Equities Sector Coverage: Stocks Continue Drop to Start November

Sector Recap |

The national ISM Manufacturing Index came in at 50.8 in October, lower than expected. Construction Spending rose by 0.2% in September, in line with estimates. The Dow Jones Industrial Average traded down to 11,630.03 on Tuesday afternoon. The NASDAQ traded down from 2638.60 to 2597.16.

Asian stocks slipped again on Tuesday with the Nikkei 225 down 1.70% to 8,836 and the Hang Seng slumping 2.49% to 19,370. European stocks were lower on worries that the Greek referendum could scuttle the plan to resolve Europe’s debt crisis. The FTSE 100 declined 2.75% to 5,392 with the DAX slumping 4.76% to 5,849 and the CAC 40 plummeting by 5.07% to 3,078. The US Treasury 10-Year yield declined from 2.146 to 1.952 on Tuesday. Gold declined from $1725.0 the Troy ounce to below $1700.0 and stayed below its 50-day simple moving average at $1729.7.

Crude oil declined from $92.88 per barrel to $89.17 staying between its 200-week and 200-day simple moving averages at $83.50 and $94.80. The euro versus the dollar traded down from 1.3869 to 1.3612 below its 50-day and 200-day simple moving averages at 1.3820 and 1.4102.

Energy

Baker Hughes (BHI) reported Q3 EPS of $1.18 (missing estimates by 2 cents) with revenue in-line with estimates. Forest Oil (FST) reported Q3 revenue of $174.1M and EPS of $0.25 (the latter was in-line, but the former missed by $23.5M). The company expects its oil and gas to grow by 4%-7% Q/Q in 2011. Baker Hughes (BHI) missed estimates by 2 cents with revenue in-line with estimates. Valero (VLO) beat estimates by 37 cents and revenue by $2.3B. Rowan Companies (RDC) missed estimates by 14 cents and revenue by $15M. ENI S.p.A. (E) is downgraded to Hold from Buy at brokerage Collins Stewart. In afternoon trading: Shares of General Maritime (GMR) are down about 13.5%. Shares of Denison Mines (DNN) are down about 10.75%.

Energy Select Sector SPDR (XLE) was trading at $67.46 at 4:00 PM on Monday, down 3.23% on the day – down 1.16% year-to-date.

Materials

Anglogold (AU) and Harmony Gold (HMY) are both begun with a Buy at Deutsche Bank. Hecla Mining (HL) and Silver Standard (SSRI) are both moved to Market Perform from Outperform by BMO Capital. In afternoon trading: Shares of Jaguar Mining (JAG) are up about 10.25%. Shares of Ferro Corp. (FOE) are up about 6.5%. Shares of Kraton Performance Polymers (KRA) are down about 9.25%. Shares of Stillwater Mining (SWC) are down about 7.25%. Shares of Silver Standard are down about 7.25%. Shares of Mechel OAO (MTL) are down about 6.25%. Shares of Teck Resources (TCK) are down about 6%.

The Materials Select Sector SPDR (XLB) was trading at $33.53 at 4:00 PM on Monday, down 2.67% on the day – down 12.71% year-to-date.

Industrials

U.K.-based G4S (GFSZF) has pulled out of its planned £5.2B ($8.4B) purchase of Denmark's ISS, whose owners include Goldman Sachs Capital Partners (GS). Expeditors International of Washington (EXPD) missed estimates by 48 cents on revenue of $1.73B. Oshkosh Truck (OSK) beat estimates by 16 cents and revenue by $100M. Emerson Electric (EMR) beat estimates by 2 cents with revenue in-line with estimates. Brazil’s GOL Linhas Areas Inteligentes S.A. (GOL) is begun with an Overweight at Barclays, which establishes Underweights on compatriot TAM S.A. (TAM) and Chile’s Lan Airlines S.A. (LFL). Xylem (XYL) is a new Neutral at brokers Robert W. Baird after its tax-free spin-off from ITT Corp (ITT). Canadian Pacific (CP) is cut to Market Perform from Outperform by BMO Capital. In afternoon trading: Shares of ITT Corp are up about 24%. Shares of General Cable (BGC) are down about 21.25%. Shares of Beacon Power (BCON) are down about 17%.

The Industrial Select Sector SPDR (XLI) was trading at $32.41 at 4:00 PM on Monday, down 3.02% on the day – down 7.05% year-to-date.

Consumer Discretionary

DirecTV (DTV) has come to an agreement with Fox (NWS) to continue providing the satellite broadcaster's 19M subscribers with Fox channels. Billboard advertising provider Clear Channel Outdoor (CCO) reported Q3 revenue of $748.4M and EPS of $0.01 (the former beat by $18.4M, but the latter missed by $0.04). Thomson Reuters (TRI) beat estimates by 3 cents and revenue by $30M. Sirius XM Radio (SIRI) beat estimates by a penny, while missing revenue by $1M. Total subscribers grew by 333.7K Q/Q, to 21.3M. Choice Hotels (CHH) is lowered to Neutral from Buy at Nomura. In afternoon trading: Shares of General Motors (GM) are down about 8.75%. Shares of Dangdang (DANG) are down about 8.25%. Shares of Lamar Advertising (LAMR) are down about 7.75%. Shares of Corinthian Colleges (COCO) are up about 9%. Shares of Eastman Kodak (EK) are up about 7.25%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $38.18 at 4:00 PM on Monday, down 2.15% on the day – up 2.06% year-to-date.

Consumer Staples

Archer Daniels Midland (ADM) beat estimates by 2 cents and revenue by $2.97B. Avon Products (AVP) is downgraded to Hold from Buy at Jefferies. In afternoon trading: Shares of Central European Distribution (CEDC) are down about 7.5%. Shares of Herbalife (HLF) are down about 6.5%. Shares of Coffee Holding (JVA) are down about 6.5%. Shares of Star Scientific (CIGX) are down about 5.75%. Shares of Winn-Dixie (WINN) are up about 7%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.50 at 4:00 PM on Monday, down 1.74% on the day – up 4.06% year-to-date.



Healthcare

Pfizer (PFE) beat estimates by 7 cents, while missing revenue by $12.7B. The company raised full-year EPS guidance and boosted its share repurchase program. Amedisys (AMED) reported Q3 revenue of $374.9M and EPS of $0.36 (the former beat by $2.8M and the latter missed by $0.14). HCA (HCA) reported Q3 EPS 11c (versus consensus of 43c). Tenet Healthcare (THC) beat estimates by 2 cents with revenue in-line with estimates. Watson Pharmaceuticals (WPI) beat estimates by 4 cents, while missing revenue by $10M. AmerisourceBergen (ABC) missed estimates by 7 cents and revenue by $200M. Anthera Pharmaceuticals (ANTH) is begun with a Buy at Buy at Deutsche Bank. Amerigroup (AGP) is now Neutral from Underperform by Bank of America-Merrill Lynch. Transcept Pharmaceuticals (TSPT) is taken to Buy from Hold at MLV Capital with a price target of $21. Volcano (VOLC) is moved to Market Perform from Outperform at JMP Securities. In afternoon trading: Shares of Exelixis (EXEL) are down about 40%. Shares of Amedisys are down about 23%. Shares of Zalicus (ZLCS) are down about 14.25%. Shares of Merge Healthcare (MRGE) are down about 10.25%. Shares of Akorn Inc. (AKRX) are up about 11.5%. Shares of Pharmasset (VRUS) are up about 10.5%.

The Health Care Select Sector SPDR (XLV) was trading at $32.92 at 4:00 PM on Monday, down 1.91% on the day – up 4.51% year-to-date.

Financials

After other big banks announced they will not charge monthly debit card fees, Bank of America (BAC) announces that they are dropping plans to charge customers a $5-a-month fee to use their debit cards next year. Regulators are investigating whether MF Global (MF) diverted up to $700M from segregated customer accounts to support its trades as it teetered on bankruptcy. U.K.-based G4S (GFSZF) has pulled out of its planned £5.2B ($8.4B) purchase of Denmark's ISS, whose owners include Goldman Sachs Capital Partners (GS). Credit Suisse (CS) and Nomura (NMR) announced further cost reductions today, with the Swiss bank saying it will cut a further 1,500 jobs in addition to 2,000 it has already announced. Insurers may have to boost reserves by billions of dollars if regulators insist on a stricter approach for meeting claims on "universal-life" insurance products, The Wall Street Journal reports, with states saying that firms have improperly minimized reserves. Genworth Financial (GNW), Lincoln National (LNC) and Protective Life (PL) are among those that use a disputed methodology that has enabled them to keep reserves down. Fidelity National Information Services (FIS) beat estimates by 2 cents with revenue in-line with estimates. Macerich (MAC) beat estimates by a penny and revenue by $19M. Citigroup (C) is upgraded to Outperform from Neutral upgrade at Credit Suisse. Post Properties (PPS) is raised to Neutral from Underweight at JPMorgan. BNP Paribas (BNPQY) is cut to Underperform from Market Perform at Keefe Bruyette. Barclays PLC (BCS) is now Neutral from Buy at UBS. Legg Mason (LM) is lowered to Sell from Neutral with a $22 target at Ticonderoga. Tanger Factory Outlet (SKT) is taken to Hold from Buy at Jefferies. In afternoon trading: Shares of ING Group (ING) are down about 12.25%. Shares of Radian Group (RDN) are up about 10.5%.

The Financial Select Sector SPDR (XLF) was trading at $12.86 at 4:00 PM on Monday, down 4.71% on the day – down 19.37% year-to-date.

Information Technology

Symantec (SYMC) has said that at least 48 chemical and defense firms were hit by a coordinated cyber-attack from hackers traced to China. AsiaInfo-Linkage (ASIA) reported revenue of $119M and EPS of $0.37 (beating consensus by $1.9M and $0.01). However, the company expects Q4 EPS of just $0.30-$0.33 (well below a $0.42 consensus). Rogers (ROG) missed Q3 revenue estimates, reporting $147.6M (versus $148.4M consensus). Intervac (IVAC) reported Q3 revenue of $19.3M and EPS of -$0.27 (beating consensus by $1.9M and $0.01). MicroStrategy (MSTR) reported Q3 revenue of $141.7M and EPS of $0.44 (the latter beat by $.02, the former was merely in-line). IPG Photonics (IPGP) reported revenue of $129.1M and EPS of $0.66 (beating consensus by $1M and $0.02), and in-line Q4 guidance revenue of $122M-$135M and EPS of $0.60-$0.71 (versus consensus of $130.6M and $0.65). NXPI Semiconductors (NXPI) missed estimates by a penny, while beating revenue by $34M. Vishay Intertechnology (VSH) missed estimates by 3 cents and revenue by $3M. Aruba Networks (ARUN) is a new Hold at Deutsche Bank. ARM Holdings (ARMH) is assigned a Hold at Canaccord Genuity. LG Display (LPL) and AU Optronics (AUO) are each upgraded to Overweight from Underweight at HSBC Securities. Accenture (ACN) is reduced to Equal Weight from Overweight by Barclays. Alcatel-Lucent (ALU) is moved to Neutral from Overweight at JPMorgan. NVIDIA (NVDA) is now Hold from Buy at Canaccord Genuity. OSI Systems (OSIS) is cut to In-Line from Outperform at Imperial Capital. In afternoon trading: Shares of AsiaInfo are down about 21.25%. Shares of Renren (RENN) are down about 11.25%.

The Technology Select Sector SPDR (XLK) was trading at $25.29 at 4:00 PM on Monday, down 2.77% on the day – up 0.40% year-to-date.

Telecommunications Services

American Tower (AMT) missed estimates by 21 cents, while beating revenue by $13M. MetroPCS Communications (PCS) missed estimates by 4 cents with revenue in-line with estimates. Telefonica S.A. (TEF) is reduced to Hold from Buy at Deutsche Bank. In afternoon trading: Shares of Leap Wireless (LEAP) are up about 14.5%. Shares of MetroPCS are down about 9.25%. Actives: Shares of Sprint Nextel (S) are down about 2.1%, while shares of AT&T (T) are down about 1.4% and shares of Verizon (VZ) are down about a half of a percent.

The NASDAQ Telecommunications Index (IXTC) was trading at $192.11 at 4:00 PM on Monday, down 3.42% on the day – down 14.76% year-to-date.

Utilities

FirstEnergy (FE) beat estimates by 12 cents on revenue of $4.7B. Pinnacle West Capital (PNW) beat estimates by 13 cents with revenue in-line with estimates. Entergy (ETR) beat estimates by 24 cents with revenue in-line with estimates. In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about 0.9%. Shares of Genon Energy (GEN) are down about 4.9%. Shares of Exelon (EXC) are down about 1.3%. Shares of AES Corp (AES) are down about 1.3%.

The Utilities Select Sector SPDR (XLU) was trading at $34.12 at 4:00 PM on Monday, down 2.09% on the day – up 8.87% year-to-date.

STOCKS: BHI, FST, VLO, RDC, E, GMR, DNN, AU, HMY, HL, SSRI, JAG, FOE, KRA, SWC, MTL, TCK, GFSZF, GS, EXPD, OSK, EMR, GOL, TAM, LFL, XYL, ITT, CP, BGC, BCON, DTV, NWS, CCO, TRI, SIRI, CHH, GM, DANG, LAMR, COCO, EK, ADM, AVP, CEDC, HLF, JVA, CIGX, WINN, PFE, AMED, HCA, THC, WPI, ABC, ANTH, AGP, TSPT, VOLC, EXEL, ZLCS, MRGE, AKRX, VRUS, MF, CS, NMR, GNW, LNC, PL, FIS, MAC, C, PPS, BNPQY, BCS, LM, SKT, ING, RDN, SYMC, ASIA, ROG, IVAC, MSTR, IPGP, NXPI, VSH, ARUN, ARMH, LPL, AUO, CAN, ALU, NVDA, OSIS, RENN, AMT, PCS, TEF, LEAP, S, T, VZ, FE, PNW, ETR, DUK, GEN, EXC, AES

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
DNN Denison Mines Corp (Canada) 0.60 0.03 4.46 462,497
RDC Rowan Companies plc Class A 13.62 -0.46 -3.27 1,276,460 Trade
KRA Kraton Performance Polymers Inc 46.55 -1.57 -3.26 89,810 Trade
GEN Genesis Healthcare Inc. 0.75 -0.00 -0.54 605,366 Trade
TCK Teck Resources Ltd n/a n/a n/a 0
EXPD Expeditors International of Washington Inc. 64.29 -0.51 -0.79 943,554 Trade
THC Tenet Healthcare Corporation 14.12 -0.70 -4.72 2,349,870 Trade
AMED Amedisys Inc 54.56 -0.29 -0.53 143,252 Trade
AMBA Ambarella Inc. 57.77 -0.65 -1.11 235,150 Trade
WPI Watson Pharmaceuticals Inc. n/a n/a n/a 0 Trade
CHH Choice Hotels International Inc. 75.93 0.03 0.03 135,028 Trade
BGC General Cable Corporation 29.98 -0.08 -0.25 1,447,923 Trade
GNW Genworth Financial Inc 3.36 -0.05 -1.36 5,524,591 Trade
ARMH ARM Holdings plc n/a n/a n/a 0 Trade
TEF Telefonica SA 9.64 -0.17 -1.73 1,446,144 Trade
SWC Stillwater Mining Company ($0.01 Par Value) n/a n/a n/a 0 Trade
LNC Lincoln National Corporation 75.96 0.11 0.15 609,997 Trade
HLF Herbalife Ltd. 70.38 -0.17 -0.24 528,041 Trade
VLO Valero Energy Corporation 87.72 0.27 0.31 2,035,071 Trade
AUO AU Optronics Corp American Depositary Shares 4.20 -0.01 -0.24 208,561 Trade
ABC AmerisourceBergen Corporation 89.76 1.28 1.45 2,305,708 Trade
XYL Xylem Inc. New 66.92 -0.57 -0.84 433,085 Trade
BCS Barclays PLC 10.85 0.08 0.70 2,523,022 Trade
C Citigroup Inc. 74.00 -1.14 -1.52 18,215,965 Trade
S Sprint Corporation 5.66 -0.04 -0.62 11,515,763 Trade
AKRX Akorn Inc. 32.25 0.03 0.09 780,704 Trade
FOE Ferro Corporation 23.39 -0.01 -0.04 620,631 Trade
RDN Radian Group Inc. 21.42 -0.60 -2.72 942,736 Trade
RENN Renren Inc. American Depositary Shares each repres 10.31 0.32 3.20 102,009 Trade
CCO Clear Channel Outdoor Holdings Inc. Class A 4.08 -0.23 -5.23 243,490 Trade
ANTH Anthera Pharmaceuticals Inc. 1.46 -0.04 -2.67 246,687 Trade
EXEL Exelixis Inc. 26.05 -0.53 -1.99 1,426,783 Trade
ITT ITT Inc. 52.02 -0.84 -1.59 189,755 Trade
TRI Thomson Reuters Corp 44.43 0.26 0.59 601,812 Trade
HCA HCA Holdings Inc. 86.55 -1.04 -1.19 1,079,459 Trade
NVDA NVIDIA Corporation 186.81 0.63 0.34 9,531,673 Trade
AVP Avon Products Inc. 2.13 0.04 1.91 1,798,785 Trade
IPGP IPG Photonics Corporation 205.45 0.39 0.19 295,495 Trade
OSIS OSI Systems Inc. 65.29 -1.09 -1.64 218,733 Trade
SYMC Symantec Corporation 28.76 0.13 0.45 4,202,582 Trade
MTL Mechel PAO American Depositary Shares (Each rep. 1 4.51 -0.12 -2.59 58,542 Trade
AES The AES Corporation 10.68 0.03 0.23 4,067,046 Trade
GS The Goldman Sachs Group Inc. 256.45 0.89 0.35 1,984,004 Trade
LM Legg Mason Inc. 40.11 -0.06 -0.15 364,076 Trade
PNW Pinnacle West Capital Corporation 89.10 -0.20 -0.22 191,183 Trade
VZ Verizon Communications Inc. 52.47 -0.43 -0.80 13,068,349 Trade
LAMR Lamar Advertising Company 78.69 0.67 0.86 564,937 Trade
MSTR MicroStrategy Incorporated 131.56 -1.30 -0.97 88,071 Trade
GM General Motors Company 40.85 -0.56 -1.34 6,997,650 Trade
DANG E-Commerce China Dangdang Inc. American Depositary n/a n/a n/a 0 Trade
HL Hecla Mining Company 3.80 -0.01 -0.13 4,227,019 Trade
MAC Macerich Company (The) 66.68 -0.09 -0.13 1,596,713 Trade
IVAC Intevac Inc. 6.90 -0.15 -2.13 135,579 Trade
EMR Emerson Electric Company 66.76 -0.44 -0.66 1,643,331 Trade
SSRI Silver Standard Resources Inc. n/a n/a n/a 0 Trade
ADM Archer-Daniels-Midland Company 39.68 -0.38 -0.94 2,749,858 Trade
NXPI NXP Semiconductors N.V. 115.82 -0.24 -0.21 4,764,304 Trade
ROG Rogers Corporation 156.54 -1.60 -1.01 79,701 Trade
JVA Coffee Holding Co. Inc. 4.24 0.16 3.88 18,471 Trade
BHI Baker Hughes Incorporated n/a n/a n/a 0 Trade
PPS Post Properties Inc. n/a n/a n/a 0 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 8.24 -0.18 -2.14 284,626 Trade
OSK Oshkosh Corporation (Holding Company)Common Stock 87.98 -1.12 -1.26 466,924 Trade
SKT Tanger Factory Outlet Centers Inc. 25.86 0.01 0.04 859,374 Trade
SIRI Sirius XM Holdings Inc. 5.69 -0.01 -0.09 10,243,651 Trade
PFE Pfizer Inc. 36.57 -0.07 -0.19 9,257,651 Trade
ALU Alcatel-Lucent ADR (Sponsored) n/a n/a n/a 0 Trade
ETR Entergy Corporation 82.70 -0.62 -0.74 860,914 Trade
AMT American Tower Corporation (REIT) 143.70 -0.03 -0.02 1,595,391 Trade
ING ING Group N.V. 18.28 -0.03 -0.16 1,315,970 Trade
AU AngloGold Ashanti Limited 9.14 -0.30 -3.13 4,068,487 Trade
LFL LATAM Airlines Group S.A. n/a n/a n/a n/a
FE FirstEnergy Corporation 32.14 -0.14 -0.42 2,647,109 Trade
EXC Exelon Corporation 40.89 -0.24 -0.58 2,818,643 Trade
CP Canadian Pacific Railway Limited 180.55 0.67 0.37 324,576 Trade
HMY Harmony Gold Mining Company Limited 1.75 0.01 0.29 1,146,817 Trade
T AT&T Inc. 37.92 -0.13 -0.33 21,494,578 Trade
LPL LG Display Co Ltd AMERICAN DEPOSITORY SHARES 13.65 0.07 0.52 471,312 Trade
DUK Duke Energy Corporation (Holding Company) 87.75 0.19 0.21 1,570,886 Trade
NMR Nomura Holdings Inc ADR American Depositary Shares 5.88 -0.04 -0.59 49,607 Trade
VSH Vishay Intertechnology Inc. 20.40 -0.15 -0.73 975,593 Trade
FIS Fidelity National Information Services Inc. 93.88 -0.10 -0.10 1,044,768 Trade
NWS News Corporation 16.45 -0.05 -0.30 441,872 Trade

Comments

Emerging Growth

Radient Technologies Inc.

Radient Technologies Inc is engaged in research, development and commercialization of environmentally responsible technology for the extraction, isolation and purification of soluble products from a wide range of materials using…

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…