Equities Sector Coverage: Stocks Edge Slightly Higher After Rough Tumble

Sector Recap  |

The Dow Jones Industrial Average rebounded to 13,082.54 back above its 50-day simple moving average at 13,009. The NASDAQ’s rebounded to 3034.69 then declined to 3000.57 versus its 50-day simple moving average at 3011.

Asian stocks were mixed on Friday. The Nikkei 225 ended their session at 9,561 – down 0.28% on the day. The Hang Seng ended their session at 21,011 – up 0.07% on the day. European stocks moved higher on Friday. The FTSE 100 ended their session at 5,772 – up 0.48% on the day. The DAX ended their session at 6,750 – up 1.18% on the day. The CAC 40 ended their session at 3,189 – down 0.46% on the day. The yield on the 10-Year US Treasury traded between 1.996 percent and 1.958 below its 50-day and 200-day simple moving averages at 2.083 and 2.112.

Gold rebounded from $1638.6 the Troy ounce to $1648.2 below the “death cross” defined by the 50-day simple moving average at $1687.0 being below the 200-day simple moving average at $1695.3. Crude oil rebounded from $102.45 per barrel to $104.27, staying below its 50-day simple moving average at $104.75. The euro versus the dollar traded up from 1.3132 to 1.3223 testing its 50-day simple moving average at 1.3202.

Energy

Schlumberger (SLB) reported in-line Q1 EPS of $0.98 on revenue of $10.6 billion. Moscow will bring charges against British Petroleum (BP) over damages caused by oil spills in Siberia. Atlas Pipeline Partners LP (APL) is initiated with a Buy rating at Bank of America-Merrill Lynch. Energy Transfer Equity (ETE) and Plains All American (PAA) have been reinstated with Overweight ratings by Barclays. Syntroleum (SYNM) has been initiated with an Outperform rating at JMP Securities. Rex Energy (REXX) has been upgraded to Buy from Hold at Brean Murray. Chesapeake Energy (CHK), the troubled energy firm has been downgraded to Market Perform from Outperform with Wells Fargo. ONEOK Partners (OKS) has been downgraded to Neutral from Buy at UBS. Dow components - Chevron (CVX) was up slightly with Exxon Mobil (XOM) flat.
Energy Select Sector SPDR (XLE) was trading at $68.97 at 3:30 PM on Friday, down 0.22% on the day – down 0.23% year-to-date.

Materials

Cytec Industries (CYT) beat Q1 EPS estimates by three cents on better than expected revenues. Cameco (CCJ) has been upgraded to Buy from Hold at TD Securities. Methanex (MEOH) has been downgraded to Underperform from Sector Perform at CIBC World Markets. Dow components - Alcoa (AA) continues to have problems trending above the $10 threshold slipping 0.2%. DuPont (DD) moved higher by just 0.2%.
The Materials Select Sector SPDR (XLB) was trading at $36.44 at 3:30 PM on Friday, up 0.14% on the day – up 9.10% year-to-date.

Industrials

Ingersoll-Rand (IR) beat Q1 EPS estimates by four cents with better than expected revenue. General Electric (GE) beat Q1 EPS estimates by a penny with better than expected revenues. Orbital Sciences (ORB) missed Q1 EPS estimates by a penny with a miss on the revenue line. Valmont Industries (VMI) beat Q1 EPS estimates by 43 cents with a beat on the revenue line. Canadian Pacific Railway (CP) beat Q1 EPS estimates by three cents with a beat on the revenue line. Honeywell (HON) beat Q1 EPS estimates by a nickel with a beat on the revenue line. Johnson Controls (JCI) reported in-line Q1 EPS and revenue. Gardner Denver (GDI) beat Q1 EPS estimates by four cents on better than expected revenue. Embraer (ERJ) has been downgraded to Neutral from Buy at Goldman due to valuation issues and a deceleration in regional orders. Dow components - Boeing Co (BA) gained 0.8%, Caterpillar (CAT) was up 0.6%, General Electric (GE) popped 1.7%, 3M Company (MMM) was up by 0.6%, and United Technologies (UTX) gained 0.9%.
The Industrial Select Sector SPDR (XLI) was trading at $36.79 at 3:30 PM on Friday, up 0.91% on the day – up 9.01% year-to-date.

Consumer Discretionary

Builders FirstSource (BLDR) beat Q1 EPS estimates by 21 cents on a beat on the revenue line. Royal Caribbean Cruises (RCL) beat Q1 EPS estimated by six cents with a beat on the revenue line. McDonald's (MCD) reported in-line Q1 EPS with in-line revenue. Under Armour (UA) beat Q1 EPS estimates by four cents with a beat on the revenue line. Chipotle Mexican Grill (CMG) beat Q1 EPS estimates by four cents on better than expected revenue. Tempur-pedic International (TPX) reported Q1 EPS of 86 cents with in-line revenue. Finish Line (FINL) is initiated with a Buy and $27 price target at The Benchmark Company, while Foot Locker (FL) is initiated with a Hold rating and $35 price target. Dow Components - Disney (DIS) gained 0.8%, and McDonalds (MCD) gained 1.3%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.69 at 3:30 PM on Friday, up 0.27% on the day – up 14.53% year-to-date.

Consumer Staples

Nestle (NSRGY.PK) reported an increase in Q1 sales by 5.6%, lifted by growth in emerging markets. Nestle confirmed its full-year outlook of 5-6% organic growth. B&G Foods (BGS) beat Q1 EPS estimates by a penny with a miss on the revenue line. Kimberly-Clark (KMB) beat Q1 EPS estimates by seven cents with a beat on the revenue line. Boston Beer (SAM) has been initiated with a Neutral rating at UBS. Dow components - Home Depot (HD) slipped 0.2%, Kraft (KFT) gained 0.9%, Coca Cola (KO) gained 0.4%, Procter & Gamble (PG) surged 1.4%, and Wal-Mart (WMT) picked up 0.8%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.30 at 3:30 PM on Friday, up 0.88% on the day – up 5.57% year-to-date.

Health Care

IDEXX Laboratories (IDXX) beat Q1 EPS estimates by a penny with better than expected revenue. Cepheid (CPHD) reported a Q1 EPS loss of eight cents with in-line revenue. Sagent Pharmaceuticals (SGNT) has been initiated with a Neutral rating at Piper Jaffray, which initiates its peer Par Pharmaceutical (PRX) with an Overweight rating. Exelixis (EXEL) has been initiated with a Buy rating and $9 price target at Maxim Group. Synageva Biopharma (GEVA) has been initiated with an Overweight rating at Morgan Stanley. Questcor Pharmaceuticals (QCOR), the biotech has been initiated with an Overweight rating at Piper Jaffray. Myriad Genetics (MYGB) has been upgraded to Outperform from Neutral at Cowen & Company. Dow Components - Johnson & Johnson (JNJ) gained 1.0%, Merck (MRK) picked up 1.0%, and Pfizer (PFE) gained 1.3%.
The Health Care Select Sector SPDR (XLV) was trading at $37.30 at 3:30 PM on Friday, up 0.57% on the day – up 7.52% year-to-date.

Financials

The Consumer Financial Protection Bureau is investigating nine banks over their overdraft protection programs and the size of their overdraft charges. “Too big to fail” banks are front and center; JP Morgan (JPM), Wells Fargo (WFC) and Bank of America (BAC). This could be another threat to a major source of income in the banking system. MetLife (MET) released a preliminary version of its Q1 results after inadvertently posting some earnings data on its website ahead of schedule. MET expects to report Q1 operating earnings of $1.37 per share, above the $1.25 estimate. National Penn Bancshares (NPBC) beat Q1 EPS estimate by a penny. City National (CYN) beat Q1 EPS estimated by four cents. E*TRADE Financial (ETFC) beat Q1 EPS estimates by four cents with better than expected revenue. Capital One (COF) beat Q1 EPS estimates by seventeen cents with a miss on the revenue line. Bank of America (BAC) has been downgraded to Sell from Underperform at Crédit Agricole. First Horizon (FHN) has been downgraded to Market Perform from Outperform at Wells Fargo. Dow Components - American Express (AXP) lost 0.4%, Bank of America (BAC) slumped 4.2%, JP Morgan (JPM) fell 0.9%, and Travelers (TRV) gained 1.7%.
The Financial Select Sector SPDR (XLF) was trading at $15.20 at 3:30 PM on Friday, down 0.39% on the day – up 16.92% year-to-date.

Information Technology

An unexpected 4% increase in revenue from Microsoft's (MSFT) Windows provided the catalyst for an earnings beat on the bottom line despite a miss by a penny versus EPS estimates. Google (GOOG) may be interested making a bid for Pinterest, a bulletin board site. Samsung (SSNLF.PK) has filed another Intellectual Property suit against Apple (AAPL) concerning that Apple violated eight patents. Rambus (RMBS) missed Q1 EPS estimates by two cents with in-line revenue. Lattice Semiconductor (LSCC) missed Q1 EPS estimated by nine cents with a miss on the revenue line. Advanced Micro Devices (AMD) beat Q1 EPS estimates by three cents with in-line revenue. Altera (ALTR) missed Q1 EPS estimates by a penny with a miss on the revenue line. Riverbed Technology (RVBD) reported in-line Q1 EPS with a miss on the revenue line. SanDisk (SNDK) missed Q1 EPS estimates by eight cents with in-line revenue. SanDisk (SNDK): Shares, slumping before the bell, are downgraded to Hold from Buy at Deutsche Bank. Cirrus Logic (CRUS) is initiated with a Buy rating at Sterne Agee. Dow Components - Cisco Systems (CSCO) was flat, Hewlett-Packard (HPQ) lost 0.8%, IBM (IBM) was flat, Intel Corp (INTC) was also flat, and Microsoft (MSFT) surged 5.5%.
The Technology Select Sector SPDR (XLK) was trading at $29.30 at 3:30 PM on Friday, down 0.31% on the day – up 15.13% year-to-date.

Telecommunication Services

Cable & Wireless Worldwide has extended the deadline for Vodafone (VOD) to make a bid for the U.K. company until Monday. There are reports of a huge possible tax benefit in additions to gaining C&W's fixed-line network. China Mobile (CHL) reported that its Q1 unaudited net profits was up 3.5% year over year, boosted by a growing customer base despite increasing competition. Dow components - AT&T (T) was up 0.8% with Verizon (VZ) up 1.7%.
The NASDAQ Telecommunications Index (IXTC) was trading at $209.59 at 3:30 PM on Friday, down 0.72% on the day – up 6.43% year-to-date.

Utilities

American Electric Power (AEP) reported in-line Q1 EPS of $0.80 with a miss on the revenue line. Westar Energy (WR) has been upgraded to Neutral from Sell at Goldman. Dominion Resources (D) was up 1.1%, Edison International (EIX) gained 0.9%, First Energy (FE) was up 1.0%, and PG&E Corp (PCG) gained 1.1%.
The Utilities Select Sector SPDR (XLU) was trading at $35.02 at 3:30 PM on Friday, up 0.98% on the day – down 2.67% year-to-date.

STOCKS: CVX, XOM, SLB, BP, APL, ETE, SYNM, REXX, CHK, OKS, AA, DD, CYT, CCJ, MEOH, BA, CAT, GE, MMM, UTX, IR, ORB, VMI, CP, HON, JCI, GDI, ERJ, DIS, MCD, BLDR, RCL, UA, CMG, TPX, FINL, TPX, FL, HD, KFT, KO, PG, WMT, NSRGY.PK, BGS, KMB, SAM, JNJ, MRK, PFE, IDXX, CPHD, SGNT, PRX, EXEL, GEVA, QCOR, MYGB, AXP, BAC, JPM, TRV, WFC, MET, NPBC, CYN, ETFC, COF, FHN, CSCO, HPQ, IBM, INTC, MSFT, GOOG, AAPL, RMBS, LSCC, AMD, ALTR, RVBD, SNDK, CRUS, T, VZ, VOD, CHL, D, EIX, FE, PCG, PGN, AEP, WR

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
MMM 3M Company 203.23 0.90 0.44 656,553 Trade
CMG Chipotle Mexican Grill Inc. 428.51 -5.44 -1.25 366,566 Trade
SAM Boston Beer Company Inc. (The) 267.00 -4.35 -1.60 56,085 Trade
VMI Valmont Industries Inc. 130.78 -2.46 -1.85 16,618 Trade
PGN Paragon Offshore n/a n/a n/a 0
LSCC Lattice Semiconductor Corporation 8.07 0.19 2.41 485,422 Trade
PG Procter & Gamble Company (The) 81.42 0.41 0.51 3,207,523 Trade
GE General Electric Company 12.27 0.17 1.36 46,116,461 Trade
CVX Chevron Corporation 116.49 -1.02 -0.87 1,653,930 Trade
PCG Pacific Gas & Electric Co. 48.78 -0.02 -0.03 2,012,525 Trade
ETFC E*TRADE Financial Corporation 50.51 0.11 0.22 1,006,557 Trade
CPHD CEPHEID n/a n/a n/a 0 Trade
RMBS Rambus Inc. 9.39 -0.11 -1.16 138,673 Trade
JNJ Johnson & Johnson 139.62 3.06 2.24 3,245,863 Trade
WMT Walmart Inc. 96.27 0.46 0.48 3,592,745 Trade
AA Alcoa Corporation 36.31 0.12 0.33 1,466,446 Trade
INTC Intel Corporation 45.90 -0.04 -0.09 6,805,636 Trade
IBM International Business Machines Corporation 136.34 -8.78 -6.05 10,578,255 Trade
D Dominion Energy Inc. 72.18 -0.13 -0.17 586,317 Trade
TRV The Travelers Companies Inc. 126.48 1.73 1.39 688,126 Trade
MCY Mercury General Corporation 50.44 0.45 0.90 59,970 Trade
FL Foot Locker Inc. 48.89 -1.86 -3.67 1,313,593 Trade
NPBC National Penn Bancshares Inc (Boyertown Penn.) n/a n/a n/a 0 Trade
AAPL Apple Inc. 220.85 -1.30 -0.59 11,101,432 Trade
JCI Johnson Controls International plc 33.71 -0.28 -0.83 2,308,122 Trade
EIX Lightstream Resources Ltd. 69.53 0.00 0.00 299,629 Trade
MET MetLife Inc. 44.73 0.88 2.00 2,193,035 Trade
BGS B&G Foods Inc. 27.60 0.26 0.93 140,346 Trade
IR Ingersoll-Rand plc (Ireland) 98.11 -0.64 -0.65 486,651 Trade
UA Under Armour Inc. Class C 17.51 -0.40 -2.23 530,766 Trade
EXEL Exelixis Inc. 16.87 -0.05 -0.30 658,074 Trade
JPM JP Morgan Chase & Co. 110.30 1.68 1.54 8,449,136 Trade
AXP American Express Company 104.88 0.61 0.59 989,037 Trade
HON Honeywell International Inc. 158.39 -1.18 -0.74 1,045,015 Trade
UTX United Technologies Corporation 131.44 -1.07 -0.81 887,738 Trade
VOD Vodafone Group Plc 20.23 -0.12 -0.57 4,134,502 Trade
CYN City National Corp (Beverly Hills CA) n/a n/a n/a 0 Trade
SNDK SanDisk Corp n/a n/a n/a 0 Trade
AMD Advanced Micro Devices Inc. 27.28 -0.90 -3.19 55,264,276 Trade
CSCO Cisco Systems Inc. 45.87 0.05 0.11 7,713,911 Trade
DIS The Walt Disney Company 116.33 0.14 0.12 2,278,463 Trade
MEOH Methanex Corporation 75.84 -1.96 -2.52 129,790 Trade
VZ Verizon Communications Inc. 54.09 0.39 0.73 4,175,808 Trade
CCJ Cameco Corporation 11.84 0.05 0.42 381,483 Trade
REXX Rex Energy Corporation n/a n/a n/a n/a
FHN First Horizon National Corporation 16.08 0.47 2.98 3,089,739 Trade
BAC Bank of America Corporation 28.94 0.41 1.44 32,637,050 Trade
COF Capital One Financial Corporation 91.85 0.22 0.24 718,090 Trade
IDXX IDEXX Laboratories Inc. 227.31 1.52 0.67 161,214 Trade
CRUS Cirrus Logic Inc. 37.69 0.45 1.21 186,429 Trade
GOOG Alphabet Inc. 1,113.12 -8.16 -0.73 739,338 Trade
MCD McDonald's Corporation 166.85 2.78 1.69 1,088,181 Trade
BLDR Builders FirstSource Inc. 13.30 -0.35 -2.56 432,768 Trade
HD Home Depot Inc. (The) 185.62 -7.96 -4.11 4,655,223 Trade
XOM Exxon Mobil Corporation 80.88 -0.32 -0.39 2,864,818 Trade
PFE Pfizer Inc. 44.68 0.75 1.70 7,817,440 Trade
ALTR Altair Engineering Inc. 35.54 0.31 0.87 62,740 Trade
WFC Wells Fargo & Company 54.49 0.76 1.41 7,977,801 Trade
HPQ HP Inc. 23.89 -0.07 -0.29 2,190,389 Trade
BA The Boeing Company 367.27 -0.98 -0.27 973,086 Trade
MRK Merck & Company Inc. (new) 71.55 0.33 0.46 3,615,848 Trade
ETE Energy Transfer Equity L.P. representing Limited Partnership interests 16.87 -0.15 -0.85 2,486,506 Trade
BP BP p.l.c. 44.29 -0.41 -0.92 2,704,853 Trade
FE FirstEnergy Corp. 37.84 0.04 0.11 844,192 Trade
CYT Cytec Industries Inc. n/a n/a n/a 0 Trade
ERJ Embraer S.A. 20.56 0.31 1.53 311,622 Trade
KMB Kimberly-Clark Corporation 109.03 -1.04 -0.94 1,110,622 Trade
KO Coca-Cola Company (The) 45.70 0.21 0.46 3,684,816 Trade
CP Canadian Pacific Railway Limited 205.81 -3.51 -1.68 180,070 Trade
T AT&T Inc. 32.61 0.22 0.68 9,366,537 Trade
CAT Caterpillar Inc. 142.39 -1.32 -0.92 1,537,564 Trade
CHL China Mobile Limited 49.48 -0.44 -0.89 347,729 Trade
TPX Tempur Sealy International Inc. 49.51 0.98 2.02 223,438 Trade
SLB Schlumberger N.V. 59.11 -0.57 -0.96 2,189,690 Trade
MSFT Microsoft Corporation 110.62 -0.38 -0.34 10,798,527 Trade
CHK Chesapeake Energy Corporation 4.63 -0.19 -3.94 14,079,728 Trade
SGNT Sagent Pharmaceuticals Inc. n/a n/a n/a 0 Trade
AEP American Electric Power Company Inc. 71.76 0.06 0.08 988,874 Trade

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