The International trade balance rose to $48.8 billion in December. The Michigan Consumer Sentiment Survey came in weaker than expected at 72.5. The Dow Jones Industrial Average opened lower and traded down to 12,743.56, but the daily and weekly charts remain overbought. The NASDAQ traded down to 2895.10 Friday morning then crawled back above 2900 in afternoon trading. The S&P 500, Dow Transports and Russell 2000 continue to lag their 2011 highs at 1370.58, 5627.85 and 868.57 respectively.
Asian stocks closed lower on Friday as the Greek bailout seems to be in limbo. The Nikkei 225 ending their session 8,947 – down 0.61% on the day. The Hang Seng closed at 20,784 – down 1.08% on the day. European stocks were lower on the Greek limbo. The FTSE 100 ended their session at 5,852 – down 0.73% on the day; the DAX ended their session at 6,693 – down 1.41% on the day; and the CAC 40 ended their session at 3,373 – down 1.51% on the day. The yield on the 10-Year US Treasury declined from 2.036 to 1.952 versus its 50-day simple moving average at 1.946.
Gold declined from $1737.2 the Troy ounce to $1706.4. Gold is above its 50-day and 200-day simple moving averages at $1668.0 and $1654.7 and converging. If gold tops out and the 50-day falls below the 200-day it would be a “death cross”. The 50-day has been above the 200-day since February 2009. Crude oil declined from $99.89 per barrel to $97.32 versus 50-day and 200-day simple moving averages at $99.21 and $94.61. The euro versus the dollar declined from 1.3290 to 1.3158.
Arch Coal (ACI) missed estimates by 2 cents and revenue by $70M. ConocoPhillips (COP) is boosted to Buy from Hold at Deutsche Bank. Exco Resources (XCO) is now Neutral from Outperform at Robert W. Baird, which takes its target to $8 from $13. FBR Capital downgrades Devon Energy (DVN), Chesapeake Energy (CHK), and PetroQuest Energy (PQ) to Market Perform from Outperform. In afternoon trading: Shares of Amyris (AMRS) are down about 29%. Shares of Cobalt International Energy (CIE) are up about 32%.
Energy Select Sector SPDR (XLE) was trading at $72.96 at 4:00 PM on Friday, down 1% on the day – up 5.66% year-to-date. The January change was +2.26%. The 2011 change was -1.29%.
Rock-Tenn Co (RKT) is picked up with a Buy at Citigroup. Sealed Air (SEE) is upgraded to Outperform from Neutral at Robert W. Baird, which takes its target price up to $26. AK Steel (AKS) is cut to Neutral from Buy at Citigroup. Sigma-Aldrich (SIAL) is slashed to Neutral from Buy by Bank of America-Merrill Lynch. Silgan Holdings (SLGN) gets cut to Neutral from Outperform with a $45 target at Robert Baird. In afternoon trading: Heavily Traded Stocks: Shares of Alcoa (AA) are down about 3.8%. Shares of Vale SA (VALE) are down about 2.1%. Shares of Freeport McMoran (FCX) are down about 3.6%. Shares of Cemex (CX) are down about 2.1%.
The Materials Select Sector SPDR (XLB) was trading at $37.05 at 4:00 PM on Friday, down 1.75% on the day – up 10.60% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.
Pitney Bowes (PBI) Q4 beats on a per share basis but comes up weak on the revenue side. BE Aerospace (BEAV) is begun with an Equal Weight at Morgan Stanley. Equifax (EFX) is lifted 180 degrees, to Buy from Hold at Goldman. Rolls-Royce (RYCEY) is lowered to Neutral from Outperform by BNP Paribas. In afternoon trading: Shares of SatCon Technology (SATC) are down about 10.5%. Shares of Capstone Turbine (CPST) are down about 10%.
The Industrial Select Sector SPDR (XLI) was trading at $36.97 at 4:00 PM on Friday, down 0.91% on the day – up 9.54% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.
GM (GM) is poised to receive approval to build a $1.1B factory in China with an annual production capacity of 300,000 vehicles. Ruth’s Chris Steak House (RUTH) beat estimates by a penny and revenue by $4M. True Religion Apparel (TRLG) missed estimates by 9 cents and revenue by $9M. The company is guiding for 2012 sales of $450M-$460M and EPS of $1.88-$1.95 (versus consensus of $494.4M and $2.37). Lions Gate Entertainment (LGF) reported FQ3 EPS of -$0.01 (versus consensus of $0.12), while missing revenue by $40M. Expedia (EXPE): Q4 beat on EPS but misses on the revenue side as rising average ticket prices, changes in its hotel product mix and competitive pricing pressures negatively impacted bottom line margins. Coach Inc (COH) is launched with a Buy at Citigroup. ReachLocal (RLOC): and comScore (SCOR) are each covered at Market Perform by Raymond James. Sally Beauty (SBH) gets an Outperform-from-Sector Perform boost at RBC Capital. O’Charley’s (CHUX) is reduced to Market Perform from Outperform as shares are no longer trading on fundamentals following its proposed acquisition. O’Reilly Automotive (ORLY) is cut by both Deutsche Bank (Hold from Buy) and Robert W. Baird (Neutral from Outperform). Thomson Reuters (TRI) is taken to Buy from Action List Buy at TD Securities. True Religion Apparel (TRLG) is taken to Hold from Buy by both Benchmark Company and Brean Murray. In afternoon trading: Shares of True Religion (TRLG) are down about 27.5%. Shares of Exide Technologies (XIDE) are down about 23.5%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.31 at 4:00 PM on Friday, down 0.54% on the day – up 8.43% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.
Procter & Gamble (PG) plans to try to terminate the sale of its Pringles business to scandal-plagued Diamond Foods (DMND), but must determine how best to exit the deal and whether to expect pushback from Diamond. Lance (LNCE) reported Q4 EPS of $0.33 (versus consensus of $0.25), while beating revenue by $9.5M. In afternoon trading: Shares of AgFeed (FEED) are down about 36%. Shares of Imperial Sugar (IPSU) are up about 12.5%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $32.61 at 4:00 PM on Friday, down 0.21% on the day – up 0.37% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.
Alexion Pharmaceuticals (ALXN) is now Outperform from Neutral at Robert W. Baird, which increases its price objective to $100. Masimo (MASI) is moved to Sell from Neutral at Citigroup. Nobel Biocare Holding (NBHGY) is taken to Underweight from Neutral at JPMorgan. In afternoon trading: Shares of Pharmacyclics (PCYC) are up about 13.5%. Shares of Corcept Therapeutics (CORT) are down about 10.5%. Shares of Exelixis (EXEL) are up about 8.5%.
The Health Care Select Sector SPDR (XLV) was trading at $35.81 at 4:00 PM on Friday, down 0.41% on the day – up 3.23% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.
Barclays’ (BCS) FY11 net attributable profit fell to £3B from £3.56B in 2010, due to “challenging” market conditions, while net interest income dropped to £12.2B from £12.52B. More than three months after MF Global’s (MFGLQ) implosion, sources say the criminal probe appears to be going cold, with investigators finding plenty of “chaos” but “no evidence of fraud,” and no internal leads as not a single employee has come forward to cut a deal with the government. NYSE Euronext (NYX) beat estimates by a penny with revenue in-line with estimates. Credit Suisse (CS) is upgraded to Hold from Sell at Société Générale. Regions Financial (RF) is raised to Outperform from Neutral, also at Credit Suisse. Danske Bank A/S (DNSKY) is lowered to Neutral from Buy at Citigroup. Federated Investors (FII) is lowered to Neutral from Buy at Bank of America-Merrill Lynch. ING Groep (ING) is now Neutral from Buy at UBS. Realty Income (O) is reduced to Sector Perform from Outperform at RBC Capital. In afternoon trading: Shares of MF Global (MFGLQ) are down about 25.5%.
The Financial Select Sector SPDR (XLF) was trading at $14.565 at 4:00 PM on Friday, down 0.99% on the day – up 12.04% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.
Google (GOOG) is reportedly working on a home entertainment system that wirelessly streams music, and which would be the first consumer device marketed under the Google brand. FLIR Systems (FLIR) beat estimates by 4 cents, while missing revenue by $31M. Brooks Automation (BRKS) beat estimates by 2 cents with revenue in-line with estimates, and expects to earn $0.15 – $0.20 per share on revenue of $132M – $140M (versus estimates of $0.09 per share on revenue of $128M). NetLogic (NETL), due to be acquired by Broadcom (BRCM), warns it expects Q4 revenue of $96.2M, well below a consensus of $110.6M. LeapFrog Enterprises (LF) beat estimates by 7 cents and revenue by $8M. Activision (ATVI) beat estimates by 6 cents and revenue by $210M. Amkor Technology (AMKR) beat estimates by 4 cents with revenue in-line with estimates. Nuance (NUAN) is guiding for FQ2 revenue of $395M-$415M and EPS of $0.36-$0.42 (consensus of $404.5M and $0.38) and FY12 revenue of $1.66B-$1.71B and EPS of $1.55-$1.62 (consensus of $1.68B and $1.60). Morgan Stanley starts Equal Weights on Amgen (AMGN) and AVEO Pharmaceuticals (AVEO), assigns Overweights on Biogen Idec (BIIB), Celgene (CELG), and Gilead Sciences (GILD), and establishes Onyx Pharmaceuticals (ONXX) at Underweight. ReachLocal (RLOC): and comScore (SCOR) are each covered at Market Perform by Raymond James. Activision Blizzard (ATVI) is added to Goldman Sachs’ Conviction Buy List. JDS Uniphase (JDSU) is raised to Outperform from Neutral at Credit Suisse. First Solar (FSLR) is slashed to Neutral from Buy at brokers Collins Stewart. NCR Corp (NCR) gets a Neutral-from-Buy downgrade at Goldman. Taleo (TLEO) is moved to Neutral from Outperform at Baird. In afternoon trading: LinkedIn (LNKD) are up about 18.25% after the company’s Q4 earnings and its guidance topped expectations, with adjusted Q4 EPS coming at $0.12 and revenues more than doubling to $167.7M. Shares of Alcatel-Lucent (ALU) are up about 13.5% after the company reported FY11 profit of €1.1B compared with a €334M loss in 2010, and Q4 EPS that beat consensus even though revenue fell 12.5% to €4.25B and missed expectations. Shares of Nuance Communications (NUAN) are down about 13%.
The Technology Select Sector SPDR (XLK) was trading at $28.03 at 4:00 PM on Friday, down 0.74% on the day – up 10.14% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.
Cincinnati Bell (CBB) missed estimates by 3 cents with revenue in-line with estimates. In afternoon trading: Heavily Traded Stocks: Shares of Frontier Communications (FTR) are down about 2.9%. Shares of Sprint Nextel (S) are down about 3.75%, while shares of AT&T (T) are down about 0.6% and shares of Verizon (VZ) are down about 1%. Shares of Clearwire (CLWR) are up about 5%.
The NASDAQ Telecommunications Index (IXTC) was trading at $214.80 at 4:00 PM on Friday, down 0.83% on the day – up 9.07% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.
Calpine (CPN) missed estimates by a penny, while missing revenue by $210M. In afternoon trading: Heavily Traded Stocks: Shares of Genon Energy (GEN) are up about 3%. Shares of Calpine (CPN) are up about 5.25%. Shares of PPL Corp (PPL) are up about 2.9%. Shares of Exelon (EXC) are down about a half of a percent. Shares of Duke Energy (DUK) are down slightly.
The Utilities Select Sector SPDR (XLU) was trading at $34.80 at 4:00 PM on Friday, down 0.20% on the day – down 3.28% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.
STOCKS: ACI, COP, XCO, DVN, CHK, PQ, AMRS, CIE, RKT, SEE, AKS, SIAL, SLGN, AA, VALE, FCX, CX, PBI, BEAV, EFX, RYCEY, SATC, CPST, GM, RUTH, TRLG, LGF, EXPE, COH, RLOC, SCOR, SBH, CHUX, ORLY, TRI, XIDE, PG, DMND, LNCE, FEED, IPSU, ALXN, MASI, NBHGY, PCYC, CORT, EXEL, BCS, MFGLQ, NYX, CS, RF, DNSKY, FII, ING, O, GOOG, FLIR, BRKS, NETL, BRCM, LF, ATVI, AMKR, NUAN, AMGN, AVEO, BIIB, CELG, GILD, ONXX, RLOC, SCOR, JDSU, FSLR, NCR, TLEO, LNKD, ALU, CBB, FTR, S, T, VZ, CLWR, CPN, GEN, CPN, PPL, EXC, DUK