Equities Sector Coverage: Is the Bull Market Over?

Sector Recap |

Frustrated Stock TraderThe Dow Jones Industrial Average declined to 12,734.86 on Tuesday afternoon after momentum on the daily chart shifted to negative at Monday’s close. The NASDAQ declined to 2900.28 on Tuesday afternoon after its daily chart shifted to negative at Monday’s close. Failure of the Dow Transports and Russell 2000 to achieve their 2011 all time highs at 5627.85 and 868.57 in 2012 has been a huge stock market warning.

Asian stocks were lower on Tuesday on growing fears of a global economic slowdown. The Nikkei 225 ended their session at 9,638 – down 0.63% on the day. The Hang Seng ended their session at 20,806 – down 2.16% on the day. European stocks were lower on the risk that Greece and private bondholders may not meet a looming deadline to complete a debt swap. The FTSE 100 ended their session at 5,778 – down 1.65% on the day, the DAX ended their session at 6,656 down 3.06% on the day, and the CAC 40 ended their session at 3,363 – down 3.58% on the day.

The yield on the 10-Year US Treasury declined from 2.017 percent to 1.929 below its 50-day simple moving average at 1.949. Gold traded down from $1709.8 the Troy ounce to $1663.4 below the 50-day and 200-day simple moving averages at $1688.3 and $1672.9. A trend below these moving averages where the 50-day falls below the 200-day defines a “death cross.” Crude oil traded down from $107.34 per barrel to $104.51. The euro versus the dollar declined from 1.3225 to 1.3106.

Energy

PDC Energy (PETD) is hoisted to Buy from Hold at Brean Murray.

Energy Select Sector SPDR (XLE) was trading at $73.05 at 4:00 PM on Tuesday, down 1.63% on the day – up 5.67% year-to-date. The February 2012 change was +5.93%. The 2011 change was -1.29%

Heavily Traded: (EP) -1.8%, (ANR) -1.5%, (PBR) -4.7%, (HAL) -3.3%, (ACI) -3.1%, (BTU) -2.9%, (XOM) -1.5%, (PCX) +2.7%.

Materials

Akzo Nobel (AKZOY) gets a Buy-from-Hold boost at Société Générale. Worthington Industries (WOR) is lifted to Buy from Hold at Jefferies.
The Materials Select Sector SPDR (XLB) was trading at $35.94 at 4:00 PM on Tuesday, down 2.04% on the day – up 7.28% year-to-date. The February 2012 change was -0.56%. The 2011 change was -12.78%.

Heavily Traded: (VALE) -6.2%, (AA) -3.9%, (FCX) -2.8%, (CX) -5.3%, (AKS) -5.4%.

Industrials

Companies sold $19.7B worth of bonds yesterday as they sought to exploit what feel like eternally low interest rates and heavy demand from investors looking to do something semi-useful with their cash. DirecTV (DTV) led the way by raising $4B, with UnitedHealth (UNH), Philips (PHG) and CenturyLink (CTL) also joining the party. Covanta (CVA) is increased to Overweight from Equal Weight by Barclays.

The Industrial Select Sector SPDR (XLI) was trading at $36.05 at 4:00 PM on Tuesday, down 2.25% on the day – up 6.81% year-to-date. The February 2012 change was +2.79%. The 2011 change was -3.21%.

Heavily Traded: (GE) -2.6%, (GLW) -0.9%, (CSX) -1.3%, (CAT) -3.9%.

Consumer Discretionary

GM (GM) and Peugeot (PEUGY) will develop at least four cars together by 2016 as part of their alliance in which GM will pay €320M for a 7% stake in the French automaker. Companies sold $19.7B worth of bonds yesterday as they sought to exploit what feel like eternally low interest rates and heavy demand from investors looking to do something semi-useful with their cash. DirecTV (DTV) led the way by raising $4B, with UnitedHealth (UNH), Philips (PHG) and CenturyLink (CTL) also joining the party. Vail Resorts (MTN) missed estimates by 17 cents and revenue by $7M. Dick's Sporting Goods (DKS) reported Q4 EPS of $0.88 (in-line) and revenue of $1.61B (in-line). The company sees FY12 EPS of $2.38-$2.41, and expects same-store sales to increase 2%-3% for the year. Shuffle Master (SHFL) beat estimates by 3 cents and revenue by $5M. NutriSystem (NTRI) missed estimates by 2 cents, while beating revenue by $2.5M. Vera Bradley Inc (VRA) is initiated with a bullish Outperform by brokers William Blair. Vera Bradley (VRA) is cut to Hold from Buy at Keybanc. Lululemon athletic (LULU) is cut to Hold from Buy at Argus. Clear Channel Outdoor (CCO) gets cut to Market Perform from Outperform with Wells Fargo. Express (EXPR) is lowered to Equal Weight from Overweight by Barclays.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.80 at 4:00 PM on Tuesday, down 1.56% on the day – up 9.69% year-to-date. The February 2012 change was +10.09%. The 2011 change was +4.30%.

Big Mover: (NTRI) -10%.

Heavily Traded: (F) -3.5%, (SIRI) -2.4%, (NWSA) -2.2%, (GM) -4.9%, (MGM) -3.1%, (LOW) -1.3%, (CMCSA) -0.7%, (SPLS) +1.7%, (CCL) -2.7%.



Consumer Staples

Casey's General Stores (CASY) reported Q4 EPS of $0.44 (in-line), while beating revenue by $200M. Nature’s Sunshine (NATR) reported strong Q4 results on improving gross margin. NATR earned $0.48/share, reversing a year-ago loss of $0.02/share, and revenue rose 2.4% Y/Y to $92.1M. Income from continuing operations soared 171% to $9.6M, vs. $3.5M in the year-ago period. Calavo Growers (CVGW) reported FQ1 revenue of $117.4M and EPS of $0.18 (missing Street estimates by $11.2M and $0.06). The company expects FY12 EPS to exceed its historical record of $1.22, but given the consensus forecast stands at $1.64, more seems to be expected.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.08 at 4:00 PM on Tuesday, down 0.84% on the day – up 1.82% year-to-date. The February 2012 change was +3.75%. The 2011 change was +10.85%.

Heavily Traded: (SWY) -5.7%, (SLE) -2.2%.

Health Care

"Roche (RHHBY) and Illumina (ILMN) both stand to benefit from a rapid merger," Roche Chairman Franz Humer said at the company's annual meeting today. Companies sold $19.7B worth of bonds yesterday as they sought to exploit what feel like eternally low interest rates and heavy demand from investors looking to do something semi-useful with their cash. DirecTV (DTV) led the way by raising $4B, with UnitedHealth (UNH), Philips (PHG) and CenturyLink (CTL) also joining the party. Rigel Pharmaceuticals (RIGL) missed estimates by 8 cents. Agilent (A), Thermo Fisher (TMO), and Waters (WAT) are all new Overweights at Morgan Stanley, which establishes Equal Weights on Illumina (ILMN), PerkinElmer (PKI), and Life Technologies (LIFE). DUSA Pharmaceuticals (DUSA) is started with a Buy at C.K. Cooper, which establishes a price objective of $8. Sunesis Pharmaceuticals (SNSS) is a Buy at Canaccord Genuity. Sanofi-Aventis (SNY) is moved to Overweight from Neutral at JP Morgan. Lifepoint Hospitals (LPNT) is lifted to Neutral from Underperform at Credit Suisse. Amgen (AMGN) is moved to Market Perform from Outperform by Sanford Bernstein. Novartis (NVS) is lowered to Neutral from Overweight at JP Morgan.
The Health Care Select Sector SPDR (XLV) was trading at $35.76 at 4:00 PM on Tuesday, down 1.30% on the day – up 3.08% year-to-date. The February 2012 change was +1.06%. The 2011 change was +10.32%.

Big Movers: (ONTY) -40%, (ZLTQ) -32.25%, (XOMA) +29%.

Financials

Deutsche Bank (DB) is begun with a Buy at ING Groep. Hatteras Financial (HF) is lifted to Market Perform from Underperform at Wells Fargo. Manning & Napier Advisors (MN) gets moved Outperform from Market Perform at Keefe Bruyette. Annaly Capital Management (NLY) is now Market Perform from Outperform with Wells Fargo. Commerzbank AG (CRZBY) gets downgraded to Hold from Buy at ING Groep.
The Financial Select Sector SPDR (XLF) was trading at $14.445 at 4:00 PM on Tuesday, down 2.46% on the day – up 11.12% year-to-date. The February 2012 change was +5.02%. The 2011 change was -18.50%; the weakest performing sector for the year.

Big Movers: (MFGLQ) -12%, (WAMUQ) -11.75.

Information Technology

VeriFone (PAY) beat estimates by 6 cents and revenue by $9M. Google (GOOG) is begun with a Buy at Nomura, which assigns a new Neutral on Yahoo (YHOO). Neustar (NSR) and Nuance Communications (NUAN) are fresh Market Performs with Wells Fargo, which starts Outperforms on Synchronoss Technologies (SNCR) and Amdocs (DOX). Yandex (YNDX) is a new Neutral at UBS. Monster Worldwide (MWW) is upgraded to Overweight from Equal Weight at Evercore. Canon (CAJ) is lifted to Buy from Outperform at Crédit Agricole. OmniVision (OVTI) is upgraded to Outperform from Neutral at Robert W. Baird, which takes its target price up by $4 to $23. Jiayuan.com (DATE) is lowered to Underperform from Neutral by Bank of America-Merrill Lynch.

The Technology Select Sector SPDR (XLK) was trading at $28.545 at 4:00 PM on Tuesday, down 0.99% on the day – up 12.16% year-to-date. The February 2012 change was +7.08%. The 2011 change was +1.03%.

Heavily Traded: (NOK) -4%, (MSFT) -0.8%, (INTC) up slightly, (MU) -3%.

Telecommunication Services

Companies sold $19.7B worth of bonds yesterday as they sought to exploit what feel like eternally low interest rates and heavy demand from investors looking to do something semi-useful with their cash. DirecTV (DTV) led the way by raising $4B, with UnitedHealth (UNH), Philips (PHG) and CenturyLink (CTL) also joining the party.

The NASDAQ Telecommunications Index (IXTC) was trading at $207.48 at 4:00 PM on Tuesday, down 1.42% on the day – up 5.36% year-to-date. The February 2012 change was +1.63%. The 2011 change was -12.62%.
Heavily Traded: (S) -1%, (T) -1%, (CLWR) -3%, (VZ) -0.8%, (FTR) -1%.

Utilities

The Utilities Select Sector SPDR (XLU) was trading at $34.90 at 4:00 PM on Tuesday, relatively up 0.40% on the day – down 3.00% year-to-date. The February 2012 change was +0.61%. The 2011 change was +14.81%; the strongest performing sector for the year.
Heavily Traded: (POM) -0.8%, (GEN) -3.2%, (DUK) -0.3%, (AES) -3.2%, (CPN) +1%, (EXC) -0.7%, (SO) +1.2%.

STOCKS: PETD, EP, ANR, PBR, HAL, ACI, BTU, XOM, PCX, AKZOY, WOR, VALE, AA, FCX, CX, AKS, DTV, UNH, PHG, CTL, CVA, GE, GLW, CSX, CAT, GM, PEUGY, MTN, DKS, SHFL, NTRI, VRA, LULU, CCO, EXPR, F, SIRI, NWSA, GM, MGM, LOW, CMCSA, SPLS,, CCL, CASY, NATR, CVGW, SWY, SLE, RHHBY, ILMN, RIGL, A, TMO, WAT, PKI, LIFE, DUSA, SNSS, SNY, LPNT, AMGN, NVS, ONTY, ZLTQ, XOMA, DB, HF, MN, NLY, CRZBY, MFGLQ, WAMUQ, PAY, GOOG, YHOO, NSR, NUAN, SNCR, DOX, YNDX, MWW, CAJ, OVTI, DATE, NOK, MSFT, INTC, MU, S, T, CLWR, VZ, FTR, POM, GEN, DUK, AES, CPN, EXC, SO

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
CCL Carnival Corporation 59.62 0.66 1.12 3,183,942 Trade
UNH UnitedHealth Group Incorporated (DE) 172.33 1.17 0.68 2,830,275 Trade
GLW Corning Incorporated 27.52 0.50 1.85 9,714,207 Trade
EXPR Express Inc. 8.59 0.09 1.06 2,351,195 Trade
A Agilent Technologies Inc. 54.44 1.17 2.20 2,257,682 Trade
GEN Genesis Healthcare Inc. 2.37 0.07 3.04 102,363 Trade
MTN Vail Resorts Inc. 195.18 1.58 0.82 248,394 Trade
FTR Frontier Communications Corporation 1.90 -0.04 -2.06 29,120,147 Trade
GE General Electric Co 29.55 0.00 0.00 48,585,162 Trade
SO Southern Company (The) 50.15 0.17 0.34 4,097,080 Trade
AKS AK Steel Holding Corporation 7.12 0.40 5.95 33,609,077 Trade
VALE VALE S.A. American Depositary Shares Each Represen 8.75 0.17 1.96 24,146,391 Trade
YNDX Yandex N.V. 23.38 0.30 1.30 1,993,824 Trade
PBR PETROLEO BRASILEIIRO SA PETROBRAS 9.21 0.20 2.22 20,136,567 Trade
DOX Amdocs Limited 61.21 0.50 0.82 309,197 Trade
AA Alcoa Inc. 33.31 1.61 5.08 7,907,300 Trade
CSX CSX Corporation 50.13 -0.64 -1.26 11,196,959 Trade
INTC Intel Corporation 36.75 0.43 1.18 26,305,762 Trade
LPNT LifePoint Health Inc. 60.95 0.10 0.16 516,933 Trade
NTRI NutriSystem Inc 55.05 -0.45 -0.81 479,675 Trade
RIGL Rigel Pharmaceuticals Inc. 2.95 0.08 2.79 1,046,066 Trade
ENB.PF.C:CA Enbridge Inc. cumulative redeemable preference sha 21.17 0.42 2.02 15,856
WAT Waters Corporation 160.27 1.75 1.10 835,734 Trade
S Sprint Corporation 8.71 0.21 2.47 15,264,196 Trade
DATE Jiayuan.com International Ltd. ADR (Sponsored) n/a n/a n/a 0 Trade
SPLS Staples Inc. 9.88 0.16 1.65 4,496,324 Trade
CCO Clear Channel Outdoor Holdings Inc. Class A 5.80 -0.05 -0.85 128,468 Trade
SNSS Sunesis Pharmaceuticals Inc. 3.75 0.04 1.08 177,256 Trade
LOW Lowe\'s Companies Inc. 84.17 1.05 1.26 4,553,624 Trade
DB Deutsche Bank AG 18.37 1.87 11.33 18,240,205 Trade
VRA Vera Bradley Inc. 9.05 0.00 0.00 166,281 Trade
CVA Covanta Holding Corporation 14.90 -0.05 -0.33 1,378,708 Trade
AES The AES Corporation 11.59 0.21 1.85 6,947,310 Trade
BTU Peabody Energy Corp 26.39 0.70 2.72 261,384 Trade
PAY Verifone Systems Inc. 18.02 0.13 0.73 1,323,161 Trade
VZ Verizon Communications Inc. 47.05 -0.20 -0.42 23,161,886 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 34.55 1.90 5.82 3,023,340 Trade
NWSA News Corporation 13.04 0.15 1.16 1,498,701 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
GM General Motors Company 33.91 0.16 0.47 13,984,612 Trade
SNCR Synchronoss Technologies Inc. 24.45 0.04 0.16 854,121 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 5.38 0.16 3.07 27,273,168 Trade
CPN Calpine Corporation 10.27 0.10 0.98 4,040,342 Trade
GOOG Alphabet Inc. 862.76 19.57 2.32 1,372,541 Trade
ILMN Illumina Inc. 180.20 4.91 2.80 820,478 Trade
OVTI OmniVision Technologies Inc. n/a n/a n/a 0 Trade
FCX Freeport-McMoRan Inc. 12.23 0.00 0.00 32,419,786 Trade
TMO Thermo Fisher Scientific Inc 157.34 2.30 1.48 1,198,329 Trade
MN Manning & Napier Inc. Class A 5.50 0.00 0.00 197,911 Trade
CTL CenturyLink Inc. 25.45 0.13 0.51 7,725,596 Trade
MGM MGM Resorts International 29.00 0.59 2.08 14,538,393 Trade
CASY Caseys General Stores Inc. 112.60 0.14 0.12 313,951 Trade
WOR Worthington Industries Inc. 43.43 0.95 2.24 394,774 Trade
NSR Neustar Inc. Class A 33.30 0.05 0.15 431,577 Trade
AMGN Amgen Inc. 163.14 2.73 1.70 3,498,403 Trade
LULU lululemon athletica inc. 52.75 -0.33 -0.62 3,284,166 Trade
SIRI Sirius XM Holdings Inc. 5.13 0.06 1.18 58,074,153 Trade
F Ford Motor Company 11.43 0.09 0.79 41,071,326 Trade
XOM Exxon Mobil Corporation 81.11 0.42 0.52 8,729,701 Trade
NATR Nature\'s Sunshine Products Inc. 10.20 0.20 2.00 12,745 Trade
POM Pepco Holdings Inc. n/a n/a n/a 0 Trade
HF HFF Inc. Class A 28.35 0.04 0.14 264,796 Trade
NVS Novartis AG 74.61 1.21 1.65 2,979,106 Trade
DKS Dick\'s Sporting Goods Inc 51.35 -0.23 -0.45 2,076,176 Trade
YHOO Yahoo! Inc. 48.15 0.63 1.33 9,860,363 Trade
ACI Arch Coal Inc. n/a n/a n/a 0 Trade
ONTY Oncothyreon Inc. n/a n/a n/a n/a
LIFE aTyr Pharma Inc. 3.15 0.10 3.28 80,304 Trade
SNY Sanofi American Depositary Shares (Each repstg one 45.90 1.81 4.11 3,973,977 Trade
CAJ Canon Inc. American Depositary Shares 31.86 0.08 0.25 260,990 Trade
NUAN Nuance Communications Inc. 17.57 0.54 3.17 3,262,292 Trade
MU Micron Technology Inc. 26.57 -0.75 -2.75 44,041,032 Trade
EXC Exelon Corporation 35.50 0.47 1.34 4,433,549 Trade
NLY Annaly Capital Management Inc 11.76 0.00 0.00 8,696,484 Trade
T AT&T Inc. 40.02 0.09 0.23 24,033,786 Trade
CAT Caterpillar Inc. 96.81 2.49 2.64 6,739,398 Trade
HAL Halliburton Company 46.75 -0.31 -0.66 11,843,609 Trade
DUK Duke Energy Corporation (Holding Company) 82.58 0.37 0.45 2,641,318 Trade
PKI PerkinElmer Inc. 58.21 0.99 1.73 361,650 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 8.98 0.20 2.28 5,004,098 Trade
MSFT Microsoft Corporation 67.53 1.13 1.70 29,769,976 Trade
ZLTQ ZELTIQ Aesthetics Inc. 56.49 -0.01 -0.02 451,310 Trade
CMCSA Comcast Corporation Class A Common Stock 38.01 -0.15 -0.39 20,030,013 Trade
CVGW Calavo Growers Inc. 64.85 -0.10 -0.15 205,127 Trade
XOMA XOMA Corporation 7.11 -0.62 -8.02 231,208 Trade

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