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

Sector Recap |

Wall Street Bulls EyeThe 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

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Companies

Symbol Name Price Change % Volume
MMM 3M Company 195.00 -0.13 -0.07 2,641,226 Trade
MCK McKesson Corporation 136.03 1.03 0.76 1,381,786 Trade
FII Federated Investors Inc. 27.90 0.21 0.76 960,030 Trade
DECK Deckers Outdoor Corporation 60.55 1.81 3.08 1,842,988 Trade
PG Procter & Gamble Company (The) 87.74 -2.26 -2.51 11,951,322 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
SO Southern Company (The) 49.97 -0.19 -0.38 2,781,583 Trade
PCG Pacific Gas & Electric Co. 67.00 -0.66 -0.98 2,349,699 Trade
SCSC ScanSource Inc. 40.10 0.55 1.39 97,059 Trade
GT The Goodyear Tire & Rubber Company 35.91 0.05 0.14 3,099,765 Trade
CHH Choice Hotels International Inc. 63.85 0.35 0.55 235,892 Trade
JNJ Johnson & Johnson 123.51 0.08 0.06 5,021,839 Trade
WMT Wal-Mart Stores Inc. 75.43 0.38 0.51 6,948,460 Trade
AA Alcoa Inc. 36.45 -0.04 -0.11 7,528,268 Trade
INTC Intel Corporation 36.93 0.06 0.16 27,240,993 Trade
IBM International Business Machines Corp 160.06 -0.33 -0.21 4,328,001 Trade
VLO Valero Energy Corporation 64.90 -0.93 -1.41 6,540,483 Trade
D Dominion Resources Inc. 77.49 -0.21 -0.27 1,505,814 Trade
TRV The Travelers Companies Inc. 122.01 0.69 0.57 2,433,209 Trade
MDRX Allscripts Healthcare Solutions Inc. 11.87 -0.12 -1.00 1,435,572 Trade
SMP Standard Motor Products Inc. 51.81 0.70 1.37 85,825 Trade
AAPL Apple Inc. 143.68 -0.85 -0.59 20,041,241 Trade
MPC Marathon Petroleum Corporation 49.60 -0.43 -0.86 4,885,477 Trade
EXPE Expedia Inc. 135.75 0.32 0.24 1,834,041 Trade
TSO Tesoro Corporation 80.07 -0.59 -0.73 1,576,805 Trade
COLM Columbia Sportswear Company 59.43 0.12 0.20 259,705 Trade
EIX Edison International 80.19 -0.63 -0.78 1,876,362 Trade
JAZZ Jazz Pharmaceuticals plc 157.75 2.85 1.84 427,167 Trade
MET MetLife Inc. 51.89 -0.48 -0.92 7,364,299 Trade
GILD Gilead Sciences Inc. 68.22 1.10 1.64 15,156,261 Trade
JPM JP Morgan Chase 88.43 0.17 0.19 12,832,154 Trade
AXP American Express Company 80.52 -0.11 -0.14 3,661,571 Trade
OIS Oil States International Inc. 32.10 -0.30 -0.93 658,234 Trade
SPN Superior Energy Services Inc. 12.77 -0.70 -5.20 7,417,309 Trade
FBHS Fortune Brands Home & Security Inc. 65.60 0.67 1.03 1,770,874 Trade
UTX United Technologies Corporation 118.20 1.33 1.14 5,102,681 Trade
CERN Cerner Corporation 59.53 0.08 0.13 3,771,047 Trade
AEM Agnico Eagle Mines Limited 43.61 0.15 0.35 2,375,009 Trade
AMZN Amazon.com Inc. 909.29 1.67 0.18 2,608,948 Trade
CMP Compass Minerals Intl Inc 67.30 -0.25 -0.37 349,733 Trade
CSCO Cisco Systems Inc. 33.40 -0.02 -0.06 17,949,699 Trade
WY Weyerhaeuser Company 34.26 0.26 0.76 8,544,733 Trade
DIS Walt Disney Company (The) 115.58 0.40 0.35 4,809,837 Trade
GS The Goldman Sachs Group Inc. 226.20 -0.43 -0.19 3,765,254 Trade
AMKR Amkor Technology Inc. 11.98 -0.12 -0.99 1,285,807 Trade
VZ Verizon Communications Inc. 47.36 0.66 1.41 29,343,781 Trade
VRSN VeriSign Inc. 88.84 -0.44 -0.49 617,787 Trade
BAC Bank of America Corporation 23.89 -0.09 -0.38 95,172,221 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 5.37 -0.06 -1.11 23,249,390 Trade
EMN Eastman Chemical Company 81.44 -0.19 -0.23 929,939 Trade
CPN Calpine Corporation 9.92 -0.10 -1.00 4,523,246 Trade
SIVB SVB Financial Group 192.49 2.30 1.21 460,223 Trade
ELY Callaway Golf Company 11.86 0.21 1.80 2,100,612 Trade
MCD McDonald\'s Corporation 140.84 -0.86 -0.61 7,132,234 Trade
LLY Eli Lilly and Company 80.96 -0.24 -0.30 4,421,743 Trade
SIMO Silicon Motion Technology Corporation 44.54 -0.36 -0.80 315,180 Trade
AAN Aaron\'s Inc. 32.02 0.51 1.62 604,110 Trade
PCTI PC-Tel Inc. 7.72 -0.12 -1.53 113,599 Trade
DD E.I. du Pont de Nemours and Co. 81.61 -0.60 -0.73 2,466,120 Trade
SBUX Starbucks Corporation 61.56 0.60 0.98 8,525,419 Trade
AMCC Applied Micro Circuits Corporation n/a n/a n/a 0 Trade
AMGN Amgen Inc. 164.61 -0.09 -0.05 4,175,536 Trade
HBHC Hancock Holding Company 48.20 0.65 1.37 542,914 Trade
MXIM Maxim Integrated Products Inc. 44.72 -0.40 -0.89 2,090,231 Trade
HD Home Depot Inc. (The) 154.22 1.19 0.78 5,120,177 Trade
F Ford Motor Company 11.60 0.12 1.05 51,685,768 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
CRAY Cray Inc 19.30 0.15 0.78 264,579 Trade
ZNGA Zynga Inc. 2.82 -0.04 -1.40 12,697,807 Trade
PFG Principal Financial Group Inc 64.31 -0.04 -0.06 1,010,383 Trade
HPQ HP Inc. 18.63 0.02 0.11 7,950,652 Trade
KLAC KLA-Tencor Corporation 100.80 -0.91 -0.89 791,110 Trade
BA Boeing Company (The) 181.71 -1.80 -0.98 4,471,593 Trade
SWKS Skyworks Solutions Inc. 102.97 -1.03 -0.99 2,170,002 Trade
MRK Merck & Company Inc. (new) 62.70 0.40 0.64 8,859,276 Trade
NR Newpark Resources Inc. 8.00 0.15 1.91 1,002,175 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
WDC Western Digital Corporation 84.61 -2.27 -2.61 7,984,922 Trade
KO Coca-Cola Company (The) 43.24 0.13 0.30 13,626,625 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
PKI PerkinElmer Inc. 59.98 1.33 2.27 1,145,749 Trade
MSFT Microsoft Corporation 67.83 -0.09 -0.13 26,190,770 Trade
TSYS TeleCommunication Systems Inc. n/a n/a n/a 0 Trade

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