: Shares of MF Global are up about 8.25%. Shares of Jeffries Group (JEK) are up about 8.25%. Shares of Strategic Hotels & Resorts (BEE) are up about 8%.

The Financial Select Sector SPDR (XLF) was trading at $12.91 at 4:00 PM on Friday, up 1.33% on the day – down 19.06% year-to-date.

Information Technology

Despite the fall in value of recently listed Internet plays, Zynga (ZNGA) has filed for an IPO in which it plans to sell 100M shares, or 14.3% of its stock, at a price of $8.50-$10. Research In Motion (RIMM) will take a $485M pretax provision in relation to its PlayBook and now expects FQ3 revenue to be slightly lower than the previous range of $5.3B-5.6B, with EPS coming in at the low to mid-point of RIM's prior prediction of $1.20-$1.40. For FQ4, RIM said that lower shipments will hurt its outlook, while it no longer expects to meet its full-year EPS guidance of $5.25-$6.00. Western Digital (WDC) has joined rival Seagate (STX) in signaling a recovery from the Thai floods, saying that it has restarted the output of hard disk drives and that it is raising its FQ2 revenue outlook to at least $1.8B. Electronic Arts (ERTS) continues to expand its casual gaming arsenal as it looks to challenge Zynga, with EA saying it is acquiring KlickNation, a developer of social role-playing games. Avago Technologies (AVGO) beat estimates by 3 cents and revenue by $2M. The company also guides FQ1 revenue below expectations, now expecting revenue to be down sequentially between 10% - 14% to a range of $560M - $536M (below Street estimates of $594M). Intuit (INTU) is a new Neutral at Goldman Sachs. Ariba (ARBA) and Concur Technologies (CNQR) are both new Neutrals at Goldman. The bank is more bullish on SuccessFactors (SFSF), adding the stock to its Conviction Buy List. Infosys (INFY) is a fresh Hold at Jefferies, which begins Buy rated coverage on its Bangalore-based rival Wipro (WIT). Sina Corp (SINA) is hoisted to Buy from Hold at Deutsche Bank. Booz Allen Hamilton (BAH) is upgraded to Outperform from Market Perform with Wells Fargo. Analog Devices (ADI) is now Buy from Neutral at Sterne Agee. Celestica (CLS) is moved to Sell from Neutral at Ticonderoga with a $5 price objective. In afternoon trading: Shares of Mitel Networks (MITL) are up about 35%. Shares of Research In Motion are down about 9.5%.

The Technology Select Sector SPDR (XLK) was trading at $25.74 at 4:00 PM on Friday, down slightly on the day – up 2.18% year-to-date.

Telecommunications Services

American Tower (AMT) and Crown Castle (CCI) are each initiated with Outperforms at Macquarie. In afternoon trading: Actives: Shares of Sprint Nextel (S) are down about 1.7%, while shares of AT&T (T) are up about 0.8% and shares of Verizon (VZ) are up about 0.5%. Shares of Clearwire (CLWR) are up about 1.7%.

The NASDAQ Telecommunications Index (IXTC) was trading at $199.76 at 4:00 PM on Friday, down 0.45% on the day – down 11.36% year-to-date.

Utilities

Ameren (AEE) is lowered to Underperform from Neutral by Bank of America-Merrill Lynch. In afternoon trading: Shares of Dynegy (DYN) are up about 8%. Actives: Shares of Duke Energy (DUK) are down about 0.5%. Shares of AES Corp. (AES) are down about 2%. Shares of Exelon (EXC) are down about 1.6%. Shares of Ameren are down about 4%. Shares of NV Energy (NVE) are down about 3.7%. Shares of UGI Corp. (UGI) are down about 4.9%.

The Utilities Select Sector SPDR (XLU) was trading at $34.75 at 4:00 PM on Friday, down 1.03% on the day – up 10.88% year-to-date.

STOCKS: GPRE, PVA, GDP, SFL, LEI, LPX, AA, FCX, X, VALE, CSX, UNP, AAWW, BECN, NMM, EGLE, TRI, BIG, ZUMZ, HRB, ULTA, PVH, DPZ, ENR, HELE, SHOO, LOW, LULU, GES, RYCEY, BKS, TEA, IPSU, CHBT, CEDC, FEED, UVV, ANTH, MAPP, CLDX, SIRO, THC, HMA, EXEL, HCA, MFGLQ, BNS, ALL, SLF, CM, CSH, BEN, JEK, BEE, ZNGA, RIMM, WDC, STX, ERTS, AVGO, INTU, CNQR, SFSF, INFY, WIT, SINA, BAH, ADI, CLS, MITL, AMT, CCI, S, T, VZ, CLWR, AEE, DYN, DUK, AES, EXC, NVE, UGI

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
LEI Defined Japan Index n/a n/a n/a n/a
HRB H&R Block Inc. 25.08 0.51 2.08 3,109,445 Trade
PVA Penn Virginia Corp. n/a n/a n/a 0
THC Tenet Healthcare Corporation 24.16 0.15 0.62 792,108 Trade
WIT Wipro Limited 5.70 0.05 0.88 660,452 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 12.50 0.47 3.91 20,253,263 Trade
AEE Ameren Corporation 72.18 0.98 1.38 1,941,418 Trade
FREPP First Republic Bank n/a n/a n/a 0
FB Facebook Inc. 161.89 1.85 1.16 15,858,468 Trade
AA Alcoa Corporation 30.17 0.59 1.99 3,197,583 Trade
CSX CSX Corporation 73.31 0.74 1.02 2,756,467 Trade
SHOO Steven Madden Ltd. 32.66 0.10 0.31 601,639 Trade
BIG Big Lots Inc. 31.28 -0.14 -0.45 867,598 Trade
SINA Sina Corporation 65.61 2.64 4.19 828,599 Trade
ADI Analog Devices Inc. 105.91 0.63 0.60 2,248,044 Trade
BNS Bank Nova Scotia Halifax Pfd 3 57.35 0.25 0.44 511,433 Trade
S Sprint Corporation 6.44 -0.04 -0.62 13,318,703 Trade
DPZ Domino's Pizza Inc 260.71 7.70 3.04 1,785,017 Trade
CSH Cash America International Inc. n/a n/a n/a 0 Trade
GES Guess? Inc. 21.12 0.05 0.24 409,119 Trade
BEN Franklin Resources Inc. 32.73 0.49 1.52 2,124,053 Trade
PVH PVH Corp. 117.62 2.52 2.19 1,081,955 Trade
EXEL Exelixis Inc. 21.52 0.30 1.41 1,846,966 Trade
STX Seagate Technology PLC 47.01 1.90 4.21 3,043,843 Trade
BECN Beacon Roofing Supply Inc. 37.59 0.25 0.67 808,984 Trade
TRI Thomson Reuters Corp 53.27 0.26 0.49 325,669 Trade
HCA HCA Healthcare Inc. 144.04 2.03 1.43 898,092 Trade
AVGO Broadcom Inc. 276.50 -4.44 -1.58 2,722,814 Trade
BKS Barnes & Noble Inc. 6.40 0.07 1.11 668,454 Trade
LOW Lowe's Companies Inc. 106.27 0.75 0.71 2,734,640 Trade
EGLE Eagle Bulk Shipping Inc. 5.06 0.24 4.98 517,676 Trade
SIRO Sirona Dental Systems Inc n/a n/a n/a 0 Trade
AES The AES Corporation 17.53 0.21 1.21 3,323,154 Trade
VZ Verizon Communications Inc. 56.92 0.77 1.37 12,534,431 Trade
CM Canadian Imperial Bank of Commerce 86.90 0.68 0.79 205,578 Trade
GOOG Alphabet Inc. 1,110.37 13.40 1.22 1,049,545 Trade
GPRE Green Plains Inc. 15.85 0.32 2.06 453,094 Trade
FCX Freeport-McMoRan Inc. 13.22 0.20 1.54 23,876,816 Trade
INTU Intuit Inc. 250.94 15.91 6.77 3,334,050 Trade
AAWW Atlas Air Worldwide Holdings 58.90 -0.51 -0.86 236,799 Trade
SFL Ship Finance International Limited 12.51 0.15 1.21 693,842 Trade
LULU lululemon athletica inc. 149.26 1.15 0.78 966,753 Trade
X United States Steel Corporation 24.10 -0.02 -0.08 8,442,728 Trade
ALL Allstate Corporation (The) 94.57 -0.06 -0.06 1,370,977 Trade
BEE Strategic Hotels & Resorts Inc. n/a n/a n/a 0 Trade
SLF Sun Life Financial Inc. 37.81 0.22 0.59 471,941 Trade
ZNGA Zynga Inc. 5.03 0.07 1.41 17,939,462 Trade
BAH Booz Allen Hamilton Holding Corporation 54.11 0.45 0.84 1,098,885 Trade
CLS Celestica Inc. 9.38 0.22 2.40 531,153 Trade
UGI UGI Corporation 54.36 0.60 1.12 782,518 Trade
NMM Navios Maritime Partners LP Representing Limited Partner Interests 0.96 -0.01 -0.83 719,169 Trade
AMT American Tower Corporation (REIT) 176.63 0.12 0.07 1,312,596 Trade
ENR Energizer Holdings Inc. 46.03 0.21 0.46 427,946 Trade
LPX Louisiana-Pacific Corporation 26.47 -0.05 -0.19 1,823,595 Trade
WDC Western Digital Corporation 49.49 2.30 4.87 4,822,698 Trade
EXC Exelon Corporation 48.74 0.25 0.52 4,250,747 Trade
INFY Infosys Limited American Depositary Shares 10.63 0.08 0.76 4,644,643 Trade
T AT&T Inc. 31.15 0.32 1.04 23,357,232 Trade
DUK Duke Energy Corporation (Holding Company) 89.91 0.32 0.36 2,538,531 Trade
HELE Helen of Troy Limited 116.91 -0.13 -0.11 178,884 Trade
ULTA Ulta Beauty Inc. 310.72 2.70 0.88 580,745 Trade
CCI Crown Castle International Corp. (REIT) 119.87 0.51 0.43 1,289,973 Trade
UVV Universal Corporation 60.05 0.34 0.57 114,981 Trade
UNP Union Pacific Corporation 170.06 -0.11 -0.06 4,345,646 Trade
CLDX Celldex Therapeutics Inc. 5.92 -0.07 -1.17 236,662 Trade
ZUMZ Zumiez Inc. 25.00 -0.09 -0.36 271,882 Trade

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