Equities Sector Coverage: Positive Indicators Help Stocks Edge Higher

Sector Recap |

Wall Street SignThe New York Manufacturing Index came in at 0.61 in October up from -8.48 in September. PPI came in down 0.3% in October, but was up 5.9% year-over-year. Retail Sales came in up 0.5% in October. Tomorrow we get CPI and Industrial Production, then Housing Starts and Jobless Claims on Thursday. The Dow Jones Industrial Average traded down to 12,001.26 staying above its 200-day simple moving average at 11,977 and trading above 12,165 into the final hour of trading. The NASDAQ traded down to 2644 in morning trading then above 2695 in the final half hour of trading, which is above its 200-day simple moving average at 2688.

Asian stocks slumped on Tuesday with the Nikkei 225 down 0.72% to 8,542 and the Hang Seng shedding 0.82% to 19,348. European stocks were also lower on the day, but closed off their lows. The FTSE 100 dipped just 0.03% to 5,517 with the DAX down 0.87% to 5,933 and the CAC 40 plunging by 1.92% to 3,049. The yield on the US Treasury 10-Year note traded between 1.990 percent and 2.073 wrapped around its 50-day simple moving average at 2.043. Gold traded down to $1761.5 the Troy ounce then rebounded to $1787.8 staying below the $1800.0 level once again. Crude oil traded down to $97.51 per barrel then rebounded to $99.84 staying above its 200-day simple moving average at $95.18. The euro versus the dollar traded down from 1.3640 to 1.3500 staying below its 50-day simple moving average at 1.3699.

Energy

TransCanada (TRP) has forged a tentative deal with the Nebraska state senate to move the proposed route of its Keystone XL pipeline away from the environmentally sensitive Sandhills region. InterOil (IOC) reported Q3 revenue of $281.9M and EPS of -$0.41 (missing consensus by $47.9M and $0.40). LDK Solar (LDK) issued a major warning for the second straight quarter. LDK now expects Q3 revenue of $460M-$470M (well below a $616.9M consensus). The company is also guiding for 2011 revenue of just $2.2B-$2.25B (compared with Street expectations of $2.5B). Western Refining (WNR) is added to Goldman’s list of Conviction Buys. Marathon Oil (MRO) is moved to Neutral from Buy at Goldman. LDK Solar (LDK) is cut to Sell from Hold at Kaufman Brothers, which slashes its target to $2 from $5. In afternoon trading: Shares of Treaty Energy (TECO) are up about 15%. Shares of ATP Oil & Gas (ATPG) are up about 13.5%. Shares of Clean Energy Fuels (CLNE) are up about 11.25%. Shares of Inergy (NRGY) are down about 10.25%.

Energy Select Sector SPDR (XLE) was trading at $71.23 at 4:00 PM on Tuesday, down slightly on the day – up 4.37% year-to-date.

Materials

Sino-Forest (SNOFF) said an independent report has verified the company's timber assets, cash balances, book values and revenue, thereby refuting claims from short seller Muddy Waters, which accused Sino-Forest of being a "near total fraud" and a "Ponzi scheme." In afternoon trading: Shares of Headwaters (HW) are up about 17.75%. Shares of Zagg Inc. (ZAGG) are down about 8.25%. Actives: Shares of Alcoa (AA) are down about 0.6%. Shares of Freeport McMoran (FCX) are down about 0.6%.

The Materials Select Sector SPDR (XLB) was trading at $34.87 at 4:00 PM on Tuesday, up 0.20% on the day – down 9.22% year-to-date.

Industrials

Kirby Corp (KEX) is covered with Buy rating and assigned a $76 price objective at Dahlman Rose. AMR Corp (AMR) gets downgraded to Neutral from Buy at Sterne Agee. Brady Corp (BRC) is now Neutral from Outperform at Robert W. Baird. Knight Transportation (KNX) is moved to Underperform from Neutral with a $16 target at Sterne Agee. In afternoon trading: Shares of Meritor (MTOR) are down about 17%. Shares of AMR are down about 10.5%. Shares of A123 Systems (AONE) are down about 9.25%.

The Industrial Select Sector SPDR (XLI) was trading at $33.92 at 4:00 PM on Tuesday, up 0.59% on the day – down 2.72% year-to-date.

Consumer Discretionary

Saks (SKS) beat estimates by 2 cents with revenue in-line with estimates. Dick's Sporting Goods (DKS) beat estimates by 5 cents with revenue in-line with estimates. Home Depot (HD) beat estimates by 2 cents and revenue by $200M, and reaffirmed full-year sales growth guidance of 2.5%. Staples (SPLS) reported Q3 EPS of $0.47 (in-line), while missing revenue by $100M, and guides full-year EPS to fall in a range of $1.38-$1.42. Urban Outfitters (URBN) reported Q3 EPS of $0.33 (in-line), while missing revenue by $16M. J.C. Penney (JCP) reported Q3 EPS of $0.11 (in-line) with revenue in-line with estimates. Lowe's (LOW) beat estimates by 2 cents with revenue in-line with estimates, and sees FY11 Non-GAAP EPS at $1.37 to $1.40. Porsche (POAHY) is lifted to Outperform from Neutral at Exane BNP Paribas. Advance Auto Parts (AAP) is cut to Hold from Buy at Argus.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.32 at 4:00 PM on Tuesday, up 0.36% on the day – up 5.11% year-to-date.

Consumer Staples

Kellogg (K) is lowered to Market Perform from Outperform ratings reduction by Sanford Bernstein. Imperial Tobacco (ITYBY) is taken to Sell from Neutral at Goldman Sachs. In afternoon trading: Shares of Green Mountain Coffee Roasters (GMCR) are up about 12.25%. Shares of Star Scientific (CIGX) are up about 7%. Shares of American Oriental Bioengineering (AOB) are up about 6.5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.36 at 4:00 PM on Tuesday, up 0.48% on the day – up 6.99% year-to-date.

Healthcare

Covidien (COV) beat estimates by 5 cents with revenue in-line with estimates. Agilent (A) gets a Buy-from-Neutral boost at Bank of America-Merrill Lynch. Covance (CVD) gets a Buy-from-Neutral upgrade at Goldman Sachs. Amgen (AMGN) is now Neutral from Overweight at Piper Jaffray. In afternoon trading: Shares of Geron Corp. (GERN) are down about 22%. Shares of The Cooper Companies (COO) are down about 17.5%. Shares of Gentiva Health Services (GTIV) are up about 19.5%.

The Health Care Select Sector SPDR (XLV) was trading at $33.92 at 4:00 PM on Tuesday, up 0.24% on the day – up 7.68% year-to-date.

Financials

Warren Buffett has broken the habit of a lifetime and disclosed that Berkshire Hathaway (BRK.A) has not only bought a 5.5% stake in IBM (IBM), it has also acquired 9.3M shares in Intel (INTC). UBS (UBS) has appointed interim CEO Sergio Ermotti to the post permanently to replace Oswald Gruebel, who quit in late September because of the $2B losses by a rogue trader. Assured Guaranty (AGO) beat estimates by $3.77 and revenue by $1.1B. Bryn Mawr Bank (BMTC) is begun with a Buy at Sterne Agee. Allianz SE (AZSEY) is cut to Add from Buy at WestLB. In afternoon trading: Shares of MF Global (MFGLQ) are up about 35%. Shares of Chimera Investment (CIM) are up about 11%.

The Financial Select Sector SPDR (XLF) was trading at $13.03 at 4:00 PM on Tuesday, up 0.45% on the day – down 18.31% year-to-date.

Information Technology

Warren Buffett has broken the habit of a lifetime and disclosed that Berkshire Hathaway (BRK.A) has not only bought a 5.5% stake in IBM (IBM), it has also acquired 9.3M shares in Intel (INTC). Dell's (DELL) Q3 results are due out after the bell, when it is expected to report that EPS rose 4% to $0.47 and revenue 1.6% to $15.66B. Mitek Systems’ (MITK) FQ4 revenue meets estimates, but its EPS falls short of estimates. iSoftStone (ISS) reported Q3 revenue of $73.7M and EPS of $0.15 (beating Street estimates by $0.4M and a penny). MicroStrategy (MSTR) is initiated at an Outperform by JMP Securities. Sourcefire (FIRE) is a new Buy at and $36 price objective at Bank of America-Merrill Lynch. Seagate Technology (STX) is lowered to Hold from Buy at Deutsche Bank. Western Digital (WDC) is downgraded to Hold from Buy at Needham. In afternoon trading: Shares of Netlist (NLST) are up about 23%. Shares of Vanceinfo Technologies (VIT) are up about 22.5%. Shares of Fusion-io (FIO) are up about 12.5%.

The Technology Select Sector SPDR (XLK) was trading at $26.31 at 4:00 PM on Tuesday, up 1.35% on the day – up 4.45% year-to-date.

Telecommunications Services

In afternoon trading: Shares of Towerstream (TWER) are down about 27%. Shares of TerreStar (TSTRQ) are down about 9.5%. Shares of Leap Wireless (LEAP) are up about 5.5%. Actives: Shares of Sprint Nextel (S) are up about 2.1%. Shares of Frontier Communications (FTR) are down about 1.5%. Shares of AT&T (T) are up about 0.3%. Shares of Vodafone (VOD) are down about 1%. Shares of Verizon (VZ) are up about 0.7%.

The NASDAQ Telecommunications Index (IXTC) was trading at $208.08 at 4:00 PM on Tuesday, up 0.82% on the day – down 7.67% year-to-date.

Utilities

Northeast Utilities (NU) is now Buy from Neutral at Bank of America-Merrill Lynch. Bank of America-Merrill Lynch lowers CenterPoint Energy (CNP) and NV Energy (NVE), both now Neutral from Buy. In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about 0.8%. Shares of CenterPoint Energy (CNP) are up abou 1.8%. Shares of Exelon (EXC) are down about 0.7%. Shares of AES Corp. (AES) are up about 1.2%. Shares of PSE&G (PEG) are down about 1%. Shares of CMS Energy (CMS) are up about 0.8%. Shares of NV Energy are down about 0.7%.

The Utilities Select Sector SPDR (XLU) was trading at $35.00 at 4:00 PM on Tuesday, up slightly on the day – up 11.68% year-to-date.

STOCKS: TRP, IOC, LDK, WNR, MRO, TECO, ATPG, CLNE, NRGY, SNOFF, HW, ZAGG, AA, FCX, KEX, AMR, BRC, KNX, MTOR, AONE, SKS, DKS, HD, SPLS, URBN, JCP, LOW, POAHY, AAP, K, ITYBY, GMCR, CIGX, AOB, COV, A, CVD, AMGN, GERN, COO, GTIV, BRK.A, IBM, INTC, UBS, AGO, BMTC, AZSEY, MFGLQ, CIM, DELL, MITK, ISS, MSTR, FIRE, STX, WDC, NLST, VIT, FIO, TWER, TSTRQ, LEAP, S, FTR, T, VOD, VZ, NU, CNP, NVE, DUK, CNP, EXC, AES, PEG, CMS

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
A Agilent Technologies Inc. 44.61 -0.23 -0.51 510,338
FTR Frontier Communications Corporation 3.68 0.15 4.11 5,771,485
MMM26 3M Co 1.5% Med Term Nt Ser F 2026 n/a n/a n/a 0
AA Alcoa Inc. 31.23 0.08 0.26 1,630,640
INTC Intel Corporation 34.95 0.23 0.65 5,193,489
IBM International Business Machines Corp 161.44 1.09 0.68 930,905
CNP CenterPoint Energy Inc (Holding Co) 23.99 0.21 0.86 766,875
HW Headwaters Incorporated 23.58 -0.02 -0.08 711,771
CMS CMS Energy Corporation 40.34 0.42 1.05 302,943
NLST Netlist Inc. 0.98 -0.04 -3.92 85,420
IOC InterOil Corporation 48.80 -0.07 -0.14 56,831
S Sprint Corporation 8.58 0.41 5.02 25,298,975
MITK Mitek Systems Inc. 6.08 -0.03 -0.41 102,121
SPLS Staples Inc. 9.92 0.03 0.30 4,375,154
STX Seagate Technology 39.11 -0.04 -0.10 2,590,192
MTOR Meritor Inc. 12.96 0.08 0.62 240,079
MRO Marathon Oil Corporation 18.18 -0.18 -0.95 4,925,277
VOD Vodafone Group Plc 24.73 0.23 0.95 2,148,884
LOW Lowe\'s Companies Inc. 74.51 2.05 2.83 3,014,345
AES The AES Corporation 11.51 0.18 1.59 1,362,240
VZ Verizon Communications Inc. 50.82 0.46 0.92 4,223,279
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
MSTR MicroStrategy Incorporated 197.25 -1.32 -0.66 24,959
GERN Geron Corporation 2.07 -0.05 -2.36 504,646
FCX Freeport-McMoRan Inc. 15.48 -0.41 -2.58 12,913,785
AGO Assured Guaranty Ltd. 37.65 0.01 0.01 477,734
UBS UBS Group AG Registered 17.31 0.28 1.61 2,148,546
URBN Urban Outfitters Inc. 33.95 0.31 0.92 820,700
AMGN Amgen Inc. 140.55 -4.56 -3.14 2,424,920
BRC Brady Corporation 37.78 0.38 1.00 50,005
HD Home Depot Inc. (The) 130.13 1.39 1.08 2,101,846
COO Cooper Companies Inc. (The) 167.38 1.67 1.01 292,233
K Kellogg Company 71.80 -0.17 -0.24 632,869
KNX Knight Transportation Inc. 37.30 0.50 1.36 190,121
DKS Dick\'s Sporting Goods Inc 61.34 0.33 0.54 216,742
WNR Western Refining Inc. Inc. 39.31 1.07 2.80 959,567
TRP TransCanada Corporation 44.83 0.33 0.74 163,681
KEX Kirby Corporation 66.15 -0.10 -0.15 70,303
BMTC Bryn Mawr Bank Corporation 39.10 -0.25 -0.64 33,075
CIM Chimera Investment Corporation 17.46 0.16 0.90 440,171
WDC Western Digital Corporation 68.76 4.91 7.69 8,639,580
EXC Exelon Corporation 33.45 0.40 1.22 1,775,747
T AT&T Inc. 39.94 0.59 1.49 9,137,577
DUK Duke Energy Corporation (Holding Company) 74.65 0.79 1.07 932,806
JCP J.C. Penney Company Inc. Holding Company 10.19 0.17 1.65 6,630,336
AAP Advance Auto Parts Inc W/I 174.74 1.43 0.83 201,790
TWER Towerstream Corporation 0.27 -0.00 -0.74 70,620
PEG Public Service Enterprise Group 41.40 0.43 1.05 539,332
CLNE Clean Energy Fuels Corp. 3.53 0.00 0.00 365,841
ZAGG ZAGG Inc 6.65 -0.10 -1.48 23,671

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