Equities Sector Coverage: Greece Solvency Worries Wall Street

Sector Recap |

Greece George PapandreouThe National Association of Home Builders reported that their Housing Market Index dipped to 14 from 15 in September, as the housing depression continues. Tomorrow we get Housing Starts for August and on Wednesday we get Existing Home Sales for August. The FOMC meeting ends Wednesday afternoon. The Dow Jones Industrial Average gapped lower below 11,350 at the open trading to a morning low of 11,255.25. The Dow rebounded in the afternoon trading to above 11,400 into the final hour of trading. The NASDAQ gapped lower at 2584.89 and traded to a morning low of 2564.46. The NASDAQ rebounded into the final hour of trading with a high above its 50-day simple moving average at 2602.

Asian stocks were lower on Monday with the Nikkei 225 closed at 8,864 and the Hang Seng down 2.76% to 18,918. European stocks were lower on continued concerns about Greek debt. The FTSE 100 lost 2.03% to 5,260 with the DAX down 2.83% to 5,416, and the CAC 40 crushed by 3.00% to 2,940. The yield on the 10-Year US Treasury declined from 2.074 to 1.926 as a flight to quality returns to the U.S. markets. Gold traded up to $1832.9 then down to $1771.0 the Troy ounce as that double-top continues to form on the daily chart. Crude oil traded down from $87.75 per barrel to $84.79 continuing to trade between its 200-week simple moving average at $83.71 and its 50- day at $90.13. The euro versus the US dollar slipped from 1.3706 to 1.3590.


Peabody (BTU) and ArcelorMittal (MT) extended their sweetened $5.2B takeover bid for Macarthur Coal (MACDF) to October 14. Newpark Resources (NR) is a new Buy and $13 price objective at Weeden. TETRA Tech (TTI) is a Hold and $12 target price at Weeden. MarkWest Energy (MWE) is begun with a Buy at Citigroup. Yingli Green Energy (YGE) gets upgraded to Neutral from Sell at Goldman. Suncor Energy (SU) is upgraded to Overweight from Equal Weight by Barclays. In afternoon trading: Shares of Yingli Green Energy are down about 9.6%. Shares of LDK Solar (LDK) are down about 7.6%. Shares of ENI SPA (E) are down about 7.3%.

Energy Select Sector SPDR (XLE) was trading at $66.03 at 4:00 PM on Monday, down 1.58% on the day – down 3.25% year-to-date.


Peabody (BTU) and ArcelorMittal (MT) extended their sweetened $5.2B takeover bid for Macarthur Coal (MACDF) to October 14. CF Industries (CF) is picked up with a Hold at Citigroup. Cabot (CBT) gets cut to Hold from Buy at Jefferies. Cemex S.A. (CX) gets cut to Underweight from Equal Weight at HSBC Securities with a new price objective of $3.40. In afternoon trading: Shares of Ivanhoe Mines (IVN) are down about 8.1%. Shares of Taseko Mines (TGB) are down about 7.1%. Actives: Shares of Alcoa (AA) are down about 4.5%. Shares of Freeport McMoran (FCX) are down about 4.3%. Shares of Vale (VALE) are down about 2.4%. Shares of Silvercorp (SVM) are down about 3%. Shares of Cemex are down about 5.3%.

The Materials Select Sector SPDR (XLB) was trading at $34.01 at 4:00 PM on Monday, down 1.48% on the day – down 11.56% year-to-date.


Four years after spinning off its medical-products and electronic-components units, Tyco (TYC) will divide what's left into three companies. TYC will remain home to its commercial fire and security business, while residential security – ADT – and flow control will be parceled out to shareholders in a tax-free stock dividend. Goodrich (GR) gets picked up with a Hold at Keybanc Capital. BE Aerospace (BEAV) is now Buy from Neutral at UBS. Quanta Services (PWR) is upgraded to Outperform from Underperform at FBR Capital with a new target of $24. Caterpillar (CAT) is downgraded to Outperform from Strong Buy at Raymond James. Hexcel (HXL) is reduced to Sell from Neutral at UBS. IN afternoon trading: Shares of Goodrich are up about 14.5%. Shares of Ingersoll-Rand (IR) are down about 7.1%. Shares of Textron (TXT) are down about 7.1%.

The Industrial Select Sector SPDR (XLI) was trading at $31.67 at 4:00 PM on Monday, down 0.94% on the day – down 9.18% year-to-date.

Consumer Discretionary

Writing on Netflix's (NFLX) corporate blog, CEO Reed Hastings announced the company will be re-branding its DVD-by-mail service as Qwikster and moving it to a separate website from Netflix's video streaming service. Lennar (LEN) said demand for new homes is slowly returning, driven by low home prices and record-low mortgage rates, but added tighter lending standards, high unemployment and weak consumer confidence are capping the upside. General Motors (GM) and the UAW said late Friday they came to terms on a new contract, the first labor deal for any of Detroit's big automakers since the 2009 government bailouts for GM and Chrysler (FIATY). Pier 1 Imports (PIR) is raised to Buy from Hold at Keybanc. Vail Resorts (MTN) is moved to Outperform from Market Perform with Wells Fargo. Michelin (MCGFF) is cut 180 degrees, to Underweight from Overweight at Morgan Stanley. In afternoon trading: Shares of Coldwater Creek (CWTR) are down about 10%. Shares of Blockbuster (BLOAQ) are up about 8.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $37.70 at 4:00 PM on Monday, down 0.19% on the day – up 0.78% year-to-date.

Consumer Staples

PepsiCo (PEP) is lowered by 180 degrees, to Underperform from Outperform, at Credit Agricole. In afternoon trading: Shares of AgFeed Industries (FEED) are down about 7.1%. Shares of Imperial Sugar (IPSU) are down about 6.5%. Shares of Alliance One (AOI) are down about 6.5%. Shares of Origin Agritech (SEED) are up about 6.8%. Actives: Shares of PepsiCo are down about 2.4%. Shares of Coca Cola (KO) are down about 1.3%. Shares of Procter & Gamble (PG) are down about 0.6%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.58 at 4:00 PM on Monday, down 0.84% on the day – up 4.33% year-to-date.


Bristol-Myers (BMY) is lifted to Buy from Hold at Jefferies with a new target of $35. Cardinal Health (CAH) and McKesson (MCK) are each increased to Buy from Hold at Citigroup. Forest Labs (FRX) is now Sell from Neutral at Goldman. In afternoon trading: Shares of HealthSouth (HLS) are down about 12%. Shares of Gentiva Health Services (GTIV) are down about 11.6%. Shares of Keryx Biosciences (KERX) are down about 7.2%. Shares of MAKO Surgical (MAKO) are up about 13.2%. Shares of Optimer Pharmaceuticals (OPTR) are up about 11.3%. Shares of Regeneron Pharmaceuticals (REGN) are up about 7.9%. Shares of Savient Pharmaceuticals (SVNT) are up about 7.3%.

The Health Care Select Sector SPDR (XLV) was trading at $32.71 at 4:00 PM on Monday, down 0.94% on the day – up 3.84% year-to-date.


UBS (UBS) said its loss from unauthorized trading is now at $2.3B, up from an earlier estimate of $2B, but continued to dismiss calls for CEO Oswald Gruebel's resignation. Credit Suisse (CS) agreed to pay a €150M ($207M) penalty in Germany to avoid a "complex and prolonged legal dispute" emanating from charges of tax evasion. SEI Investments (SEIC) is reduced to Perform from Outperform at Oppenheimer. UBS AG (UBS) is lowered to Hold from Buy at brokers Collins Stewart. In afternoon trading: Shares of ING Group (ING) are down about 8.2%.

The Financial Select Sector SPDR (XLF) was trading at $12.56 at 4:00 PM on Monday, down 2.67% on the day – down 21.25% year-to-date.

Information Technology

Micron (MU) is lifted to Neutral from Sell at Goldman Sachs. UBS takes Texas Instruments (TXN) to Buy from Neutral along with Analog Devices (ADI), Linear Technology (LLTC), and Maxim Integrated Products (MXIM). Broadcom (BRCM) is boosted to Outperform from Market Perform with brokers William Blair. Advanced Micro Devices (AMD) is now Neutral from Buy at Nomura. Applied Materials (AMAT) is downgraded to Sell from Neutral at Goldman Sachs, which lowers Lam Research (LRCX) to Neutral from Buy. Aixtron (AIXG) is now Neutral from Overweight at HSBC Securities. EZchip (EZCH) is cut to Hold from Buy at Auriga with a new target of $37. JinkoSolar Holding (JKS) is cut to Sell from Neutral at brokerage Collins Stewart with a new target of $10. Power Integrations (POWI) is now Neutral from Overweight at Piper Jaffray. TiVo Inc (TIVO) is taken to Average from Above Average at Caris & Company. In afternoon trading: Shares of JinkoSolar are down about 26.6%. Shares of AsiaInfo-Linkage (ASIA) are down about 18%. Shares of Sequans Communications (SQNS) are up about 9.3%.

The Technology Select Sector SPDR (XLK) was trading at $24.92 at 4:00 PM on Monday, down 0.24% on the day – down 1.07% year-to-date.

Telecommunications Services

AT&T (T) is trying to get rivals including MetroPCS (PCS) and Leap Wireless (LEAP) to sell spectrum and subscribers to rivals like Sprint (S) in the hopes of rescuing its $39B takeover of T-Mobile (DTEGF) from the clutches of a DOJ anti-competition lawsuit. European phone firms Telecom Italia (TI) and Telefonica S.A. (TEF) are each taken to Buy from Hold at the Royal Bank of Scotland. In afternoon trading: Shares of TerreStar (TSTRQ) are down about 16.7%. Actives: Shares of Sprint Nextel (S) are down about 0.6%. Shares of AT&T (T) are down about 1.4%. Shares of Level 3 Communications (LVLT) are down about 1.6%. Shares of Verizon (VZ) are down about 1.3%.

The NASDAQ Telecommunications Index (IXTC) was trading at $194.07 at 4:00 PM on Monday, down 0.88% on the day – down 13.89% year-to-date.


In afternoon trading: Actives: Shares of Genon Energy (GEN) are down about 3.3%. Shares of Duke Energy (DUK) are relatively unchanged. Shares of AES Corp (AES) are down about 1.3%. Shares of Exelon (EXC) are down slightly. Shares of Southern (SO) are down about 0.4%. Shares of American Electric Power (AEP) are up slightly. Shares of CMS Energy (CMS) are down slightly.

The Utilities Select Sector SPDR (XLU) was trading at $33.79 at 4:00 PM on Monday, down 0.56% on the day – up 7.82% year-to-date.


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Symbol Name Price Change % Volume
TGB Taseko Mines Ltd. 1.39 0.01 0.72 1,264,392
MWE MarkWest Energy Partners LP n/a n/a n/a 0
MCK McKesson Corporation 150.85 1.88 1.26 1,248,900
GEN Genesis Healthcare Inc. 3.33 0.05 1.52 171,112
CF CF Industries Holdings Inc. 31.15 -0.67 -2.11 5,696,401
MTN Vail Resorts Inc. 182.67 2.54 1.41 263,796
BEAV B/E Aerospace Inc. 63.13 0.27 0.43 855,143
PG Procter & Gamble Company (The) 91.05 -0.08 -0.09 6,643,365
SO Southern Company (The) 50.50 0.83 1.67 8,351,152
TI Telecom Italia S.P.A. New 7.96 -0.17 -2.09 224,613
VALE VALE S.A. American Depositary Shares Each Represen 10.52 -0.23 -2.14 39,833,523
TEF Telefonica SA 10.15 0.09 0.89 885,002
KERX Keryx Biopharmaceuticals Inc. 5.02 0.14 2.87 1,265,351
AA Alcoa Inc. 34.48 0.16 0.47 5,763,834
PEP Pepsico Inc. 109.83 0.29 0.26 3,991,764
CMS CMS Energy Corporation 44.68 0.49 1.11 2,406,809
CBT Cabot Corporation 57.61 0.00 0.00 304,814
SQNS Sequans Communications S.A. American Depositary Sh 2.94 0.16 5.76 1,104,108
ADI Analog Devices Inc. 81.68 0.07 0.09 2,841,133
S Sprint Corporation 8.94 -0.02 -0.22 9,891,523
SEIC SEI Investments Company 50.94 0.38 0.75 379,015
TTI Tetra Technologies Inc. 4.45 -0.11 -2.41 836,171
IR Ingersoll-Rand plc (Ireland) 81.32 0.08 0.10 1,484,309
LRCX Lam Research Corporation 118.79 1.06 0.90 1,268,125
PWR Quanta Services Inc. 37.76 0.62 1.67 1,632,135
TXN Texas Instruments Incorporated 77.24 0.10 0.13 3,516,648
AMD Advanced Micro Devices Inc. 14.12 -0.20 -1.40 46,288,614
IVN Ivanhoe Mines Ltd n/a n/a n/a 0
LVLT Level 3 Communications Inc. 57.61 -0.17 -0.29 2,668,662
AES The AES Corporation 11.93 0.18 1.53 6,329,348
BTU Peabody Energy Corp n/a n/a n/a 0
VZ Verizon Communications Inc. 50.60 0.29 0.58 14,357,936
POWI Power Integrations Inc. 65.50 -0.31 -0.47 201,717
GM General Motors Company 36.90 -0.35 -0.94 13,060,100
LLTC Linear Technology Corporation 64.54 0.01 0.02 1,148,032
FCX Freeport-McMoRan Inc. 13.25 -0.23 -1.71 27,410,691
YGE Yingli Green Energy Holding Company Limited ADR 2.71 -0.03 -1.09 99,269
BMY Bristol-Myers Squibb Company 56.44 0.67 1.20 11,382,544
UBS UBS Group AG Registered 15.32 -0.19 -1.23 1,758,750
AMAT Applied Materials Inc. 36.30 0.14 0.39 7,505,777
LEN Lennar Corporation Class A 47.43 0.28 0.59 1,846,296
TYC Tyco International plc (Ireland) n/a n/a n/a 0
MXIM Maxim Integrated Products Inc. 45.06 0.20 0.45 1,270,754
AIXG Aixtron SE n/a n/a n/a 0
JKS JinkoSolar Holding Company Limited American Deposi 17.15 -0.32 -1.83 603,252
MT ArcelorMittal 8.64 -0.10 -1.14 22,008,877
NFLX Netflix Inc. 143.25 0.47 0.33 3,302,714
PIR Pier 1 Imports Inc. 6.87 0.11 1.63 2,692,614
NR Newpark Resources Inc. 7.50 -0.40 -5.06 624,406
ING ING Group N.V. 13.84 -0.19 -1.35 2,610,402
AOI Alliance One International Inc. 13.75 -0.15 -1.08 20,151
EZCH EZchip Semiconductor Ltd n/a n/a n/a 0
BRCM Broadcom Corp. n/a n/a n/a 0
REGN Regeneron Pharmaceuticals Inc. 361.01 0.05 0.01 782,594
MU Micron Technology Inc. 23.24 -0.24 -1.02 22,019,587
KO Coca-Cola Company (The) 41.78 0.12 0.29 13,215,306
EXC Exelon Corporation 37.18 1.20 3.34 8,184,779
T AT&T Inc. 42.36 0.41 0.98 17,043,175
CAT Caterpillar Inc. 95.48 -0.07 -0.07 5,018,244
HLS HealthSouth Corporation 42.22 0.35 0.84 942,451
DUK Duke Energy Corporation (Holding Company) 81.96 1.05 1.30 3,846,758
CAH Cardinal Health Inc. 82.14 0.41 0.50 1,331,548
SEED Origin Agritech Limited 2.05 -0.03 -1.44 41,603
CX Cemex S.A.B. de C.V. Sponsored ADR 8.54 -0.11 -1.27 9,181,349
AEP American Electric Power Company 67.15 1.14 1.73 4,094,073
TXT Textron Inc. 47.17 -0.04 -0.08 3,689,584
HXL Hexcel Corporation 54.26 0.44 0.82 570,433
SU Suncor Energy Inc. 31.50 -1.17 -3.58 6,529,356


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