Equities Sector Coverage: Stocks Extend Streak With Modest Gains

Sector Recap |

RIMMMichigan Consumer Sentiment came in at a weak reading of 57.8 in September. Next week we get housing data including Housing Starts and Existing Home Sales and that two-day FOMC meeting. On Wednesday afternoon we learn whether or not the FOMC has any new easing tricks up their sleeves. The Dow Jones Industrial Average continued to rally for the fifth consecutive session trading above 11,500 to 11,532.47 on optimism that the European debt crisis may ease. The Dow dipped to 11,407.41 as Eurozone finance ministers balked at U.S. suggestions before rebounding back above 11,500 in the afternoon. The NASDAQ continued its rally staying above 2600 with a high at 2627.28.

Asian stocks rebounded again on Friday with the Nikkei 225 gaining 2.25% to 8,864 and the Hang Seng higher by 1.43% to 19,455. European stocks reversed gains as Eurozone finance ministers resisted pressures from the US for a solution to their sovereign debt crisis. Stocks ended mixed with the FTSE 100 up 0.58% to 5,368 with the DAX gaining 1.18% to 5,574, and the CAC 40 down 0.48% to 3031. The yield on the 10-Year US Treasury rose from 1.992 percent to 2.118 staying within Thursday’s trading range. Gold traded up from $1765.4 the Troy ounce to $1825.0, as traders continue to observe the potential double top on the daily chart. Crude oil traded down from $89.78 per barrel to $87.00 remaining below its 50- day simple moving average at $90.37. The euro versus the US dollar traded down from 1.3892 to 1.3757.

Energy

Deutsche Bank has Holds on Trina Solar (TSL), SunPower (SPWRA), JinkSolar (JKS), ReneSola (SOL), First Solar (FSLR), Suntech Power (STP), Yingli Green (YGE), Veeco Instruments (VECO), and Itron (ITRI). It has Buys on MEMC Electronic (WFR), and Cree Inc (CREE). In afternoon trading: Shares of Treaty Energy (TECO) are up about 14.25%. Shares of Patriot Coal (PCX) are down about 10%. Shares of Yingli Green are down about 9%. Shares of Suntech Power are down about 6.5%. Shares of Trina Solar are down about 5.75%. Shares of First Solar are down about 5.75%.

Energy Select Sector SPDR (XLE) was trading at $67.09 at 4:00 PM on Friday, down 0.61% on the day – down 1.70% year-to-date.

Materials

HSBC Securities upgrades Iamgold (IAG), Harmony (HMY), and Yamana (AUY) to Overweight from Neutral. Horsehead Holding (ZINC) is hoisted to Outperform from Mkt Perform at FBR Capital. Royal Gold (RGLD) is downgraded to Neutral from Overweight at HSBC. In afternoon trading: Actives: Shares of Alcoa (AA) are relatively unchanged. Shares of Freeport McMoran (FCX) are down about 2.5%. Shares of Vale (VALE) are down about a quarter of a percent. Shares of Dow Chemical (DOW) are up about 1.4%. Shares of Yamana are up about 3.5%.

The Materials Select Sector SPDR (XLB) was trading at $34.52 at 4:00 PM on Friday, down 0.20% on the day – down 10.13% year-to-date.

Industrials

A123 Systems (AONE) gets picked up at Overweight by Piper Jaffray. Flowserve (FLS) is now Buy from Neutral at UBS. American Superconductor (AMSC) is downgraded to Hold with Wunderlich with a new target of $6. In afternoon trading: Shares of YRC Worldwide (YRCW) are down about 77% after shareholders agreed to increase the trucking company’s share count to 1.9 billion from 48 billion, a massive dilution of existing shareholders. The increase is part of the company’s restructuring plan to avoid bankruptcy. Shares of Broadwind Energy (BWEN) are down about 18% on after the company announced that it has priced an underwritten public offering of 32.5M shares of its common stock at a price to the public of $0.40/share for gross proceeds of $13.0M.

The Industrial Select Sector SPDR (XLI) was trading at $31.97 at 4:00 PM on Friday, down slightly on the day – down 8.32% year-to-date.

Consumer Discretionary

McCormick & Schmick’s (MSSR) is a new Buy at Capstone. Publicis Groupe SA (PUBGY) is boosted to Buy from Hold at the Royal Bank of Scotland.  In afternoon trading: Shares of Wonder Auto Technology (WATG) are down about 9.7%. Shares of Netflix (NFLX) are down about 7.8%. Shares of Cumulus Media (CMLS) are down about 6.1%. Shares of 99 Cents Only Stores (NDN) are up about 9.6%. Shares of Deer Consumer Products (DEER) are up about 9.1%. Actives: Shares of Sirius XM (SIRI) are down about 0.8%. Shares of Ford Motor (F) are down about 0.9%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $37.77 at 4:00 PM on Friday, up 0.77% on the day – up 0.96% year-to-date.

Consumer Staples

Revlon (REV) is raised to Outperform from Market Perform by BMO Capital. In afternoon trading: Shares of Diamond Foods (DMND) are up about 9%. Shares of Farmer Brothers (FARM) are up about 7.8%. Shares of Revlon are up about 6.2%. Shares of Hansen Natural (HANS) are up about 5.2%. Shares of AgFeed Industries (FEED) are down about 5.6%. Actives: Shares of Procter & Gamble (PG) are up about 2.8%. Shares of Altria Group (MO) are down about 0.3%. Shares of Coca Cola (KO) are up about 0.5%. Shares of Pepsi (PEP) are down about 2.1%. Shares of Wal-Mart (WMT) are up about 0.5%. Shares of CVS Caremark (CVS) are down about 1.7%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.84 at 4:00 PM on Friday, down slightly on the day – up 5.22% year-to-date.



Healthcare

Allergan (AGN) is begun with a Buy at Deutsche Bank. Biomarin Pharmaceuticals (BMRN) is picked up at Outperform by RBC Capital. Raptor Pharmaceuticals (RPTP) is resumed with an Outperform recommendation and $11 price objective at Oppenheimer. Gilead Sciences (GILD) gets a Buy-from-Neutral increase at Goldman. In afternoon trading: Shares of Anadys Pharmaceuticals (ANDS) are up about 18.7%. Shares of XOMA (XOMA) are up about 7.5%. Shares of Arena Pharmaceuticals (ARNA) are up about 7.4%. Shares of Warner Chilcott (WCRX) are up about 7%. Shares of Zoll Medical (ZOLL) are down about 8%.

The Health Care Select Sector SPDR (XLV) was trading at $33.02 at 4:00 PM on Friday, unchanged on the day – up 4.83% year-to-date.

Financials

Following the arrest of a UBS (UBS) employee who allegedly racked up $2B in losses from unauthorized trading, Moody's places the bank's Aa3 rating under review. Goldman Sachs (GS) informs clients it will close down its quantitative-based Global Alpha fund by the end of October as a combination of losses and redemptions brings assets under management down to $1B from about $12B at its peak before the financial crisis. Morgan Stanley (MS) Chairman John Mack - who led a savage round of cost cuts at the firm's fixed income division on his way to becoming CEO - will retire at the end of the year. Current CEO James Gorman will assume his duties. Citigroup (C) is begun with a Market Perform at Wells Fargo. TD Ameritrade (AMTD) is taken to Buy from Hold at Citigroup. Royal Bank of Scotland (RBS) is upgraded to Add from Neutral at West LB. In afternoon trading: Shares of Washington Mutual (WAMUQ) are down about 12.5%. Shares of The PMI Group (PMI) are down about 11%.

The Financial Select Sector SPDR (XLF) was trading at $12.91 at 4:00 PM on Friday, down slightly on the day – down 19.09% year-to-date.

Information Technology

Research in Motion (RIMM) missed FQ2 forecasts on both the top and bottom line. Shipments for the Playbook tablet totaled just 200K, less than half street consensus of 490K. Guidance for FQ3 was largely in-line with estimates as the company is confident a "major" software update and promotions will generate better sales later this year. Research In Motion is reduced to Market Perform from Outperform by Raymond James and to Underperform from Sector Perform at Pacific Crest. Beijing Jingdong Century Trading Company, which runs online shopping site 360buy.com, hopes to raise $4-$5B in a 2012 U.S. IPO - a number that would dwarf Google's (GOOG) $1.9B 2004 offering as the largest ever for an internet firm. After a week of volatility following the dismissal of CEO Carol Bartz, Yahoo (YHOO) has drawn the attention of strategic investors and buyout shops, including Silver Lake - which has already approached the Web giant with an offer, working with Andreessen Horowitz. Dominant search engine Google (GOOG) reports that display ad spending from its biggest advertisers more than doubled over the past year, due to improved sales technologies and, well, more advertisers. With its SEC issue resolved and markets a bit calmer, the online coupon giant Groupon is gassing up for its road show and hopes to go public in late October or early November. Barclays launches Overweights on Linkedin (LNKD), Demand Media (DMD), InterActiveCorp (IACI), and Shutterfly (SFLY). It has Underweights on WebMD Health (WBMD) and OpenTable (OPEN). Vitesse Semiconductor (VTSS) is initiated with a Hold and price target of $3.50 at Wunderlich. Plexus (PLXS) is a new Neutral at Goldman Sachs. Deutsche Bank has Holds on Trina Solar (TSL), SunPower (SPWRA), JinkSolar (JKS), ReneSola (SOL), First Solar (FSLR), Suntech Power (STP), Yingli Green (YGE), Veeco Instruments (VECO), and Itron (ITRI). It has Buys on MEMC Electronic (WFR), and Cree Inc (CREE). Aixtron (AIXG) is upgraded to Hold from Sell at the Royal Bank of Scotland. Adobe Systems (ADBE) is downgraded to Market Perform from Outperform at JMP Securities.  MasterCard (MA) is now Neutral from Outperform with a $385 target price at brokers Robert W. Baird. Veeco Instruments (VECO) is now Neutral from Buy at Bank of America-Merrill Lynch. In afternoon trading: Shares of RIMM are down about 20%.

The Technology Select Sector SPDR (XLK) was trading at $24.98 at 4:00 PM on Friday, up 0.73% on the day – down 0.83% year-to-date.

Telecommunications Services

In afternoon trading: Shares of Cogent Communications Group (CCOI) are up about 7%. Actives: Shares of Sprint Nextel (S) are down about 4%. Shares of AT&T (T) are up about 0.8%. Shares of Verizon (VZ) are up about 0.8%. Shares of Level 3 Communications (LVLT) are down about 2.8%. Shares of Frontier Communications (FTR) are up about a half of a percent. Shares of MetroPCS (PCS) are down about 3%.

The NASDAQ Telecommunications Index (IXTC) was trading at $195.80 at 4:00 PM on Friday, down 0.93% on the day – down 13.12% year-to-date.

Utilities

E.ON AG (EONGY) gets moved to Overweight from Neutral at JP Morgan. In afternoon trading: Actives: Shares of Duke Energy (DUK) are up about 0.6%. Shares of American Electric Power (AEP) are down about 0.6%. Shares of Southern (SO) are up about 1%. Shares of AES Corp (AES) are up about 1.3%. Shares of Exelon (EXC) are up about 1.2%. Shares of Genon Energy (GEN) are down about 1%. Shares of PPL Corp (PPL) are up about 1%. Shares of CenterPoint Energy (CNP) are up about 0.2%.

The Utilities Select Sector SPDR (XLU) was trading at $33.98 at 4:00 PM on Friday, up slightly on the day – up 8.42% year-to-date.

STOCKS: TSL, SPWRA, JKS, SOL, FSLR, STP, YGE, VECO, ITRI, WFR, CREE, TECO, PCX, IAG, HMY, AUY, ZINC, RGLD, AA, FCX, VALE, DOW, AONE, FLS, AMSC, YRCW, BWEN, MSSR, PUBGY, WATG, NFLX, CMLS, NDN, DEER, SIRI, F, REV, DMND, FARM, HANS, FEED, PG, MO, KO, PEP, WMT, CVS, AGN, BMRN, RPTP, GILD, ANDS, XOMA, ARNA, WCRX, ZOLL, UBS, GS, MS, C, AMTD, RBS, WAMUQ, PMI, RIMM, GOOG, YHOO, LNKD, DMD, IACI, SFLY, WBMD, OPEN, VTSS, PLXS, AIXG, ADBE, MA, CCOI, S, T, VZ, LVLT, FTR, PCS, EONGY, DUK, AEP, SO, AES, EXC, GEN, PPL, CNP

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
GEN Genesis Healthcare Inc. 2.53 0.12 4.98 365,117 Trade
FTR Frontier Communications Corporation 2.09 0.15 7.73 79,709,949 Trade
PG Procter & Gamble Company (The) 90.57 -0.20 -0.22 9,251,999 Trade
FARM Farmer Brothers Company 33.75 0.05 0.15 50,680 Trade
ABT Abbott Laboratories 44.73 -0.04 -0.09 4,753,163 Trade
SO Southern Company (The) 50.42 0.05 0.10 5,248,844 Trade
AMSC American Superconductor Corporation 6.24 -0.12 -1.89 33,693 Trade
ITRI Itron Inc. 62.95 0.45 0.72 240,580 Trade
VALE VALE S.A. American Depositary Shares Each Represen 9.30 -0.02 -0.21 26,480,776 Trade
FLS Flowserve Corporation 45.65 -0.43 -0.93 1,011,250 Trade
WMT Wal-Mart Stores Inc. 69.61 -0.25 -0.36 5,858,968 Trade
AA Alcoa Inc. 32.56 -0.75 -2.25 4,110,969 Trade
SFLY Shutterfly Inc. 46.74 -0.20 -0.43 405,411 Trade
CNP CenterPoint Energy Inc (Holding Co) 27.87 0.12 0.43 2,125,748 Trade
PEP Pepsico Inc. 112.12 0.34 0.30 3,913,223 Trade
MO Altria Group Inc. 73.17 -0.85 -1.15 11,785,992 Trade
IAG Iamgold Corporation 3.89 0.03 0.78 4,983,624 Trade
WBMD WebMD Health Corp 50.32 -0.01 -0.02 501,949 Trade
C Citigroup Inc. 58.07 0.02 0.03 13,504,446 Trade
S Sprint Corporation 8.50 0.04 0.47 9,354,770 Trade
PPL PPL Corp 37.60 -0.04 -0.11 2,269,041 Trade
ADBE Adobe Systems Incorporated 127.70 0.83 0.65 3,044,007 Trade
GILD Gilead Sciences Inc. 67.51 0.02 0.03 6,037,791 Trade
MS Morgan Stanley 42.46 -0.13 -0.31 10,815,346 Trade
CCOI Cogent Communications Holdings Inc. 42.40 0.55 1.31 257,866 Trade
CMLS Cumulus Media Inc. 0.34 0.01 3.18 315,847 Trade
AMTD TD Ameritrade Holding Corporation 37.69 -0.15 -0.40 2,267,523 Trade
ARNA Arena Pharmaceuticals Inc. 1.46 0.01 0.69 1,194,819 Trade
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
LVLT Level 3 Communications Inc. 56.12 0.06 0.11 2,340,014 Trade
AES The AES Corporation 11.23 0.05 0.45 3,479,756 Trade
AGN Allergan plc 237.33 2.04 0.87 2,688,552 Trade
GS The Goldman Sachs Group Inc. 228.41 -3.49 -1.51 6,387,341 Trade
BWEN Broadwind Energy Inc. 6.54 0.08 1.24 157,859 Trade
VZ Verizon Communications Inc. 49.68 0.04 0.08 9,310,665 Trade
YRCW YRC Worldwide Inc. 10.65 -0.09 -0.84 423,363 Trade
ZINC Horsehead Hldg Corp n/a n/a n/a 0
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.97 -0.05 -0.83 823,488 Trade
REV Revlon Inc. New 28.20 -0.05 -0.18 79,579 Trade
DMD Demand Media Inc. n/a n/a n/a n/a
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
GOOG Alphabet Inc. 814.43 -3.15 -0.39 1,981,006 Trade
FCX Freeport-McMoRan Inc. 12.81 -0.02 -0.16 10,865,643 Trade
YGE Yingli Green Energy Holding Company Limited ADR 2.06 -0.04 -1.90 18,365 Trade
RPTP Raptor Pharmaceutical Corp. n/a n/a n/a 0 Trade
AUY Yamana Gold Inc. (Canada) 2.78 -0.01 -0.36 7,932,058 Trade
UBS UBS Group AG Registered 15.63 0.03 0.19 1,400,394 Trade
VECO Veeco Instruments Inc. 28.75 -0.05 -0.17 253,809 Trade
SIRI Sirius XM Holdings Inc. 5.10 -0.03 -0.58 25,606,808 Trade
AIXG Aixtron SE n/a n/a n/a 0 Trade
JKS JinkoSolar Holding Company Limited American Deposi 16.19 0.30 1.89 250,237 Trade
F Ford Motor Company 11.62 -0.05 -0.43 43,772,442 Trade
FSLR First Solar Inc. 28.31 -0.27 -0.94 3,325,954 Trade
NFLX Netflix Inc. 142.02 0.18 0.13 3,546,599 Trade
YHOO Yahoo! Inc. 46.40 -0.20 -0.43 5,607,667 Trade
PLXS Plexus Corp. 57.20 0.05 0.09 129,618 Trade
CVS CVS Health Corporation 78.49 0.19 0.24 3,878,592 Trade
IACI IAC/InterActiveCorp n/a n/a n/a 0 Trade
BMRN BioMarin Pharmaceutical Inc. 87.37 0.53 0.61 1,121,370 Trade
KO Coca-Cola Company (The) 42.12 -0.05 -0.12 13,804,411 Trade
EXC Exelon Corporation 36.12 0.16 0.44 3,605,565 Trade
HMY Harmony Gold Mining Company Limited 2.40 0.06 2.56 3,834,903 Trade
T AT&T Inc. 41.68 0.03 0.07 14,202,031 Trade
DUK Duke Energy Corporation (Holding Company) 82.99 0.31 0.37 2,078,812 Trade
CREE Cree Inc. 27.13 0.47 1.76 824,361 Trade
DMND Diamond Foods Inc. n/a n/a n/a 0 Trade
SOL Renesola Ltd. of Beneficial Interest 2.42 0.02 0.83 20,146 Trade
AEP American Electric Power Company 67.79 0.34 0.50 1,969,462 Trade
XOMA XOMA Corporation 6.76 0.22 3.36 228,762 Trade
RGLD Royal Gold Inc. 67.23 0.08 0.12 438,386 Trade

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