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 61.95 -0.10 -0.16 1,031,935 Trade
UNH UnitedHealth Group Incorporated (DE) 174.01 -0.69 -0.39 991,514 Trade
GLW Corning Incorporated 29.16 -0.16 -0.53 2,113,273 Trade
EXPR Express Inc. 8.00 0.07 0.88 862,821 Trade
A Agilent Technologies Inc. 58.38 2.30 4.10 4,894,128 Trade
GEN Genesis Healthcare Inc. 2.04 -0.05 -2.39 87,392 Trade
MTN Vail Resorts Inc. 206.01 1.67 0.82 152,579 Trade
FTR Frontier Communications Corporation 1.44 -0.04 -2.38 16,702,441 Trade
GE General Electric Co 28.15 -0.03 -0.09 9,096,551 Trade
SO Southern Company (The) 50.31 0.30 0.60 2,637,247 Trade
AKS AK Steel Holding Corporation 5.92 0.37 6.58 11,765,084 Trade
VALE VALE S.A. American Depositary Shares Each Represen 8.53 0.04 0.41 12,325,771 Trade
YNDX Yandex N.V. 28.45 -0.18 -0.63 305,170 Trade
PBR PETROLEO BRASILEIIRO SA PETROBRAS 8.80 0.09 1.03 13,898,013 Trade
DOX Amdocs Limited 64.08 0.10 0.16 293,926 Trade
AA Alcoa Inc. 33.03 0.07 0.21 1,543,730 Trade
CSX CSX Corporation 51.80 0.34 0.66 3,670,438 Trade
INTC Intel Corporation 35.82 0.05 0.14 10,108,175 Trade
LPNT LifePoint Health Inc. 62.30 0.20 0.32 56,056 Trade
NTRI NutriSystem Inc 49.70 0.15 0.30 118,759 Trade
RIGL Rigel Pharmaceuticals Inc. 2.49 0.00 0.00 224,985 Trade
ENB.PF.C:CA Enbridge Inc. cumulative redeemable preference sha 20.36 -0.05 -0.24 900
WAT Waters Corporation 176.54 0.99 0.56 168,379 Trade
S Sprint Corporation 8.19 0.02 0.18 12,478,068 Trade
DATE Jiayuan.com International Ltd. ADR (Sponsored) n/a n/a n/a 0 Trade
SPLS Staples Inc. 8.70 -0.08 -0.91 1,495,175 Trade
CCO Clear Channel Outdoor Holdings Inc. Class A 3.73 -0.08 -1.97 52,861 Trade
SNSS Sunesis Pharmaceuticals Inc. 3.10 -0.10 -2.98 23,976 Trade
LOW Lowe\'s Companies Inc. 83.27 -0.78 -0.93 3,636,343 Trade
DB Deutsche Bank AG 19.16 0.04 0.21 1,943,567 Trade
VRA Vera Bradley Inc. 7.85 -0.04 -0.51 96,889 Trade
CVA Covanta Holding Corporation 14.48 -0.08 -0.52 258,515 Trade
AES The AES Corporation 11.50 0.14 1.23 1,557,005 Trade
BTU Peabody Energy Corp 23.64 0.35 1.50 373,416 Trade
PAY Verifone Systems Inc. 17.80 0.05 0.28 228,460 Trade
VZ Verizon Communications Inc. 45.52 0.04 0.08 4,120,269 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 35.32 -0.41 -1.15 892,180 Trade
NWSA News Corporation 13.18 0.06 0.46 460,419 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
GM General Motors Company 33.30 0.38 1.14 8,584,865 Trade
SNCR Synchronoss Technologies Inc. 12.97 0.15 1.17 571,185 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 6.51 0.30 4.75 28,947,038 Trade
CPN Calpine Corporation 13.25 -0.16 -1.16 3,058,826 Trade
GOOG Alphabet Inc. 942.93 1.07 0.11 773,640 Trade
ILMN Illumina Inc. 175.46 0.54 0.31 506,519 Trade
OVTI OmniVision Technologies Inc. n/a n/a n/a 0 Trade
FCX Freeport-McMoRan Inc. 11.80 -0.03 -0.25 6,973,640 Trade
TMO Thermo Fisher Scientific Inc 172.16 0.06 0.03 462,467 Trade
MN Manning & Napier Inc. Class A 4.80 -0.05 -1.03 76,052 Trade
CTL CenturyLink Inc. 25.25 0.30 1.20 3,588,914 Trade
MGM MGM Resorts International 31.35 -0.22 -0.70 4,487,601 Trade
CASY Caseys General Stores Inc. 113.42 -0.43 -0.38 111,303 Trade
WOR Worthington Industries Inc. 42.96 0.77 1.81 75,099 Trade
NSR Neustar Inc. Class A 33.08 0.13 0.38 74,672 Trade
AMGN Amgen Inc. 153.98 0.96 0.62 2,023,370 Trade
LULU lululemon athletica inc. 48.88 -0.63 -1.27 1,593,206 Trade
SIRI Sirius XM Holdings Inc. 5.00 0.06 1.11 7,621,915 Trade
F Ford Motor Company 11.02 -0.09 -0.77 24,883,376 Trade
XOM Exxon Mobil Corporation 82.53 0.24 0.29 2,724,865 Trade
NATR Nature\'s Sunshine Products Inc. 11.45 0.00 0.00 8,195 Trade
POM Pepco Holdings Inc. n/a n/a n/a 0 Trade
HF HFF Inc. Class A 30.78 -0.25 -0.81 24,027 Trade
NVS Novartis AG 81.02 -0.27 -0.33 1,672,096 Trade
DKS Dick\'s Sporting Goods Inc 41.47 0.49 1.20 1,215,604 Trade
YHOO Yahoo! Inc. 50.42 -0.24 -0.46 3,310,176 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. 3.55 0.00 0.00 4,477 Trade
SNY Sanofi American Depositary Shares (Each repstg one 49.12 -0.04 -0.08 1,278,230 Trade
CAJ Canon Inc. American Depositary Shares 33.92 -0.07 -0.21 120,873 Trade
NUAN Nuance Communications Inc. 18.81 -0.06 -0.32 2,134,350 Trade
MU Micron Technology Inc. 27.86 -0.20 -0.71 11,563,631 Trade
EXC Exelon Corporation 35.51 -0.03 -0.07 4,206,019 Trade
NLY Annaly Capital Management Inc 11.70 0.08 0.65 2,168,411 Trade
T AT&T Inc. 38.32 0.07 0.18 7,360,295 Trade
CAT Caterpillar Inc. 103.08 0.79 0.77 1,390,000 Trade
HAL Halliburton Company 47.26 0.14 0.30 4,365,959 Trade
DUK Duke Energy Corporation (Holding Company) 84.69 0.59 0.70 715,679 Trade
PKI PerkinElmer Inc. 62.22 0.05 0.08 158,195 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 8.51 0.03 0.29 1,991,627 Trade
MSFT Microsoft Corporation 68.44 -0.01 -0.01 8,015,329 Trade
ZLTQ ZELTIQ Aesthetics Inc. n/a n/a n/a 0 Trade
CMCSA Comcast Corporation Class A Common Stock 39.77 0.28 0.71 5,833,967 Trade
CVGW Calavo Growers Inc. 67.10 0.70 1.05 29,431 Trade
XOMA XOMA Corporation 6.45 -0.11 -1.71 9,253 Trade

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