Equities Sector Coverage: Stocks Close Higher Despite Tech Drag

Sector Recap |

Stocks Close Higher Despite Tech DragThe S&P / Case-Shiller 20-City Composite of home prices recorded a steeper than expected decline of 0.8% in February. Year-over-year the decline was 3.5% to a new low since the housing bubble popped in mid-2006. New Home Sales fell 7.1% in March to an annual rate of 328,000 units, with inventory at another record low of 144,000. Consumer Confidence remains weak with a reading of 69.2, well below the neutral zone of 90 to 120. The Dow Jones Industrial Average rebounded to a morning high at 13,050.30 above its 50-day simple moving average at 13,016, but afternoon weakness has the Dow on the cusp of its 50-day. The NASDAQ’s declined to a morning low at 2961.43, rose to 2979.08, then fell to an afternoon low at 2950.38 below its 50-day simple moving average at 3014.

Asian stocks were mixed on Tuesday. The Nikkei 225 ended their session at 9,468 – down 0.78% on the day. The Hang Seng ended their session at 20,677 – up 0.26% on the day. European exchanges ended high in a choppy session on Tuesday. The FTSE 100 ended their session at 5,711 – up 0.81% on the day. The DAX ended their session at 6,599 – up 1.16% on the day. The CAC 40 ended their session at 3,169 – up 2.29% on the day. The yield on the 10-Year US Treasury rose from 1.916 percent to 1.972 below its 50-day and 200-day simple moving averages at 2.080 and 2.102.

Gold rebounded from $1634.6 the Troy ounce to $1650.1 below the “death cross” defined by the 50-day simple moving average at $1683.4 being below the 200-day simple moving average at $1696.2. Crude oil rebounded from $102.79 per barrel to $104.10, staying below its 50-day simple moving average at $104.91. The euro versus the dollar rebounded from 1.3148 to 1.3217 testing its 50-day simple moving average at 1.3203.

Energy

Weatherford International (WFT) missed Q1 EPS estimates by four cents on revenue of $3.6 billion. Baker Hughes (BHI) beat Q1 EPS estimates by six cents on better than expected revenue. Noble Energy (NBL) declared a quarterly cash dividend of 22 cents per share. Cabot Oil & Gas (COG) is initiated with a Buy rating at Société Générale. Statoil ASA (STO), the Russian energy giant gets has been upgraded to Outperform from Underperform at BNP Paribas. Niska Gas Storage (NKA) has been upgraded to Market Perform from Underperform at Wells Fargo. Dow components - Chevron (CVX) gained 0.4% in morning trading with Exxon Mobil (XOM) up 0.6%.

Energy Select Sector SPDR (XLE) was trading at $69.33 at 3:30 PM on Tuesday, up 0.64% on the day – up 0.29% year-to-date.

Materials

U.S. Steel (X) beat Q1 EPS estimates by 21 cents with better than expected revenue. Celanese (CE) missed Q1 EPS estimates by five cents with in-line revenue. Ashland (ASH) beat Q2 EPS estimates by fourteen cents with in-line revenue. Air Products and Chemicals (APD) missed Q2 EPS estimates by four cents with a miss on the revenue line. Dow components - Alcoa (AA) picked up 0.3% still below the $10 threshold. DuPont (DD) gained 1.4%.
The Materials Select Sector SPDR (XLB) was trading at $35.95 at 3:30 PM on Tuesday, down 0.22% on the day – up 7.31% year-to-date.

Industrials

Ford (F) executives at the Beijing auto announced that they plan to offer four new SUV models to tap into the China's middle class. At least two of the models will be built locally according to the report. Federal-Mogul (FDML) missed Q1 EPS estimates by eighteen cents with in-line revenue. Illinois Tool Works (ITW) beat Q1 EPS estimates by two cents with in-line revenue. PACCAR (PCAR) beat Q1 EPS estimates by thirteen cents with better than expected revenue. Parker-Hannifin (PH) beat their Q3 EPS estimates by 29 cents on better than expected revenue. 3M (MMM) beat Q1 EPS estimates by eleven cents with in-line revenue. Delphi Automotive (DLPH) beat Q1 EPS estimates by twelve cents with in-line revenue. United Technologies (UTX) beat Q1 EPS estimates by eleven cents but missed on the revenue line. Dow components - Boeing Co (BA) gained 1.0% in morning trading, with Caterpillar (CAT) up 1.3%, General Electric (GE) tacked on 2.1%, 3M Company (MMM) rallied 1.9%, and United Technologies (UTX) gained 0.7%.
The Industrial Select Sector SPDR (XLI) was trading at $36.78 at 3:30 PM on Tuesday, up 1.16% on the day – up 8.98% year-to-date.



Consumer Discretionary

Facebook's (FB) reported that their Q1 net income fell 8.1% on the year to $205 million from $223 million, even as revenue jump 45% to $1.06 billion. A troubling statistic is ad revenue growth, which fell to 37% from 69% in 2011. This report questions the valuation of the Facebook IPO. Amazon (AMZN) has made an agreement with the State of Nevada to collect sales tax on purchases made on Amazon.com by Nevadans. This arrangement goes into effective in 2014, which is in line with a federal framework for sales tax on Internet purchases. Coach (COH) beat Q3 EPS estimates by two cents with in-line revenue. Leapfrog (LF) has been resumed with a Buy rating at Roth Capital with a price target at $11. Brinker International (EAT) has been upgraded by both Susquehanna, to Neutral from Negative, and Sterne Agee to Neutral from Underperform. Chipotle Mexican Grill (CMG) has been downgraded to Neutral from Outperform at Credit Suisse. Dow Components - Disney (DIS) gained 0.7% in morning trading with McDonalds (MCD) flat.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.93 at 3:30 PM on Tuesday, down 0.52% on the day – up 12.58% year-to-date.

Consumer Staples

Netflix (NFLX) were crushed by 16.1% premarket in reaction to their Q1 earnings results, as the company forecast that it would add just 200K-800K online subscribers in Q2, well below analyst estimates of 1.2 million. The Department Of Justice has reportedly started a criminal probe of Wal-Mart (WMT) for allegations of systemic bribery in Mexico. Nestle (NSRGY.PK) may sell $1.2 to $1.8 billion of assets from the infant-nutrition unit the company is buying from Pfizer for $11.85 billion. The move should ease antitrust concerns in countries around the world. Reported suitors could include Heinz (HNZ), Abbott Labs (ABT) and private equity funds. Hershey Foods (HSY) beat Q1 EPS estimates by fifteen cents with better than expected revenue. Big Lots (BIG) shares were down about 15% after warning that Q1 US same-store sales growth would be slightly negative due to weak consumables and electronics sales versus the guidance for a 2%-4% increase. Dow components - Home Depot (HD) gained 0.6% in morning trading with Kraft (KFT) up 0.8%, Coca Cola (KO) up 0.7%, Procter & Gamble (PG) gained 0.4%, and Wal-Mart (WMT) was down another 1.7%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.77 at 3:30 PM on Tuesday, down 0.03% on the day – up 3.94% year-to-date.

Health Care

Watson Pharmaceuticals (WPI) is close to announcing a $5.6 billon bid buy Actavis, which is an important one for Deutsche Bank (DB), which holds billions of euros of Actavis debt after a leveraged buyout in 2007. Nestle (NSRGY.PK) may sell $1.2 to $1.8 billion of assets from the infant-nutrition unit the company is buying from Pfizer for $11.85 billion. The move should ease antitrust concerns in countries around the world. Reported suitors could include Heinz (HNZ), Abbott Labs (ABT) and private equity funds. Centene (CNC) missed Q1 EPS estimates by three cents but beat on the revenue line. Alexion Pharmaceuticals (ALXN) beat Q1 EPS estimates by seven cents with better than expected revenue. Health Management Associates (HMA) beat Q1 EPS estimates by two cents but missed on the revenue line. Dow Components - Johnson & Johnson (JNJ) gained 0.5%, Merck (MRK) was up 0.2%, and Pfizer (PFE) advanced by 1.8%.
The Health Care Select Sector SPDR (XLV) was trading at $37.13 at 3:30 PM on Tuesday, up 0.35% on the day – up 7.03% year-to-date.

Financials

Watson Pharmaceuticals (WPI) is close to announcing a $5.6 billon bid buy Actavis, which is an important one for Deutsche Bank (DB), which holds billions of euros of Actavis debt after a leveraged buyout in 2007. Regions Financial (RF) beat Q1 EPS estimates by three cents. Synovus Financial (SNV) beat Q1 EPS estimates by a penny. Zions Bancorp (ZION) beat Q1 EPS by five cents. BancorpSouth (BXS) beat Q1 EPS estimates by nine cents. Riverview Bancorp (RVSB), the small cap community banks has been downgraded to Sell from Hold with Wunderlich. Dow Components - American Express (AXP) gained 0.2%, Bank of America (BAC) dropped another 0.9%, JP Morgan (JPM) gained 0.6%, and Travelers (TRV) was up 0.8%.
The Financial Select Sector SPDR (XLF) was trading at $15.20 at 3:30 PM on Tuesday, up 0.80% on the day – up 16.92% year-to-date.

Information Technology

Texas Instruments (TXN) reported Q1 EPS of 32 cents down from 55 cents, which beat forecasts. TI revenue fell 8% to an in-line $3.1 billion. Q2 guidance was better than expected and shares jumped 3.7% in after-hours trading. Apple (AAPL), whose shares are down 11% from a recently set all time high at $644 per share will report quarterly results after the close today. Apple’s EPS forecast is $10.06 per share with revenue at $36.8 billions. STMicroelectronics (STM) missed Q1 EPS estimates by nine cents with in-line revenue. F5 Networks (FFIV) is initiated with a Market Perform rating at Northland Securities with a price target at $134. Dow Components - Cisco Systems (CSCO) lost 1.3% in morning trading, Hewlett-Packard (HPQ) gained 0.3%, IBM (IBM) rallied 1.5%, Intel Corp (INTC) picked up just 0.1%, and Microsoft (MSFT) slipped 0.2%.
The Technology Select Sector SPDR (XLK) was trading at $29.00 at 3:30 PM on Tuesday, down 0.17% on the day – up 13.95% year-to-date.

Telecommunication Services

Fitch has downgraded Nokia (NOK) from BBB- to BB+, or junk status even though the handset maker sitting on 4.9 billion euros of net cash. AT&T (T) beat Q1 EPS estimates by three cents with in-line revenue. Clearwire Corp (CLWR) has been downgraded to Hold from Buy at Jefferies. Dow components - AT&T (T) surged 3.7% in morning trading with Verizon (VZ) up 2.0%.
The NASDAQ Telecommunications Index (IXTC) was trading at $206.74 at 3:30 PM on Tuesday, down 0.13% on the day – up 4.98% year-to-date.

Utilities

Dominion Resources (D) was down 0.2% in morning trading, Edison International (EIX) gained 1.1%, First Energy (FE) was up 0.4%, and PG&E Corp (PCG) gained 0.4%.
The Utilities Select Sector SPDR (XLU) was trading at $35.19 at 3:30 PM on Tuesday, up 0.92% on the day – down 2.20% year-to-date.

STOCKS: CVX, XOM, WFT, BHI, NBL, COG, STO, NKA, AA, DD, X, CE, ASH, APD, BA, CAT, GE, MMM, UTX, F, FDML, ITW, PCAR, PH, DLPH, DIS, MCD, FB, AMZN, COH, LF, EAT, CMG, HD, KFT, KO, PG, WMT, NFLX, NSRGY.PK, HNZ, HSY, ABT, BIG, JNJ, MRK, PFE, WPI, CNC, ALXN, HMA, AXP, BAC, JPM, TRV, RF, SNV, ZION, BXS, RVSB, CSCO, HPQ, IBM, INTC, MSFT, TXN, AAPL, STM, FFIV, T, VZ, NOK, CLWR, D, EIX, FE, PCG, ABVT

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 195.83 -0.28 -0.14 2,467,064 Trade
STM STMicroelectronics N.V. 15.99 0.45 2.90 6,702,882 Trade
CMG Chipotle Mexican Grill Inc. 474.47 -7.53 -1.56 937,379 Trade
COG Cabot Oil & Gas Corporation 23.24 -0.88 -3.65 11,864,686 Trade
CNC Centene Corporation 74.40 1.45 1.99 1,881,067 Trade
APD Air Products and Chemicals Inc. 140.50 -0.60 -0.43 1,910,933 Trade
LF LeapFrog Enterprises Inc n/a n/a n/a 0 Trade
PG Procter & Gamble Company (The) 87.33 -0.36 -0.41 8,291,326 Trade
GE General Electric Co 28.99 -0.09 -0.31 24,060,188 Trade
CVX Chevron Corporation 106.70 1.23 1.17 6,848,388 Trade
ABT Abbott Laboratories 43.64 -0.01 -0.02 6,014,062 Trade
PCG Pacific Gas & Electric Co. 67.05 -0.23 -0.34 3,693,113 Trade
WPI Watson Pharmaceuticals Inc. n/a n/a n/a 0 Trade
ALXN Alexion Pharmaceuticals Inc. 127.78 0.87 0.69 3,156,322 Trade
FB Facebook Inc. 150.25 2.55 1.73 30,623,475 Trade
JNJ Johnson & Johnson 123.47 -0.27 -0.22 4,381,739 Trade
WMT Wal-Mart Stores Inc. 75.18 -0.26 -0.34 7,326,291 Trade
AA Alcoa Inc. 33.73 -0.79 -2.29 5,239,758 Trade
INTC Intel Corporation 36.15 -1.28 -3.42 56,768,165 Trade
IBM International Business Machines Corp 160.29 -0.03 -0.02 4,154,101 Trade
NKA Niska Gas Storage Partners LLC Representing Limite n/a n/a n/a 0 Trade
D Dominion Resources Inc. 77.43 -0.26 -0.33 2,001,585 Trade
TRV The Travelers Companies Inc. 121.66 -0.50 -0.41 1,290,210 Trade
BIG Big Lots Inc. 50.49 -1.41 -2.72 1,029,099 Trade
HLF:CA High Liner Foods Incorporated 18.90 0.66 3.62 40,648
AAPL Apple Inc. 143.65 -0.14 -0.10 20,833,733 Trade
EIX Edison International 79.97 -0.38 -0.47 1,604,085 Trade
JPM JP Morgan Chase 87.00 -0.61 -0.70 10,754,459 Trade
AXP American Express Company 79.25 -1.08 -1.34 5,307,409 Trade
UTX United Technologies Corporation 118.99 0.21 0.18 4,474,580 Trade
TXN Texas Instruments Incorporated 79.18 -1.62 -2.01 10,522,003 Trade
AMZN Amazon.com Inc. 924.99 6.61 0.72 7,356,355 Trade
CSCO Cisco Systems Inc. 34.07 0.32 0.95 20,435,270 Trade
DIS Walt Disney Company (The) 115.60 -0.24 -0.21 3,984,564 Trade
BXS BancorpSouth Inc. 30.45 -0.75 -2.40 393,702 Trade
COH Coach Inc. 39.39 -0.43 -1.08 3,224,359 Trade
VZ Verizon Communications Inc. 45.91 -0.76 -1.63 25,918,054 Trade
DLPH Delphi Automotive plc 80.40 0.44 0.55 1,613,490 Trade
PCAR PACCAR Inc 66.73 0.32 0.48 1,895,201 Trade
BAC Bank of America Corporation 23.34 -0.31 -1.31 69,262,472 Trade
RVSB Riverview Bancorp Inc 7.26 -0.21 -2.81 16,460 Trade
FDML Federal-Mogul Holdings Corporation n/a n/a n/a 0 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 5.73 0.01 0.17 30,800,994 Trade
MCD McDonald\'s Corporation 139.93 -0.94 -0.67 4,779,816 Trade
WFT Weatherford International plc (Ireland) 5.77 0.15 2.67 40,988,719 Trade
HSY The Hershey Company 108.20 0.82 0.76 1,067,208 Trade
ASH Ashland Inc. (NEW) 123.50 -0.19 -0.15 668,413 Trade
RF Regions Financial Corporation 13.75 -0.04 -0.29 14,091,521 Trade
DD E.I. du Pont de Nemours and Co. 79.75 -0.38 -0.47 1,959,594 Trade
BHI Baker Hughes Incorporated 59.37 -0.28 -0.47 3,081,482 Trade
X United States Steel Corp. 22.32 -0.92 -3.96 24,936,068 Trade
HD Home Depot Inc. (The) 156.10 -0.02 -0.01 4,982,778 Trade
F Ford Motor Company 11.47 0.00 0.00 41,412,737 Trade
XOM Exxon Mobil Corporation 81.65 0.39 0.48 12,070,753 Trade
PFE Pfizer Inc. 33.92 0.06 0.18 15,960,680 Trade
HPQ HP Inc. 18.82 0.05 0.27 7,956,877 Trade
NFLX Netflix Inc. 152.20 -0.88 -0.57 6,362,804 Trade
BA Boeing Company (The) 184.83 1.61 0.88 2,181,151 Trade
MRK Merck & Company Inc. (new) 62.33 -0.25 -0.40 9,461,484 Trade
NBL Noble Energy Inc. 32.33 -0.24 -0.74 5,116,354 Trade
PH Parker-Hannifin Corporation 160.80 -1.18 -0.73 2,074,861 Trade
STO Statoil ASA 16.43 0.01 0.06 1,166,143 Trade
ITW Illinois Tool Works Inc. 138.09 -1.33 -0.95 1,535,499 Trade
FE FirstEnergy Corporation 29.94 -0.58 -1.90 9,609,723 Trade
KO Coca-Cola Company (The) 43.15 0.14 0.33 10,337,756 Trade
T AT&T Inc. 39.63 -0.28 -0.70 24,988,899 Trade
CAT Caterpillar Inc. 102.26 -0.42 -0.41 4,015,723 Trade
MSFT Microsoft Corporation 68.46 0.19 0.28 39,538,551 Trade
ZION Zions Bancorporation 40.03 -0.63 -1.55 3,811,586 Trade
SNV Synovus Financial Corp. 41.80 -0.81 -1.90 568,134 Trade
FFIV F5 Networks Inc. 129.13 2.14 1.69 1,684,245 Trade

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