Personal Income and Spending for April came in slightly weaker than expected with both up just 0.4%. Michigan Consumer Sentiment came in a stronger than expected 74.3 in May. Another bit of bad news on the housing market as Pending Home Sales fell 11.6% in April and down 26.5% year over year. Both the Dow Jones Industrial Average and NASDAQ opened above their 50-day simple moving averages at 12,437 and 2789 respectively. The Dow traded as high as 12,483 with the NASDAQ high at 2801. The Dow ended the week above its 50-day with the NASDAQ above its 50-day.
Asian stocks were mixed on Friday with the Nikkei 225 down 0.4% to 9,522 and the Hang Seng Index up 1.0% to 23,118. European stocks ignored weaker than expected U.S. economic data from Thursday rebounded on Friday. European stocks were higher with the FTSE 100 was up 1.1%, the DAX up 0.7% and the CAC 40 up 1.0%. The yield on the 10-Year U.S. Treasury note traded back and forth around its 200-day simple moving average at 3.088 on Friday ending the week below that key level. Comex gold traded between $1518.4 the Troy ounce and $1538.5. Nymex crude oil held above $100.00 per barrel with limited upside as the high was $101.24. The euro was firm on Friday testing the 1.43 level versus the dollar. US stocks gained some ground on Thursday with the Dow Industrial Average up eight points to 12,403 and up 7.1% year to date. The NASDAQ gained 22 points to 2783 up 4.9% year to date. Both were shy of their 50-day simple moving averages at 12,424 and 2786 respectively.
Seadrill (SDRL) reported Q1 EPS of $1.84 (not be comparable to consensus of $0.67). Concho Resources (CXO) gets a Buy-from-Hold boost with Wunderlich. Noble Energy (NBL) is now Buy from Neutral at Sterne Agee. Anadarko Petroleum (APC) is upgraded to Buy from Neutral at Sterne Agee. Gushan Environmental Energy (GU) gets downgraded to Hold from Accumulate at Ardour Capital. In afternoon trading: Shares of Uranium Resources (URRE) are up about 8.25%. Shares of Denison Mines (DNN) are up about 8%. Shares of Uranerz Energy (URZ) are up about 7.5%.
The Energy Select Sector SPDR (XLE) was trading at $76.34 at 4:00 PM on Thursday, up 0.25% on the day – up 11.85% year-to-date.
DuPont (DD) is reinstated with a Neutral at Goldman Sachs. Rock-Tenn (RKT) is reduced to Hold from Buy at Deutsche Bank. Weyerhaeuser (WY) is downgraded to Sell from Hold at Deutsche Bank. In afternoon trading: Shares of China Agritech (CAGC) are up about 12.5%. Shares of CVR Partners (UAN) are up about 7%. Shares of Harmony Gold (HMY) are up about 6%.
The Materials Select Sector SPDR (XLB) traded at $39.35 at 4:00 PM on Thursday, up 1.08% on the day – up 2.45% year-to-date.
Lockheed Martin (LMT), the top supplier to the Pentagon, has been hit by a major disruption to its computer systems that could be related to a network security problem. Capstone rolls out Buy rated coverage on Werner Enterprises (WERN), has Holds on Knight Transportation (KNX) and Celadon Group (CGI), and starts Swift Transportation (SWFT) at Sell. HEICO (HEI) is initiated with a Hold at KeyBanc Capital. Babcock & Wilcox (BWC) is hoisted to Buy from Hold with a $34 target at KeyBanc Capital.
The Industrial Select Sector SPDR (XLI) traded at $37.29 at 4:00 PM on Friday, up 0.49% on the day – up 6.94% year-to-date.
Group 1 Automotive (GPI) gets picked up with a Hold at ThinkEquity Partners. American Eagle (AEO) is cut to Sell from Hold at Wall Street Strategies. In afternoon trading: Shares of rue21 (rue) are up about 12.25%. Shares of The McClatchy (MNI) are up about 9%. Shares of Home Inns (HMIN) are up about 8.5%. Shares of Weight Watchers (WTW) are down about 7%.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $40.16 at 4:00 PM on Friday, up 0.25% on the day – up 7.35% year-to-date.
In afternoon trading: Actives: Shares of Rite Aid (RAD) are down about 1.5%. Shares of CVS Caremark (CVS) are up about 1.8%. Shares of Procter & Gamble (PG) are up slightly. Shares of Archer Daniels Midland (ADM) are up about 2.7%.
The Consumer Staples Select Sector SPDR (XLP) traded at $32.04 at 4:00 PM on Friday, up 0.41% on the day – up 9.31% year-to-date.
Lexicon Pharmaceuticals (LXRX) is launched as a Buy at Needham. Pharmacyclics (PCYC) is a new Buy - $13 target - at Global Hunter Securities. In afternoon trading: Shares of Inhibitex (INHX) are up about 10.25%. Shares of Anadys Pharmaceuticals (ANDS) are up about 5%. Shares of Celldex (CLDX) are up about 5.3%. Shares of Savient (SVNT) are up about 5.25%. Shares of Medco Health Solutions (MHS) are down about 9.25%.
The Health Care Select Sector SPDR (XLV) traded at $35.69 at 4:00 PM on Friday, up slightly on the day – up 13.30% year-to-date.
Goldman Sachs' (GS) Whitehall Real Estate Funds has restructured $1.42B of debt on one of its largest hotel portfolios. A former Nasdaq (NDAQ) managing director, Donald Johnson, has pleaded guilty to one count of securities fraud in which he used information entrusted to him because of his position to make $640,000 from insider trading. Barclays plc (BCS) is a new Buy at Societe Generale, which also has Buys on HSBC Holdings (HBC), Lloyds Banking Group (LYG), and Royal Bank of Scotland (RBS). Fulton Financial (FULT) and Susquehanna Bank (SUSQ) are each new Holds at Jefferies. STAG Industrial (STIR) is picked up as a Neutral at UBS. Nasdaq OMX (NDAQ) is begun with a Buy at Goldman Sachs, which has a new Neutral on IntercontinentalExchange (ICE).
The Financial Select Sector SPDR (XLF) traded at $15.68 at 4:00 PM on Friday, up 0.71% on the day – down 1.69% year-to-date.
Google (GOOG) has unveiled a service that allows consumers to pay for items with their mobile phones, only to be promptly sued by PayPal for allegedly stealing its technology. Marvell Technology Group (MRVL) missed estimates by a penny and revenue by $24M. OmniVision Technologies (OVTI) beat estimates by a penny and revenue by $3M. Hewlett-Packard (HPQ) is a new Neutral at Ticonderoga. Mercury Computer (MRCY) is begun with a Buy rating and $25 price objective at KeyBanc. Sapient (SAPE) is picked up as a Market Perform at BMO Capital. Broadcom (BRCM) is added to the Top Picks list at FBR Capital. Ingram Micro (IM) is moved to Buy from Neutral at Sterne Agee. Itron (ITRI) is reduced to Underperform from Neutral at Brokerage Robert W. Baird.
The Technology Select Sector SPDR (XLK) traded at $26.10 at 4:00 PM on Friday, up 0.50% on the day – up 3.61% year-to-date.
The California Public Utilities Commission has directed its staff to prepare a proposal for investigating AT&T's (T) $39B purchase of T-Mobile USA (DTEGY:US). in afternoon trading: Actives: Shares of Level 3 Communications (LVLT) are up about 2.5%. Shares of Sprint Nextel (S) are down about 1%. Shares of AT&T are up about 0.7%. Shares of Verizon (VZ) are up about 0.2%,
The NASDAQ Telecommunications Index (IXTC) traded at $223.45 at 4:00 PM on Friday, up 1.04% on the day – down 0.85% year-to-date.
Entergy (ETR) is upgraded to Outperform from Market Perform with Wells Fargo. In afternoon trading: Actives: Shares of CenterPoint (CNP) are up about 0.6% Shares of Duke Energy (DUK) are up slightly. Shares of PPL (PPL) are up about 0.4%. Shares of American Electric Power (AEP) are down about 0.3%. Shares of PG&E (PCG) are up about 0.5%.
The Utilities Select Sector SPDR (XLU) traded at $33.62 at 4:00 PM on Friday, unchanged on the day – up 7.28% year-to-date.
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