The final reading of Real GDP for Q2 2011 is 1.3% versus 1.0% in the preliminary reading. Initial Jobless Claims fell 37,000 to 391,000 still above the 350,000 recessionary threshold. On Friday we get readings on Personal Income & Spending and Chicago PMI. The Dow Jones Industrial Average traded up to 11,271.14 in the morning then down below 11,000 in afternoon trading. The NASDAQ stayed below its 50-day simple moving average at 2557 trading down from 2478.56 to below 2435 in afternoon trading.
Asian stocks were mixed on Thursday with the Nikkei 225 up 0.99% 8,701, while the Hang Seng remained closes at 18,011. European stocks were mixed as the Germans approve an expansion of the Euro bailout fund. The FTSE 100 declined by 0.40% to 5,197 with the DAX up 1.10% to 5,640 and the CAC 40 up 1.07% to 3,028. The yield on the 10-Year US Treasury traded down from 2.030 to 1.950, well above last Friday’s all time low of 1.671 percent. Gold, which traded as low as $1535.0 the Troy ounce on Monday and as high as $1679.2 on Tuesday, traded up from $1585.0 to $1637.9 then consolidated that range. Crude oil rebounded from $79.64 per barrel to $83.98 on Thursday morning, but then traded below its 200-week simple moving average at $83.66 Thursday afternoon. The euro versus the US dollar traded between 1.3523 and 1.3677.
Energy
FMC Tech (FTI) is taken to Overweight from Neutral at JP Morgan. ONEOK Partners (OKS) is now Outperform from Neutral at Credit Suisse. Dril-Quip (DRQ) is now Neutral from Overweight at JPMorgan. In afternoon trading: Shares of Carbo Ceramics (CRR) are down about 10.5%. Shares of ATP Oil & Gas (ATPG) are down about 9.2%. Shares of Swift Energy (SFY) are down about 9.1%. Shares of CVR Energy (CVI) are down about 8.7%. Shares of Western Refining (WNR) are down about 8.2%.
Energy Select Sector SPDR (XLE) was trading at $60.28 at 4:00 PM on Thursday, up 0.95% on the day – down 11.68% year-to-date.
Materials
Agnico-Eagle Mines (AEM) is initiated with an Overweight at HSBC Securities. Sherwin-Williams (SHW) is a new Underperform at CLSA. Antofagasta plc (ANFGY) is now Neutral from Buy at Goldman Sachs. In afternoon trading: Shares of Avalon Rare Metals (AVL) are down about 7.9%. Shares of Rare Element Res (REE) are down about 6.5%. Shares of Rockwood Holdings (RDC) are down about 6.5%. Shares of OMNOVA Solutions (OMN) are up about 8.3%.
The Materials Select Sector SPDR (XLB) was trading at $30.48 at 4:00 PM on Thursday, up slightly on the day – down 20.65% year-to-date.
Industrials
JPMorgan rolls out an Underweight on Air France-KLM (AFLYY) and has new Neutrals on Ryanair Holdings (RYAAY) and Deutsche Lufthansa AG (DLAKY). Layne Christensen (LAYN) is lifted to Neutral from Sell at UBS. In afternoon trading: Shares of Broadwind Energy (BWEN) are down about 12%. Shares of A123 Systems (AONE) are down about 6.5%. Shares of A-Power Energy (APWR) are up about 10%. Shares of American Superconductor (AMSC) are up about 10%. Shares of Meritor (MTOR) are up about 10%. Shares of Harbin Electric (HRBN) are up about 6.5%.
The Industrial Select Sector SPDR (XLI) was trading at $30.23 at 4:00 PM on Thursday, up 1.44% on the day – down 13.31% year-to-date.
Consumer Discretionary
Amazon.com (AMZN) unveiled its much-anticipated Kindle Fire tablet, featuring a 7-inch display and costing only $199 – $50 less than the Barnes & Noble (BKS) Nook Color and $300 less than the cheapest iPad (AAPL). The tablet will run on Android (GOOG), but nonetheless act like a “souped-up Kindle.” Adidas’ (ADDYY) Reebok unit responds to FTC claims of false advertising, saying a $25 million settlement with the regulator does not mean the company agrees with an allegation it misrepresented the health effect of its “toning shoes” to consumers. The FTC action rattled shares of other shoe companies making health-related claims including Skechers (SKX), Crocs (CROX), and Steve Madden (SHOO). The United Auto Workers ratified a four-year collective bargaining agreement with General Motors (GM), saying the contract will create 6,400 new jobs in the U.S., including positions for new hires as well as laid-off workers. Fitch Ratings followed up on Moody’s Tuesday downgrade of Eastman Kodak’s (EK) credit rating with its own cut to CC – a level signifying “default of some kind appears probable.” TravelCenters of America (TA) is a new Neutral at UBS. In afternoon trading: Shares of Blockbuster (BLOAQ) are down about 42% as the SEC temporarily suspended trading in the company, following a filing of a name change of the company to BB Liquidation. Shares of Focus Media (FMCN) are down about 17%. Shares of New Oriental Education & Technology (EDU) are down about 14.5%. Shares of Netflix (NFLX) are down about 11%. Shares of SodaStream (SODA) are down about 10.5%. Shares of Fossil (FOSL) are down about 10.2%. Shares of Wynn Resorts (WYNN) are down about 10%. Shares of Melco Crown Entertainment (MPEL) are down about 10%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $35.89 at 4:00 PM on Thursday, down 0.83% on the day – down 4.06% year-to-date.
Consumer Staples
In afternoon trading: Shares of Star Scientific (CIGX) are down about 10.5%. Shares of Green Mountain Coffee Roasters (GMCR) are down about 10.25%. Shares of Origin Agritech (SEED) are down about 10.2%. Shares of AgFeed Industries (FEED) are down about 8.7%. Shares of NuPathe (PATH) are down about 8.3%. Shares of Central European Distribution (CEDC) are up about 6.5%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $29.97 at 4:00 PM on Thursday, up 0.98% on the day – up 2.25% year-to-date.
Healthcare
Rigel Pharmaceuticals (RIGL) is a new Overweight at JP Morgan. Magellan Health (MGLN) gets begun with a Buy at BB&T Capital. Qiagen (QGEN) is moved to Outperform from Market Perform at Leerink Swann. DaVita (DVA) is cut to Hold from Buy at Citigroup. In afternoon trading: Shares of Tengion (TNGN) are down about 11.2%. Shares of NuVasive (NUVA) are down about 10.4%. Shares of ARIAD Pharmaceuticals (ARIA) are down about 10%. Shares of DaVita are down about 10%. Shares of MAKO Surgical (MAKO) are down about 9%.
The Health Care Select Sector SPDR (XLV) was trading at $32.14 at 4:00 PM on Thursday, up 0.66% on the day – up 2.03% year-to-date.
Financials
Blackstone (BX) is a new Neutral at Sterne Agee, which starts Kohlberg Kravis Roberts & Co. (KKR) with a Buy. In afternoon trading: Shares of Ambac Financial Group (ABKFQ) are down about 11.1%. Shares of MPG Office Trust (MPG) are down about 5.5%. Shares of The PMI Group (PMI) are down about 5.4%. Shares of Chimera Investment (CIM) are down about 5.2%. Shares of ING Group (ING) are up about 8%. Shares of Societe Generale (SCGLY) are up about 7.9%. Shares of Credit Agricole (CRARY) are up about 7.4%. Shares of BNP Paribus (BNPQY) are up about 5.9%. Shares of Credit Suisse (CS) are up about 5.5%. Shares of Genworth Financial (GNW) are up about 5.5%.
The Financial Select Sector SPDR (XLF) was trading at $12.24 at 4:00 PM on Thursday, up 2.81% on the day – down 23.26% year-to-date.
Information Technology
Amazon.com (AMZN) unveiled its much-anticipated Kindle Fire tablet, featuring a 7-inch display and costing only $199 – $50 less than the Barnes & Noble (BKS) Nook Color and $300 less than the cheapest iPad (AAPL). The tablet will run on Android (GOOG), but nonetheless act like a “souped-up Kindle.” The Justice Department’s antitrust division asks Google (GOOG) and Motorola Mobility (MMI) for more information regarding their proposed $12.5 billion merger – which may delay a closing set for around the end of 2011. Preparing for the prospect of activist investors who might want to make some changes, Hewlett-Packard (HPQ) has reportedly hired defense expert Goldman Sachs (GS) to guard the company from attacks – which means strategies like poison pills could be in the offing. Advanced Micro Devices (AMD) warned its Q3 revenue will increase only 4%-6% from the prior quarter, compared with prior guidance of 8%-12%. The company also said it expects its gross margin to come in at 44%-45%, below guidance of 47%. Advanced Micro Devices is downgraded to Underperform from Neutral at Bank of America – Merrill Lynch with a new target of $5. The Internet Advertising Bureau estimated U.S. online ad revenues rose 23% in the first half to a record $14.9 billion, a major ramp in growth from the 11% and $12.1 billion reported for 1H 2010. Google (GOOG) and ValueClick (VCLK) investors could be pleased to know search and display ad sales both rose 27%, and video sales 42%. Celestica (CLS) is a new Market Perform and $8.50 price objective at BMO Capital. Macquarie has an Underperform and $4 target price on Shanda Games (GAME), a new Neutral on Perfect World (PWRD) – $15 target, and Outperforms on Giant Interactive Group (GA) – $4 target, NetEase.com (NTES) – $50 target, and Changyou.com (CYOU) – $40 target. MIPS Tech (MIPS) is reduced to Hold from Buy at The Benchmark Company. In afternoon trading: Shares of Youku.com (YOKU) are down about 23.25%. Shares of Advanced Micro Devices are down about 16%. Shares of Motricity (MOTR) are down about 13.8%. Shares of Renesola (SOL) are up about 13.1%. Shares of Spreadtrum Communications (SPRD) are down about 12%. Shares of Baidu (BIDU) are down about 10.7%. Shares of JA Solar (JASO) are down about 10.8%. Shares of JinkoSolar (JKS) are down about 10.5%. Shares of Sina (SINA) are down about 10.2%. Shares of LG Display (LPL) are up about 10.5%.
The Technology Select Sector SPDR (XLK) was trading at $24.21 at 4:00 PM on Thursday, down 0.21% on the day – down 3.89% year-to-date.
Telecommunications Services
In afternoon trading: Shares of TerreStar (TSTRQ) are down about 50%. Most Actives: Shares of Sprint Nextel (S) are up about 1%. Shares of AT&T (T) are relatively unchanged. Shares of Level 3 Communications (LVLT) are down about 4.2%. Shares of Verizon (VZ) are down slightly. Shares of Frontier Communications (FTR) are down about a quarter of a percent.
The NASDAQ Telecommunications Index (IXTC) was trading at $183.01 at 4:00 PM on Thursday, down 0.47% on the day – down 18.80% year-to-date.
Utilities
ONEOK (OKE) is raised to Outperform from Market Perform with Wells Fargo. In afternoon trading: Actives: Shares of Duke Energy (DUK) are up about a half of a percent. Shares of CenterPoint Energy (CNP) are up about 1.8%. Shares of AES Corp (AES) are up about 1.3%. Shares of Genon Energy (GEN) are up about 0.7%. Shares of Southern (SO) are up about 0.6%. Shares of Exelon (EXC) are up about 0.4%. Shares of PPL Corp (PPL) are relatively unchanged. Shares of American Electric Power (AEP) are up about 1.1%. Shares of NiSource (NI) are down about 0.2%.
The Utilities Select Sector SPDR (XLU) was trading at $34.00 at 4:00 PM on Thursday, up 1.61% on the day – up 8.49% year-to-date.
STOCKS: FTI, OKS, DRQ, CRR, ATPG, SFY, CVI, WNR, AEM, SHW, ANFGY, AVL, REE, RDC, OMN, AFLYY, RYAAY, DLAKY, LAYN, BWEN, AONE, APWR, AMSC, MTOR, HRBN, AMZN, BKS, AAPL, GOOG, ADDYY, SKX, CROX, SHOO, GM, EK, TA, BLOAQ, FMCN, EDU, NFLX, SODA, FOSL, WYNN, MPEL, CIGX, GMCR, SEED, FEED, PATH, CEDC, RIGL, MGLN, QGEN, DVA, TNGN, NUVA, ARIA, MAKO, BX, KKR, ABKFQ, MPG, PMI, CIM, ING, SCGLY, CRARY, BNPQY, CS, GNW, MMI, HPQ, GS, AMD, VCLK, CLS, GAME, PWRD, GA, NTES, CYOU, MIPS, YOKU, MOTR, SOL, SPRD, BIDU, JASO, JKS, SINA, LPL, TSTRQ, S, T, LVLT, VZ, FTR, OKE, DUK, CNP, AES, GEN, SO, EXC, PPL, AEP, NI
