Equities Sector Coverage: Stocks Edge Higher on Economic Data

Sector Recap |

U.S. Unemployment rateInitial Jobless Claims came in at 351,000 in the latest week and last week’s reading was revised upward to 351,000. This means that claims are on the cusp of trending below the 350,000 recessionary thresholds - which has been the floor for claims since the end of 2007.

The Dow Jones Industrial Average declined to 12,882.67 at the open then rebounded to 12,996.08 by noon. The day’s range held with the Dow at the upper end going into the final half hour of trading. The NASDAQ opened lower to 2922.96 then rebounded to 2956.09 by noon. After trading sideways in afternoon trading the NASDAQ traded to a day’s high into the final half hour of trading. The S&P 500, Dow Transports and Russell 2000 continue to lag their 2011 highs at 1370.58, 5627.85 and 868.57 respectively.

Asian stocks were mixed on Thursday with the Nikkei 225 ending their session 9,596 – up 0.44% on the day. The Hang Seng ended their session at 21,381 – down 0.78% on the day. European stocks were also mixed on Thursday. The FTSE 100 ended their session at 5,939 – up 0.38% on the day, the DAX ended their session at 6,809 down 0.50% on the day, and the CAC 40 ended their session at 3,447 – flat on the day. The yield on the 10-Year US Treasury declined from 2.045 percent to 1.972. Gold traded up from $1773.3 the Troy ounce to $1789.5. Crude oil traded down from $106.80 per barrel to $105.45 then rebounded to $108.24. The euro versus the dollar traded up from 1.3234 to 1.3372.

Energy

Anadarko Petroleum (APC) and BP (BP) are liable for civil damages related to the Gulf oil spill, District Judge Carl Barbier ruled yesterday, exposing the two firms to billions of dollars in potential fines. Tenaris (TS) reported Q4 EPS of $0.68 (versus consensus of $0.32) on revenue of $2.75B. Helix Energy Solutions Group (HLX) reported Q4 EPS of -$0.16 (versus consensus of $0.32), while beating revenue by $66M. Stone Energy (SGY) beat estimates by 16 cents and revenue by $24M. Williams Companies (WMB) missed estimates by 4 cents.
Energy Select Sector SPDR (XLE) was trading at $75.93 at 4:00 PM on Thursday, up 0.50% on the day – up 9.84% year-to-date. The January change was +2.26%. The 2011 change was -1.29%

Big Movers: (PVA) -14.5%, (YGE) -10.5%, (TSL) -11%, (CIE) -9.5%, (QEP) +9%.

Materials

Pan American Silver (PAAS) beat estimates by 4 cents on revenue of $212.3M. Yamana Gold (AUY) beat estimates by a penny, while missing revenue by $31M. Impala Platinum (IMPUY) is upgraded to Overweight from Neutral at HSBC Securities. Anglo Platinum (AGPPY) is cut to Underweight from Neutral at HSBC Securities.
The Materials Select Sector SPDR (XLB) was trading at $37.57 at 4:00 PM on Thursday, up 0.11% on the day – up 12.15% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.

Heavily Traded Stocks: (AA) +0.7%, (VALE) +1.9%, (AUY) +3.9%, (CX) -1.9%.

Industrials

Foster Wheeler (FWLT) missed estimates by 5 cents and revenue by $70M. Iron Mountain (IRM) beat estimates by 4 cents, while missing revenue by $4M. Hertz Global (HTZ) beat estimates by 3 cents with revenue in-line with estimates. DryShips (DRYS) missed estimates by a penny, while beating revenue by $41M. Fluor (FLR) beat estimates by 8 cents, while missing revenue by $130M. Boeing (BA) is a Hold at Stifel Nicolaus. Fuel-Tech (FTEK) is a new Buy at Brokerage Brean Murray with a price objective of $8. Westport Innovations (WPRT) is moved to Underweight from Neutral at JPMorgan.

The Industrial Select Sector SPDR (XLI) was trading at $37.49 at 4:00 PM on Thursday, up 0.32% on the day – up 11.08% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.

Big Movers: (GTI) -16%, (GNK) -13%, (PPO) -12%, (KBR) +10%.

Consumer Discretionary

Comcast (CMCSA) is suing Sprint (S) over the alleged infringement of patents covering wireless networking technologies. Meanwhile, Sprint, T-Mobile, and MetroPCS (PCS) are continuing their efforts to halt Verizon's (VZ) spectrum/reseller deals with cable providers. Wynn Macau will hold an emergency board meeting tomorrow to discuss the removal of Kazuo Okada as a director, but removing Okada from the board of parent Wynn Resorts (WYNN) will require a vote by shareholders. Target (TGT) beat estimates by 5 cents, while missing revenue by $300M. The company sees 2012 EPS of $4.55-4.75 against consensus $4.28. Kohl's (KSS) beat estimates by a penny with revenue in-line with estimates. DISH Network (DISH) beat estimates by 9 cents with revenue in-line with estimates. Jack in the Box (JACK) reported FQ1 EPS of $0.25 (versus consensus of $0.24), while beating revenue by $23M. Caribou Coffee (CBOU) beat estimates by a penny and revenue by $4M. Limited Brands' (LTD) FQ4 beat estimates, but the company expects FQ1 EPS of $0.35-$0.40 (below a $0.44 consensus). In addition, Limited expects FY13 EPS of $2.60-$2.80 (also below a consensus of $2.91). Dana Holding (DAN) and Borg Warner (BWA) are both begun with Buys at Crédit Agricole. CEC Entertainment (CEC) is moved to Outperform from Market Perform with a $44 objective by brokers Morgan Keegan. DIRECTV (DTV) is now Overweight from Neutral at Atlantic Equities. Lumber Liquidators (LL) is lifted to Overweight from Neutral at Piper Jaffray. Ryland Group (RYL) is lowered to Neutral from Buy at UBS.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.91 at 4:00 PM on Thursday, up 0.49% on the day – up 9.97% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.

Big Movers: (SHLF) +18%, (DDS) +10.25%, (AWAY) -11.5%.

Consumer Staples

Hormel Foods (HRL) reported FQ1 EPS of $0.48 (in-line) and revenue of $2.04B (in-line). British American Tobacco’s (BTI) FY net profit rose to £3.1B from £2.9B a year earlier, with pretax profit +11% to £5.52B. Revenue was up 3% to £15.4B. Boston Beer’s (SAM) Q4 beats EPS and revenue estimates on a 46% jump in profit as the brewer of Sam Adams beer posted an increase in shipment volumes and a successful pass-through of higher prices. Kellogg (K) gets a Buy-from-Hold hoist at Deutsche Bank. Pilgrim’s Pride (PPC) gets increased to Outperform from In Line at Imperial Capital, which also takes its price target up by $3 to $9.



The Consumer Staples Select Sector SPDR (XLP) was trading at $32.95 at 4:00 PM on Thursday, up 0.52% on the day – up 1.42% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.

Big Movers: (SMBL) +16.5%, (SWY) -8.5%.
Heavily Traded Stocks: (SWY) -8.5%, (PG) +2.9%, (WMT) -0.2%.

Health Care

At the open, shares of Vivus (VVUS) up about 103% after an FDA advisory panel voted 20-2 yesterday to recommend anti-obesity drug Qnexa. The news lifted shares of rivals with weight-loss drugs pending approval, including Arena Pharmaceuticals (ARNA) and Orexigen Therapeutics (OREX). MannKind (MNKD) beat estimates by 2 cents. Hansen Medical (HNSN) beat estimates by a penny with revenue in-line with estimates. Onyx Pharmaceuticals (ONXX) missed estimates by 11 cents, while beating revenue by $24M. Express Scripts (ESRX) missed estimates by 3 cents, while beating revenue by $500M. Alexion Pharmaceuticals (ALXN) is taken to Buy from Neutral at UBS. Community Health Systems (CYH) is lifted to Buy from Hold at Deutsche Bank. Vivus Inc (VVUS) is raised to Hold from Sell by Brean Murray. Human Genome Sciences (HGSI) is now Neutral from Buy at brokers Collins Stewart.

The Health Care Select Sector SPDR (XLV) was trading at $36.01 at 4:00 PM on Thursday, up slightly on the day – up 3.81% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.

Big Movers: (VVUS) +79%, (OREX) +18%, (HNSN) +9.75%, (QCOR) +8.5%.

Financials

RBS (RBS) reported its 2011 net loss widened to £2B vs. a £1.1B loss a year ago and worse than consensus of a £1.1B loss this year. JPMorgan Chase (JPM) is named a Long Research Tactical Idea by brethren Morgan Stanley. Primerica (PRI) is picked up with an Underperform at Macquarie, which has fresh Outperforms on rivals Reinsurance Group of America (RGA), Principal Financial (PFG) and MetLife (MET), and new Neutrals on Aflac (AFL), Lincoln National (LNC) and Unum (UNM). Bank of Montreal (BMO) is boosted to Outperform from Neutral at Credit Suisse. Principal Financial (PFG) is upgraded to Buy from Neutral at Sterne Agee. Canadian Imperial Bank of Commerce (CM) is lowered to Neutral from Outperform at Credit Suisse. Fifth Street Finance (FSC) gets downgraded to Hold from Buy at Gilford Securities.

The Financial Select Sector SPDR (XLF) was trading at $14.72 at 4:00 PM on Thursday, up 0.93% on the day – up 13.23% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.

Heavily Traded Stocks: (BAC) +0.9%, (RF) +2.1%, (JPM) +0.4%, (C) +1.6%.

Information Technology

CyberDefender (CYDE) filed voluntary Chapter 11 petition to facilitate sale. Microsoft (MSFT) filed a complaint with European regulators that Motorola Mobility Holdings (MMI), with Google's (GOOG) support, is misusing patents, demanding unfairly high prices from device makers to use standard patents. Hewlett-Packard (HPQ) beat earnings expectations yesterday ($0.92 vs. $0.87 consensus) but came in short on revenue ($30B vs. $30.7B consensus). The company expects FQ2 EPS of $0.88-$0.91, below $0.95 consensus, and reiterated guidance for FY12 EPS of $4, below $4.08 consensus. Citing concerns that recent changes to Google's (GOOG) privacy policy raise the risk of identity theft and fraud, 36 state AGs sent Larry Page a letter outlining their issues with the changes. Analog Devices (ADI) missed estimates by 2 cents and revenue by $14M. The company also lowered FQ2 guidance to below Street estimates. United Online (UNTD) beat estimates by 5 cents with revenue in-line with estimates. Novatel Wireless (NVTL) beat estimates by 9 cents, while missing revenue by $4M. Newport (NEWP) missed estimates by 9 cents with revenue in-line with estimates. ManTech International (MANT) missed estimates by 4 cents and revenue by $28M. EZchip (EZCH) is initiated at a Perform at Oppenheimer. Intuit (INTU) is a new Hold at Stifel Nicolaus. LM Ericsson (ERIC) is now Overweight from Neutral at JPMorgan. Elster Group (ELT) is upgraded to Buy from Neutral by Bank of America-Merrill Lynch. Shanda Games (GAME) gets upgraded to Outperform from Neutral at Macquarie. Itron Inc (ITRI) is lowered to Underperform from Neutral at Bank of America-Merrill Lynch. MercadoLibre (MELI) is moved to Neutral from Overweight at JP Morgan. Kyocera Corp (KYO) is cut to Neutral from Buy at Bank of America-Merrill Lynch. Juniper Networks (JNPR) is now Market Perform from Outperform at FBR Capital, which takes its target down to $21 from $25. Sina Corp (SINA) gets downgraded to Equal Weight from Overweight by Barclays.
The Technology Select Sector SPDR (XLK) was trading at $28.65 at 4:00 PM on Thursday, up 0.39% on the day – up 12.57% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.

Big Movers: (CYDE) -52%, (TSL) -11%, (YGE) -10.5%, (HSOL) -10%, (SMSI) +13%, (ANGI) +10.5%.

Telecommunication Services

Comcast (CMCSA) is suing Sprint (S) over the alleged infringement of patents covering wireless networking technologies. Meanwhile, Sprint, T-Mobile, and MetroPCS (PCS) are continuing their efforts to halt Verizon's (VZ) spectrum/reseller deals with cable providers. France Telecom (FTE) is lifted to Buy from Hold at ING Groep. Level 3 Communications (LVLT) is lifted to Overweight from Equal Weight at Morgan Stanley.

The NASDAQ Telecommunications Index (IXTC) was trading at $217.97 at 4:00 PM on Thursday, up 0.51% on the day – up 10.68% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.

Big Movers: (PCS) +13%, (LVLT) +10.5%, (TSTRQ) +9.5%, (LEAP) +8.25%, (S) +7.25%, (NIHD) -9%.

Utilities

SJW Corp (SJW) gets increased to Buy from Hold with a $29 target price at Brean Murray.
The Utilities Select Sector SPDR (XLU) was trading at $34.93 at 4:00 PM on Thursday, down slightly on the day – down 2.92% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

Heavily Traded: (AEP) -3.9%, (DUK) -0.3%, (GEN) -0.4%, (EXC) -0.5%, (AES) -0.3%.

STOCKS: APC, BP, TS, HLX, SGY, WMB, PVA, YGE, TSL, CIE, QEP, PAAS, AUY, IMPUY, AGPPY, AA, VALE, CX, FWLT, IRM, HTZ, DRYS, FLR, BA, FTEK, WPRT, GTI, GNK, PPO, KBR, CMCSA, S, PCS, VZ, WYNN, TGT, KSS, DISH, JACK, CBOU, LTD, DAN, BWA, CEC, DTV, LL, RYL, SHLF, DDS, AWAY, HRL, BTI, SAM, K, PPC, SMBL, SWY, PG, WMT, VVUS, ARNA, OREX, MNKD, HNSN, ONXX, ESRX, ALXN, CYH, HGSI, QCOR, RBS, JPM, PRI, RGA, PFG, MET, AFL, LNC, UNM, BMO, CM, FSC, BAC, RF, C, CYDE, MSFT, MMI, GOOG, HPQ, GOOG, ADI, UNTD, NVLT, NEWP, MANT, EZCH, INTU, ERIC, ELT, GAME, ITRI, MELI, KYO, JNPR, SINA, HSOL, SMSI, ANGI, FTE, LVLT, TSTRQ, LEAP, NIHD, SJW, AEP, 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
BTI British American Tobacco Industries p.l.c. ADR 119.89 0.97 0.82 2,008,309
SAM Boston Beer Co. Cl A 157.00 1.10 0.71 34,156
GEN Genesis Healthcare Inc. 4.29 0.07 1.66 128,358
PRI Primerica Inc. 73.40 0.70 0.96 161,816
GAME Shanda Games Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0
PVA Penn Virginia Corp. n/a n/a n/a 0
PG Procter & Gamble Company (The) 87.66 0.70 0.80 4,287,101
DISH DISH Network Corporation 61.35 -0.11 -0.18 849,473
AFL AFLAC Incorporated 69.79 0.44 0.63 859,563
ITRI Itron Inc. 61.60 0.45 0.74 29,239
VALE VALE S.A. American Depositary Shares Each Represen 10.54 0.03 0.28 21,822,808
ALXN Alexion Pharmaceuticals Inc. 129.88 -1.61 -1.22 565,839
DRYS DryShips Inc. 5.26 -0.14 -2.59 10,892,013
KBR KBR Inc. 17.01 0.50 3.03 432,297
LNC Lincoln National Corporation 67.98 1.28 1.92 421,932
WMT Wal-Mart Stores Inc. 67.28 0.63 0.94 4,350,756
AA Alcoa Inc. 37.91 1.62 4.46 5,465,878
FLR Fluor Corporation 54.21 1.64 3.11 622,655
PTIE Pain Therapeutics 0.56 -0.00 -0.52 32,390
SGY Stone Energy Corporation 8.79 0.65 7.99 815,293
BWA BorgWarner Inc. 40.44 0.94 2.38 1,144,447
FSC Fifth Street Finance Corp. 5.47 -0.02 -0.36 307,095
SINA Sina Corporation 69.96 1.51 2.21 440,770
ADI Analog Devices Inc. 73.41 0.63 0.87 956,869
C Citigroup Inc. 56.92 1.24 2.23 10,741,219
S Sprint Corporation 9.15 -0.03 -0.33 7,428,476
MET MetLife Inc. 55.12 1.02 1.89 1,703,341
DAN Dana Holding Corporation When-Issued 20.01 0.70 3.63 836,651
BMO Bank Of Montreal 75.39 0.85 1.14 169,706
JPM JP Morgan Chase 84.65 0.94 1.12 6,730,809
TGT Target Corporation 63.79 -0.06 -0.09 2,446,833
HTZ Hertz Global Holdings Inc 20.91 -0.02 -0.10 704,541
ARNA Arena Pharmaceuticals Inc. 1.42 0.02 1.43 843,164
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) 9.91 0.07 0.71 246,507
JACK Jack In The Box Inc. 108.35 0.16 0.15 61,858
ESRX Express Scripts Holding Company 70.86 0.25 0.35 1,066,226
MANT ManTech International Corporation 39.98 0.14 0.35 21,708
MELI MercadoLibre Inc. 181.23 2.51 1.40 201,808
ERIC Ericsson 5.93 0.12 2.07 2,439,907
LVLT Level 3 Communications Inc. 59.00 -0.23 -0.39 589,238
KYO Kyocera Corporation 50.43 0.08 0.16 1,070
AES The AES Corporation 11.50 0.28 2.50 3,148,219
WMB Williams Companies Inc. (The) 28.37 0.16 0.57 3,868,288
VZ Verizon Communications Inc. 50.06 -2.35 -4.49 26,745,746
OREX Orexigen Therapeutics Inc. 3.28 -0.02 -0.61 116,745
CM Canadian Imperial Bank of Commerce 84.77 0.92 1.10 133,706
BAC Bank of America Corporation 22.94 0.38 1.68 49,416,798
GNK Genco Shipping & Trading Limited New (Marshall Isl 10.95 -0.87 -7.35 129,343
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.55 0.08 1.46 658,409
HRL Hormel Foods Corporation 36.49 0.30 0.83 820,196
SMSI Smith Micro Software Inc. 1.82 -0.01 -0.55 1,131
GOOG Alphabet Inc. 819.62 0.31 0.04 682,191
JNPR Juniper Networks Inc. 27.84 0.34 1.24 1,005,762
PAAS Pan American Silver Corp. 19.12 0.23 1.22 835,351
YGE Yingli Green Energy Holding Company Limited ADR 2.78 0.03 1.09 11,477
INTU Intuit Inc. 118.15 1.05 0.90 454,964
CYH Community Health Systems Inc. 6.46 0.03 0.47 687,162
APC Anadarko Petroleum Corporation 71.80 1.94 2.78 1,378,531
AUY Yamana Gold Inc. (Canada) 3.38 0.08 2.42 5,865,060
RF Regions Financial Corporation 14.20 0.29 2.05 10,160,844
KSS Kohl\'s Corporation 40.23 0.12 0.30 1,341,011
HNSN Hansen Medical Inc. n/a n/a n/a 0
VVUS VIVUS Inc. 1.12 -0.02 -1.75 186,653
DDS Dillard\'s Inc. 57.45 0.79 1.39 165,696
PPC Pilgrim\'s Pride Corporation 18.87 0.18 0.96 422,790
AWAY HomeAway Inc. n/a n/a n/a 0
UNM Unum Group 45.23 0.40 0.89 301,226
QEP QEP Resources Inc. 18.31 0.45 2.52 948,964
K Kellogg Company 72.57 0.28 0.38 1,045,682
PFG Principal Financial Group Inc 58.43 0.69 1.20 805,964
IRM Iron Mountain 35.31 0.34 0.97 560,127
UNTD United Online Inc n/a n/a n/a 0
HSOL HSOL n/a n/a n/a 0
WPRT Westport Fuel Systems Inc 1.19 0.03 2.46 92,087
SJW SJW Corporation 50.61 1.08 2.18 22,974
HPQ HP Inc. 15.19 0.52 3.54 6,483,585
FTEK Fuel Tech Inc. 1.22 0.02 1.31 17,135
BA Boeing Company (The) 159.59 1.75 1.11 1,577,342
HLX Helix Energy Solutions Group Inc. 8.03 -0.22 -2.67 1,151,789
RGA Reinsurance Group of America Incorporated 124.12 0.62 0.50 202,883
BP BP p.l.c. 36.87 0.25 0.68 3,995,535
EZCH EZchip Semiconductor Ltd n/a n/a n/a 0
EXC Exelon Corporation 35.20 -0.10 -0.28 2,831,576
TS Tenaris S.A. American Depositary Shares 36.35 0.24 0.66 983,861
DUK Duke Energy Corporation (Holding Company) 77.15 0.12 0.16 988,402
LL Lumber Liquidators Holdings Inc 15.61 0.22 1.43 175,259
MNKD MannKind Corporation 0.66 -0.03 -4.35 1,317,398
CX Cemex S.A.B. de C.V. Sponsored ADR 9.19 0.36 4.08 12,486,938
MMI Marcus & Millichap Inc. 25.07 -0.08 -0.32 40,918
MSFT Microsoft Corporation 63.17 0.21 0.33 9,942,198
NEWP Newport Corporation n/a n/a n/a 0
ANGI Angie\'s List Inc. 7.21 -0.04 -0.55 123,324
AEP American Electric Power Company 62.68 -0.04 -0.06 797,781
CMCSA Comcast Corporation Class A Common Stock 73.50 0.24 0.33 3,256,691
CIE Cobalt International Energy Inc. COBALT INTERNATIO 1.19 0.02 1.71 756,593
NIHD NII Holdings Inc. 2.88 0.08 2.68 68,294

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