Equities Sector Coverage: Stocks Gain on Greece Debt News

Sector Recap |

Stock Traders Wall StreetExisting Home Sales declined 3.8% to an annual rate of 4.81 million units. The median price of an existing home sale is down 4.6% year over year. The Dow Jones Industrial Average opened higher and traded up to 12,217 as the oversold rally continued on Tuesday. The NASDAQ also opened higher and rallied to 2687, back above its 200-day simple moving average at 2645.

US stocks rallied on Monday with the Dow Industrial Average up 76 points to 12,080 up 4.3% year to date and down 6.2% since its May 2nd high at 12,876.00. The NASDAQ rose 14 points to 2630 down 0.9% year to date and down 8.9% from its May 2nd high at 2887.75.

Asian stocks rose sharply on Tuesday with the Nikkei 225 up 1.1% to 9,460 and with the Hang Seng up 1.2%. European stocks rebounded on the prospect that the Greek government will pass a crucial confidence vote today. The FTSE 100 was up 1.4%. The DAX was up 1.9%. The CAC 40 was up 2.0%. The yield on the 10-Year US Treasury note rose from 2.947 percent to 3.000 on Tuesday then consolidated that move. Comex gold traded up from $1539.3 and $1549.0 the Troy ounce on Tuesday. Nymex crude oil stayed above its 200-day simple moving average at $92.44 trading up from $93.26 per barrel to $94.74, fading to $92.50 then consolidating the day’s range. The euro versus the US dollar traded up from 1.4306 to 1.4422 on Tuesday.

Energy

The FTC is investigating whether oil companies, refiners and traders have engaged in anticompetitive practices or manipulated crude oil prices. NGL Energy Partners (NGL) is a new Outperform at Wells Fargo. Sunpower (SPWRA) is upgraded to Hold from Sell at Wunderlich on account of a more favorable valuation. McDermott (MDR) is added to the Conviction Buy list at Goldman Sachs. Cenovus Energy (CVE) is removed from the Conviction Buy list at Goldman. Nabors Industries (NBR) is now Market Perform from Strong Buy at Raymond James. In afternoon trading: Shares of Helix Energy (HLX) are up about 8.5%. Shares of Rosetta Resources (ROSE) are up about 7.5%. Shares of Patriot Coal (PCX) are up about 7.5%.

Energy Select Sector SPDR (XLE) was trading at $73.31 at 4:00 PM on Tuesday, up 1.99% on the day – up 7.41% year-to-date.

Materials

In afternoon trading: Shares of Endeavour Silver (EXK) are up about 8.5%. Shares of Silvercorp Metals (SVM) are up about 7.5%. Shares of Patriot Coal (PCX) are up about 7.5%. Shares of Kronos Worldwide (KRO) are up about 7.5%. Shares of Mag Silver (MVG) are up about 7.5%. Shares of New Gold (NGD) are up about 7.25%.

The Materials Select Sector SPDR (XLB) traded at $37.90 at 4:00 PM on Tuesday, up 2.57% on the day – down 1.33% year-to-date.

Industrials

Plane makers disclosed bookings for over 200 aircraft with a total value of more than $20B on the first day of the Paris Air Show. Airbus (EADSY:US) announced several orders for its fuel-efficient A320neo jet, a competitor to Boeing's (BA) 737. JetBlue Airways (JBLU) ordered 40 A320neo aircraft in a deal worth $3.4B at list prices. Boeing received orders for 17 of its new elongated 747-8 aircraft from two customers in deals worth $5.4B, and it is selling 33 jets to Air Lease (AL) in a transaction comprising 737, 777 and 787 planes. Kratos Defense and Security (KTOS) is initiated with a Buy - $14 target at The Benchmark Company. Watsco (WSO) is upgraded to Neutral from Underweight at Piper Jaffray. Wolseley PLC (WOSCF) is raised to Buy from Hold at ING Group. In afternoon trading: Shares of SmartHeat (HEAT) are up about 23.5%. Shares of A-Power Energy (APWR) are up about 11.5%. Shares of Harbin Electric (HRBN) are up about 10.5%.

The Industrial Select Sector SPDR (XLI) traded at $36.32 at 4:00 PM on Tuesday, up 1.57% on the day – up 4.16% year-to-date.

Consumer Discretionary

EMI has started to explore a sale, recapitalization or IPO four months after Citigroup (C) seized control of the music label from P-E group Terra Firma for failing to pay its debts. Wynn Resorts (WYNN) is initiated with a Fair Value at CRT Capital. Gap (GPS) is now Neutral from Outperform at Cowen. In afternoon trading: Shares of Blockbuster (BLOAQ) are down about 14.5%. Shares of Vitacostcom (VITC) are up about 10.75%. Shares of China Xiniya Fashion (XNY) are up about 8.75%. Shares of ReachLocal (RLOC) are up about 7.25%. Shares of Body Central (BODY) are up about 7.25%.

The Consumer Discretionary Select Sector SPDR (XLY) traded at $39.04 at 4:00 PM on Tuesday, up 2.04% on the day – up 4.36% year-to-date.

Consumer Staples

SABMiller (SBMRY:US) will continue to attempt to buy Foster's (FBRWF:US) after the Australian beer maker rebuffed a A$9.5B ($10B) bid from its U.K. rival. Foster's said the A$4.90 offer, which represented an 8.2% premium to its closing price on Monday. Women who are suing Wal-Mart (WMT) for sex discrimination will continue to press their claims after the Supreme Court yesterday prevented them from representing 1.5M colleagues in a massive class-action suit. In afternoon trading: Shares of Fosters Group are up about 13.5% Shares of Zhongpin (HOGS) are up about 9.5%. Shares of Pilgrim’s Pride (PPC) are up about 6%. Shares of Darling International (DAR) are up about 5.5%. Shares of Star Scientific (CIGX) are up about 5%.

The Consumer Staples Select Sector SPDR (XLP) traded at $31.34 at 4:00 PM on Tuesday, down slightly on the day – up 6.93% year-to-date.

Healthcare

AstraZeneca (AZN) is in exclusive final talks to sell its Swedish healthcare and dental unit Astra Tech to Pennsylvania-based Dentsply (XRAY) in a transaction that could value the subsidiary at about $1.8B. Affymetrix (AFFX) - $12 price target and Illumina (ILMN) - $87 are begun with Buys at Maxim Group, which assigns Holds on Life Technologies (LIFE) and Pacific Biosciences (PACB). Alkermes (ALKS) is a new Buy - $20 target at MKM Partners. Biogen Idec (BIIB) is boosted to Buy from Hold at Deutsche Bank. In afternoon trading: Shares of Ventrus Biosciences (VTUS) are up about 10.75%. Shares of Biostar Pharmaceuticals (BSPM) are up about 9.25%. Shares of MAKO Surgical (MAKO) are up about 8.5%. Shares of Affymetrix (AFFX) are up about 8.25%. Shares of GTx Inc (GTXI) are down about 9.25%.

The Health Care Select Sector SPDR (XLV) traded at $35.34 at 4:00 PM on Tuesday, up 0.63% on the day – up 12.19% year-to-date.

Financials

EMI has started to explore a sale, recapitalization or IPO four months after Citigroup (C) seized control of the music label from P-E group Terra Firma for failing to pay its debts. The Department of Housing & Urban Development has finally commenced a $1B scheme to help save delinquent homeowners from foreclosure. RLJ Lodging Trust (RLJ) is resumed with a Hold at KeyBanc Capital. Weyerhaeuser (WY) is a new Outperform at Keefe Bruyette. Progressive (PGR) is upgraded to Buy from Neutral at Ticonderoga. Discover Financial Services (DFS) gets moved to Outperform from Neutral at Macquarie. Duke Realty (DRE) is raised to Outperform from Sector Perform at RBC Capital, which gives similar boosts to Alexandria Real Estate Equities (ARE) and Boston Properties (BXP). ProLogis (PLD) is now Buy from Neutral at UBS. PNC Financial (PNC) is moved to Market Perform from Outperform at Keefe Bruyette. In afternoon trading: Shares of Tower Bancorp (TOBC) are up over 32% after agreeing to be acquired by Susquehanna Bancshares (SUSQ) for $343 million in cash and stock.

The Financial Select Sector SPDR (XLF) traded at $15.09 at 4:00 PM on Tuesday, up 1.41% on the day – down 5.39% year-to-date.

Information Technology

Facebook will increase its U.S. ad display revenues this year by 81% to $2.19B, online research company eMarketer estimates. Such growth would push Facebook past Yahoo (YHOO) to become the number one company in the country for display income. Aruba Networks (ARUN) is initiated with an Outperform rating and $35 price objective by brokers Morgan Keegan. Salesforce.com (CRM) is a new Neutral at JP Morgan. Phoenix New Media Limited (FENG) is a fresh Outperform at Cowen. EMC Corp (EMC), F5 Networks (FFIV), Riverbed Technology (RVBD), and Silicon Graphics (SGI) are all begun with Buys at Sterne Agee. Jiayuan.com (DATE) is a new Buy - $14 target at Stifel Nicolaus. Synchronoss Tech (SNCR) is added to the Conviction Buy list at Goldman. Research In Motion (RIMM) is now Neutral from Buy at Credit Suisse. Motorola Mobility (MMI) is moved to Underperform from Outperform at Credit Suisse. In afternoon trading: Shares of China TransInfo (CTFO) are up about 19.25%. Shares of Sina (SINA) are up about 15.5%. Shares of Powerwave Tech (PWAV) are up about 11.25%. Shares of Jiayuan.com are up about 11%.

The Technology Select Sector SPDR (XLK) traded at $24.98 at 4:00 PM on Tuesday, up 1.78% on the day – down 0.83% year-to-date.

Telecommunications Services

In afternoon trading: Shares of Level 3 Communications (LVLT) are up about 6.1%. Shares of Global Crossing (GLBC) are up about 5.7%. Shares of China Telecom (CHA) are up about 4.6%. Shares of Premiere Global Services (PGI) are up about 4.1%. Shares of Clearwire (CLWR) are up about 4.1%.

The NASDAQ Telecommunications Index (IXTC) traded at $207.07 at 4:00 PM on Tuesday, up 2.87% on the day – down 8.12% year-to-date.

Utilities

In afternoon trading: Shares of Tri-Tech Holding (TRIT) are up about 8.5%. Shares of Consolidated Water (CWCO) are up about 4.8%. Actives: Shares of Genon Energy (GEN) are down slightly. Shares of Duke Energy (DUK) are down slightly. Shares of AES (AES) are up about 1.8%. Shares of Exelon (EXC) are down about a quarter of a percent. Shares of PPL (PPL) are up about 1.25%.

The Utilities Select Sector SPDR (XLU) traded at $33.20 at 4:00 PM on Tuesday, up slightly on the day – up 5.93% year-to-date.

STOCKS: NGL, SPWRA, MDR, CVE, NBR, HLX, ROSE, PCX, EXK, SVM, PCX, KRO, MVG, NGD, EADSY, BA, JBLU, AL, KTOS, WSO, WOSCF, HEAT, APWR, HRBN, C, WYNN, GPS, BLOAQ, VITC, XYN, RLOC, BODY, SBMRY, FBRWF, WMT, HOGS, PPC, DAR, CIGX, AZN, XRAY, AFFX, ILMN, LIFE, PACB, ALKS, BIIB, VTUS, BSPM, MAKO, GTXI, RLJ, WY, PGR, DFS, DRE, ARE, BXP, PLD, PNC, TOBC, SUSQ, YHOO, ARUN, CRM, FENG, EMC, FFIV, RVBD, SGI, DATE, SNCR, RIMM, MMI, CTFO, SINA, PWAV, LVLT, GLBC, CHA, PGI, CLWR, TRIT, CWCO, GEN, DUK, AES, EXC, PPL

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. 2.67 0.05 1.91 172,362

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