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 66.18 0.61 0.93 2,839,283 Trade
SAM Boston Beer Co. Cl A 174.60 2.70 1.57 110,156 Trade
GEN Genesis Healthcare Inc. 0.90 0.00 0.18 361,571 Trade
PRI Primerica Inc. 97.95 -0.25 -0.25 198,235 Trade
GAME Shanda Games Ltd ADR (Sponsored) Repstg Cl A n/a n/a n/a 0 Trade
PVA Penn Virginia Corp. n/a n/a n/a 0
PG Procter & Gamble Company (The) 88.43 -0.82 -0.92 5,941,753 Trade
DISH DISH Network Corporation 50.66 0.16 0.32 2,041,606 Trade
AFL AFLAC Incorporated 83.85 -0.46 -0.55 1,778,620 Trade
ITRI Itron Inc. 65.70 -0.55 -0.83 291,819 Trade
VALE VALE S.A. American Depositary Shares Each Represen 10.11 0.14 1.40 17,791,109 Trade
ALXN Alexion Pharmaceuticals Inc. 110.87 0.54 0.49 2,182,831 Trade
DRYS DryShips Inc. 3.86 0.10 2.66 4,074,051 Trade
KBR KBR Inc. 18.51 0.16 0.87 1,769,064 Trade
LNC Lincoln National Corporation 74.28 0.27 0.36 1,100,412 Trade
WMT Wal-Mart Stores Inc. 97.47 -2.15 -2.16 23,575,513 Trade
AA Alcoa Inc. 43.40 1.10 2.60 3,569,226 Trade
FLR Fluor Corporation 46.70 0.28 0.60 1,337,210 Trade
PTIE Pain Therapeutics 3.97 0.08 2.06 65,147 Trade
SGY Stone Energy Corporation 34.34 1.09 3.28 145,532 Trade
BWA BorgWarner Inc. 51.94 -0.10 -0.19 1,875,900 Trade
FSC Fifth Street Finance Corp. n/a n/a n/a n/a
SINA Sina Corporation 106.40 -1.11 -1.03 1,024,324 Trade
ADI Analog Devices Inc. 90.42 -0.06 -0.07 2,342,924 Trade
C Citigroup Inc. 71.33 -0.34 -0.47 11,812,986 Trade
S Sprint Corporation 6.23 -0.02 -0.32 8,537,971 Trade
MET MetLife Inc. 51.65 0.11 0.21 2,659,680 Trade
DAN Dana Holding Corporation When-Issued 31.18 0.18 0.58 1,377,577 Trade
BMO Bank Of Montreal 77.56 -0.02 -0.03 322,687 Trade
JPM JP Morgan Chase 98.14 -0.33 -0.34 9,017,866 Trade
TGT Target Corporation 58.14 3.04 5.52 16,719,410 Trade
HTZ Hertz Global Holdings Inc 17.69 -0.02 -0.11 3,950,592 Trade
ARNA Arena Pharmaceuticals Inc. 26.53 -0.02 -0.08 291,162 Trade
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
JACK Jack In The Box Inc. 105.03 0.59 0.56 442,265 Trade
ESRX Express Scripts Holding Company 61.94 -0.51 -0.82 3,046,260 Trade
MANT ManTech International Corporation 48.47 0.08 0.17 102,883 Trade
MELI MercadoLibre Inc. 269.73 7.25 2.76 676,413 Trade
ERIC Ericsson 6.07 -0.02 -0.33 1,973,805 Trade
LVLT Level 3 Communications Inc. n/a n/a n/a 0 Trade
KYO Kyocera Corporation 71.50 -0.18 -0.25 11,703 Trade
AES The AES Corporation 10.61 -0.16 -1.49 7,574,971 Trade
WMB Williams Companies Inc. (The) 27.26 0.24 0.89 4,270,444 Trade
VZ Verizon Communications Inc. 45.42 0.65 1.45 18,933,241 Trade
OREX Orexigen Therapeutics Inc. 1.69 0.07 4.32 56,031 Trade
CM Canadian Imperial Bank of Commerce 90.16 0.64 0.71 1,097,420 Trade
BAC Bank of America Corporation 26.62 -0.14 -0.52 48,420,719 Trade
GNK Genco Shipping & Trading Limited New (Marshall Isl 10.66 0.51 5.02 64,462 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.35 0.05 0.68 483,992 Trade
HRL Hormel Foods Corporation 33.12 0.19 0.58 1,987,315 Trade
SMSI Smith Micro Software Inc. 1.81 0.06 3.43 23,074 Trade
GOOG Alphabet Inc. 1,019.09 -13.41 -1.30 1,397,064 Trade
JNPR Juniper Networks Inc. 26.30 0.11 0.42 4,505,621 Trade
PAAS Pan American Silver Corp. 15.20 0.46 3.09 2,116,603 Trade
YGE Yingli Green Energy Holding Company Limited ADR 2.22 -0.11 -4.72 48,500 Trade
INTU Intuit Inc. 156.55 0.90 0.58 1,247,697 Trade
CYH Community Health Systems Inc. 4.15 -0.07 -1.66 2,631,979 Trade
APC Anadarko Petroleum Corporation 48.15 0.65 1.37 6,102,798 Trade
AUY Yamana Gold Inc. (Canada) 2.74 0.06 2.24 11,632,815 Trade
RF Regions Financial Corporation 15.80 0.10 0.64 10,911,430 Trade
KSS Kohl\'s Corporation 43.72 1.47 3.48 4,185,421 Trade
HNSN Hansen Medical Inc. n/a n/a n/a 0 Trade
VVUS VIVUS Inc. 0.67 -0.01 -0.90 400,551 Trade
DDS Dillard\'s Inc. 55.58 -0.03 -0.05 697,962 Trade
PPC Pilgrim\'s Pride Corporation 35.01 0.03 0.09 593,825 Trade
AWAY HomeAway Inc. n/a n/a n/a 0 Trade
UNM Unum Group 53.46 0.21 0.39 1,296,656 Trade
QEP QEP Resources Inc. 8.80 0.26 3.04 4,661,982 Trade
K Kellogg Company 65.36 0.08 0.12 4,617,495 Trade
PFG Principal Financial Group Inc 68.64 0.25 0.37 849,937 Trade
IRM Iron Mountain 40.77 -0.05 -0.12 1,352,801 Trade
UNTD United Online Inc n/a n/a n/a 0 Trade
HSOL HSOL n/a n/a n/a 0 Trade
WPRT Westport Fuel Systems Inc 3.37 0.11 3.37 1,573,065 Trade
SJW SJW Corporation 65.93 0.41 0.63 48,018 Trade
HPQ HP Inc. 21.75 0.18 0.83 10,639,895 Trade
FTEK Fuel Tech Inc. 0.97 0.00 0.00 10,129 Trade
BA Boeing Company (The) 262.26 -1.44 -0.55 1,724,790 Trade
HLX Helix Energy Solutions Group Inc. 6.74 0.38 5.97 1,592,938 Trade
RGA Reinsurance Group of America Incorporated 150.37 1.05 0.70 334,258 Trade
BP BP p.l.c. 39.09 0.32 0.83 3,285,005 Trade
EZCH EZchip Semiconductor Ltd n/a n/a n/a 0 Trade
EXC Exelon Corporation 41.26 0.02 0.05 4,821,277 Trade
TS Tenaris S.A. American Depositary Shares 28.55 0.56 2.00 1,262,513 Trade
DUK Duke Energy Corporation (Holding Company) 88.52 -0.69 -0.77 2,652,701 Trade
LL Lumber Liquidators Holdings Inc 29.06 -0.07 -0.24 560,027 Trade
MNKD MannKind Corporation 3.26 0.06 1.88 2,442,808 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 7.85 0.00 0.00 5,952,655 Trade
MMI Marcus & Millichap Inc. 30.49 -0.01 -0.03 611,244 Trade
MSFT Microsoft Corporation 82.40 -0.80 -0.96 22,078,993 Trade
NEWP Newport Corporation n/a n/a n/a 0 Trade
ANGI Angie\'s List Inc. 11.86 0.11 0.94 242,327 Trade
AEP American Electric Power Company 76.38 -0.38 -0.50 1,720,924 Trade
CMCSA Comcast Corporation Class A Common Stock 36.16 -0.91 -2.45 38,138,596 Trade
CIE Cobalt International Energy Inc. COBALT INTERNATIO 0.43 0.04 11.17 921,684 Trade
NIHD NII Holdings Inc. 0.36 -0.00 -0.28 605,352 Trade

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