Equities Sector Coverage: Stocks End Flat After Choppy Trading

Sector Recap |

NASDAQThe Producer Price Index rose by a worse than expected 0.2% in July and 0.4% excluding food & energy. The Dow Jones Industrial Average traded higher on Wednesday morning with a morning high at 11,529.67 well below the March 16th low at 11,555 and the June 15th low at 11,862, which provides overhead resistances. These lows failed to hold during the week of August 5th when the Dow fell 698 points for that week. By mid-day the Dow turned into the red with an afternoon low of 11,322.30. A rebound into the final half hour of trading had the Dow flirting with the flat line. The NASDAQ traded up from 2527.06 to 2549.11 on Wednesday morning then by mid-day the market reversal resulted in an afternoon low at 2488.09.

Asian stocks were mixed on Wednesday with the Nikkei 225 lower by 0.55% to 9,057, and the Hang Seng higher by 0.38% to 20,289. European stocks had mixed volatility around the flat lines and ended with the FTSE 100 down 0.49% to 5,331.6, the DAX down 0.77% to 5,949 and the CAC 40 up 0.73% to 3,254. The yield on the 10-Year US Treasury note traded higher Wednesday morning from 2.202 percent to 2.262 then declined to 2.156 as a flight to quality emerged. Gold rallied from $1781.6 the Troy ounce to $1797.6 versus last Thursday’s all time high at $1817.6. Crude oil traded up from $86.65 to $89.00 per barrel then consolidated. The euro versus the US dollar traded up from 1.4328 to 1.4515 then consolidated.

Energy

EnCana (ECA) is taken to Neutral from Sell at Ticonderoga. First Solar (FSLR) is removed from the Conviction Buy List at Goldman. In afternoon trading: Shares of Suntech Power Holdings (STP) are down about 8.25%. Shares of Canadian Solar (CSIQ) are down about 6.75%. Shares of First Solar are down about 6%. Shares of Uranium Energy (UEC) are up about 7.5%. Shares of BPZ Resources (BPZ) are up about 6.5%.

Energy Select Sector SPDR (XLE) was trading at $68.34 at 4:00 PM on Wednesday, up 0.40% on the day – up 0.13% year-to-date.

Materials

Alcoa (AA) is initiated with a Buy at CRT Capital. Pan American Silver (PAAS) is boosted to Buy from Hold at Canaccord. BASF AG (BASFY) is now Reduce from Neutral at Nomura. Agrium (AGU) is reduced to Neutral from Overweight at JP Morgan. In afternoon trading: Shares of Yongye International (YONG) are down about 5.5%. Shares of Southern Copper (SCCO) are up about 5.25%. Actives: Shares of Alcoa are down about a half of a percent. Shares of Vale (VALE) are up about 2.25%. Shares of Freeport McMoran (FCX) are up about 1%. Shares of Cemex (CX) are down about 1.25%.

The Materials Select Sector SPDR (XLB) was trading at $34.53 at 4:00 PM on Wednesday, up 0.29% on the day – down 10.10% year-to-date.

Industrials

Deere (DE) beat estimates by 2 cents and revenue by $220M. In afternoon trading: Shares of Vestas Wind Systems (VWDRY) are up about 23.25%. Actives: Shares of General Electric (GE) are up about 0.4%. Shares of Xerox (XRX) are up about 0.4%. Shares of Corning (GLW) are down about 0.9%. Shares of Delta Airlines (DAL) are up about 1.1%. Shares of Deere are down about 2.2%. Shares of US Airways (LCC) are down about 5.4%.

The Industrial Select Sector SPDR (XLI) was trading at $31.32 at 4:00 PM on Wednesday, down 0.32% on the day – down 10.18% year-to-date.

Consumer Discretionary

Staples (SPLS) Q2 earnings beat estimates by 2 cents and revenue by $170M as adjusted EPS rose to $0.22 from $0.20 and revenue grew 5.2% to $5.82B. The company also said it expects FY adjusted EPS of $1.39-$1.45, comfortably above predictions of $1.36. Target (TGT) beat estimates by 6 cents and revenue by $90M, and sees Q3 EPS of $0.70-75 and FY11 EPS of $4.15-4.30. Abercrombie & Fitch (ANF) beat estimates by 6 cents and revenue by $36.8M. Chico's FAS (CHS) beat estimates by a penny and revenue by $15M. Staples sees FY11 EPS of $1.39-1.45. Office Depot (ODP) is now Neutral from Sell at UBS. Dick’s Sporting Goods (DKS) is upgraded to Neutral from Sell at Sterne Agee. China’s Dangdang (DANG) is downgraded to Hold from Buy at T.H Capital. In afternoon trading: Shares of Eastman Kodak (EK) are up about 23.5% after MDB Capital Group stated that the company’s digital-imaging patents could be worth about $3 billion (or five times worth the entire business). Shares of Coldwater Creek (CWTR) are up about 13%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $36.35 at 4:00 PM on Wednesday, down slightly on the day – down 2.83% year-to-date.



Consumer Staples

BJ's Wholesale Club (BJ) beat estimates by 7 cents, but missed revenue by $2M. SABMiller (SBMRY) has turned its A$9.51B ($9.97B) offer for Foster's Group (FBRWY) hostile by making an off-market cash proposal to shareholders, which is subject to 90% shareholder approval. Hain Celestial (HAIN) is upgraded to Outperform from Sector Perform at RBC Capital. In afternoon trading: Shares of Flowers Foods (FLO) are down about 10.75% after missing estimates by 3 cents. Shares of Central European Distribution (CEDC) are down about 5.75%. Shares of Pilgrim’s Pride (PPC) are down about 5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.23 at 4:00 PM on Wednesday, up 0.67% on the day – up 3.14% year-to-date.

Healthcare

Micromet (MITI) is a new Buy at ThinkEquity. YM BioSciences (YMI) is initiated with a Buy and $4 target price at Collins Stewart. Healthspring (HS) is a fresh Outperform with Wells Fargo. Bayer AG (BAYRY) gets a Buy-from-Neutral boost at Nomura. Quest Diagnostics (DGX) gets upgraded to Neutral from Sell at Goldman Sachs. Hospira (HSP) is hoisted to Hold from Sell at Citigroup. Vertex Pharmaceuticals (VRTX) is boosted to Outperform from Market Perform with William Blair. Five Star Quality Care (FVE) is downgraded to Hold from Buy at Stifel Nicolaus. In afternoon trading: Shares of Amarin Corp (AMRN) are down about 8.25%. Shares of XOMA (XOMA) are down about 7%. Shares of Sunrise Senior Living (SRZ) are up about 7%. Shares of Valeant Pharmaceuticals (VRX) are up about 6%.

The Health Care Select Sector SPDR (XLV) was trading at $32.17 at 4:00 PM on Wednesday, up slightly on the day – up 2.13% year-to-date.

Financials

Bank of America (BAC) is reportedly in negotiations to sell its Merrill Lynch real-estate unit to Blackstone (BX) for up to $1B. In an effort to bring a bit more certainty to its mortgage liabilities, Bank of America may reportedly come to a settlement over inappropriate foreclosure practices with most state attorneys-general even if any deal omits New York and at least two other states. National Financial Partners (NFP) is a new Outperform at Keefe Bruyette. In afternoon trading: Shares of Commerzbank (CRZBY) are down about 17.5%. Shares of NetSpend Holdings (NTSP) are up about 15%. Shraes of Life Partners Holdings (LPHI) are up about 14.5%. Shares of National Financial Partners are up about 11.25%.

The Financial Select Sector SPDR (XLF) was trading at $13.01 at 4:00 PM on Wednesday, up 0.62% on the day – down 18.43% year-to-date.

Information Technology

Dell (DELL) beat estimates by 5 cents, but missed revenue by $102M, and now expects FY12 operating income growth of 17-23%, up from 12-18% and expects 1-5% FY12 revenue growth, down from 5-9%. Samsung (SSNLF) won a small battle in its global patent dispute with Apple (AAPL) after a German court scaled back a temporary EU-wide ban on Samsung's Galaxy Tab 10.1 tablet computer. Analog Devices (ADI) missed estimates by 3 cents and revenue by $22M. Blue Coat Systems (BCSI) missed estimates by 3 cents and revenue by $4M, and guides for Q2 revenues to $103-$110M (below $116M Street forecast). Salesforce.com (CRM) is begun at an Underperform at Bernstein, which assigns Outperforms on Adobe (ADBE), Citrix Systems (CTXS) and Dow component Microsoft (MSFT). TiVo (TIVO) is initiated with a Buy at Merriman. LivePerson (LPSN) gets launched with a Buy rating and $16 price target at Ladenburg Thalmann. Motorola Mobility (MMI) is moved to Neutral from Underweight at JP Morgan. Hewlett-Packard (HPQ) is downgraded to Market Perform from Outperform at BMO Capital. Texas Instruments (TXN) is taken to Hold from Buy at ThinkEquity. Aixtron (AIXG) is downgraded to Hold from Buy at Deutsche Bank. Blue Coat (BCSI) is cut to Hold from Buy at Needham. In afternoon trading: Shares of Blue Coat Systems are down about 23.5%. Shares of Taomee Holdings (TAOM) are down about 23.25%. Shares of Motricity (MOTR) are down about 11.25%. Shares of Dell are down about 10.5%. Shares of Youku.com (YOKU) are up about 13%.

The Technology Select Sector SPDR (XLK) was trading at $24.26 at 4:00 PM on Wednesday, down 0.45% on the day – down 3.69% year-to-date.

Telecommunications Services

Swisscom AG (SCMWY) is cut to Underperform from Neutral at Credit Suisse. In afternoon trading: Shares of Clearwire (CLWR) are up about 22%. Actives: Shares of Sprint Nextel (S) are up about 2.9%. Shares of AT&T (T) are up about 1.5%. Shares of Frontier Communications (FTR) are up about 2.7%. Shares of Verizon (VZ) are up about 2.1%. Shares of Level 3 Communications (LVLT) are up about 1.1%.

The NASDAQ Telecommunications Index (IXTC) was trading at $191.29 at 4:00 PM on Wednesday, down 0.55% on the day – down 15.12% year-to-date.

Utilities

In afternoon trading: Actives: Shares of Genon Energy (GEN) are down about 1%. Shares of Duke Energy (DUK) are up about 1%. Shares of AES Corp (AES) are up slightly. Shares of Southern (SO) are up about 1%. Shares of PPL Corp (PPL) are up about 1.5%. Shares of Exelon (EXC) are up about 0.8%. Shares of American Electric Power (AEP) are up about 1.9%.

The Utilities Select Sector SPDR (XLU) was trading at $32.98 at 4:00 PM on Wednesday, up 0.73% on the day – up 5.23% year-to-date.

STOCKS: ECA, FSLR, STP, CSIQ, UEC, BPZ, AA, PAAS, BASFY, AGU, YONG, SCCO, VALE, FCX, CX, DE, VWDRY, GE, XRX, GLW, DAL, LCC, SPLS, TGT, ANF, CHS, ODP, DKS, DANG, EK, CWTR, BJ, SBMRY, FBRWY, HAIN, FLO, CEDC, PPC, MITI, YMI, HS, BAYRY, DGX, HSP, VRTX, FVE, AMRN, XOMA, SRZ, VRX, BAC, BX, NFP, CRZBY, NTSP, LPHI, DELL, SSNLF, AAPL, ADI, BCSI, CRM, ADBE, CTXS, MSFT, TIVO, LPSN, MMI, HPQ, TXN, AIXG, TAOM, MOTR, YOKU, SCMWY, CLWR, S, T, FTR, VZ, LVLT, GEN, DUK, AES, SO, PPL, EXC, AEP

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
UEC Uranium Energy Corp. 1.45 -0.04 -2.68 1,136,828
FLO Flowers Foods Inc. 19.39 0.29 1.54 413,015
BX The Blackstone Group L.P. Representing Limited Par 29.98 0.44 1.49 2,009,309
GLW Corning Incorporated 28.22 0.61 2.21 4,522,634
DE Deere & Company 111.29 1.80 1.64 1,084,470
GEN Genesis Healthcare Inc. 3.29 0.07 2.02 290,921
FTR Frontier Communications Corporation 2.92 -0.01 -0.34 20,488,855
HFWA Heritage Financial Corporation 25.80 0.80 3.20 28,474
GE General Electric Co 30.20 0.39 1.31 17,975,781
CRM Salesforce.com Inc 82.99 1.64 2.02 8,404,562
SO Southern Company (The) 50.53 -0.29 -0.57 2,335,406
VALE VALE S.A. American Depositary Shares Each Represen 10.70 0.35 3.33 20,569,002
AGU Agrium Inc. 96.96 0.36 0.37 218,959
AA Alcoa Inc. 38.00 3.41 9.84 7,167,060
VRX Valeant Pharmaceuticals International Inc. 14.06 -0.32 -2.23 13,805,192
CHS Chico\'s FAS Inc. 14.10 -0.38 -2.62 1,535,048
FVE Five Star Quality Care Inc. 2.40 0.10 4.35 15,781
AAPL Apple Inc. 139.86 2.87 2.10 17,870,336
ADI Analog Devices Inc. 83.30 1.37 1.67 938,404
S Sprint Corporation 8.90 0.09 0.96 4,249,689
PPL PPL Corp 36.86 -0.02 -0.05 1,587,843
DAL Delta Air Lines Inc. 51.78 1.85 3.71 7,637,622
ADBE Adobe Systems Incorporated 119.76 1.42 1.20 1,078,127
SPLS Staples Inc. 9.19 0.20 2.17 4,743,210
ECA Encana Corporation 11.54 0.44 3.96 5,933,524
AMRN Amarin Corporation plc 3.43 0.03 0.74 1,044,475
TGT Target Corporation 57.97 -0.80 -1.36 13,430,063
TXN Texas Instruments Incorporated 77.50 0.88 1.15 1,765,737
CTXS Citrix Systems Inc. 80.27 1.32 1.67 428,616
SCCO Southern Copper Corp 37.82 1.16 3.16 516,915
TAOM Taomee Holdings Ltd ADR (Sponsored) n/a n/a n/a 0
LVLT Level 3 Communications Inc. 57.30 0.05 0.09 974,001
AES The AES Corporation 11.46 -0.07 -0.56 2,546,957
LPSN LivePerson Inc. 7.15 0.10 1.42 162,063
VZ Verizon Communications Inc. 49.89 0.26 0.52 7,070,667
ODP Office Depot Inc. 4.82 0.68 16.28 9,897,740
BAC Bank of America Corporation 25.56 0.95 3.86 88,916,697
DANG E-Commerce China Dangdang Inc. American Depositary n/a n/a n/a 0
FCX Freeport-McMoRan Inc. 13.83 0.43 3.17 17,171,324
PAAS Pan American Silver Corp. 17.75 -0.20 -1.11 1,278,226
DGX Quest Diagnostics Incorporated 98.66 1.22 1.25 236,426
PPC Pilgrim\'s Pride Corporation 20.72 0.34 1.67 466,972
XRX Xerox Corporation 7.40 -0.04 -0.54 3,173,394
AIXG Aixtron SE n/a n/a n/a 0
FSLR First Solar Inc. 35.18 -1.01 -2.79 1,845,740
CSIQ Canadian Solar Inc. 14.50 -0.22 -1.49 664,096
DKS Dick\'s Sporting Goods Inc 50.49 1.54 3.15 1,575,920
HPQ HP Inc. 17.61 0.24 1.38 4,417,155
ANF Abercrombie & Fitch Company 11.22 -0.54 -4.59 4,565,004
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0
EXC Exelon Corporation 36.44 -0.27 -0.74 1,933,728
T AT&T Inc. 42.10 0.31 0.74 9,199,097
DUK Duke Energy Corporation (Holding Company) 82.33 -0.22 -0.27 1,918,824
HAIN The Hain Celestial Group Inc. 35.82 0.44 1.23 622,206
VRTX Vertex Pharmaceuticals Incorporated 90.98 0.36 0.40 635,814
CX Cemex S.A.B. de C.V. Sponsored ADR 9.02 0.56 6.62 9,732,168
MMI Marcus & Millichap Inc. 27.93 0.58 2.12 89,594
MSFT Microsoft Corporation 64.82 0.84 1.31 10,947,494
AEP American Electric Power Company 66.65 -0.32 -0.48 1,442,263
XOMA XOMA Corporation 4.79 0.09 1.91 44,679

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