Equities Sector Coverage: Stocks End Lower for Shortened Week

Sector Recap |

Stocks End Lower for Shortened WeekInitial Jobless Claims came in at 357,000, the lowest since mid-April 2008, but still above the recessionary threshold of 350,000. The Dow Jones Industrial Average declined to 13,012.46 then rebounded to 13,088.11 then consolidated into the final hour of trading. A close below the 50-day simple moving average at 12,975 will confirm that the Dow has peaked at its 52-week high at 13,297.11 set on April 2nd. The NASDAQ’s declined to 3061.14 then rebounded to 3083.38 below its 52-week high at 3134.17 set on March 27th. A close below the 21-day simple moving average at 3066 shifts the daily chart to negative.

Asian stocks were lower on Thursday. The Nikkei 225 ended their session at 9,768 – down 0.53% on the day. The Hang Seng ended their session at 20,593 – down 0.95% on the day. European stocks opened higher then drifted lower before ending mixed. The FTSE 100 ended their session at 5,724 – up 0.35% on the day. The DAX ended their session at 6,775 – down 0.13% on the day. The CAC 40 ended their session at 3,320 – up 0.19% on the day. The yield on the 10-Year US Treasury declined from 2.238 percent to 2.138 then consolidated closing on the cusp of its 200-day simple moving average at 2.169.

Gold rebounded from $1620.7 the Troy ounce to $1634.8 well below its 200-day simple moving average at $1687.7. Crude oil rebounded from $101.37 per barrel to $103.40 staying below its 50-day simple moving average at $103.82. The euro versus the dollar declined from 1.3163 to 1.3038 below its 50-day simple moving average at 1.3216.

Energy

Shell (RDS.A) is considering building a huge plant in Louisiana to convert natural gas into diesel fuel. The ConocoPhillips' (COP) board approved the spinoff of its gas station business Phillips 66, which will trade on NYSE as PSX effective after the close on April 30. Cenovus Energy (CVE) has been upgraded to Sector Outperform from Sector Perform at CIBC World Markets. Enduro Royalty Trust (NDRO) has been downgraded to Neutral from Buy with a $21 price target at Robert W. Baird. Sasol (SSL) has been downgraded to Neutral from Outperform at Credit Suisse. Baker Hughes (BHI) rebounded by 0.5%, Chesapeake Energy (CHK) rebounded by 0.7%, Chevron (CVX) rebounded fractionally as did Exxon Mobil (XOM).

Energy Select Sector SPDR (XLE) was trading at $70.59 at 3:30 PM on Thursday, down 0.44% on the day – up 2.11% year-to-date.

Materials

Schulman (SHLM) missed EPS estimates by six cents with revenue down 2.4% year over year. LyondellBasell (LYB) is initiated with a Neutral rating at Piper Jaffray. Uranium Resources (URRE) is initiated with a Buy rating at Dahlman Rose. Alcoa (AA) rebounded by 0.4%, DuPont (DD) rebounded by 0.6%, Freeport McMoRan (FCX) rebounded by 1.0% and US Steel (X) bounced by 1.5%.

The Materials Select Sector SPDR (XLB) was trading at $36.47 at 3:30 PM on Thursday, down 0.60% on the day – up 8.87% year-to-date.

Industrials

HEICO (HEI) the aerospace firm is initiated with a Neutral rating at Bank of America-Merrill Lynch. Acuity Brands (AYI) has been downgraded to Hold from Buy at ThinkEquity. MDC Holdings (MDC) has been downgraded to Underweight from Neutral at JP Morgan. Dow components Boeing Co (BA) was fractionally lower, Caterpillar (CAT) was 0.7% higher, General Electric (GE) slumped 0.5%, 3M Company (MMM) slipped 0.4% and United Technologies (UTX) was flat.

The Industrial Select Sector SPDR (XLI) was trading at $36.99 at 3:30 PM on Thursday, down 0.35% on the day – up 9.60% year-to-date.



Consumer Discretionary

Carmax (KMX) beat earnings estimated on both the top and bottom lines. Bed Bath and Beyond (BBBY) reported that their same-store sales rose by +6.8% year over year, which was better than expected and shares rose 6.0% in after hours trading. PriceSmart (PSMT) missed EPS estimates by two cents but revenue was up 22.3% year over year, but shares fell 1.8% in Wednesday’s after hours trading. Cabela’s (CAB) is initiated with an Outperform rating at Imperial Capital with a $45 price target.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.02 at 3:30 PM on Thursday, up 0.72% on the day – up 15.38% year-to-date.

Consumer Staples

DirecTV (DTV) reached an agreement to resume carrying Tribune TV stations. Constellation Brands (STZ) reported a revenue miss pre-market and the stock was 6.8% lower pre-market. Ruby Tuesday (RT) beat on the EPS line but misses on revenue and with lower guidance the stock slumped 12% in after hours trading. Panera Bread (PNRA) is initiated with an Outperform rating at Credit Suisse.

The Consumer Staples Select Sector SPDR (XLP) was trading at $34.02 at 3:30 PM on Thursday, down 0.09% on the day – up 4.71% year-to-date.

Health Care

Sanofi (SNY) and Regeneron Pharmaceuticals (REGN) reported that their experimental Zaltrap drug did not meet targets in a late-stage Phase III trial. AngioDynamics (ANGO) beat EPS estimates by two cents but revenue missed by 5.5% year over year, and shares fell 4.5% in Wednesday’s after hours trading. Ventrus Biosciences (VTUS) has been initiated with a Buy rating at Cantor Fitzgerald. Quality Systems (QSII) has been downgraded to Equal Weight from Overweight at Morgan Stanley. Dow Components Johnson & Johnson (JNJ) traded flat, Merck (MRK) lost 0.5% and Pfizer (PFE) was down 0.25%.

The Health Care Select Sector SPDR (XLV) was trading at $37.48 at 3:30 PM on Thursday, down 0.11% on the day – up 8.04% year-to-date.

Financials

Bank of America-Merrill Lynch initiates Susquehanna Bancshares (SUSQ) with a Buy rating, initiates Webster Financial (WBS) with a neutral rating, and initiates Fulton Financial (FULT) with an Underperform rating. Citigroup initiates KeyCorp (KEY) with a Buy rating and $10 price target. Citigroup initiates First Niagara Financial (FNFG) and Huntington Bancshares (HBAN) with neutral ratings. Sunstone Hotel (SHO) are initiated with an Equal Weight rating at Barclays. Comerica (CMA) is downgraded to Sell from Neutral at Citigroup. First Commonwealth Financial (FCF), Flushing Financial (FFIC), and Associated Banc-Corp (ASBC) have been downgraded to Neutral from Outperform at Macquarie.

The Financial Select Sector SPDR (XLF) was trading at $15.55 at 3:30 PM on Thursday, down 0.19% on the day – up 19.62% year-to-date (the strongest performing sector).

Information Technology

LinkedIn (LNKD) has had several downgrades this morning, but at Capstone Investments where the stock was initiated with a Buy rating with a $125 price target. Pandora Media (P) has been initiated with an Underweight rating by Barclays with an $8 price target. Aruba Networks (ARUN) is initiated with a Buy rating at Needham with a price target at is $28. Atmel (ATML) is initiated with a Buy rating and $12 price target at Maxim Group. NVIDIA (NVDA) has been initiated with a Buy rating at Cantor Fitzgerald with a $20 price target. LinkedIn (LNKD) has been downgraded to Market Perform from Outperform at Raymond James.

The Technology Select Sector SPDR (XLK) was trading at $30.16 at 3:30 PM on Thursday, up 0.20% on the day – up 18.51% year-to-date.

Telecommunication Services

ADTRAN (ADTN) has been downgraded to Underperform from Market Perform at Raymond James. Ciena (CIEN) was downgraded to Market Perform from Outperform at Raymond James. Dow components AT&T (T) fell 2.25% while Verizon (VZ) lost 1.90%.

The NASDAQ Telecommunications Index (IXTC) was trading at $213.7 at 3:30 PM on Thursday, down 0.80% on the day – up 8.52% year-to-date.

Utilities

Veolia Environnement (VE) has been downgraded to Sell from Hold by Deutsche Bank. Dominion Resources (D) was down 0.25%, Edison International (EIX) was flat, First Energy (FE) was flat, and PG&E Corp (PCG) was down 0.6%.

The Utilities Select Sector SPDR (XLU) was trading at $34.87 at 3:30 PM on Thursday, down 0.80% on the day – down 3.09% year-to-date (the weakest performing sector / the only negative sector).

STOCKS: BHI, CHK, CVX, XOM, RDS.A, COP, CVE, NDRO, SSL, AA, DD, FCX, X, SHLM, LYB, URRE, BA, CAT, GE, MMM, UTX, HEI, AYI, MDC, KMX, BBY, PSMT, CAB, DTV, STZ, RT, PNRA, SNY, ANGO, VTUS, JNJ, MRK, PFE, SUSQ, WBS, FULT, KEY, FNFG, HBAN, SHO, CMA, FCF, FFIC, ASBC, LNKD, P, ARUN, ATML, NVDA, ADTN, CIEN, T, VZ, D, EIX, FE, PCG, VE

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Companies

Symbol Name Price Change % Volume
AYI Acuity Brands Inc (Holding Company) 176.50 0.18 0.10 546,721 Trade
MMM 3M Company 195.00 -0.13 -0.07 2,641,226 Trade
WBS Webster Financial Corporation 52.97 0.99 1.90 807,979 Trade
ADTN ADTRAN Inc. 20.05 -0.05 -0.25 357,269 Trade
FNFG First Niagara Financial Group Inc. n/a n/a n/a 0 Trade
GE General Electric Co 29.26 -0.19 -0.65 37,368,373 Trade
CVX Chevron Corporation 106.08 -0.65 -0.61 6,687,389 Trade
PCG Pacific Gas & Electric Co. 67.00 -0.66 -0.98 2,349,699 Trade
CVE Cenovus Energy Inc 10.29 -0.22 -2.09 5,489,276 Trade
CAB Cabela\'s Inc Class A 56.04 -0.61 -1.08 618,593 Trade
JNJ Johnson & Johnson 123.51 0.08 0.06 5,021,839 Trade
AA Alcoa Inc. 36.45 -0.04 -0.11 7,528,268 Trade
D Dominion Resources Inc. 77.49 -0.21 -0.27 1,505,814 Trade
FFIC Flushing Financial Corporation 30.58 3.14 11.44 356,784 Trade
SSL Sasol Ltd. American Depositary Shares 31.01 -0.02 -0.06 325,203 Trade
URRE Uranium Resources Inc. 1.78 -0.01 -0.56 378,687 Trade
HEI Heico Corporation 70.13 0.12 0.17 148,241 Trade
CAMBW CAMBRIDGE CAPITAL ACQUISITION CORPORATION n/a n/a n/a 0 Trade
KEY KeyCorp 18.68 0.06 0.32 8,654,975 Trade
P Pandora Media Inc. 10.83 -0.04 -0.37 3,600,288 Trade
PSMT PriceSmart Inc. 87.40 0.70 0.81 76,738 Trade
EIX Edison International 80.19 -0.63 -0.78 1,876,362 Trade
ANGO AngioDynamics Inc. 15.39 -0.37 -2.32 535,356 Trade
UTX United Technologies Corporation 118.20 1.33 1.14 5,102,681 Trade
NVDA NVIDIA Corporation 104.02 -0.72 -0.69 8,175,145 Trade
COP ConocoPhillips 48.34 -0.45 -0.92 6,536,870 Trade
LYB LyondellBasell Industries NV Class A (Netherlands) 87.06 0.05 0.06 1,863,849 Trade
NDRO Enduro Royalty Trust Trust Units representing bene 3.45 -0.01 -0.42 24,331 Trade
PNRA Panera Bread Company 313.51 -0.21 -0.07 608,845 Trade
VZ Verizon Communications Inc. 47.36 0.66 1.41 29,343,781 Trade
HBAN Huntington Bancshares Incorporated 13.12 0.08 0.61 7,703,218 Trade
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
ATML Atmel Corp n/a n/a n/a 0 Trade
FCX Freeport-McMoRan Inc. 13.50 0.40 3.05 31,412,491 Trade
MDC M.D.C. Holdings Inc. 31.40 0.45 1.45 485,831 Trade
CIEN Ciena Corporation 23.14 0.06 0.26 2,602,727 Trade
DD E.I. du Pont de Nemours and Co. 81.61 -0.60 -0.73 2,466,120 Trade
RT Ruby Tuesday Inc. 2.66 0.03 1.14 350,152 Trade
SHLM A. Schulman Inc. 31.65 0.40 1.28 325,119 Trade
BHI Baker Hughes Incorporated 59.46 0.17 0.29 3,784,341 Trade
CMA Comerica Incorporated 71.58 0.93 1.32 1,933,559 Trade
BBY Best Buy Co. Inc. 52.25 0.48 0.93 2,876,769 Trade
X United States Steel Corp. 22.78 -8.33 -26.78 101,142,595 Trade
XOM Exxon Mobil Corporation 81.40 -0.33 -0.40 9,445,925 Trade
PFE Pfizer Inc. 33.85 0.09 0.27 19,814,537 Trade
BA Boeing Company (The) 181.71 -1.80 -0.98 4,471,593 Trade
MRK Merck & Company Inc. (new) 62.70 0.40 0.64 8,859,276 Trade
FCF First Commonwealth Financial Corporation 13.46 0.16 1.20 493,397 Trade
SNY Sanofi American Depositary Shares (Each repstg one 46.42 0.02 0.04 950,824 Trade
FE FirstEnergy Corporation 30.52 -0.09 -0.29 5,786,127 Trade
KMX CarMax Inc 59.96 1.22 2.08 4,056,398 Trade
T AT&T Inc. 40.44 0.50 1.25 34,352,326 Trade
CAT Caterpillar Inc. 104.66 0.24 0.23 9,856,082 Trade
FULT Fulton Financial Corporation 19.25 0.30 1.58 1,188,939 Trade
SHO Sunstone Hotel Investors Inc. 15.93 0.14 0.89 2,119,284 Trade
CHK Chesapeake Energy Corporation 5.47 -0.04 -0.73 37,512,488 Trade

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