The Dow Jones Industrial Average traded up to 11,925.88 versus its 200-day simple moving average at 11,937. The day’s low at 11,735.19 was below its 50-day simple moving average at 11,823. The NASDAQ rebounded to a day’s high at 2570.65 then declined to 2518.01.
Asian stocks were lower on Monday on the death of North Korean ruler Kim Jong Il. The Nikkei 225 ended the day at 8,296 – down 1.26%, and the Hang Seng ended the day at 18,070 – down 1.18%. European stocks were mixed on Monday. The FTSE 100 ending the day at 5,365 – down 0.41%; the DAX ending the day at 5,671 – down 0.54%; and the CAC 40 ending the day at 2,974 – up 0.0.6%.
The yield on the 10-Year US Treasury note traded between 1.878 percent and 1.823 unaffected by the news that the National Association of Home Builders Housing Market Index rose to 21 in December, the first reading above 20 since August 2007.
Gold rebounded to $1611.5 the Troy ounce below its 200-day simple moving average at $1616.2 with a day’s low at $1585.5. Crude oil traded down from $94.42 per barrel to $92.54 below its 50-day and 200-day simple moving averages at $94.66 and $95.83. The euro versus the dollar traded between 1.2986 and 1.3040 staying above its January 2011 low at 1.2878.
Energy
Exxon (XOM) has approached Gulf Keystone Petroleum (GUKYF) about a deal that could value the company at about £7B ($10.8B), nearly five times its market cap on Friday, The Independent reports. Tortoise North American Energy (TYN) is launched with a Buy at Bank of America-Merrill Lynch. Bill Barrett Corp (BBG) and Continental Resources (CLR) are both begun with Buys at Dahlman Rose with respective price objectives of $42 and $75. Patterson-UTI (PTEN) is boosted to Overweight from Equal Weight at Barclays. Diamond Offshore (DO) gets an Underweight-from-Equal Weight downgrade at Barclays. In afternoon trading: Shares of Gulf Keystone are up about 10.25%. Shares of LDK Solar (LDK) are up about 9.5%.
Energy Select Sector SPDR (XLE) was trading at $64.98 at 4:00 PM on Monday, down 1.75% on the day – down 4.79% year-to-date.
Materials
Eldorado Gold (EGO) said yesterday that it will acquire European Goldfields (EGFDF) for around C$2.5B ($2.59B). Mercer International (MERC) is moved Outperform from Market Perform at Raymond James. In afternoon trading: Shares of Eldorado Gold are down about 12.5%. Shares of Schnitzer Steel Industries (SCHN) are down about 8.75%. Shares of Mechel OAO (MTL) are down about 8.25%. Shares of Zagg Inc. (ZAGG) are down about 7%.
The Materials Select Sector SPDR (XLB) was trading at $31.95 at 4:00 PM on Monday, down 1.78% on the day – down 16.82% year-to-date.
Industrials
Businesses expect to increase staff by a seasonally adjusted net 9% in Q1 2012, a study from Manpower (MAN) shows, the most positive number in over a year. Spirit Aerosystems (SPR) is now Outperform from Neutral at Credit Suisse. United Rentals (URI) is raised to Top Pick from Outperform at RBC Capital. RSC Holdings (RRR) is reduced to Neutral from Outperform at Credit Suisse, since shares are no longer trading on fundamentals following its acquisition by United Rentals (URI). HEICO (HEI) is moved to Hold from Buy at Auriga. In afternoon trading: Shares of Pinnacle Airlines (PNCL) are down about 10.25%. Shares of China Ming Yang Wind Power (MY) are down about 9.5%. Shares of GOL Linhas Aereas (ESEA) are down about 7.25%.
The Industrial Select Sector SPDR (XLI) was trading at $32.33 at 4:00 PM on Monday, down 1.04% on the day – down 7.28% year-to-date.
Consumer Discretionary
Saab Automotive has filed for bankruptcy in Sweden, hours ahead of a planned hearing. The longtime carmaker’s proposed plans for a restructuring were rejected over the weekend by former owners GM (GM). Madison Square Garden (MSG) is a new Buy and $37 price target at Needham. MakeMyTrip (MMYT) is begun as a Buy and $32 price objective at brokerage Collins Stewart. Groupon (GRPN) is a new Outperform at Barrington Research, with a price objective of $30. Vail Resorts (MTN) is a new Outperform at Credit Suisse. Bayerische Motoren Werke AG [BMW Group] (BAMXF) gets upgraded to Add from Neutral at WestLB. Cablevision (CVC) is added to Citigroup’s Top Picks Live list. Children’s Place (PLCE) is now Neutral from Buy at Sterne Agee. LeapFrog (LF) is lowered to Hold from Buy at Stifel Nicolaus on account of its steep valuation. In afternoon trading: Shares of JAKKS Pacific (JAKK) are down about 18.5%. Shares of Eastman Kodak (EK) are down about 14.5%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $37.48 at 4:00 PM on Monday, down 1.11% on the day – down 0.19% year-to-date.
Consumer Staples
Nestlé (NSRGY) is a new Neutral at Credit Suisse with a target price of 58. Coca-Cola FEMSA (KOF) is increased to Overweight from Equal Weight at Morgan Stanley. United Natural Foods (UNFI) get a Buy-from-Hold hoist at Canaccord Genuity. In afternoon trading: Shares of Winn Dixie (WINN) are up about 70.5% on news that the Bi-Lo supermarket chain plans to acquire Winn-Dixie in a deal worth $560 million – ($9.50 / share – a 75% premium). Shares of AgFeed (FEED) are down about 25%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $31.36 at 4:00 PM on Monday, down 0.41% on the day – up 6.99% year-to-date.
Healthcare
Gen-Probe (GPRO) gets begun with a Buy at Deutsche Bank. ViroPharma (VPHM) is begun as a Neutral at Goldman Sachs. Vertex Pharmaceuticals (VRTX) is raised to Top Pick from Sector Perform at RBC Capital. In afternoon trading: Shares of Biosante Pharmaceuticals (BPAX) are down about 10.25%. Shares of Alexza Pharmaceuticals (ALXA) are up about 11.25%. Shares of Gentiva Health Services (GTIV) are up about 9.5%
The Health Care Select Sector SPDR (XLV) was trading at $33.41 at 4:00 PM on Monday, unchanged on the day – up 6.06% year-to-date.
Financials
Tortoise North American Energy (TYN) is launched with a Buy at Bank of America-Merrill Lynch. Lazard (LAZ) is lifted to Outperform from Neutral at Credit Suisse. General Growth Properties (GGP) is reduced to Neutral from Outperform at Credit Suisse. In afternoon trading: Shares of MF Global (MFGLQ) are down about 13%. Heavily Active Stocks: Shares of Bank of America (BAC) are down about 3.5%. Shares of Citigroup (C) are down about 4.25%. Shares of JP Morgan Chase (JPM) are down about 3.5%. Shares of Morgan Stanley (MS) are down about 5.5%.
The Financial Select Sector SPDR (XLF) was trading at $12.26 at 4:00 PM on Monday, down 2.27% on the day – down 23.17% year-to-date.
Information Technology
BMC Software (BMC) gets a Neutral-from-Underweight boost by JP Morgan. WNS Holdings (WNS) is upgraded to Outperform from Neutral at Robert W. Baird with a new price objective of $13. Calix Networks (CALX) is moved to Underweight from Equal Weight at Morgan Stanley. In afternoon trading: Shares of THQ Inc. (THQI) are up about 16.25%. Shares of Energy Conversion Devices (ENER) are up about 13.25%. Shares of OCZ Tech Group (OCZ) are down about 10%.
The Technology Select Sector SPDR (XLK) was trading at $24.74 at 4:00 PM on Monday, down 0.96% on the day – down 1.79% year-to-date.
Telecommunications Services
AT&T’s (T) talks to sell T-Mobile (DTEGY) assets have gone cold, sources say, the strongest sign to date that the $39B deal may fall apart. Telefónica (TEF) is reduced to Neutral from Overweight at HSBC Securities with a new price objective of €14.80. In afternoon trading: Shares of Cable & Wireless Worldwide (CBWWF) are up about 24%. Shares of Towerstream Corp. (TWER) are up about 14.5%. Heavily Active Stocks: Shares of Sprint Nextel (S) are down about 1.25%, while shares of AT&T (T) are down about 0.2% and shares of Verizon (VZ) are up about 0.2%.
The NASDAQ Telecommunications Index (IXTC) was trading at $189.67 at 4:00 PM on Monday, down 0.36% on the day – down 15.84% year-to-date.
Utilities
Pinnacle West (PNW) is cut to Neutral from Outperform at Credit Suisse. Suez Environnement (SZEVY) gets downgraded to Neutral from Outperform at Credit Suisse. In afternoon trading: Heavily Active Stocks: Shares of Duke Energy (DUK) are relatively unchanged. Shares of Genon Energy (GEN) are down about 5.75%. Shares of Exelon (EXC) are down about 1.5%. Shares of AES Corp. (AES) are up slightly.
The Utilities Select Sector SPDR (XLU) was trading at $34.28 at 4:00 PM on Monday, down 0.75% on the day – up 9.38% year-to-date.
STOCKS: XOM, GUKYF, TYN, BBG, CLR, PTEN, DO, LDK, EGO, EGFDF, MERC, SCHN, MTL, ZAGG, MAN, SPR, URI, RRR, HEI, PNCL, MY, ESEA, GM, MSG, MMYT, GRPN, MTN, BAMXF, CVC, PLCE, LF, JAKK, EK, NSRGY, KOF, UNFI, WINN, FEED, GPRO, VPHM, VRTX, BPAX, ALXA, GTIV, TYN, LAZ, GGP, MFGLQ, BAC, C, JPM, MS, BMC, WNS, CALX, THQI, ENER, OCZ, T, DTEGY, TEF, CBWWF, TWER, S, VZ, PNW, SZEVY, DUK, GEN, EXC, AES
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