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
AA Alcoa Inc. 9.65 -0.03 -0.31 11,470,339
AAPL Apple Inc. 113.09 0.21 0.19 24,607,412
ADBE Adobe Systems Incorporated 109.70 2.44 2.27 3,531,392
ADI Analog Devices Inc. 63.81 1.53 2.46 2,551,061
AEP American Electric Power Company 65.50 -0.86 -1.30 2,229,779
AES The AES Corporation 13.08 -0.04 -0.30 4,674,105
AGU Agrium Inc. 90.77 0.43 0.48 356,727
AIXG Aixtron SE 6.12 0.01 0.16 6,272
AMRN Amarin Corporation plc 3.25 0.13 4.17 8,171,379
ANF Abercrombie & Fitch Company 16.24 0.10 0.62 2,946,510
BAC Bank of America Corporation 15.29 0.20 1.33 81,992,627
BX The Blackstone Group L.P. Representing Limited Par 25.00 -0.46 -1.81 5,416,835
CHS Chico\'s FAS Inc. 12.27 -0.01 -0.08 1,166,089
CRM Salesforce.com Inc 70.05 -0.14 -0.20 8,179,528
CSIQ Canadian Solar Inc. 13.17 0.50 3.95 1,313,491
CTXS Citrix Systems Inc. 85.25 0.69 0.82 554,174
CX Cemex S.A.B. de C.V. Sponsored ADR 7.94 0.39 5.17 10,700,198
DAL Delta Air Lines Inc. 39.21 1.17 3.08 9,596,607
DANG E-Commerce China Dangdang Inc. American Depositary 6.63 0.00 0.00 0
DE Deere & Company 83.05 -0.53 -0.63 2,797,917
DGX Quest Diagnostics Incorporated 84.88 0.27 0.32 821,260
DKS Dick\'s Sporting Goods Inc 60.42 0.41 0.68 1,687,301
DUK Duke Energy Corporation (Holding Company) 81.43 -0.72 -0.88 2,268,288
ECA Encana Corporation 8.87 -0.39 -4.21 16,658,444
EXC Exelon Corporation 34.18 -0.64 -1.84 4,765,713
FCX Freeport-McMoRan Inc. 10.21 -0.30 -2.85 24,690,612
FLO Flowers Foods Inc. 15.13 -0.14 -0.92 1,548,384
FSLR First Solar Inc. 39.09 1.84 4.94 4,312,463
FTR Frontier Communications Corporation 4.34 -0.02 -0.46 13,582,166
FVE Five Star Quality Care Inc. 1.94 -0.06 -3.00 95,408
GE General Electric Co 29.88 0.34 1.15 25,491,940
GEN Genesis Healthcare Inc. 2.76 0.05 1.85 80,070
GLW Corning Incorporated 23.33 0.33 1.43 10,186,997
HAIN The Hain Celestial Group Inc. 34.65 0.02 0.06 1,392,534
HFWA Heritage Financial Corporation 17.98 0.23 1.30 34,503
HPQ HP Inc. 15.34 0.32 2.13 9,061,256
LPSN LivePerson Inc. 8.38 0.07 0.84 285,312
LVLT Level 3 Communications Inc. 47.06 0.03 0.06 2,645,564
MMI Marcus & Millichap Inc. 25.54 0.34 1.35 76,628
MSFT Microsoft Corporation 57.95 1.05 1.85 28,065,071
ODP Office Depot Inc. 3.62 0.02 0.56 9,850,709
PAAS Pan American Silver Corp. 17.53 -0.08 -0.45 2,274,675
PPC Pilgrim\'s Pride Corporation 20.90 0.00 0.00 1,093,647
PPL PPL Corp 35.24 -0.52 -1.45 4,739,105
S Sprint Corporation 6.73 0.08 1.20 9,741,591
SCCO Southern Copper Corp 25.72 -0.05 -0.19 518,953
SO Southern Company (The) 52.84 -0.47 -0.88 5,774,119
SPLS Staples Inc. 8.36 0.05 0.60 4,425,079
T AT&T Inc. 41.46 0.32 0.78 18,440,158
TAOM Taomee Holdings Ltd ADR (Sponsored) n/a n/a n/a 0
TGT Target Corporation 68.29 1.07 1.59 5,778,369
TXN Texas Instruments Incorporated 69.45 1.03 1.51 4,560,225
UEC Uranium Energy Corp. 1.01 -0.04 -3.81 521,943
VALE VALE S.A. American Depositary Shares Each Represen 5.44 0.06 1.12 11,258,491
VRTX Vertex Pharmaceuticals Incorporated 89.12 0.83 0.94 1,520,320
VRX Valeant Pharmaceuticals International Inc. 26.28 0.39 1.51 11,977,302
VZ Verizon Communications Inc. 52.49 0.34 0.65 8,259,032
XOMA XOMA Corporation 0.48 -0.01 -2.88 649,058
XRX Xerox Corporation 10.03 0.05 0.50 10,406,712
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0

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