Equities Sector Coverage: Late Spike Helps Stocks to Close Flat

Sector Recap  |

Personal Income was flat in October while Spending declined 0.2%. The Dow Jones Industrial Average traded up to 13,053.74 then dipped to 12,988.68 versus the 200-day simple moving average at 12,995.25. The Nasdaq traded up to 3014.25 then dipped to 2999.72 staying above its 200-day SMA at to 2986.99.

Asian stocks were higher on Friday. The Nikkei 225 closed at 9446 – up 0.48%. The Hang Seng closed at 22,030 – up 0.49%. European exchanges closed mixed on Friday. The FTSE 100 ended the day at 5,867 – down 0.06%. The DAX ended the day at 7,406 – up 0.06%. The CAC 40 ended the day at 3,557 – down 0.33%. The yield on the 10-Year US Treasury declined from 1.630% to 1.594% staying below the 50-day and 200-day simple moving averages at 1.682% and 1.761%.

Comex gold declined from $1731.2 the Troy ounce to $1708.4 below the 50-day simple moving average at $1738.9 with the 200-day SMA at $1665.6. Nymex crude oil declined from $88.32 per barrel to $87.47 then rebounded to $88.99 versus the 50-day and 200-day simple moving averages at $88.62 and $93.81. The euro versus the dollar declined from 1.3026 to 1.2972 above its 50-day and 200-day simple moving averages at 1.2903 and 1.2793.

Energy

Wells Fargo has Market Performs on Hess (HES) and Occidental Petroleum (OXY) while assigning Outperforms on ConocoPhillips (COP), Marathon Oil (MRO) and Murphy Oil (MUR). Dow components – Chevron (CVX) is down about 0.4%. Exxon Mobil (XOM) is down about 0.2%. Energy Select Sector SPDR (XLE) was trading at $70.93 at 3:30 PM on Friday, down 0.27% on the day – up 2.60% year-to-date.

Materials

The Nasdaq traded up to 3014.25 then dipped to 2999.72 staying above its 200-day SMA at to 2986.99. Dow Components – Alcoa (AA) is down about 0.7%. DuPont (DD) is down about 0.8%. The Materials Select Sector SPDR (XLB) was trading at $36.64 at 3:30 PM on Friday, down 0.08% on the day – up 9.37% year-to-date.

Industrials

Lockheed Martin (LMT) is lifted to Fair Value from Sell at CRT Capital. Stanley Black & Decker (SWK) is taken to Neutral from Buy at Longbow. Dow components – Boeing Co (BA) is down slightly. Caterpillar (CAT) is down about 1.25%. General Electric (GE) is down about 0.2%. 3M Company (MMM) is up about 0.2%. United Technologies (UTX) is up about 0.5%. The Industrial Select Sector SPDR (XLI) was trading at $37.08 at 3:30 PM on Friday, down 0.35% on the day – up 9.87% year-to-date.

Consumer Discretionary

Groupon (GRPN) CEO Andrew Mason won't be replaced as CEO in the near-term, the company said following a board meeting yesterday. The L.A. Auto Show is due to open today for the public, with over 20 new models from major automakers set to be unveiled. The showcase for electric vehicles… Look for the Fiat 500e (FIATY), the Chevrolet Spark EV (GM), and BMW's (BAMXF) powerful Concept series to grab a lot of the EV spotlight. Genesco (GCO) beat estimates by 11 cents and revenue by $5M. Five Below (FIVE) beat estimates by 2 cents and revenue by $5M. Christopher & Banks (CBK) beat estimates by 25 cents and revenue by $3M. Zumiez (ZUMZ) missed estimates by 8 cents and revenue by $2M. Pacific Sunwear of California (PSUN) reported Q3 EPS of -$0.03 (in-line), while beating revenue by $2M. Ulta Salon, Cosmetics & Fragrance (ULTA) beat estimates by 3 cents and revenue by $1M. LVMH Moët Hennessy Louis Vuitton (LVMUY) is lifted to Buy from Neutral at Goldman Sachs. Ulta Salon Cosmetics & Fragrance (ULTA) is now Outperform from Market Perform with Wells Fargo. KingFisher (KGFHY) is now Neutral from Buy at UBS. Tiffany (TIF) is lowered to Neutral from Buy at Bank of America-Merrill Lynch. Volvo (VOLVY) gets cut to Underweight from Neutral at HSBC Securities. Yum Brands (YUM) is cut to Underperform from Market Perform at Raymond James, to Neutral from Positive at Susquehanna, and to Neutral from Buy at UBS. Big Mover – Pacific Sunwear of California (PSUN) is down about 14.5%. Dow Components – Disney (DIS) is down about 0.6%. Home Depot (HD) is up about 1%. McDonalds (MCD) is up about 0.25%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.425 at 3:30 PM on Friday, down 0.14% on the day – up 21.54% year-to-date.

Consumer Staples

Hostess Brands, which yesterday received court approval to liquidate, has received interest from 110 potential buyers for its brands, which include Twinkies, CupCakes, Ding Dongs and Ho Hos. Supervalu (SVU) has said that its review of strategic alternatives is still proceeding, with the comments following a report that potential acquirer Cerberus is having funding problems. United Natural Foods (UNFI) reported FQ1 EPS of $0.46 (in-line) on revenue of $1.41B (in-line). WhiteWave Foods (WWAV) beat estimates by 2 cents with revenue in-line with estimates. Pilgrim’s Pride (PPC) is picked up with an Equal Weight at Stephens. ConAgra Foods (CAG) gets upgraded to Buy from Hold at Jefferies, which is optimistic about its pending purchase of Ralcorp (RAH). Brown-Forman (BF/B) gets slashed Sell from Neutral at Goldman Sachs. Dow components – Coca Cola (KO) is down about 0.4%. Procter & Gamble (PG) is up about 0.25%. Wal-Mart (WMT) is up about 1.4%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.96 at 3:30 PM on Friday, up 0.14% on the day – up 10.68% year-to-date.

Health Care

Teva Pharmaceutical (TEVA) is forecasting 2013 EPS of $4.85-$5.15 versus Street consensus of $5.63. Total revenue is expected at $19.5B-$20.5B. Puma Biotechnology (PBYI) is a new Buy at Bank of America-Merrill Lynch. St. Jude Medical (STJ) is moved to Buy from Neutral at Mizuho. Big Movers – Peregrine Pharmaceuticals (PPHM) is up about 20%. Allscripts Healthcare (MDRX) is down about 11%. Dow Components – Johnson & Johnson (JNJ) is up about 0.6%. Merck (MRK) is down about 1%. Pfizer (PFE) is up about 0.4%. United Health Group (UNH) is up about 0.3%. The Health Care Select Sector SPDR (XLV) was trading at $40.20 at 3:30 PM on Friday, up 0.02% on the day – up 15.88% year-to-date.

Financials

Barclays (BCS) plans to go to court to fight the Federal Energy Regulatory Commission if the agency insists on fining the bank about $470M over alleged electricity-market manipulation. Royal Bank of Canada (RY) is reduced to Neutral from Buy at UBS. Dow Components – American Express (AXP) is relatively unchanged. Bank of America (BAC) is down about 0.3%. JP Morgan Chase (JPM) is down about 0.6%. The Travelers Companies (TRV) is down about 0.4%. The Financial Select Sector SPDR (XLF) was trading at $15.725 at 3:30 PM on Friday, down 0.35% on the day – up 20.96% year-to-date.

Information Technology

ReneSola (SOL) missed estimates by 13 cents, while beating revenue by $3M. DAQO New Energy (DQ) missed estimates by 22 cents and revenue by $8M. Youku Tudou (YOKU) missed estimates by 12 cents on revenue of $76.9M. OmniVision Technologies (OVTI) beat estimates by 3 cents and revenue by $17M. FQ3 guidance is for revenue of $390M-$425M and EPS of $0.33-$0.46 (mostly above a consensus of $365.2M and $0.35). Splunk (SPLK) beat estimates by a penny, while beating revenue by $5M. FQ4 guidance is for revenue of $58M-$60M (largely above a $58.1M consensus). Mentor Graphics (MENT) beat estimates by 4 cents and revenue by $3M. Mitel (MITL) beat estimates by 10 cents and revenue by $3M. Avago Technologies (AVGO) reported FQ4 EPS of $0.77 (may not be comparable to consensus of $0.73), while beating revenue by $3M. American Software (AMSWA) beat estimates by 2 cents, while missing revenue by $0.6M. LinkedIn (LNKD) is launched with a Neutral at Wedbush. Active Network (ACTV) is boosted by 180 degrees – to Buy from Underperform – at Bank of America-Merrill Lynch. Bel Fuse (BELFB) is boosted to Buy from Hold at Needham. Big Movers – Tellabs (TLAB) is up about 18.5%. Motricity (MOTR) is up about 14.5%. VeriSign (VRSN) is down about 13.5%. Dow Components – Cisco Systems (CSCO) is down about 0.3%. Hewlett-Packard (HPQ) is up about 0.25%. IBM (IBM) is down about 0.9%. Intel Corp (INTC) is up about 0.75%. Microsoft (MSFT) is down about 1.3%. The Technology Select Sector SPDR (XLK) was trading at $29.065 at 3:30 PM on Friday, down 0.33% the day – up 14.20% year-to-date.

Telecommunication Services

NTELOS Holdings (NTLS) was downgraded to Underperform from Market Perform at FBR, with a new target price of $5 (down from $21). Research firm FBR has predicted that the company's partnership with Sprint (S) would not be renewed when the deal expires in 2015. Big Mover – NTELOS Holdings (NTLS) is down about 24%. Dow Components – AT&T (T) is up about 0.25%. Verizon (VZ) is down about 0.2%. The NASDAQ Telecommunications Index (IXTC) was trading at $194.59 at 3:30 PM on Friday, down 0.28% on the day – down 1.19% year-to-date.

Utilities

Duke Energy (DUK) CEO Jim Rogers plans to retire by the end of 2013, consistent with the expiration of his contract. Big Mover – Centrais Eletricas Brasileiras (EBR) is up about 13%. The Big Names – Dominion Resources (D) is down slightly. Edison International (EIX) is up slightly. First Energy (FE) is down slightly. PG&E Corp (PCG) is relatively unchanged. Southern Company (SO) is down about 0.3%. The Utilities Select Sector SPDR (XLU) was trading at $35.13 at 3:30 PM on Thursday, up 0.52% on the day – down 2.36% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KO, PG, WMT, JNJ, MRK, PFE, UNH, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, HES, OXY, COP, MRO, MUR, LMT, SWK, GRPN, FIATY, GM, BAMXF, GCO, FIVE, CBK, ZUMZ, PSUN, ULTA, LVMUY, KGFHY, TIF, VOLVY, YUM, SVU, UNFI, WWAV, PPC, CAG, RAH, BF/B, TEVA, PBYI, STJ, PPHM, MDRX, BCS, RY, SOL, DQ, YOKU, OVTI, SPLK, MENT, MITL, AVGO, AMSWA, LNKD, ACTV, BELFB, TLAB, MOTR, VRSN, NTLS, S, DUK, EBR

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
MMM 3M Company 188.94 -3.23 -1.68 2,737,349 Trade
UNH UnitedHealth Group Incorporated (DE) 256.87 8.81 3.55 5,325,776 Trade
LMT Lockheed Martin Corporation 276.00 -1.51 -0.54 1,193,552 Trade
HES Hess Corporation 51.82 1.01 1.99 5,974,649 Trade
PG Procter & Gamble Company (The) 92.01 0.86 0.94 7,834,918 Trade
GE General Electric Company 8.73 -0.17 -1.91 94,058,188 Trade
CVX Chevron Corporation 112.12 0.40 0.36 4,226,071 Trade
SO Southern Company (The) 46.79 0.63 1.36 5,433,138 Trade
PCG Pacific Gas & Electric Co. 6.91 -1.47 -17.54 173,062,577 Trade
JNJ Johnson & Johnson 129.36 1.08 0.84 5,194,405 Trade
AA Alcoa Corporation 28.90 0.11 0.38 3,770,926 Trade
INTC Intel Corporation 48.60 0.25 0.52 22,480,820 Trade
D Dominion Energy Inc. 68.88 0.91 1.34 5,780,944 Trade
TRV The Travelers Companies Inc. 121.82 1.24 1.03 1,373,389 Trade
BELFB Bel Fuse Inc. Class B Common Stock 19.17 0.96 5.27 19,534 Trade
SPLK Splunk Inc. 117.88 3.56 3.11 1,561,173 Trade
MDRX Allscripts Healthcare Solutions Inc. 11.80 0.35 3.06 3,315,662 Trade
TIF Tiffany & Co. 84.57 -0.79 -0.93 2,018,387 Trade
BCS Barclays PLC 8.22 -0.04 -0.48 5,605,436 Trade
S Sprint Corporation 6.11 -0.12 -1.93 9,759,435 Trade
EIX Edison International 55.05 -3.10 -5.33 5,251,275 Trade
AXP American Express Company 97.99 -0.45 -0.46 5,795,081 Trade
AMSWA American Software Inc. Class A Common Stock 10.50 0.18 1.74 64,426 Trade
UTX United Technologies Corporation 111.06 0.21 0.19 2,797,248 Trade
MRO Marathon Oil Corporation 15.83 0.00 0.00 10,065,826 Trade
AVGO Broadcom Inc. 256.49 5.62 2.24 3,924,685 Trade
RY Royal Bank of Canada 73.32 0.44 0.60 719,553 Trade
MUR Murphy Oil Corporation 26.97 0.31 1.16 2,061,303 Trade
SWK Stanley Black & Decker Inc. 128.99 -1.90 -1.45 2,181,374 Trade
CSCO Cisco Systems Inc. 44.02 0.81 1.87 17,743,902 Trade
COP ConocoPhillips 66.03 0.42 0.64 4,504,145 Trade
WWAV Whitewave Foods Company (The) n/a n/a n/a 0 Trade
DQ DAQO New Energy Corp. American Depositary Shares each representing five 25.81 0.02 0.08 74,101 Trade
VZ Verizon Communications Inc. 58.10 0.07 0.12 10,057,967 Trade
MENT Mentor Graphics Corporation n/a n/a n/a 0 Trade
VRSN VeriSign Inc. 160.45 3.45 2.20 592,430 Trade
GM General Motors Company 37.55 -0.11 -0.29 11,999,110 Trade
BAC Bank of America Corporation 26.55 0.18 0.68 80,625,492 Trade
YUM Yum! Brands Inc. 90.39 0.39 0.43 1,532,634 Trade
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
MCD McDonald's Corporation 181.02 -0.20 -0.11 3,860,212 Trade
OVTI OmniVision Technologies Inc n/a n/a n/a 0 Trade
PPC Pilgrim's Pride Corporation 17.85 0.20 1.13 1,365,466 Trade
STJ St. Jude Medical Inc. n/a n/a n/a 0 Trade
OXY Occidental Petroleum Corporation 65.52 -0.06 -0.09 4,499,656 Trade
FIVE Five Below Inc. 116.99 1.71 1.48 1,083,968 Trade
PPHM CDMO Peregrine Pharmaceuticals Inc. n/a n/a n/a n/a
PFE Pfizer Inc. 42.73 0.36 0.85 24,540,172 Trade
TEVA Teva Pharmaceutical Industries Limited American Depositary Shares 18.83 0.36 1.95 11,799,076 Trade
HPQ HP Inc. 21.01 0.22 1.06 8,839,353 Trade
MRK Merck & Company Inc. (new) 74.50 1.13 1.54 12,502,012 Trade
PBYI Puma Biotechnology Inc 24.21 1.57 6.93 891,898 Trade
EBR Centrais Electricas Brasileiras S A American Depositary Shares (Each representing one) 8.13 -0.31 -3.67 898,914 Trade
GRPN Groupon Inc. 3.74 0.00 0.00 2,963,770 Trade
FE FirstEnergy Corp. 38.12 0.12 0.32 5,188,628 Trade
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0 Trade
KO Coca-Cola Company (The) 47.57 0.42 0.89 11,342,944 Trade
T AT&T Inc. 30.60 -0.02 -0.07 26,735,374 Trade
CAT Caterpillar Inc. 130.69 -1.11 -0.84 3,224,080 Trade
DUK Duke Energy Corporation (Holding Company) 85.14 1.48 1.77 2,722,876 Trade
CAG ConAgra Brands Inc. 21.12 0.27 1.30 5,798,611 Trade
NTLS NTELOS Holdings Corp n/a n/a n/a 0 Trade
SOL Renesola Ltd. ADR 1.67 0.11 7.05 102,053 Trade
PSUN Pacific Sunwear of California Inc. n/a n/a n/a n/a
ULTA Ulta Beauty Inc. 278.49 3.59 1.31 570,855 Trade
GCO Genesco Inc. 46.58 -0.66 -1.40 239,935 Trade
CBK Christopher & Banks Corporation 0.57 -0.03 -4.40 313,103 Trade
MSFT Microsoft Corporation 105.01 2.96 2.90 31,587,616 Trade
ZUMZ Zumiez Inc. 21.73 -0.36 -1.63 258,212 Trade
WMT Walmart Inc. 96.25 1.30 1.37 7,058,230 Trade
IBM International Business Machines Corporation 121.73 1.34 1.11 3,507,719 Trade
JPM JP Morgan Chase & Co. 101.68 0.74 0.73 26,504,852 Trade
DIS The Walt Disney Company 111.76 -0.66 -0.59 9,800,910 Trade
HD Home Depot Inc. (The) 176.47 -2.34 -1.31 5,016,065 Trade
XOM Exxon Mobil Corporation 71.67 0.04 0.06 10,298,309 Trade
BA The Boeing Company 352.24 1.88 0.54 2,940,908 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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