Equities Sector Coverage: Stocks End Week Higher Despite Disappointing GDP Growth

Sector Recap  |

The Advanced reading of Real GDP for the first quarter of 2012 came in below expectations at just 2.2%. A drag was Business Investment which was down 2.1%, the first decline since Q4 2009. The University of Michigan reading on consumer sentiment for the month of April came in at 76.4, the highest level since February 2011. The Dow Jones Industrial Average rallied to a day’s high at 13,266.68 versus the March 16th high at 13,289.08. The NASDAQ’s rallied to a day’s high at 3076.44 versus the March 27th high at 3134.17.

Asian stocks were lower on Friday. The Nikkei 225 ended their session at 9,521 – down 0.43% on the day. The Hang Seng ended their session at 20,741 – down 0.33% on the day. European exchanges were mixed on Friday but closed higher. The FTSE 100 ended their session at 5,777 – up 0.49% on the day. The DAX ended their session at 6,801 – up 0.91% on the day. The CAC 40 ended their session at 3,266 – up 1.14% on the day. The yield on the 10-Year US Treasury declined from 1.931 percent to 1.881 overnight then rose to 1.956 below its 50-day and 200-day simple moving averages at 2.080 and 2.087.

Gold declined from $1659.0 the Troy ounce to $1651.1 then rebounded to $1668.4 still below the “death cross” defined by the 50-day simple moving average at $1679.2 being below the 200-day simple moving average at $1697.3. Crude oil rebounded from $103.74 per barrel to $105.00, staying below its 50-day simple moving average at $105.11. The euro versus the dollar traded up from 1.3161 and 1.3269 above its 50-day simple moving average at 1.3210.

Energy

Chevron (CVX) posted a first-quarter profit of $3.27 a share, beating estimates by a penny. Total revenue came in at $60.71 billion, short of expectations of $72.42 billion. Oil States International (OIS) beat Q1 EPS estimates by 41 cents with better than expected revenue. Newpark Resources (NR) missed Q1 EPS estimates by a nickel with lower than expected revenue. Superior Energy Services (SPN) beat Q1 EPS estimates by twelve cents with better than expected revenue. Dahlman Rose initiates with Buy ratings Marathon Petroleum (MPC), Tesoro (TSO), and Valero Energy (VLO). Dow components - Chevron (CVX) lost 0.3% in morning trading with Exxon Mobil (XOM) flat.
Energy Select Sector SPDR (XLE) was trading at $70.76 at 3:30 PM on Friday, down 0.10% on the day – up 2.36% year-to-date.

Materials

Weyerhaeuser (WY) beat Q1 EPS estimates by two cents with better than expected revenue. TPC Group (TPCG) reported Q1 EPS of $1.14 and a miss on the revenue line. Eastman Chemical (EMN) beat Q1 EPS estimates by nine cents, but there was a miss on the revenue line. Compass Minerals (CMP) missed Q1 EPS estimates by nine cents with a miss on the revenue line. Agnico-Eagle Mines (AEM) beat Q1 EPS estimates by 22 cents with a beat on the revenue line. Dow components - Alcoa (AA) slipped 0.9% still below the $10 threshold. DuPont (DD) gained 0.2%.
The Materials Select Sector SPDR (XLB) was trading at $36.94 at 3:30 PM on Friday, up 0.52% on the day – up 10.27% year-to-date.

Industrials

China Eastern Airlines will likely place a $6 billion order for up to 20 Boeing (BA) 777 jets. Goodyear Tire & Rubber (GT) reported Q1 EPS of 34 cents with a miss on the revenue line. ScanSource (SCSC) missed Q3 EPS by a penny with in-line revenue. Metabolix (CBLX) reported in-line Q1 EPS with in-line revenue. Dow components - Boeing Co (BA) was up just 0.1% in morning trading, with Caterpillar (CAT) up 0.5%, General Electric (GE) inched up 0.2%, 3M Company (MMM) was flat, and United Technologies (UTX) picked up 0.6%.
The Industrial Select Sector SPDR (XLI) was trading at $37.39 at 3:30 PM on Friday, up 0.70% on the day – up 10.79% year-to-date.

Consumer Discretionary

Ford (F) reported first-quarter earnings of 39 cents a share on revenue of $32.4 billion, topping expectations of 35 cents a share on $31.27 billion. Deckers (DECK) fell 16.1% in after hours trading on Thursday as the maker of UGG boots misses earnings expectations and cut their full year guidance. Deckers Outdoor has been downgraded to Hold from Buy at Jefferies. Columbia Sportswear (COLM) reported Q1 EPS of $0.11 with a miss on the revenue line. Choice Hotels International (CHH) beat Q1 EPS estimate by three cents with a beat on the revenue line. Callaway Golf (ELY) missed Q1 EPS estimates by four cents with a miss on the revenue line. Bally Technologies (BYI) beat Q1 EPS estimates by a penny with a modest beat on the revenue line. Fortune Brands Home & Security (FBHS) beat Q1 EPS estimates by five cents with a beat on the revenue line. Coinstar (CSTR) reported Q1 EPS of $1.39 with a beat on the revenue line. Zynga (ZNGA) has been upgraded to Overweight from Neutral at JP Morgan. Dow Components - Disney (DIS) was flat in morning trading with McDonalds (MCD) up 1.5%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.98 at 3:30 PM on Friday, up 1.48% on the day – up 17.84% year-to-date.

Consumer Staples

Amazon (AMZN) shares were 12.4% higher premarket as Q1 EPS beat consensus with revenue growth of 34% to $13.18 billion. The company plans to invest another $800 to $900 million on capex in Q2. Amazon.com (AMZN) has been upgraded upgraded to Buy from Neutral at Goldman Sachs, to Buy from Neutral at Bank of America-Merrill Lynch, and to Buy from Neutral at Nomura. Starbucks' (SBUX) shares were 5% lower premarket as Q2 earnings narrowly beat estimates. The company gave FY 2012 EPS guidance that was below consensus causing the lower share price. Procter & Gamble (PG) beat Q3 EPS estimates by a penny, but missed on the revenue line. Aaron's (AAN) beat Q1 EPS estimates by three cents with a beat on the revenue line. Expedia (EXPE) beat Q1 EPS estimates by a dime with better than expected revenue. Expedia has been upgraded to Neutral from Underweight at JPMorgan. Dow components - Home Depot (HD) gained 0.6% in morning trading with Kraft (KFT) up 1.1%, Coca Cola (KO) up 1.4%, Procter & Gamble (PG) down 3.4%, and Wal-Mart (WMT) flat.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.29 at 3:30 PM on Friday, down 0.09% on the day – up 5.54% year-to-date.

Health Care

Allscripts (MDRX) shares plunged 42% in after hours trading Thursday following a bleak Q1 earnings report that missed consensus and after the announcement of a major shakeup. Allscripts-Misys Healthcare has been downgraded to Hold from Buy at Jefferies. Merck (MRK) beat Q1 EPS estimates by a penny with in-line revenue. Coventry Health Care (CVH) reported Q1 EPS of 62 cents with a beat on the revenue line, and shares were 3.9% higher premarket. Covidien (COV) beat Q2 EPS by two cents with in-line revenue. The FDA rejected Amgen's (AMGN) application to expand the use of the drug Xgeva to delay the spread of tumors to bones in patients suffering from advanced prostate cancer. Sanofi (SNY) reiterated full-year guidance saying that profits to drop as much as 15% in 2012 because of competition from generics. McKesson (MCK) will pay $190 million to settle allegations that the drug distribution company improperly inflated drug prices that led to overbilling the Medicaid system. Jazz Pharmaceuticals (JAZZ) shares surged 11.2% after hours Thursday after acquiring privately-held EUSA Pharma for as much as $700 million in cash. EUSA's FDA-approved Erwinaze treatment blocks cell growth in patients with acute leukemia. InterMune (ITMN) missed Q1 EPS estimates by four cents with a miss on the revenue line. InterMune has been downgraded to Market Perform from Outperform at JMP Securities. Gilead Sciences (GILD) missed Q1 EPS estimates by three cents but beat on the revenue line. Cerner (CERN) beat Q1 EPS estimates by four cents with better than expected revenue. Dow Components - Johnson & Johnson (JNJ) gained 0.3%, Merck (MRK) was down 0.2%, and Pfizer (PFE) was flat.
The Health Care Select Sector SPDR (XLV) was trading at $37.57 at 3:30 PM on Friday, up 0.16% on the day – up 8.30% year-to-date.

Financials

Wall Street may have to reduce headcount by another 10%-12% in order to achieve higher profitability targets this year, according to a recent report by the Boston Consulting Group. Regulators are widening their probe into the possible involvement of employees of Goldman Sachs (GS) in the Galleon Group insider trading ring. At issue is whether or not a senior investment banker gave Galleon traders advance information about pending health-care deals. SVB Financial Group (SIVB) beat Q1 EPS estimates by three cents. Seacoast Banking of Florida (SBCF) missed Q1 EPS estimates by a penny but reported better than expected revenue. Hancock Holding (HBHC) missed Q1 EPS estimates by eight cents. Citizens Republic Bancorp (CRBC) beat Q1 EPS estimates by fifteen cents. Federated Investors (FII) beat Q1 EPS estimates by three cents with better than expected revenue. Principal Financial Group (PFG) missed Q1 EPS estimates by three cents with in-line revenue. MetLife (MET) beat Q1 operating EPS estimates by nine cents with better than expected revenue. Dow Components - American Express (AXP) gained 2.1%, Bank of America (BAC) fell 0.4%, JP Morgan (JPM) lost 1.0%, and Travelers (TRV) declined by 1.2%.
The Financial Select Sector SPDR (XLF) was trading at $15.51 at 3:30 PM on Friday, flat on the day – up 19.31% year-to-date.

Information Technology

Silicon Motion Technology (SIMO) shares fell 8.7% after the close Thursday despite a beat of eight cents on Q1 EPS with higher than expected revenue. PerkinElmer (PKI) beat Q1 EPS estimates by two cents with better than expected revenue. Cray (CRAY) beat Q1 EPS estimates by a dime with better than expected revenue. Ariba (ARBA) beat Q2 EPS estimates by three cents with better than expected revenue. Applied Micro Circuits (AMCC) beat Q4 EPS estimates by a penny with in-line revenue. Applied Micro Circuits has been downgraded to Hold from Buy at Wunderlich after what should be a weaker period for their business. Amkor Technologies (AMKR) beat Q1 EPS estimates by two cents with better than expected revenue. VeriSign (VRSN) missed Q1 EPS estimates by a penny with a miss on the revenue line. KLA-Tencor (KLAC) beat Q3 EPS estimates by twelve cents with a beat on the revenue line. Crédit Agricole downgraded KLAC to Outperform from Buy. Skyworks (SWKS) beat Q2 EPS estimates by two cents with better than expected revenue. Western Digital (WDC) beat Q1 EPS estimates by 97 cents with better than expected revenue. Maxim Integrated Products (MXIM) beat Q3 EPS estimates by a nickel with in-line revenue. Informatica (INFA) beat Q1 EPS estimates by two cents with better than expected revenue. Dow Components - Cisco Systems (CSCO) was up 1.1% in morning trading, Hewlett-Packard (HPQ) slipped 0.7%, IBM (IBM) rallied 0.8%, Intel Corp (INTC) was up 0.6%, and Microsoft (MSFT) fell 0.3%.
The Technology Select Sector SPDR (XLK) was trading at $30.06 at 3:30 PM on Friday, up 0.07% on the day – up 18.11% year-to-date.

Telecommunication Services

Samsung (SSNLF.PK) has overtaken Nokia (NOK) as the world’s largest provider of cell phones, ending the Finnish company's 14-year reign. Samsung also regained the lead over Apple (AAPL) in the shipments of smart phones. TeleCommunication Systems (TSYS) missed Q1 EPS estimates by a penny with a miss on the revenue line. Sonus Networks (SONS) reported in-line Q1 EPS with a beat on the revenue line. PC-Tel (PCTI) reported in-line Q1 EPS with a beat on the revenue line. Brightpoint (CELL) missed Q1 EPS estimates by four cents, but beat on the revenue line. Clearwire (CLWR) missed Q1 EPS estimates by a nickel, but they beat on the revenue line. MetroPCS (PCS) has been downgraded to Market Perform from Outperform at Wells Fargo. Dow components - AT&T (T) was up 0.6% in morning trading with Verizon (VZ) up 0.2%.
The NASDAQ Telecommunications Index (IXTC) was trading at $211.34 at 3:30 PM on Friday, up 0.99% on the day – up 7.32% year-to-date.

Utilities

Calpine (CPN) reported Q1 EPS loss of 14 cents with revenue that was lower by 13.3%. Dominion Resources (D) was flat in morning trading, Edison International (EIX) slipped 0.2%, First Energy (FE) was flat, PG&E Corp (PCG) was flat, and Southern Company (SO) slipped 0.3%.
The Utilities Select Sector SPDR (XLU) was trading at $35.63 at 3:30 PM on Friday, up 0.39% on the day – down 0.97% year-to-date.

STOCKS: CVX, XOM, OIS, NR, SPN, MPC, TSO, VLO, AA, DD, WY, TPCG, EMN, CMP, AEM, BA, CAT, GE, MMM, UTX, GT, SCSC, CBLX, DIS, MCD, F, DECK, COLM, CHH, ELY, BYI, FBHS, CSTR, ZNGA, HD, KFT, KO, PG, WMT, AMZN, SBUX, AAN, EXPE, JNJ, MRK, PFE, LLY, MDRX, CVH, COV, AMGN, SNY, MCK, JAZZ, ITMN, GILD, CERN, AXP, BAC, JPM, TRV, GS, SIVB, SBVF, HBHC, CRBC, FII, PFG, MET, CSCO, HPQ, IBM, INTC, MSFT, SIMO, PKI, CRAY, ARBA, AMCC, AMKR, VRSN, KLAC, SWKS, WDC, MXIM, INFA, T, VZ, SSNLF.PK, NOK, AAPL, TSYS, PCTI, CELL, CLWR, PCS, D, EIX, FE, PCG, SO, CPN

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 195.86 4.15 2.16 2,746,603 Trade
MCK McKesson Corporation 126.67 2.28 1.83 1,839,013 Trade
FII Federated Investors Inc. 26.43 0.44 1.69 883,603 Trade
DECK Deckers Outdoor Corporation 118.87 1.30 1.11 532,454 Trade
PG Procter & Gamble Company (The) 91.42 0.78 0.86 9,100,592 Trade
GE General Electric Company 9.06 -0.08 -0.88 92,734,517 Trade
CVX Chevron Corporation 114.37 2.41 2.15 9,382,007 Trade
SO Southern Company (The) 47.22 0.15 0.32 4,015,423 Trade
PCG Pacific Gas & Electric Co. 7.23 0.87 13.68 53,590,412 Trade
SCSC ScanSource Inc. 37.25 0.12 0.32 115,305 Trade
GT The Goodyear Tire & Rubber Company 20.58 0.31 1.53 4,613,521 Trade
CHH Choice Hotels International Inc. 75.42 0.72 0.96 205,516 Trade
JNJ Johnson & Johnson 130.69 1.60 1.24 10,592,972 Trade
AA Alcoa Corporation 29.27 -0.32 -1.08 6,601,167 Trade
INTC Intel Corporation 49.19 0.72 1.49 29,874,317 Trade
VLO Valero Energy Corporation 82.59 2.10 2.61 5,110,692 Trade
D Dominion Energy Inc. 68.77 -0.17 -0.25 4,149,653 Trade
TRV The Travelers Companies Inc. 124.01 1.07 0.87 1,923,862 Trade
MDRX Allscripts Healthcare Solutions Inc. 12.19 0.52 4.46 2,656,607 Trade
SMP Standard Motor Products Inc. 49.90 0.15 0.30 119,381 Trade
MPC Marathon Petroleum Corporation 66.09 0.30 0.46 5,746,118 Trade
EXPE Expedia Group Inc. 118.48 1.77 1.52 973,515 Trade
TSO ANDV Tesoro Corporation n/a n/a n/a 0
COLM Columbia Sportswear Company 86.09 2.25 2.68 387,517 Trade
EIX Edison International 54.88 1.37 2.56 3,069,141 Trade
JAZZ Jazz Pharmaceuticals plc 129.07 1.68 1.32 625,949 Trade
MET MetLife Inc. 45.31 0.26 0.58 6,458,862 Trade
GILD Gilead Sciences Inc. 69.18 0.53 0.77 8,358,808 Trade
AXP American Express Company 100.48 0.99 1.00 9,872,459 Trade
OIS Oil States International Inc. 17.86 0.13 0.73 635,502 Trade
SPN Superior Energy Services Inc. 4.00 0.08 2.04 2,727,736 Trade
FBHS Fortune Brands Home & Security Inc. 43.06 0.83 1.97 1,845,215 Trade
UTX United Technologies Corporation 113.90 1.13 1.00 4,636,159 Trade
CERN Cerner Corporation 54.06 0.66 1.24 2,643,862 Trade
AEM Agnico Eagle Mines Limited 38.99 -0.47 -1.19 1,460,846 Trade
CMP Compass Minerals Intl Inc 48.59 1.38 2.92 503,671 Trade
CSCO Cisco Systems Inc. 45.03 0.82 1.85 24,416,514 Trade
WY Weyerhaeuser Company 25.08 0.44 1.79 5,306,054 Trade
GS Goldman Sachs Group Inc. (The) 202.54 3.45 1.73 5,650,934 Trade
AMKR Amkor Technology Inc. 7.49 0.27 3.74 885,137 Trade
VZ Verizon Communications Inc. 57.09 0.26 0.46 16,802,516 Trade
VRSN VeriSign Inc. 164.44 1.02 0.62 1,077,983 Trade
BAC Bank of America Corporation 29.30 0.31 1.07 97,928,158 Trade
NOK Nokia Corporation Sponsored American Depositary Shares 6.11 0.13 2.17 22,432,561 Trade
EMN Eastman Chemical Company 81.20 2.08 2.63 1,803,132 Trade
SIVB SVB Financial Group 230.99 5.62 2.49 553,105 Trade
ELY Callaway Golf Company 16.98 0.02 0.12 671,298 Trade
MCD McDonald's Corporation 182.57 1.46 0.81 3,497,959 Trade
LLY Eli Lilly and Company 116.59 -2.57 -2.16 8,886,961 Trade
SIMO Silicon Motion Technology Corporation 36.77 1.63 4.64 844,300 Trade
AAN Aaron's Inc. 48.44 1.07 2.26 489,307 Trade
PCTI PC-Tel Inc. 5.12 0.25 5.13 87,989 Trade
SBUX Starbucks Corporation 64.70 0.42 0.65 9,835,199 Trade
AMCC Applied Micro Circuits Corporation n/a n/a n/a 0 Trade
AMGN Amgen Inc. 203.88 1.96 0.97 3,094,991 Trade
HBHC HWC Hancock Holding Company n/a n/a n/a 0
MXIM Maxim Integrated Products Inc. 53.61 0.90 1.71 1,971,778 Trade
F Ford Motor Company 8.58 0.22 2.63 51,127,860 Trade
PFE Pfizer Inc. 42.53 0.06 0.14 36,639,882 Trade
CRAY Cray Inc 22.32 0.61 2.81 284,009 Trade
ZNGA Zynga Inc. 4.26 -0.02 -0.47 17,572,586 Trade
HPQ HP Inc. 21.75 0.52 2.45 10,827,274 Trade
KLAC KLA-Tencor Corporation 95.73 2.81 3.02 1,516,420 Trade
SWKS Skyworks Solutions Inc. 70.07 1.04 1.51 2,464,450 Trade
MRK Merck & Company Inc. (new) 75.87 0.27 0.36 14,294,582 Trade
NR Newpark Resources Inc. 8.54 0.33 4.02 693,791 Trade
FE FirstEnergy Corp. 38.87 0.16 0.41 3,806,437 Trade
WDC Western Digital Corporation 39.20 2.73 7.49 9,351,613 Trade
KO Coca-Cola Company (The) 47.61 0.55 1.17 12,760,779 Trade
T AT&T Inc. 30.96 0.32 1.04 43,249,105 Trade
CAT Caterpillar Inc. 136.60 2.92 2.18 6,122,435 Trade
PKI PerkinElmer Inc. 86.40 2.07 2.45 749,382 Trade
MSFT Microsoft Corporation 107.71 1.59 1.50 37,427,587 Trade
TSYS TeleCommunication Systems Inc n/a n/a n/a 0 Trade
WMT Walmart Inc. 97.73 0.99 1.02 6,120,643 Trade
IBM International Business Machines Corporation 123.82 1.63 1.33 6,008,509 Trade
AAPL Apple Inc. 156.82 0.96 0.62 33,751,023 Trade
JPM JP Morgan Chase & Co. 104.59 1.67 1.62 16,428,710 Trade
AMZN Amazon.com Inc. 1,696.20 2.98 0.18 6,020,503 Trade
DIS The Walt Disney Company 111.04 0.03 0.03 8,554,673 Trade
HD Home Depot Inc. (The) 179.58 4.71 2.69 6,371,422 Trade
XOM Exxon Mobil Corporation 72.99 0.86 1.19 15,759,166 Trade
BA The Boeing Company 364.73 5.64 1.57 4,256,505 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

Level Headed at World Crypto Con - Steve Beauregard

Bloq.com CRO Steve Beauregard joins Jack Brewer at World Crypto Con.

Emerging Growth

DirectView Holdings Inc

DirectView Holdings Inc designs and installs surveillance systems, digital video recording and services. The company through its subsidiaries operates within two divisions security and surveillance and video conferencing services.