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 55.40 -0.63 -1.12 3,954,074
UNH UnitedHealth Group Incorporated (DE) 157.62 -6.03 -3.68 12,033,638
GLW Corning Incorporated 27.65 -0.06 -0.22 4,456,285
EXPR Express Inc. 11.38 0.21 1.88 918,711
A Agilent Technologies Inc. 51.63 0.79 1.55 2,195,788
GEN Genesis Healthcare Inc. 3.88 -0.05 -1.27 124,538
MTN Vail Resorts Inc. 180.00 0.13 0.07 152,591
FTR Frontier Communications Corporation 3.29 0.00 0.00 26,123,818
GE General Electric Co 30.37 -0.08 -0.26 21,849,428
SO Southern Company (The) 47.80 -0.44 -0.91 7,118,347
AKS AK Steel Holding Corporation 8.84 0.09 1.03 19,782,254
VALE VALE S.A. American Depositary Shares Each Represen 10.97 0.11 1.01 25,051,593
YNDX Yandex N.V. 24.66 0.17 0.69 3,294,369
PBR PETROLEO BRASILEIIRO SA PETROBRAS 10.77 -0.12 -1.10 9,155,307
DOX Amdocs Limited 59.98 0.20 0.33 573,755
AA Alcoa Inc. 36.21 -0.25 -0.69 4,516,838
CSX CSX Corporation 48.54 0.85 1.78 11,766,424
INTC Intel Corporation 36.48 0.07 0.19 18,909,888
LPNT LifePoint Health Inc. 63.90 0.95 1.51 943,150
NTRI NutriSystem Inc 36.45 0.65 1.82 299,780
RIGL Rigel Pharmaceuticals Inc. 2.39 0.00 0.00 819,751
ENB.PF.C:CA Enbridge Inc. cumulative redeemable preference sha 20.46 0.01 0.05 9,292
WAT Waters Corporation 154.33 1.33 0.87 398,823
S Sprint Corporation 9.30 0.30 3.33 43,255,377
DATE Jiayuan.com International Ltd. ADR (Sponsored) n/a n/a n/a 0
SPLS Staples Inc. 9.31 0.04 0.43 6,881,706
CCO Clear Channel Outdoor Holdings Inc. Class A 5.20 -0.10 -1.89 62,336
SNSS Sunesis Pharmaceuticals Inc. 4.25 0.15 3.66 89,590
LOW Lowe\'s Companies Inc. 76.74 0.42 0.55 5,446,248
DB Deutsche Bank AG 19.41 -0.37 -1.87 5,811,773
VRA Vera Bradley Inc. 10.71 0.06 0.56 251,754
CVA Covanta Holding Corporation 16.00 0.00 0.00 1,543,799
AES The AES Corporation 11.46 -0.19 -1.63 6,336,825
BTU Peabody Energy Corp n/a n/a n/a 0
PAY Verifone Systems Inc. 19.55 0.19 0.98 1,147,321
VZ Verizon Communications Inc. 49.19 0.73 1.51 23,190,659
PHG Koninklijke Philips N.V. NY Registry Shares 29.57 0.12 0.41 1,918,424
NWSA News Corporation 13.08 0.03 0.23 3,753,415
MWW Monster Worldwide Inc. n/a n/a n/a 0
GM General Motors Company 37.22 0.19 0.51 15,777,399
SNCR Synchronoss Technologies Inc. 33.15 -0.52 -1.54 839,017
NOK Nokia Corporation Sponsored American Depositary Sh 5.05 -0.02 -0.39 7,214,647
CPN Calpine Corporation 11.47 -0.09 -0.78 2,346,006
GOOG Alphabet Inc. 828.07 3.91 0.47 1,611,039
ILMN Illumina Inc. 163.37 2.07 1.28 892,449
OVTI OmniVision Technologies Inc. n/a n/a n/a 0
FCX Freeport-McMoRan Inc. 14.91 -0.16 -1.06 24,176,882
TMO Thermo Fisher Scientific Inc 158.64 0.93 0.59 1,207,502
MN Manning & Napier Inc. Class A 6.50 0.05 0.78 120,289
CTL CenturyLink Inc. 24.28 0.00 0.00 5,122,976
MGM MGM Resorts International 26.60 -0.26 -0.97 20,858,708
CASY Caseys General Stores Inc. 117.50 0.44 0.38 255,631
WOR Worthington Industries Inc. 49.86 -0.57 -1.13 284,638
NSR Neustar Inc. Class A 33.55 0.00 0.00 815,318
AMGN Amgen Inc. 173.29 1.18 0.69 4,154,875
LULU lululemon athletica inc. 66.73 0.76 1.15 1,213,795
SIRI Sirius XM Holdings Inc. 4.94 0.03 0.61 24,734,513
F Ford Motor Company 12.58 0.04 0.32 26,407,405
XOM Exxon Mobil Corporation 81.76 -0.54 -0.66 15,645,973
NATR Nature\'s Sunshine Products Inc. 12.00 0.15 1.27 10,984
POM Pepco Holdings Inc. n/a n/a n/a 0
HF HFF Inc. Class A 30.72 0.27 0.89 157,961
NVS Novartis AG 77.20 0.47 0.61 3,566,815
DKS Dick\'s Sporting Goods Inc 49.79 1.29 2.66 2,976,027
YHOO Yahoo! Inc. 45.10 -0.06 -0.13 9,417,191
ACI Arch Coal Inc. n/a n/a n/a 0
ONTY Oncothyreon Inc. n/a n/a n/a n/a
LIFE aTyr Pharma Inc. 3.55 0.10 2.90 54,581
SNY Sanofi American Depositary Shares (Each repstg one 43.16 -0.38 -0.87 1,811,565
CAJ Canon Inc. American Depositary Shares 29.23 -0.07 -0.24 201,074
NUAN Nuance Communications Inc. 16.96 0.10 0.59 1,733,775
MU Micron Technology Inc. 23.35 0.37 1.61 22,108,736
EXC Exelon Corporation 35.58 0.16 0.45 4,962,991
NLY Annaly Capital Management Inc 10.82 0.02 0.19 7,601,669
T AT&T Inc. 41.48 0.23 0.56 24,156,415
CAT Caterpillar Inc. 98.85 0.59 0.60 3,631,547
HAL Halliburton Company 53.71 -0.60 -1.10 9,055,806
DUK Duke Energy Corporation (Holding Company) 78.36 -0.54 -0.68 4,104,558
PKI PerkinElmer Inc. 55.94 0.62 1.12 405,365
CX Cemex S.A.B. de C.V. Sponsored ADR 8.68 -0.04 -0.46 5,493,536
MSFT Microsoft Corporation 64.62 0.10 0.15 21,248,818
ZLTQ ZELTIQ Aesthetics Inc. 55.67 -0.02 -0.04 2,471,390
CMCSA Comcast Corporation Class A Common Stock 75.32 -0.67 -0.88 9,799,976
CVGW Calavo Growers Inc. 57.90 1.25 2.21 106,896
XOMA XOMA Corporation 5.26 0.11 2.14 49,201

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