Equities Sector Coverage: Positive Earnings from Early Reporters Awake Bulls

Sector Recap |

will markets keep rising, is economy recovering, will dow keep risingImport prices rose 1.3% in March, topping estimates for a 0.8% increase, while export prices rose 0.8%, coming in higher than the 0.4% increase expected. Both gains were the largest month-to-month increases since April 2011. The Dow Jones Industrial Average rebounded to 12,844.82 staying below its 50-day simple moving average at 12,985. The NASDAQ’s rebounded to 3030.51 after holding its 50-day simple moving average at 2993 on Tuesday.

Asian stocks were lower again on Wednesday. The Nikkei 225 ended their session at 9,459 – down 0.83% on the day. The Hang Seng ended their session at 20,141 – down 1.06% on the day. European stocks rebounded on Wednesday. The FTSE 100 ended their session at 5,625 – up 0.53% on the day. The DAX ended their session at 6,675 – up 1.03% on the day. The CAC 40 ended their session at 3,238 – up 0.62% on the day. The yield on the 10-Year US Treasury rose from 1.989 percent to 2.047 below its 50-day simple moving average at 2.069.

Gold traded between $1653.5 the Troy ounce and $1663.9 staying below its 50-day and 200-day simple moving averages at $1699.5 and $1690.3, which are converging towards a “death cross”. Crude oil traded between $100.84 per barrel and $103.13 staying below its 50-day simple moving average at $104.08. The euro versus the dollar traded between 1.3069 and 1.3155 staying below its 50-day simple moving average at 1.3212.


The energy sector dipped into the red (XLE) at Tuesday’s close and today’s rebound is being led by Baker Hughes (BHI) up 1.8%, Peabody Energy (BTU up 3.1%, Diamond Offshore (DO) up 2.3%, First Solar (FSLR) up 8.3% and Patriot Coal (PCX) up 7.5%. Dow components were mixed with Chevron (CVX) down 0.3% and Exxon Mobil (XOM) up 0.3%.

Energy Select Sector SPDR (XLE) was trading at $68.28 at 3:30 PM on Wednesday, up 0.06% on the day – down 1.23% year-to-date.


Alcoa (AA) surprised Wall Street with an EPS profit of 10 cents per share when a loss of 4 cents was expected. Shares were 6.5% higher pre-market even though new income was sharply lower than a year earlier quarter. Eldorado Gold (EGO) is upgraded to Buy from Hold at Canaccord Genuity. Dow components - Alcoa (AA) gained 8.0% in morning trading following their better than expected results. DuPont (DD) tacked on 0.9%.

The Materials Select Sector SPDR (XLB) was trading at $35.59 at 3:30 PM on Wednesday, up 1.08% on the day – up 6.24% year-to-date.


Owens-Illinois (OI) shares were 7.8% higher pre-market following upward guidance to their first quarter EPS, caused by greater than planned production rates. OI gained 8.8% in morning trading. Sealed Air (SEE), the maker of bubble wrap is a new Hold at Keybanc Capital. Bemis (BMS) has been removed from Citigroup’s list of Top Picks Live. General Dynamics (GD) has been downgraded to Neutral from Buy at Lazard. Dow components - Boeing Co (BA) gained 2.3%, Caterpillar (CAT) rebounded 1.4%, General Electric (GE) tacked on 1.9%, 3M Company (MMM) was higher by 1.0%, and United Technologies (UTX) regained 1.3%.

The Industrial Select Sector SPDR (XLI) was trading at $36.03 at 3:30 PM on Wednesday, up 1.12% on the day – up 6.76% year-to-date.

Consumer Discretionary

An investigation into the personal misconduct of CEO Brian Dunn led his sudden departure from Best Buy (BBY) on Tuesday. Las Vegas Sands (LVS) CEO Sheldon Adelson plans to invest $35 billion to build a 12-resort casino complex in Spain. UBS begins Nordstrom (JWN) with a Buy and initiates new Neutrals on Macy’s (M), Kohl’s (KSS), JC Penney (JCP), and Saks (SKS). GameStop (GME) has been downgraded to Hold from Buy at Needham on expectations of slowing retail sales. Dow Components - Disney (DIS) was higher by 1.3%, and McDonalds (MCD) gained 0.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.06 at 3:30 PM on Wednesday, up 1.26% on the day – up 12.92% year-to-date.

Consumer Staples

Coty may resurrect a plan to issue an IPO as an alternative to its $10 billion bid to buy Avon (AVP). Calavo Growers (CVGW) the avocado grower is initiated with an Outperform at Wedbush. Dow components - Home Depot (HD) rebounded by 0.8%, Kraft (KFT) slipped by 0.25, Coca Cola (KO) was flat, Procter & Gamble (PG) gained 0.5% and Wal-Mart (WMT) was lower by 0.35% in morning trading.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.59 at 3:30 PM on Tuesday, up 0.45% on the day – up 3.39% year-to-date.

Health Care

AVI BioPharma (AVII) is initiated with an Outperform at JMP Securities. eResearchTechnology (ERT) has been cut to Hold from Buy with an $8 price target at The Benchmark Company after the company announced plans to be taken private. Dow Components - Johnson & Johnson (JNJ) lost 0.2%, Merck (MRK) was flat and Pfizer (PFE) was also flat.

The Health Care Select Sector SPDR (XLV) was trading at $36.76 at 3:30 PM on Wednesday, up 0.38% on the day – up 5.97% year-to-date.


According to the Federal Housing Financing Agency Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) could save $1.7 billion by forgiving principal on some underwater mortgage loans. This plan could cost taxpayers $2.1 billion by taping unused TARP funds. Old Line Bancshares (OLBK) is resumed by Robert W. Baird with an Outperform rating and a $13 price target. Goldman initiates coverage with Buy ratings on both BB&T Capital (BBT) and Fifth Third Bancorp (FITB). Goldman starts Comerica (CMA) and Zions Bancorporation (ZION) with Sell ratings. Sterling Financial (STSA) is initiated with a Market Perform at Keefe Bruyette. Bank of America (BAC) has been upgraded to Buy from Neutral at Guggenheim. Banco Bilbao Vizcaya Argentaria (BBVA) has been upgraded to Buy from Hold at Deutsche Bank. Barclays (BCS) has been upgraded to Buy from Hold at Investec Securities. MetLife (MET) has been upgraded to Outperform from Market Perform at Raymond James. Dow Components - American Express (AXP) was up 1.2%, Bank of America (BAC) rallied by 3.6%, JP Morgan (JPM) gained 1.9%, and Travelers (TRV) gained o.6%.

The Financial Select Sector SPDR (XLF) was trading at $15.19 at 3:30 PM on Wednesday, up 1.47% on the day – up 16.85% year-to-date.

Information Technology

NVIDIA (NVDA) has been initiated with an Outperform at RBC Capital. American Superconductor (AMSC), a small cap tech stock is initiated with a Buy rating and a $7 price target at Maxim Group. SAP AG (SAP) has been downgraded to Hold from Buy at ThinkEquity. NetApp (NTAP) has been downgraded to Sector Perform from Outperform at FBN Securities. Dow Components - Cisco Systems (CSCO) gained 2.1%, Hewlett-Packard (HPQ) was up 1.0%, IBM (IBM) gained 0.6%, Intel Corp (INTC) gained 1.9%, and Microsoft (MSFT) slumped 0.3%.

The Technology Select Sector SPDR (XLK) was trading at $29.66 at 3:30 PM on Wednesday, up 0.41% on the day – up 16.54% year-to-date.

Telecommunication Services

Nokia (NOK) found a software bug in the Lumia 900 from Microsoft (MSFT) that can cause the service to lose its data connection. Nokia expects to fix the glitch by next week, and will offer a $100 credit to the AT&T (T) bills of affected users. NOK shares were down 13.7%. Silicon Labs (SLAB) has been upgraded to Buy from Hold at Wunderlich, which takes its price target up to $50 from $44. Telefónica (TEF) has been upgraded to Neutral from Sell. Dow components - AT&T (T) picked up 0.5% while Verizon (VZ) gained 1.6%.

The NASDAQ Telecommunications Index (IXTC) was trading at $209.91 at 3:30 PM on Wednesday, up 1.40% on the day – up 6.59% year-to-date.


Telefónica (TEF) has been upgraded to Neutral from Sell. BT Group (BT) has been downgraded to Neutral from Overweight at J.P. Morgan. Dominion Resources (D) was up 0.2%, Edison International (EIX) was down 0.3%, First Energy (FE) was up 0.3%, and PG&E Corp (PCG) was up 0.5%.

The Utilities Select Sector SPDR (XLU) was trading at $34.33 at 3:30 PM on Wednesday, up 0.20% on the day – down 4.59% year-to-date.


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Symbol Name Price Change % Volume
AA Alcoa Inc. 26.69 -0.35 -1.29 7,944,301
AMSC American Superconductor Corporation 6.91 -0.01 -0.14 25,522
AVP Avon Products Inc. 6.59 -0.04 -0.60 3,614,064
AXP American Express Company 66.78 5.53 9.03 25,871,748
BA Boeing Company (The) 135.84 -0.34 -0.25 2,539,711
BAC Bank of America Corporation 16.56 0.09 0.55 88,124,533
BBT BB&T Corporation 38.96 0.19 0.49 7,822,252
BBY Best Buy Co. Inc. 39.48 -0.07 -0.18 3,167,190
BHI Baker Hughes Incorporated 52.25 -0.58 -1.10 2,782,040
BMS Bemis Company Inc. 50.46 -0.38 -0.75 344,545
BTU Peabody Energy Corp n/a n/a n/a 0
CAT Caterpillar Inc. 86.63 -0.60 -0.69 4,576,568
CMA Comerica Incorporated 51.64 -0.13 -0.25 3,339,616
CSCO Cisco Systems Inc. 30.16 -0.19 -0.63 17,315,335
CVGW Calavo Growers Inc. 61.75 -1.20 -1.91 95,492
CVX Chevron Corporation 101.87 -0.40 -0.39 4,820,916
D Dominion Resources Inc. 73.11 -0.10 -0.14 1,313,779
DD E.I. du Pont de Nemours and Co. 69.46 -0.07 -0.10 1,390,622
DIS Walt Disney Company (The) 92.03 0.10 0.11 6,153,205
DO Diamond Offshore Drilling Inc. 17.90 0.11 0.62 2,260,124
EGO Eldorado Gold Corporation 3.76 0.04 1.08 3,423,051
EIX Edison International 71.75 -0.27 -0.37 1,508,660
FE FirstEnergy Corporation 32.85 -0.30 -0.90 4,609,083
FITB Fifth Third Bancorp 21.02 0.50 2.44 17,496,775
FSLR First Solar Inc. 42.08 0.16 0.38 2,791,054
GD General Dynamics Corp. 150.71 -0.71 -0.47 944,135
GE General Electric Co 29.07 0.01 0.03 28,537,765
GME Gamestop Corporation 25.11 0.11 0.44 2,266,125
HD Home Depot Inc. (The) 126.25 0.36 0.29 3,543,223
HPQ HP Inc. 14.10 -0.02 -0.14 6,824,020
IBM International Business Machines Corp 151.52 0.26 0.17 4,023,103
INTC Intel Corporation 35.43 -0.08 -0.23 25,670,810
JCP J.C. Penney Company Inc. Holding Company 8.66 -0.19 -2.15 14,722,347
JNJ Johnson & Johnson 114.87 0.28 0.24 6,973,328
JPM JP Morgan Chase 68.26 -0.09 -0.13 14,122,005
JWN Nordstrom Inc. 53.11 -0.32 -0.60 1,678,001
KO Coca-Cola Company (The) 41.93 -0.12 -0.29 10,626,834
KSS Kohl\'s Corporation 44.02 0.19 0.43 2,990,919
LVS Las Vegas Sands Corp. 57.90 -0.26 -0.45 2,893,893
M Macys Inc. 35.87 0.28 0.79 3,277,901
MCD McDonald\'s Corporation 110.57 -0.69 -0.62 7,252,965
MMM 3M Company 169.86 -0.05 -0.03 1,210,539
MRK Merck & Company Inc. (new) 61.92 0.05 0.08 6,324,080
MSFT Microsoft Corporation 57.25 -0.28 -0.49 49,755,696
NOK Nokia Corporation Sponsored American Depositary Sh 5.00 0.02 0.40 6,510,006
NTAP NetApp Inc. 33.87 0.19 0.56 1,854,997
NVDA NVIDIA Corporation 67.73 1.26 1.90 7,803,302
OI Owens-Illinois Inc. 17.24 -0.35 -1.99 1,197,595
OLBK Old Line Bancshares Inc. 19.78 0.08 0.41 4,117
PCG Pacific Gas & Electric Co. 60.84 -0.05 -0.08 1,532,847
PFE Pfizer Inc. 32.54 -0.06 -0.18 19,292,364
PG Procter & Gamble Company (The) 84.93 -0.61 -0.71 10,175,521
SAP SAP SE ADR (Sponsored) 87.28 0.32 0.37 1,189,422
SEE Sealed Air Corporation 43.59 -0.64 -1.45 1,475,363
T AT&T Inc. 38.65 -0.73 -1.85 31,131,572
TEF Telefonica SA 9.94 0.17 1.74 1,751,287
UTX United Technologies Corporation 99.29 -0.47 -0.47 3,876,682
VZ Verizon Communications Inc. 49.14 -1.24 -2.46 27,098,375
WMT Wal-Mart Stores Inc. 68.73 -0.16 -0.23 6,294,262
XOM Exxon Mobil Corporation 87.21 0.04 0.05 6,866,873
ZION Zions Bancorporation 32.26 0.19 0.59 3,208,138


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