Equities Sector Coverage: Stocks Close Out Strong First Quarter

Sector Recap |

will markets keep rising, is economy recovering, will dow keep risingPersonal Income rose by just 0.2% in February with Spending up 0.8%. This brings the Savings Rate down to 3.7%, the lowest since August 2009. The year over year PCE Price Index was up 2.3%, above the Federal Reserve target for inflation. Chicago PMI came in slightly below expectations at 62.2 in March with an elevated prices paid index at 70.1. The Employment Component fell to 56.3 from 64.2 in February. The final reading of the Reuters/University of Michigan's consumer sentiment index hit 76.2 for March from a preliminary reading of 74.3. The Dow Jones Industrial Average traded up to 13,224.49 on Friday afternoon still shy of its 52-week high set at 13,289.08 on March 16th. The NASDAQ’s traded up to 3111.56 then fell to 3079.05 before consolidating. The NASDAQ stayed below its 52-week high at 3134.17 set on Tuesday.

Asian stocks declined again on Friday. The Nikkei 225 ended their session at 10,084 – down 0.31% on the day. The Hang Seng ended their session at 20,556 – down 0.26% on the day. European stocks rebounded on Friday. The FTSE 100 ended their session at 5,768 – up 0.46% on the day. The DAX ended their session at 6,947 – up 1.04% on the day. The CAC 40 ended their session at 3,424 – up 1.26% on the day. The yield on the 10-Year US Treasury declined from 2.177 percent to 2.139 then rose to 2.237 closing above its 200-day simple moving average at 2.183.

Gold rebounded from $1659.0 the Troy ounce to $1670.0 staying below its 200-day simple moving average at $1685.5. Crude oil rebounded from $102.95 per barrel to $103.69, fell to $102.82, then rose to $104.15 versus its 50-day simple moving average at $103.55. The euro versus the dollar rebounded from 1.3297 to 1.3375 staying above the 50-day simple moving average at 1.3206.

Energy

PetroChina (PTR), already the world's largest publicly-traded crude producer, plans to "buy assets on a large scale" to expand output. Lufkin Industries (LUFK) is launched with a Buy recommendation and $96 target at Dahlman Rose.

Energy Select Sector SPDR (XLE) was trading at $71.75 at 4:00 PM on Friday, up 0.81% on the day – up 3.79% year-to-date. The March 2012 change was -4.18%. The 2011 change was -1.29%.

Heavily Traded: (WMB) +1%, (VLO) -3.7%, (HAL) +1.7%.

Materials

BHP's (BHP) iron-ore chief, Ian Ashby, will unexpectedly step down on July 1. Pan American Silver (PAAS) is begun with a Buy and $31 target price at Deutsche Bank, which has a Hold on Hecla Mining (HL). AK Steel (AKS) is a new Neutral at Nomura, which begins Buys on rivals US Steel (X), and Steel Dynamics (STLD).

The Materials Select Sector SPDR (XLB) was trading at $36.97 at 4:00 PM on Friday, up 0.35% on the day – up 10.36% year-to-date. The March 2012 change was +0.00. The 2011 change was -12.78%.

Heavily Traded: (AA) +1.1%, (FCX) +0.6%.

Industrials

CPI Aerostructures (CVU) is upgraded to Buy from Hold at Capstone. Raytheon (RTN) is reduced to Sector Perform from Outperform at RBC Capital.

The Industrial Select Sector SPDR (XLI) was trading at $37.415 at 4:00 PM on Friday, up 0.44% on the day – up 10.86% year-to-date. The March 2012 change was +0.50%. The 2011 change was -3.21%.

Big Movers: (AWI) -14.5%.
Heavily Traded: (GE) +0.8%, (JBLU) -0.9%.

Consumer Discretionary

Lululemon Athletica (LULU) is begun with a Buy at UBS. Buffalo Wild Wings (BWLD) is a new Equal Weight at Morgan Stanley, which begins BJ Restaurants (BJRI) at Overweight. Walt Disney (DIS) is upgraded to Buy from Neutral at Lazard. Discovery Communications (DISCA) is lifted to Buy from Neutral at Lazard. Gap Inc (GPS) is boosted to Buy from Neutral at Janney Scott with a $33 target. Wyndham Worldwide (WYN) is upgraded to Buy from Neutral at Goldman Sachs.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.09 at 4:00 PM on Friday, up 0.45% on the day – up 15.56% year-to-date. The March 2012 change was +4.40%. The 2011 change was +4.30%.

Big Movers: (FINL) -14.5%, (LIZ) +13%.

Consumer Staples

Beam Inc (BEAM) is initiated with a Buy at Suntrust. United Natural Foods (UNFI) is started with a Sell and $33 target at Cantor Fitzgerald.



The Consumer Staples Select Sector SPDR (XLP) was trading at $34.08 at 4:00 PM on Friday, up 0.61% on the day – up 4.89% year-to-date. The March 2012 change was +2.56%. The 2011 change was +10.85%.

Big Movers: (FEED) -12%.
Heavily Traded: (RAD) -0.6%, (KO) down slightly, (MO) +1.1%, (SVU) -2.1%.

Health Care

Amerigroup (AGP), Molina Healthcare (MOH), and Centene (CNC) are all begun with Buys at Jefferies. Incyte (INCY) is initiated with a Buy at ThinkEquity. Vivus Inc (VVUS) is upgraded to Buy from Hold at Brean Murray. Accretive Health (AH) is now Neutral from Outperform with a new lower target of $21 at Robert W. Baird. Kindred Healthcare (KND) is cut to Market Perform from Outperform with Wells Fargo. Select Medical (SEM) is moved to Market Perform from Outperform with Wells.

The Health Care Select Sector SPDR (XLV) was trading at $37.61 at 4:00 PM on Friday, up 0.75% on the day – up 8.42% year-to-date. The March 2012 change was +3.95%. The 2011 change was +10.32%.

Big Movers: (SNSS) +19.5%, (STEM) +11%, (OREX) -9.5%.

Financials

Morgan Stanley (MS) is making preparations for a major downgrade from Moody's, which is due to decide in May whether to cut ratings for 17 global institutions. BATS (BATS) is thinking about suspending its efforts to recruit corporate listings after last Friday's trading glitch and IPO fiasco, The Wall Street Journal reports. The move would be a major defeat for the company, which has viewed such listings as critical in its efforts to compete with larger rivals NYSE Euronext (NYX) and Nasdaq (NDAQ). Peoples Bancorp (PEBO) is a new Outperform and $21 price objective at Keefe Bruyette. Kilroy Realty (KRC) is resumed with a Sell at Cantor Fitzgerald amid an uncompelling current valuation. By contrast, the broker begins Buy rated coverage on Boston Properties (BXP), Brandywine Realty (BDN), and SL Green Realty (SLG). U.S. Bancorp (USB) is downgraded to Market Perform from Outperform at BMO Capital.

The Financial Select Sector SPDR (XLF) was trading at $15.795 at 4:00 PM on Friday, up 0.54% on the day – up 21.50% year-to-date (the strongest performing sector). The March 2012 change was +7.01%. The 2011 change was -18.50%; the weakest performing sector for the year.

Big Movers: (XIN) +9.25%.

Information Technology

Research In Motion (RIMM) would consider selling itself if a strategic review found that this was its best option, CEO Thorsten Heins said yesterday after the BlackBerry maker once again missed earnings forecasts. RIM's FQ4 adjusted EPS almost halved on year to $0.80 as revenue slumped 25% to $4.19, while the company said it would discontinue "providing specific quantitative guidance." Apple (AAPL) and Foxconn have forged an agreement in which the latter will hire tens of thousands of workers, halt illegal overtime, improve safety and upgrade workers' housing. Websense (WBSN) is initiated with a Market Perform at JMP Securities. LinkedIn (LNKD) is lifted to Positive from Neutral at Susquehanna. InvenSense (INVN) is cut to Perform from Outperform with a $15 objective at Oppenheimer.

The Technology Select Sector SPDR (XLK) was trading at $30.15 at 4:00 PM on Friday, down 0.33% on the day – up 18.47% year-to-date. The March 2012 change was +4.16%. The 2011 change was +1.03%.

Big Movers: (FFN) -17%, (SIHI) -12.5%, (INVN) -10%.

Telecommunication Services

Vodafone (VOD) is urgently reviewing its options in India and overseas as the country moves toward a law that would retroactively apply a tax of over $2B on Vodafone's 2007 purchase of Hutchison Whampoa's Indian telecom venture. France Telecom (FTE) is taken to Sell from Neutral at Citigroup.

The NASDAQ Telecommunications Index (IXTC) was trading at $221.24 at 4:00 PM on Friday, up 0.43% on the day – up 12.34% year-to-date. The March 2012 change was +3.64%. The 2011 change was -12.62%.

Big Movers: (TWER) +14%, (TSTRQ) -9%.
Heavily Traded: (S) -2.2%, (T) up slightly, (FTR) +1.1%, (CLWR) -2.9%, (VZ) +0.2%.

Utilities

The Utilities Select Sector SPDR (XLU) was trading at $35.045 at 3:30 PM on Friday, up 0.55% on the day – down 2.60% year-to-date (the weakest performing sector / the only negative sector). The March 2012 change was +0.44%. The 2011 change was +14.81%; the strongest performing sector for the year.

Heavily Traded: (DUK) +0.2%, (GEN) flat, (CNP) +1.5%, (EXC) -0.2%, (AES) +0.2%, (SO) flat, (AEP) +0.5%, (PPL) +0.6%.

STOCKS: PTR, LUFK, WMB, VLO, HAL, BHP, PAAS, HL, AKS, X, STLD, AA, FCX, CVU, RTN, AWI, GE, JBLU, LULU, BWLD, BJRI, DIS, DISCA, GPS, WYN, FINL, LIZ, BEAM, UNFI, FEED, RAD, KO, MO, SVU, AGP, CNC, INCY, VVUS, AH, KND, SEM, SNSS, STEM, OREX, MS, BATS, NYX, NDAQ, PEBO, KRC, BXP, BDN, SLG, USB, XIN, RIMM, AAPL, WBSN, LNKD, INVN, FFN, SIHI, VOD, FTE, TWER, TSTRQ, S, T, FTR, CLWR, VZ, DUK, GEN, CNP, EXC, AES, SO, AEP, PPL

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
CVU CPI Aerostructures Inc. 8.48 0.08 0.89 28,171
CNC Centene Corporation 62.65 -0.06 -0.10 933,690
GEN Genesis Healthcare Inc. 4.36 -0.04 -0.91 88,792
FTR Frontier Communications Corporation 3.54 0.01 0.28 8,055,645
GE General Electric Co 31.36 -0.03 -0.10 24,323,767
SO Southern Company (The) 48.80 -0.20 -0.41 3,590,684
AKS AK Steel Holding Corporation 9.71 -0.16 -1.62 17,386,180
FINL The Finish Line Inc. 17.34 0.00 0.00 920,919
WYN Wyndham Worldwide Corp Common Stock 77.30 0.54 0.70 528,739
RTN Raytheon Company 145.99 0.35 0.24 1,143,469
AA Alcoa Inc. 33.01 -0.03 -0.09 3,026,712
VLO Valero Energy Corporation 66.39 -0.13 -0.20 3,366,737
CNP CenterPoint Energy Inc (Holding Co) 25.42 0.09 0.36 3,594,342
KND Kindred Healthcare Inc. 7.65 -0.20 -2.55 1,472,898
RAD Rite Aid Corporation 8.66 -0.04 -0.46 34,303,556
SIS:CA Savaria Corporation 11.06 -0.03 -0.27 2,444
MO Altria Group Inc. 67.58 0.07 0.10 4,073,116
AAPL Apple Inc. 119.04 -0.21 -0.18 26,111,948
S Sprint Corporation 8.61 0.15 1.77 11,828,108
PPL PPL Corp 34.36 -0.14 -0.41 2,692,933
PEBO Peoples Bancorp Inc. 31.81 0.32 1.02 18,723
INVN InvenSense Inc. 12.74 -0.03 -0.23 2,312,212
MS Morgan Stanley 43.81 0.18 0.41 12,904,520
SNSS Sunesis Pharmaceuticals Inc. 3.87 -0.01 -0.26 57,897
BDN Brandywine Realty Trust 15.98 -0.02 -0.13 1,016,738
VOD Vodafone Group Plc 26.53 -0.12 -0.45 5,874,089
BWLD Buffalo Wild Wings Inc. 150.05 -3.30 -2.15 476,996
AWI Armstrong World Industries Inc 39.70 0.55 1.40 282,802
INCY Incyte Corporation 117.75 0.20 0.17 1,102,974
AES The AES Corporation 11.72 0.14 1.21 2,741,360
DIS Walt Disney Company (The) 108.06 0.53 0.49 6,488,966
SLG SL Green Realty Corporation 106.46 0.29 0.27 532,652
JBLU JetBlue Airways Corporation 21.76 -0.06 -0.27 3,917,310
KRC Kilroy Realty Corporation 72.83 0.52 0.72 596,369
WMB Williams Companies Inc. (The) 28.56 -0.14 -0.49 7,703,767
XIN Xinyuan Real Estate Co Ltd American Depositary Sha 5.24 -0.01 -0.19 204,924
PTR PetroChina Company Limited 80.77 1.02 1.28 87,280
VZ Verizon Communications Inc. 52.55 -0.13 -0.25 9,458,660
SEM Select Medical Holdings Corporation 14.90 0.15 1.02 784,149
UNFI United Natural Foods Inc. 47.42 0.09 0.19 382,562
OREX Orexigen Therapeutics Inc. 3.33 -0.06 -1.77 682,113
SVU SuperValu Inc. 4.24 0.01 0.24 5,435,017
BHP BHP Billiton Limited 39.84 0.10 0.25 1,706,343
USB U.S. Bancorp 51.69 0.26 0.51 7,876,357
LNKD LinkedIn Corporation Class A n/a n/a n/a 0
FCX Freeport-McMoRan Inc. 15.19 -0.08 -0.52 33,977,849
HL Hecla Mining Company 5.97 0.16 2.75 4,795,955
PAAS Pan American Silver Corp. 17.46 0.48 2.83 1,591,909
BJRI BJ\'s Restaurants Inc. 35.95 -0.10 -0.28 328,763
BXP Boston Properties Inc. 128.50 -0.51 -0.40 513,173
GPS Gap Inc. (The) 23.66 -0.34 -1.42 4,734,048
VVUS VIVUS Inc. 1.20 0.02 1.69 136,979
LIZ Liz Claiborne Inc. n/a n/a n/a 0
LULU lululemon athletica inc. 67.92 -0.70 -1.02 1,074,019
X United States Steel Corp. 32.70 -0.12 -0.37 16,648,081
NDAQ Nasdaq Inc. 67.71 0.31 0.46 461,043
STEM StemCells Inc. n/a n/a n/a n/a
KO Coca-Cola Company (The) 40.88 -0.07 -0.17 8,123,494
EXC Exelon Corporation 35.44 0.00 0.00 5,052,922
T AT&T Inc. 40.96 -0.05 -0.12 13,932,163
HAL Halliburton Company 54.54 -0.64 -1.16 5,995,616
DUK Duke Energy Corporation (Holding Company) 77.21 -0.33 -0.43 1,954,531
TWER Towerstream Corporation 0.19 0.00 0.00 226,257
AEP American Electric Power Company 63.23 -0.06 -0.09 2,506,564
STLD Steel Dynamics Inc. 35.83 0.09 0.25 2,467,082

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