Equities Sector Coverage: Late Sell-Off Ends Day of Market Struggles

Sector Recap |

bears bulls stock market wall streetCPI declined 0.1% in October, but rose 3.5% year-over-year. Industrial Production rose by 0.7% in October with Capacity Utilization at 77.8%. The National Association of Home Builders Housing Market Index came in at 20 in November. The NAHB HMI had been below 20 since September 2007 just three months before the “Great Credit Crunch” began. The low for the index was 8 in January 2009. Tomorrow we get Housing Starts and Jobless Claims.

The Dow Jones Industrial Average traded down to 11,957.06, which is below its 200-day simple moving average at 11,977. The Dow rebounded to an afternoon high at 12,109.03 then faded into the close. The NASDAQ traded down to 2658.33 then rebounded to 2688.86 testing its 200-day simple moving average at 2688. The NASDAQ faded below 2665 in the final hour of trading. Both the Dow and NASDAQ hit session lows in the final half hour of trading on news that US banks have exposures to the European debt problem.

Asian stocks slumped again on Wednesday with the Nikkei 225 down 0.92% to 8,463 and the Hang Seng plunging 2.00% to 18,961. European stocks opened higher but dipped into the red before the US open and then ended their sessions mixed. The FTSE 100 dipped just 0.15% to 5,509 with the DAX down 0.33% to 5,913 and the CAC 40 up 0.52% to 3,065. The yield on the US Treasury 10-Year note traded between 2.000 percent and 2.061 still trading around its 50-day simple moving average at 2.042. Gold traded down from $1784.8 the Troy ounce to $1753.9. Crude oil traded down to $98.39 per barrel then rebounded above the $100 mark to $102.89. The euro versus the dollar traded down to 1.3432 then rebounded 1.3555 staying below its 50-day simple moving average at 1.3686.

Energy

In afternoon trading: Shares of Treaty Energy (TECO) are up about 24%. Shares of Solazyme (SZYM) are up about 17%. Shares of Kodiak Oil & Gas (KOG) are up about 10.5%. Shares of InterOil (IOC) are up about 10.25%. Shares of Magnum Hunter Resources (MHR) are up about 10%. Shares of Basic Energy Services (BAS) are up about 9.5%. Shares of CVR Energy (CVI) are down about 14%. Shares of Western Refining (WNR) are down about 10.75%. Shares of LDK Solar (LDK) are down about 10%.

Energy Select Sector SPDR (XLE) was trading at $70.16 at 4:00 PM on Wednesday, down 1.50% on the day – up 2.80% year-to-date.

Materials

Dow Chemical (DOW) is initiated with an Equal Weight at Morgan Stanley, which assigns an Overweight on LyondellBasell (LYB). In afternoon trading: Shares of Jaguar Mining (JAG) are up about 46.75%. Shares of NovaGold (NG) are up about 27.5%. Shares of Zagg (ZAGG) are up about 9.5%. Actives: Shares of Alcoa (AA) are down about 1.6%. Shares of Freeport McMoran (FCX) are down about 1.25%.

The Materials Select Sector SPDR (XLB) was trading at $34.05 at 4:00 PM on Wednesday, down 2.35% on the day – down 11.35% year-to-date.

Industrials

Tyco International (TYC) beat estimates by 6 cents and revenue by $200M. Jacobs Engineering (JEC) reported revenue of $2.72B and EPS of $0.74 (the former missed by $50M, but the latter beat by a penny). In afternoon trading: Shares of Broadwind Energy (BWEN) are up about 29%. Shares of Quad Graphics (QUAD) are up about 15%. Shares of Republic Airways (RJET) are up about 13%. Shares of Swisher Hygiene (SWSH) are up about 10.75%. Shares of Fushi Copperweld (FSIN) are up about 10%.

The Industrial Select Sector SPDR (XLI) was trading at $33.42 at 4:00 PM on Wednesday, down 1.47% on the day – down 4.16% year-to-date.

Consumer Discretionary

Google (GOOG) is expected to today launch an online service in which it will sell music from Sony (SNE), EMI (C), and Universal (VIVHY). Apple (AAPL) has appointed board member Arthur Levinson as non-executive chairman to replace Steve Jobs. Additionally, Disney (DIS) CEO Bob Iger joins the board, where he will serve on the audit committee. Delphi Automotive (DLPH) and Angie's List (ANGI) are due to price their IPOs today in what could be the busiest week of the year for listings, with nine due to take place. Target (TGT) beat estimates by 8 cents, but missed revenue by $270M, and expects Q4 EPS to fall in a range of $1.43-$1.53. Abercrombie & Fitch (ANF) missed estimates by 15 cents, with revenue in-line with estimates. Sally Beauty (SBH) beat estimates by a penny and revenue by $10M. Raymond James rolls out Strong Buys on Active Network (ACTV) and Baidu (BIDU). It starts Outperforms on Shutterfly (SFLY), Priceline.com (PCLN) and MercadoLibre (MELI). The broker’s Market Performs include OpenTable (OPEN), Expedia (EXPE), Ctrip (CTRP), Netflix (NFLX), and Zillow (Z). China Lodging (HTHT) and 7 Days Group (SVN) are both begun with Buys at Deutsche Bank. Vitamin Shoppe (VSI) is a new Neutral with Wedbush. Dick’s Sporting Goods (DKS) gets added to the Conviction Buy List. In afternoon trading: Shares of Abercrombie & Fitch are down about 12.5%. Shares of Eastman Kodak (EK) are up about 11.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $38.58 at 4:00 PM on Wednesday, down 1.88% on the day – up 3.13% year-to-date.

Consumer Staples

In afternoon trading: Shares of Central European Distribution (CEDC) are up about 20.25%. Shares of Green Mountain Coffee Roasters (GMCR) are up about 11%. Shares of Zhongpin (HOGS) are up about 6.5%. Shares of Diamond Foods (DMND) are up about 6%. Shares of Rite Aid (RAD) are down about 6.25%. Shares of AgFeed (FEED) are down about 5.25%. Active: Shares of Pepsico (PEP) are up about 1.7%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.08 at 4:00 PM on Wednesday, down 0.89% on the day – up 6.04% year-to-date.



Healthcare

Agilent Technologies (A) beat estimates by 3 cents, while missing revenue by $20M. Geron (GERN) is moved to Neutral from Overweight at JPMorgan. Tenet Healthcare (THC) is moved to Market Perform from Outperform from Leerink Swann. In afternoon trading: Shares of China Cord Blood Corp. (CO) are up about 20.25%. Shares of Pacira Pharmaceuticals (PCRX) are up about 10.5%. Shares of The Cooper Companies (COO) are up about 10.5%.

The Health Care Select Sector SPDR (XLV) was trading at $33.27at 4:00 PM on Wednesday, down 1.92% on the day – up 5.62% year-to-date.

Financials

With over 30,000 MF Global (MFGLQ) clients suspended in a kind of purgatory, the trustee overseeing its bankruptcy last night sought court permission to release $520M in 21,000 accounts out of almost $900M that has been frozen for over two weeks. Citigroup (C) could join the growing list of major banks that are cutting staff, with The Wall Street Journal reporting that the bank is considering slashing 3,000 jobs, or around 1% of its workforce. Equity Residential (EQR) has offered over $2.5B to buy a 53% stake in Archstone from BofA (BAC) and Barclays (BCS), The Wall Street Journal reports. The proposal puts Equity ahead of AvalonBay (AVB), Blackstone (BX) and Brookfield (BAM), and highlights the increased interest in rental apartments as home ownership falls. ING Group has a fresh Hold on Madrid-based financial firm Banco Santander (STD) and a Buy on Banco Bilbao Vizcaya (BBVA). Arthur J. Gallagher (AJG) is begun with a Hold at Deutsche Bank. Munich Re (MURGY) is now Buy from Neutral at Nomura. KeyCorp (KEY) is moved Outperform from Market Perform at Raymond James. Solar Capital (SLRC) gets cut to Market Perform from Outperform with Wells Fargo. NBT Bancorp (NBTB) is now Neutral from Buy at Guggenheim.

The Financial Select Sector SPDR (XLF) was trading at $12.71 at 4:00 PM on Wednesday, down 2.46% on the day – down 20.31% year-to-date.

Information Technology

Dell's (DELL) Q3 EPS rose 20% to $0.54 (beating estimates by 7 cents) but slightly lower revenue of $15.37B (missing expectations by $250M. Dell sees FY12 Revenue at lower end of 1% to 5% growth (1.7% Street consensus). Google (GOOG) is expected to today launch an online service in which it will sell music from Sony (SNE), EMI (C), and Universal (VIVHY). Nokia (NOK) plans to introduce a tablet that runs on Microsoft's (MSFT) Windows operating system in the summer of 2012. Apple (AAPL) has appointed board member Arthur Levinson as non-executive chairman to replace Steve Jobs. Additionally, Disney (DIS) CEO Bob Iger joins the board, where he will serve on the audit committee. Delphi Automotive (DLPH) and Angie's List (ANGI) are due to price their IPOs today in what could be the busiest week of the year for listings, with nine due to take place. Applied Materials (AMAT) is forecast to report that FQ4 EPS fell 41% to $0.21 when it releases its earnings today, with revenue sinking 25% to $2.16B. Concur Technologies (CNQR) reported revenue of $95.2M and EPS of $0.37 (beating estimates by $0.5M and $0.13), while guiding for FQ1 2012 revenue growth of 23% (21.5% consensus) and EPS of $0.29 ($0.23 consensus). Zoom Technologies (ZOOM) cut FY11 sales guidance to $250-$255M (against expectations of $331M), and sees FY12 sales of $360-$380M (versus $404M consensus). Velti (VELT) reported revenue of $38.2M (beating estimates by $2.7M), but EPS of -$0.02 (missing estimates by 2 cents).  The company is guiding for organic 2011 revenue (excludes acquisitions) of $176M-$180M (above a prior range of $172M-$177M). Autodesk (ADSK) beat estimates by 3 cents and revenue by $2M. The company sees FQ4 Revenue and EPS at $575M - $590M and $0.42-$0.45 respectively and sees FY12 Revenue and EPS at $2.19B - $2.22B and $1.70-$1.73 respectively. Motricity (MOTR) reported revenue of $30.4M and EPS of -$0.31 (missing consensus by $1.4M and $0.22). Raymond James rolls out Strong Buys on Active Network (ACTV) and Baidu (BIDU). It starts Outperforms on Shutterfly (SFLY), Priceline.com (PCLN) and MercadoLibre (MELI). The broker’s Market Performs include OpenTable (OPEN), Expedia (EXPE), Ctrip (CTRP), Netflix (NFLX), and Zillow (Z). Brokerage Collins Stewart establishes Neutrals on Ingram Micro (IM), Arrow Electronics (ARW), and Avnet (AVT). Akamai Technologies (AKAM) is started at Outperform by JMP Securities. TIBCO Software (TIBX) is a new Market Perform and $33 price objective at BMO Capital. Research In Motion (RIMM) is lifted to Neutral from Sell at Goldman Sachs. Dell Inc (DELL) is cut to Sector Perform from Outperform at FBN Securities. In afternoon trading: Shares of Zoom Technologies are down about 18.5%. Shares of Energy Conversion Devices (ENER) are up about 15%.

The Technology Select Sector SPDR (XLK) was trading at $25.92 at 4:00 PM on Wednesday, down 1.48% on the day – up 2.90% year-to-date.

Telecommunications Services

In afternoon trading: Actives: Shares of Sprint Nextel (S) are down about 1.4%. Shares of AT&T (T) are down about 1%. Shares of Frontier Communications (FTR) are down about 1.8%. Shares of Verizon (VZ) are down about 1.1%. Shares of Vodafone (VOD) are down about 4.4%. Shares of Windstream (WIN) are up about 0.3%.

The NASDAQ Telecommunications Index (IXTC) was trading at $205.24 at 4:00 PM on Wednesday, down 1.36% on the day – down 8.93% year-to-date.

Utilities

In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about 1.6%. Shares of PG&E (PCG) are down about 1.4%. Shares of AES Corp. (AES) are relatively unchanged. Shares of Genon Energy (GEN) are up about 4.75%. Shares of Exelon (EXC) are down about 0.8%. Shares of CenterPoint Energy (CNP) are down about 0.8%.

The Utilities Select Sector SPDR (XLU) was trading at $34.58 at 4:00 PM on Wednesday, down 1.20% on the day – up 10.34% year-to-date.

STOCKS: TECO, SZYM, KOG, IOC, MHR, BAS, CVI, WNR, LDK, DOW, LYB, JAG, NG, ZAGG, AA, FCX, TYC, JEC, BWEN, QUAD, RJET, SWSH, FSIN, GOOG, SNE, C, VIVHY, AAPL, DIS, DLPH, ANGI, TGT, ANF, SBH, ACTV, BIDU, SFLY, PCLN, MELI, OPEN, EXPE, CTRP, NFLX, Z, HTHT, SVN, VSI, DKS, EK, CEDC, GMCR, HOGS, DMND, RAD, FEED, PEP, A, GERN, THC, CO, PCRX, COO, MFGLQ, EQR, BAC, BCS, AVB, BX, BAM, STD, BBVA, AJG, MURGY, KEY, SLRC, NBTB, DELL, NOK, MSFT, AMAT, CNQR, ZOOM, VELT, ADSK, MOTR, IM, ARW, AVT, AKAM, TIBX, RIMM, ENER, S, T, FTR, VZ, VOD, WIN, DUK, PCG, AES, GEN, EXC, CNP

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
NG Novagold Resources Inc. 5.10 0.04 0.79 1,415,223
BX The Blackstone Group L.P. Representing Limited Par 29.58 0.27 0.92 3,715,882
A Agilent Technologies Inc. 47.62 -0.02 -0.04 1,701,695
GEN Genesis Healthcare Inc. 4.24 0.05 1.19 107,383
FTR Frontier Communications Corporation 3.49 0.01 0.29 18,466,670
THC Tenet Healthcare Corporation 18.10 0.05 0.28 1,716,994
PCG Pacific Gas & Electric Co. 61.36 0.26 0.43 1,763,952
BIDU Baidu Inc. 173.44 -2.65 -1.50 2,049,233
NBTB NBT Bancorp Inc. 41.35 0.34 0.83 109,484
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.56 0.02 0.31 1,786,089
NEE.P.I NextEra Energy Inc. Series I Junior Subordinated D 22.43 -0.22 -0.97 105,441
CO China Cord Blood Corporation 5.83 -0.05 -0.85 81,137
ADSK Autodesk Inc. 81.67 1.69 2.11 6,042,539
JEC Jacobs Engineering Group Inc. 57.38 -0.23 -0.40 556,954
AA Alcoa Inc. 35.66 0.24 0.68 5,330,864
SFLY Shutterfly Inc. 52.33 -0.59 -1.11 284,745
CNP CenterPoint Energy Inc (Holding Co) 25.60 0.16 0.63 2,922,889
AVT Avnet Inc. 47.20 0.23 0.49 741,655
PEP Pepsico Inc. 103.24 0.88 0.86 4,750,772
RAD Rite Aid Corporation 7.46 -1.14 -13.26 99,168,011
IOC InterOil Corporation 48.27 0.17 0.35 193,942
KEY KeyCorp 17.86 0.02 0.11 12,979,800
EBAY eBay Inc. 30.64 -0.08 -0.26 8,496,268
AAPL Apple Inc. 120.00 0.22 0.18 32,597,892
EXPE Expedia Inc. 119.92 1.08 0.91 1,485,728
BCS Barclays PLC 11.19 -0.03 -0.27 2,395,791
C Citigroup Inc. 56.11 -0.55 -0.97 27,722,281
S Sprint Corporation 8.93 -0.04 -0.45 26,215,807
AKAM Akamai Technologies Inc. 69.15 0.17 0.25 1,447,099
PCLN The Priceline Group Inc. 1,545.01 5.99 0.39 596,473
SLRC Solar Capital Ltd. 21.25 0.03 0.14 48,154
TGT Target Corporation 64.10 -1.29 -1.97 12,983,487
VOD Vodafone Group Plc 25.79 -0.05 -0.19 4,225,991
AMZN Amazon.com Inc. 808.33 -0.71 -0.09 3,376,196
ARW Arrow Electronics Inc. 73.04 0.21 0.29 387,131
MELI MercadoLibre Inc. 176.17 1.27 0.73 447,851
AES The AES Corporation 11.41 -0.32 -2.73 7,689,851
DIS Walt Disney Company (The) 107.66 0.38 0.35 5,648,970
LYB LyondellBasell Industries NV Class A (Netherlands) 90.89 1.13 1.26 3,372,712
EQR Equity Residential of Beneficial Interest 63.36 0.36 0.57 2,100,723
BWEN Broadwind Energy Inc. 4.11 0.00 0.00 11,497
VZ Verizon Communications Inc. 52.72 0.36 0.69 15,473,748
SZYM Solazyme Inc. n/a n/a n/a n/a
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
GERN Geron Corporation 1.99 -0.01 -0.50 1,117,687
DLPH Delphi Automotive plc 70.66 -1.35 -1.87 2,079,379
BAC Bank of America Corporation 22.64 0.11 0.49 102,564,870
NOK Nokia Corporation Sponsored American Depositary Sh 4.76 0.02 0.42 6,356,085
GOOG Alphabet Inc. 805.02 2.85 0.35 1,670,045
FCX Freeport-McMoRan Inc. 15.51 0.25 1.64 17,979,935
VSI Vitamin Shoppe Inc 21.95 0.15 0.69 189,786
AJG Arthur J. Gallagher & Co. 52.84 0.17 0.32 703,679
BAM Brookfield Asset Management Inc. 34.53 0.97 2.89 1,073,863
AMAT Applied Materials Inc. 33.84 0.09 0.27 8,571,730
WIN Windstream Holdings Inc. 8.05 -0.04 -0.49 1,241,970
BBY Best Buy Co. Inc. 43.36 -0.27 -0.62 6,142,185
TYC Tyco International plc (Ireland) n/a n/a n/a 0
QUAD Quad Graphics Inc Class A 26.13 0.06 0.23 127,833
AVB AvalonBay Communities Inc. 176.97 1.75 1.00 563,977
COO Cooper Companies Inc. (The) 181.53 -0.38 -0.21 328,141
DKS Dick\'s Sporting Goods Inc 52.41 1.54 3.03 3,141,716
SBH Sally Beauty 25.42 -0.46 -1.78 1,311,893
WNR Western Refining Inc. Inc. 34.89 0.03 0.09 833,384
NFLX Netflix Inc. 138.60 0.19 0.14 9,497,394
ANF Abercrombie & Fitch Company 11.90 0.15 1.28 2,689,697
HTHT China Lodging Group Limited 50.42 0.42 0.84 69,396
Z Zillow Group Inc. 36.77 0.17 0.46 1,030,858
IM Ingram Micro Inc. n/a n/a n/a 0
CVI CVR Energy Inc. 23.28 0.43 1.88 421,774
EXC Exelon Corporation 35.80 0.06 0.17 5,318,136
SNE Sony Corporation 30.50 0.10 0.33 796,987
T AT&T Inc. 41.45 0.45 1.10 25,164,892
MHR Magnum Hunter Resources Corp n/a n/a n/a 0
DUK Duke Energy Corporation (Holding Company) 77.33 0.21 0.27 2,662,840
DMND Diamond Foods Inc. n/a n/a n/a 0
BAS Basic Energy Services Inc. 42.06 1.99 4.97 1,959,943
CTRP Ctrip.com International Ltd. 43.36 -0.18 -0.41 1,869,066
MSFT Microsoft Corporation 62.74 0.44 0.71 30,213,462
RJET Republic Airways Holdings Inc. n/a n/a n/a 0
ANGI Angie\'s List Inc. 7.34 -0.04 -0.54 314,338
ZAGG ZAGG Inc 6.80 0.00 0.00 131,880
SWSH Swisher Hygiene Inc n/a n/a n/a 0
PCRX Pacira Pharmaceuticals Inc. 40.10 -0.85 -2.08 1,028,938

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