Equities Sector Coverage: Stocks Close Higher on Jobs

Sector Recap |

Initial Jobless Claims rose to 367,000 staying above the 350,000 recessionary threshold. Factory Orders fell 5.2% in August the biggest drop since January 2009. Freddie Mac set its 30-year fixed rate mortgage at a new record low at 3.36%. The Dow Jones Industrial Average traded up to 13,594.33 on Thursday with the NASDAQ as high as 3153.48.

In Asian, the Nikkei 225 ended the day at 8,825 – up 0.89%. The Hang Seng ended the day at 20,908 – up 0.09%. European exchanges traded back and forth around the flat line all day. The FTSE 100 ended the day at 5,828 – up 0.03%. The DAX ended the day at 7,305 – down 0.23%. The CAC 40 ended the day at 3,401 – down 0.14%. The yield on the 10-Year US Treasury rose from 1.618% to 1.673% versus its 50-day and 200-day simple moving averages at 1.668% and 1.812%.

Comex gold rallied from $1779.9 the Troy ounce to $1797.7 setting a new 2012 high. Nymex crude oil rebounded from $87.91 per barrel to $91.84 staying below its 50-day and 200-day simple moving averages at $93.62 and $96.17. The euro versus the dollar rallied from 1.2904 to 1.3031 staying above its 200-day simple moving average at 1.2821.

Energy

Enbridge Inc. (ENB) is lifted to Outperform from Market Perform at BMO Capital. HollyFrontier (HFC) is now Neutral from Buy at UBS. Big Movers – James River Coal (JRCC) is up about 11%. Dow components – Chevron (CVX) up 1.03%, Exxon Mobil (XOM) up 0.68%. Energy Select Sector SPDR (XLE) was trading at $73.78 at 3:30 PM on Thursday, up 1.04% on the day – up 6.73% year-to-date.

Materials

CF Industries (CF) is a new Sector Perform at RBC Capital. Eldorado Gold (EGO) gets downgraded to Underperform from Neutral at Macquarie. Dow Components – Alcoa (AA) up 2.88%, DuPont (DD) up 0.79%. The Materials Select Sector SPDR (XLB) was trading at $37.025 at 3:30 PM on Thursday, up 1.30% on the day – up 10.52% year-to-date.

Industrials

Ametek (AME) is a new Equal-Weight at Morgan Stanley. Ryder System (R) is upgraded to Buy from Neutral at SunTrust. United Parcel Service (UPS) is reduced to Sector Perform from Outperform at RBC Capital. Big Movers – Genco Shipping & Trading (GNK) is up about 13%. Dow components – Boeing Co (BA) down 0.11%, Caterpillar (CAT) up 0.88%, General Electric (GE) down 0.22%, 3M Company (MMM) up 0.51%, United Technologies (UTX) up 0.10%. The Industrial Select Sector SPDR (XLI) was trading at $36.99 at 3:30 PM on Thursday, up 0.43% on the day – up 9.60% year-to-date.

Consumer Discretionary

McDonald's (MCD) filed a trademark with the USPTO to use its name for ground and whole-bean coffee products in a move that could signal a plan to sell bagged coffee. Gambling revenue in Macau rose a weaker-than-forecast 12.3% to $2.99B in September, marking the second lowest tally of the year. Though analysts expect a bounce back in October, casino players in the region such as Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN) will be on edge to see if visitor levels keep trending lower. Tesla (TSLA) will make an advance payment on the DOE loan principal payment that's due in March, says CEO Elon Musk in a blog post. Also, Musk claims Tesla is "on the verge of becoming cash flow positive," and defends the company's Q3/Q4 guidance cut by claiming Tesla is "at the steepest portion of our production ramp." Amazon's (AMZN) Kindle Paperwhite e-reader appears to be sold out until November as the e-commerce giant's site shows a shipping time of 4-6 weeks for both the Wi-Fi and 3G models. The market for streaming video is getting a bit more crowded as Toys R Us launches its own service to provide movies and TV shows for kids. Powered by Rovi (ROVI), the store will include over 4,000 titles with movies priced at $2.99 for a 24-hour rental and TV shows at $1.99 a pop. Wet Seal (WTSLA) has appealed to its shareholders to help it end an attempt by Clinton Group to replace the company's board with its own candidates. International Speedway (ISCA) missed estimates by 7 cents and revenue by $12M. Marriott International (MAR) beat estimates by 4 cents and revenue by $50M. The company narrowed its FY outlook range however, now seeing $1.68 to $1.72 per share, compared with previous guidance of $1.65 to $1.75. For Q4, earnings are expected to be $0.52 to $0.56 per share, the consensus estimate of $0.57. National American University Holdings (NAUH) missed estimates by 3 cents on revenue of $29.5M. Lamar Advertising (LAMR) is a new Buy at Deutsche Bank. Steven Madden Ltd. (SHOO) is started with a Buy at Brean Murray. TripAdvisor (TRIP) is initiated with a Buy and $38 target at Needham. Time Warner (TWX) is moved to Hold from Buy at Argus. Dow Components – Disney (DIS) relatively unchanged, Home Depot (HD) down 0.35%, McDonalds (MCD) up 0.76%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.47 at 3:30 PM on Thursday, up 0.91% on the day – up 21.66% year-to-date.



Consumer Staples

Unilever (UL) is reportedly seeking a buyer for its popular Skippy peanut butter brand as it lines up Lazard to help it find potential acquirers. Village Super Market (VLGEA) beat estimates by a penny on revenue of $369.9M. B&G Foods (BGS) is a new Neutral at Credit Suisse. Dow components – Coca Cola (KO) up 0.21%, Procter & Gamble (PG) up 0.48%, Wal-Mart (WMT) up 0.82%. The Consumer Staples Select Sector SPDR (XLP) was trading at $36.36 at 3:30 PM on Thursday, up 0.44% on the day – up 11.91% year-to-date.

Health Care

Advocat (AVCA) is initiated with a Hold at C.K. Cooper. Baxter International (BAX) is begun with an Outperform at Cowen. Morgan Stanley establishes Overweights on Cubist Pharmaceuticals (CBST), Neurocrine Biosciences (NBIX), and NPS Pharmaceuticals (NPSP). Quidel (QDEL) is picked up at Overweight by Piper Jaffray. Thoratec (THOR) is taken to Outperform from Neutral with Wedbush. NuVasive (NUVA) is taken to Underperform from Outperform at RBC Capital. Big Movers – NuVasive (NUVA) is down about 33.5%. Biosante Pharmaceuticals (BPAX) is down about 11%. Dow Components – Johnson & Johnson (JNJ) up 0.60%, Merck (MRK) up 0.91%, Pfizer (PFE) up 0.16%, United Health Group (UNH) up 2.09%. The Health Care Select Sector SPDR (XLV) was trading at $41.125 at 3:30 PM on Thursday, up 0.60% on the day – up 18.55% year-to-date.

Financials

Maxim begins Buys on Fifth Street Finance (FSC), Medley Capital (MCC), THL Credit (TCRD), and TICC Capital (TICC). Evercore Partners (EVR) is downgraded to Market Perform from Outperform at JMP Securities. Lazard (LAZ) is lowered to Market Perform from Outperform at JMP Securities. Dow Components – American Express (AXP) up 1.55%, Bank of America (BAC) up 3.13%, JP Morgan Chase (JPM) up 2.30%, Travelers (TRV) up 0.34%. The Financial Select Sector SPDR (XLF) was trading at $16.045 at 3:30 PM on Thursday, up 1.36% on the day – up 22.08% year-to-date.

Information Technology

Hewlett-Packard (HPQ) declared FY13 to be a "fix and rebuild" year that will see a broad-based profit decline (centered around enterprise services), and has again made cautious remarks about European and Chinese demand. Bloomberg Businessweek's talks with Apple (AAPL) insiders paint a complex picture of the post-Jobs era. Apple is said to have a "singular focus" on proving doubters wrong, and is deemed "happier and even somewhat more transparent" than before. A peek back also reveals that Steve Jobs reportedly came to "loathe" Google (GOOG) and considered ending its iOS search deal, but decided not to out of fear of upsetting users. The market for streaming video is getting a bit more crowded as Toys R Us launches its own service to provide movies and TV shows for kids. Powered by Rovi (ROVI), the store will include over 4,000 titles with movies priced at $2.99 for a 24-hour rental and TV shows at $1.99 a pop. Analog/security chipmaker O2Micro (OIIM) warned it expects Q3 revenue of $22M-$23.1M, below prior guidance of $24.1M-$26M and a consensus of $24.8M. Accelrys Inc. (ACCL) is a new Outperform at JMP Securities. Advanced Micro Devices (AMD) gets moved to Neutral from Sell at MKM Partners. eBay Inc. (EBAY) gets a boost to Buy from Neutral at Nomura. Adtran (ADTN) is now Neutral from Buy at UBS. Aruba Networks (ARUN) is now Neutral from Buy at Goldman Sachs. Booz Allen (BAH) is cut to Underperform from Market Perform with Wells Fargo. Polycom (PLCM) is cut to Neutral from Buy at UBS. Big Movers – Informatica (INFA) is down about 24.5%. Dow Components – Cisco Systems (CSCO) relatively unchanged, Hewlett-Packard (HPQ) up 0.20%, IBM (IBM) relatively unchanged, Intel Corp (INTC) down 0.63%, Microsoft (MSFT) relatively unchanged. The Technology Select Sector SPDR (XLK) was trading at $31.07 at 3:30 PM on Thursday, up 0.36% on the day – up 22.08% year-to-date.

Telecommunication Services

Deutsche Telekom (DTEGY) is listed to Buy from Hold at Deutsche Bank. SBA Communications (SBAC) is now Buy from Neutral at Citigroup. MetroPCS (PCS) is downgraded to Reduce from Neutral at Nomura. Sprint Nextel (S) is downgraded to Underperform from Neutral at Robert W. Baird. Dow Components – AT&T (T) up 0.29%, Verizon (VZ) up 1.12%. The NASDAQ Telecommunications Index (IXTC) was trading at $199.02 at 3:30 PM on Thursday, up 0.42% on the day – up 1.06% year-to-date.

Utilities

Edison International (EIX) is assigned an Underperform at Credit Suisse. Consolidated Edison (ED) is upgraded to Buy from Hold at Argus. The Big Names – Dominion Resources (D) up 0.58%, Edison International (EIX) up 1.27%, First Energy (FE) up 0.49%, PG&E Corp (PCG) up 0.75%, Southern Company (SO) up 0.33%. The Utilities Select Sector SPDR (XLU) was trading at $36.795 at 3:30 PM on Thursday, up 0.56% on the day – up 2.27% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KFT, KO, PG, WMT, JNJ, MRK, PFE, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, ENB, HFC, JRCC, CF, EGO, AME, R, UPS, GNK, MCD, LVS, MGM, WYNN, TSLA, AMZN, ROVI, WTSLA, ISCA, MAR, NAUH, LAMR, SHOO, TRIP, TWX, UL, VLEGA, BGS, AVCA, BAX, CBST, NBIX, NPSP, QDEL, THOR, NUVA, BPAX, FSC, MCC, TCRD, TICC, EVR, LAZ, HPQ, AAPL, GOOG, OIIM, ACCL, AMD, EBAY, ADTN, ARUN, BAH, PLCM, INFA, DTEGY, SBAC, PCS, S, EIX, ED

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 190.75 -0.24 -0.13 949,344 Trade
UPS United Parcel Service Inc. 106.29 0.10 0.09 1,213,409 Trade
CF CF Industries Holdings Inc. 31.08 0.84 2.78 2,695,450 Trade
ADTN ADTRAN Inc. 21.10 0.05 0.24 400,563 Trade
LAZ Lazard LTD. LTD. Class A 45.37 -0.06 -0.13 272,145 Trade
PG Procter & Gamble Company (The) 90.73 -0.04 -0.04 2,550,218 Trade
GE General Electric Co 29.64 0.02 0.07 15,238,228 Trade
CVX Chevron Corporation 107.94 0.77 0.72 3,029,921 Trade
SO Southern Company (The) 50.00 -0.09 -0.19 4,854,967 Trade
PCG Pacific Gas & Electric Co. 66.79 -0.07 -0.10 674,615 Trade
BAX Baxter International Inc. 52.07 0.18 0.35 1,614,972 Trade
TSLA Tesla Motors Inc. 277.68 0.23 0.08 3,028,106 Trade
JNJ Johnson & Johnson 125.16 -0.50 -0.40 2,543,734 Trade
WMT Wal-Mart Stores Inc. 70.87 0.55 0.78 4,785,715 Trade
AA Alcoa Inc. 32.93 0.01 0.03 1,566,410 Trade
INTC Intel Corporation 35.49 -0.11 -0.30 11,579,479 Trade
IBM International Business Machines Corp 174.06 -0.45 -0.26 1,416,768 Trade
SHOO Steven Madden Ltd. 38.90 0.65 1.70 217,396 Trade
D Dominion Resources Inc. 77.78 -0.28 -0.36 1,018,249 Trade
TRV The Travelers Companies Inc. 120.77 -1.03 -0.85 595,787 Trade
EBAY eBay Inc. 33.61 0.08 0.22 4,545,995 Trade
AAPL Apple Inc. 144.31 0.51 0.35 21,212,508 Trade
QDEL Quidel Corporation 22.41 0.30 1.36 88,663 Trade
FSC Fifth Street Finance Corp. 4.69 -0.08 -1.68 601,385 Trade
S Sprint Corporation 8.53 0.20 2.34 9,052,247 Trade
LVS Las Vegas Sands Corp. 57.27 0.34 0.60 1,740,925 Trade
ACN Accenture plc Class A (Ireland) 120.94 -0.41 -0.34 1,706,820 Trade
EIX Edison International 79.78 -0.58 -0.72 921,462 Trade
TICC TICC Capital Corp. 7.32 0.11 1.53 202,015 Trade
BGS B&G Foods Inc. 41.55 0.67 1.63 407,833 Trade
TWX Time Warner Inc. New 97.41 0.09 0.09 1,502,905 Trade
JPM JP Morgan Chase 88.36 -0.25 -0.28 7,035,041 Trade
AXP American Express Company 78.38 -0.27 -0.34 1,977,085 Trade
UTX United Technologies Corporation 112.11 -0.63 -0.56 1,093,543 Trade
AMD Advanced Micro Devices Inc. 13.75 0.06 0.47 28,988,707 Trade
AMZN Amazon.com Inc. 874.26 18.26 2.13 3,153,487 Trade
TRIP TripAdvisor Inc. 43.66 0.53 1.23 1,144,661 Trade
CSCO Cisco Systems Inc. 33.68 -0.35 -1.01 9,771,114 Trade
DIS Walt Disney Company (The) 112.56 -0.49 -0.43 2,495,249 Trade
MAR Marriott International 94.60 0.11 0.12 871,518 Trade
VZ Verizon Communications Inc. 49.15 -0.16 -0.31 6,003,678 Trade
MCC Medley Capital Corporation 7.60 0.05 0.66 125,019 Trade
ENB Enbridge Inc 41.97 0.33 0.78 2,060,396 Trade
LAMR Lamar Advertising Company 74.66 -0.42 -0.56 409,672 Trade
BAC Bank of America Corporation 23.43 -0.06 -0.23 50,429,553 Trade
GNK Genco Shipping & Trading Limited New (Marshall Isl 12.37 0.29 2.40 122,359 Trade
HFC HollyFrontier Corporation 28.48 1.68 6.27 3,313,952 Trade
GOOG Alphabet Inc. 830.14 9.22 1.12 907,740 Trade
MCD McDonald\'s Corporation 129.04 -0.41 -0.32 2,024,401 Trade
EGO Eldorado Gold Corporation 3.46 0.30 9.34 5,651,985 Trade
NBIX Neurocrine Biosciences Inc. 42.79 1.15 2.76 529,689 Trade
UL Unilever PLC 50.02 -0.16 -0.32 743,874 Trade
DD E.I. du Pont de Nemours and Co. 82.00 0.16 0.20 1,270,926 Trade
MGM MGM Resorts International 27.42 0.25 0.92 4,354,256 Trade
OIIM O2Micro International Limited 2.32 0.01 0.43 3,116 Trade
EVR Evercore Partners Inc Class A 76.58 -0.58 -0.75 98,784 Trade
ED Consolidated Edison Inc. 78.23 -0.30 -0.38 707,131 Trade
HD Home Depot Inc. (The) 147.21 0.01 0.01 2,267,841 Trade
XOM Exxon Mobil Corporation 82.15 0.31 0.38 5,515,351 Trade
PFE Pfizer Inc. 34.36 0.20 0.57 11,683,804 Trade
TCRD THL Credit Inc. 9.75 0.09 0.93 90,016 Trade
BAH Booz Allen Hamilton Holding Corporation 35.71 -0.09 -0.24 705,404 Trade
HPQ HP Inc. 17.29 0.03 0.14 3,495,626 Trade
BA Boeing Company (The) 177.68 0.32 0.18 1,028,589 Trade
MRK Merck & Company Inc. (new) 63.73 0.39 0.62 5,562,877 Trade
PLCM Polycom Inc. n/a n/a n/a 0 Trade
NAUH National American University Holdings Inc. 2.50 0.01 0.20 4,271 Trade
AME AMETEK Inc. 54.24 0.31 0.57 921,359 Trade
FE FirstEnergy Corporation 31.72 0.11 0.35 2,425,110 Trade
SBAC SBA Communications Corporation 119.87 1.32 1.11 501,763 Trade
KO Coca-Cola Company (The) 42.42 -0.01 -0.02 5,923,980 Trade
T AT&T Inc. 41.49 -0.07 -0.17 9,151,456 Trade
CAT Caterpillar Inc. 93.00 0.05 0.05 1,686,866 Trade
NUVA NuVasive Inc. 75.37 0.08 0.11 171,070 Trade
MSFT Microsoft Corporation 65.31 0.02 0.02 8,119,498 Trade
ROVI Rovi Corporation n/a n/a n/a n/a
ISCA International Speedway Corporation 36.35 0.10 0.28 66,756 Trade
R Ryder System Inc. 75.28 0.31 0.41 168,672 Trade

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