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 64.77 -0.07 -0.11 2,252,634 Trade
UNH UnitedHealth Group Incorporated (DE) 247.90 3.26 1.33 3,040,706 Trade
GLW Corning Incorporated 27.76 0.07 0.25 3,935,691 Trade
EXPR Express Inc. 9.11 -0.06 -0.65 2,148,453 Trade
A Agilent Technologies Inc. 65.55 1.23 1.91 4,527,295 Trade
GEN Genesis Healthcare Inc. 1.99 0.17 9.34 1,235,888 Trade
MTN Vail Resorts Inc. 239.75 0.81 0.34 160,600 Trade
FTR Frontier Communications Corporation 9.60 0.33 3.56 2,074,151 Trade
GE General Electric Company 15.26 0.29 1.94 77,952,823 Trade
SO Southern Company (The) 43.44 0.71 1.66 8,321,703 Trade
AKS AK Steel Holding Corporation 4.46 -0.24 -5.11 12,925,350 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 14.41 -0.17 -1.17 20,893,972 Trade
YNDX Yandex N.V. 34.63 0.64 1.88 2,790,349 Trade
PBR Petroleo Brasileiro S.A.- Petrobras 15.87 -0.28 -1.73 26,281,908 Trade
DOX Amdocs Limited 65.44 0.10 0.15 834,487 Trade
AA Alcoa Corporation 50.37 -0.46 -0.90 2,446,551 Trade
CSX CSX Corporation 64.01 0.25 0.39 3,194,213 Trade
INTC Intel Corporation 54.32 0.82 1.53 25,369,035 Trade
LPNT LifePoint Health Inc. 55.40 0.15 0.27 322,754 Trade
NTRI NutriSystem Inc 33.55 0.50 1.51 495,388 Trade
RIGL Rigel Pharmaceuticals Inc. 3.97 -0.09 -2.22 1,265,644 Trade
ENB.PF.C:CA Enbridge Inc. cumulative redeemable preference shares series 11 20.99 0.16 0.77 3,078
WAT Waters Corporation 196.30 2.14 1.10 290,454 Trade
S Sprint Corporation 5.16 0.05 0.98 10,517,314 Trade
DATE Jiayuan.com International Ltd. ADR (Sponsored) n/a n/a n/a 0 Trade
SPLS Staples Inc. n/a n/a n/a 0 Trade
CCO Clear Channel Outdoor Holdings Inc. Class A 4.65 0.05 1.09 30,085 Trade
SNSS Sunesis Pharmaceuticals Inc. 2.72 -0.05 -1.81 50,370 Trade
LOW Lowe's Companies Inc. 87.39 1.05 1.22 4,311,305 Trade
DB Deutsche Bank AG 12.71 0.00 0.00 2,867,541 Trade
VRA Vera Bradley Inc. 11.31 0.05 0.44 124,058 Trade
CVA Covanta Holding Corporation 15.85 0.15 0.96 2,073,930 Trade
AES The AES Corporation 12.06 0.13 1.09 5,888,392 Trade
BTU Peabody Energy Corporation 42.23 0.59 1.42 833,319 Trade
PAY Verifone Systems Inc. 22.84 0.01 0.04 897,298 Trade
VZ Verizon Communications Inc. 48.43 0.69 1.45 8,588,842 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 43.24 0.26 0.60 654,296 Trade
NWSA News Corporation 15.70 0.07 0.45 1,570,633 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
GM General Motors Company 38.09 0.30 0.79 6,229,100 Trade
SNCR Synchronoss Technologies Inc. 6.08 0.01 0.16 261,874
NOK Nokia Corporation Sponsored American Depositary Shares 6.24 0.04 0.65 6,052,608 Trade
CPN Calpine Corporation n/a n/a n/a 0 Trade
GOOG Alphabet Inc. 1,079.58 13.22 1.24 1,023,231 Trade
ILMN Illumina Inc. 268.29 -1.38 -0.51 512,279 Trade
OVTI OmniVision Technologies Inc n/a n/a n/a 0 Trade
FCX Freeport-McMoRan Inc. 16.69 -0.18 -1.07 13,431,153 Trade
TMO Thermo Fisher Scientific Inc 216.73 1.79 0.83 894,376 Trade
MN Manning & Napier Inc. Class A 3.20 0.10 3.23 37,693 Trade
CTL CenturyLink Inc. 19.28 -0.01 -0.05 7,641,759 Trade
MGM MGM Resorts International 32.01 -0.33 -1.02 7,246,655 Trade
CASY Caseys General Stores Inc. 100.30 -0.29 -0.29 398,957 Trade
WOR Worthington Industries Inc. 48.46 0.20 0.41 176,553 Trade
NSR Neustar Inc. Class A n/a n/a n/a 0 Trade
AMGN Amgen Inc. 176.47 0.17 0.10 2,557,238 Trade
LULU lululemon athletica inc. 103.74 0.92 0.89 1,864,781 Trade
SIRI Sirius XM Holdings Inc. 7.00 0.03 0.43 12,266,781 Trade
F Ford Motor Company 11.51 0.18 1.59 31,016,746 Trade
XOM Exxon Mobil Corporation 82.28 0.98 1.21 8,822,364 Trade
NATR Nature's Sunshine Products Inc. 9.15 -0.30 -3.17 24,988 Trade
POM Pepco Holdings Inc. n/a n/a n/a 0 Trade
HF HFF Inc. Class A 34.61 0.20 0.58 182,054 Trade
NVS Novartis AG 76.79 -0.27 -0.35 986,952 Trade
DKS Dick's Sporting Goods Inc 30.42 -0.58 -1.87 3,182,392 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 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. 0.88 -0.07 -7.63 1,052,221 Trade
SNY Sanofi American Depositary Shares (Each repstg one-half of one) 38.79 -0.09 -0.23 1,127,800 Trade
CAJ Canon Inc. American Depositary Shares 34.24 -0.01 -0.03 203,500 Trade
NUAN Nuance Communications Inc. 13.95 0.25 1.82 10,728,139 Trade
MU Micron Technology Inc. 55.48 2.09 3.91 70,920,080 Trade
EXC Exelon Corporation 39.64 0.20 0.51 4,903,840 Trade
NLY Annaly Capital Management Inc 10.48 0.08 0.77 8,449,241 Trade
T AT&T Inc. 32.59 0.54 1.68 28,690,406 Trade
CAT Caterpillar Inc. 158.92 3.21 2.06 5,854,693 Trade
HAL Halliburton Company 54.40 0.08 0.15 5,544,565 Trade
DUK Duke Energy Corporation (Holding Company) 73.68 -0.12 -0.16 3,301,740 Trade
PKI PerkinElmer Inc. 76.35 0.88 1.17 495,214 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 6.01 0.14 2.39 12,126,941 Trade
MSFT Microsoft Corporation 97.60 1.24 1.29 19,424,163 Trade
ZLTQ ZELTIQ Aesthetics Inc. n/a n/a n/a 0 Trade
CMCSA Comcast Corporation Class A Common Stock 32.34 -0.38 -1.16 18,368,432 Trade
CVGW Calavo Growers Inc. 97.00 3.40 3.63 132,971 Trade
XOMA XOMA Corporation 24.25 -0.48 -1.94 167,662 Trade

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