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
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