Equities Sector Coverage: Stocks Move Higher to Kick Off Second Quarter

Sector Recap  |

Nonmanufacturing ISM came in at 53.4 in March with prices paid elevated at 61.0. Construction Spending fell 1.1% in February the largest decline since July 2011. The Dow Jones Industrial Average declined to 13,153.69 then rebounded to a new 52-week high at 13,297.11 going into the final half hour of trading. The NASDAQ’s traded down to 3079.78 then rebounded to 3123.03 shy of its 52-week high at 3134.17 set on March 27th going into the final half hour of trading.

Asian stocks were mixed on Monday. The Nikkei 225 ended their session at 10,110 – up 0.26% on the day. The Hang Seng ended their session at 20,522 – down 0.16% on the day. European stocks were higher despite EU recession fears. The FTSE 100 ended their session at 5,875 – up 2.31% on the day. The DAX ended their session at 7,057 – up 1.58% on the day. The CAC 40 ended their session at 3,463 – up 1.14% on the day. The yield on the 10-Year US Treasury declined from 2.254 percent to 2.162 versus its 200-day simple moving average at 2.178.

Gold rebounded from $1664.4 the Troy ounce to $1685.4 staying below its 200-day simple moving average at $1686.2. Crude oil declined from $103.58 per barrel to $102.06 then rose to $105.49 back above its 50-day simple moving average at $103.56. The euro versus the dollar declined from 1.3378 to 1.3282 staying above the 50-day simple moving average at 1.3211.

Energy

Concho Resources (CXO) traded higher on Monday following an upgrade to Buy from Hold by Deutsche Bank. Cenovus Energy (CVE) traded higher on the session despite a downgrade to Equal Weight from Overweight by Barclays. Willbros Group (WG) rose by 25% Monday Morning. Chevron (CVX) and Exxon Mobil (XOM) were up about 1.0% each on Monday. Halliburton (HAL) was downgraded to Market Perform from Market Outperform at Howard Weil, who set a $43 price target. Dresser-Rand (DRC) was upgraded to Market Outperform from Market Perform by Howard Weil with a $60 price target.

Energy Select Sector SPDR (XLE) was trading at $72.66 at 3:30 PM on Monday, up 1.27% on the day – up 5.11% year-to-date.

Materials

Noranda Aluminum (NOR) traded higher by 7.4% Monday morning following an upgrade to Buy from Neutral at Bank of America-Merrill Lynch. Rio Tinto (RIO) was hiked to Overweight from Equal Weight by Barclays. The day’s early winners were; Alcoa (AA), Barrick Gold (ABX), and Newmont Mines (NEM). Cytec Industries (CYT) was downgraded to Neutral from Buy at Citigroup.

The Materials Select Sector SPDR (XLB) was trading at $37.56 at 3:30 PM on Monday, up 1.60% on the day – up 12.12% year-to-date.

Industrials

Sector winners on Monday were; Boeing Co (BA) and CSX Corp (CSX). Notable losers early on were; Caterpillar (CAT), General Electric (GE), 3M Company (MMM), United Technologies (UTX). These names recovered as the day progressed. Alliant Techsystems (ATK) was upgraded to Overweight from Neutral at JPMorgan with a $62 price target. Worthington Industries (WOR) was upgraded to Neutral from Sell at Goldman.

The Industrial Select Sector SPDR (XLI) was trading at $37.75 at 3:30 PM on Monday, up 0.91% on the day – up 11.85% year-to-date.

Consumer Discretionary

Abercrombie & Fitch (ANF) was upgraded to Buy from Hold at Brean Murray. General Motors (GM) was resumed with an Overweight at Morgan Stanley. Kohl’s Corp (KSS) was upgraded to Neutral from Underweight at JP Morgan. PVH Corp (PVH) was upgraded to Outperform from Neutral at Credit Suisse on improved visibility for growth in its domestic and international Tommy Hilfiger business. The price target was raised to $105 from $72.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.31 at 3:30 PM on Monday, up 0.49% on the day – up 16.12% year-to-date.

Consumer Staples

PetMed Express (PETS) has been upgraded to Neutral from Underweight at Piper Jaffray. Sherwin-Williams (SHW) was downgraded to Neutral from Buy at Bank of America-Merrill Lynch. Lumber Liquidators (LL) was downgraded to Hold from Buy at Stifel Nicolaus due to valuation. Groupon (GRPN) was downgraded to Neutral from Buy by Bank of America-Merrill Lynch following Friday’s announcement of a fourth-quarter loss wider than initially disclosed. Casual dining stocks Buffalo Wild Wings (BWLD), Darden Restaurants (DRI) DineEquity (DIN), and Panera Bread (PNRA) were all downgraded at Raymond James.

The Consumer Staples Select Sector SPDR (XLP) was trading at $34.37 at 3:30 PM on Monday, up 0.85% on the day – up 5.79% year-to-date.

Health Care

Regeneron Pharmaceuticals (REGN) was resumed at Goldman Sachs with a Buy recommendation. Threshold Pharmaceuticals (THLD) were initiated with a Buy at Mizuho with a $15 price target price. Allergan (AGN) was downgraded to Neutral from Buy at Lazard. eHealth (EHTH) was downgraded to Neutral from Buy at Bank of America-Merrill. Roche (RHHBY.PK) may drop its $6.7 billion bid for Illumina (ILMN) on the view that Illumina is "nice-to-have" but not a "must-have."

The Health Care Select Sector SPDR (XLV) was trading at $37.77 at 3:30 PM on Monday, up 0.43% on the day – up 8.88% year-to-date.

Financials

Goldman Sachs (GS) is said to be looking to launch a $3 billion property debt fund to take advantage of a growing shortage of real estate financings in Europe. Redwood Trust (RWT) has been upgraded to Neutral from Underperform at Bank of America-Merrill Lynch. SL Green Realty (SLG) REIT was downgraded to Neutral from Buy at UBS.

The Financial Select Sector SPDR (XLF) was trading at $15.93 at 3:30 PM on Monday, up 0.82% on the day – up 22.54% year-to-date (the strongest performing sector).

Information Technology

Apple Inc (AAPL) was initiated with a Buy rating by Topeka with a price target at $1,001. Amazon.com (AMZN) was downgraded to Neutral from Buy at Bank of America-Merrill Lynch. Semiconductor stocks Texas Instruments (TXN) and Linear Technology (LLTC) were downgraded to Neutral from Buy at UBS. VMware (VMW) was downgraded to Equal Weight from Overweight at Evercore.

The Technology Select Sector SPDR (XLK) was trading at $30.49 at 3:30 PM on Monday, up 1.09% on the day – up 19.80% year-to-date.

Telecommunication Services

Telefonica (TEF) has reduced its debt by 1.3 billion euros to as they attempt to merge its Colombian fixed-line and wireless units. DirecTV (DTV) has subscribers in 19 markets, which includes New York and Chicago, has lost satellite access to Tribune (TRBCQ.PK) TV stations over the weekend after the firms did not renew a content deal. Affected programs include "American Idol" and Major League Baseball. Frontier Communications (FRT) was upgraded to Buy from Neutral at Nomura.

The NASDAQ Telecommunications Index (IXTC) was trading at $222.82 at 3:30 PM on Monday, up 0.71% on the day – up 13.15% year-to-date.

Utilities

Heavily Traded stocks include (DUK) +0.7%, (GEN) flat, (CNP) +3.8%, (EXC) +0.2%, (AES) flat, (AEP) +0.8%, (PPL) +0.3%.

The Utilities Select Sector SPDR (XLU) was trading at $35.20 at 3:30 PM on Monday, up 0.43% on the day – down 2.17% year-to-date (the weakest performing sector/the only negative sector).

STOCKS: CXO, CVE, WG, CVX, XOM, HAL, DRC, NOR, RIO, AA, ABX, NEM, CYT, BA, CSX, CAT, GE, MMM, UTX, ATK, WOR, ANF, GM, KSS, PVH, PETS, SHW, LL, GRPN, BWLD, DRI, DIN, PNRA, REGN, THLD, AGN, EHTHY, RHHBY.PK, ILMN, GS, RWT, SLG, AAPL, AMZN, TXN, LLTC, VMW, TEF, DTV, TRBCQ.PK, FRT, DUK, GEN, CNP, EXC, AES, AEP, 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
MMM 3M Company 195.86 4.15 2.16 2,746,603 Trade
GEN Genesis Healthcare Inc. 1.64 -0.01 -0.61 175,818 Trade
SHW Sherwin-Williams Company (The) 398.53 4.00 1.01 1,429,154 Trade
GE General Electric Company 9.06 -0.08 -0.88 92,734,517 Trade
RIO Rio Tinto Plc 51.64 -0.02 -0.04 2,373,602 Trade
CVX Chevron Corporation 114.37 2.41 2.15 9,382,007 Trade
CVE Cenovus Energy Inc 8.14 0.11 1.37 3,275,518 Trade
TEF Telefonica SA 8.79 0.10 1.15 1,193,592 Trade
AA Alcoa Corporation 29.27 -0.32 -1.08 6,601,167 Trade
CSX CSX Corporation 67.36 2.27 3.49 7,687,644 Trade
CNP CenterPoint Energy Inc (Holding Co) 29.44 -0.10 -0.34 6,719,809 Trade
PETS PetMed Express Inc. 23.44 -0.25 -1.06 1,132,182 Trade
GS.P.D Goldman Sachs Group Inc. (The) Dep Shs repstg 1/1000 Pfd Ser D Fltg 19.39 0.36 1.89 242,027 Trade
NOR Canadian Western Bank n/a n/a n/a 0
S Sprint Corporation 6.07 0.06 1.00 8,620,239 Trade
PPL PPL Corporation 30.07 0.17 0.57 4,375,912 Trade
PVH PVH Corp. 110.18 2.62 2.44 1,634,279 Trade
UTX United Technologies Corporation 113.90 1.13 1.00 4,636,159 Trade
TXN Texas Instruments Incorporated 99.42 1.88 1.93 6,677,152 Trade
VMW Vmware Inc. Class A 147.66 3.76 2.61 1,258,526 Trade
AES The AES Corporation 15.55 0.06 0.39 4,663,188 Trade
SLG SL Green Realty Corp 89.24 0.27 0.30 625,603 Trade
AGN Allergan plc 160.22 3.66 2.34 2,891,019 Trade
GS Goldman Sachs Group Inc. (The) 202.54 3.45 1.73 5,650,934 Trade
ABX GOLD Barrick Gold Corporation (BC) n/a n/a n/a n/a
GM General Motors Company 38.61 0.35 0.91 10,494,113 Trade
LLTC Linear Technology Corporation n/a n/a n/a 0 Trade
ILMN Illumina Inc. 312.75 2.70 0.87 1,016,507 Trade
KSS Kohl's Corporation 69.95 1.11 1.61 2,596,079 Trade
WOR Worthington Industries Inc. 38.27 0.75 2.00 234,249 Trade
RWT Redwood Trust Inc. 15.98 -0.11 -0.68 737,144 Trade
THLD MTEM Threshold Pharmaceuticals Inc. n/a n/a n/a 0
FRT Federal Realty Investment Trust 125.91 0.31 0.25 474,642 Trade
CXO Concho Resources Inc. 124.87 -0.35 -0.28 2,902,198 Trade
DIN Dine Brands Global Inc. 78.64 -0.74 -0.93 213,422 Trade
ANF Abercrombie & Fitch Company 20.72 0.96 4.86 1,775,312 Trade
DRI Darden Restaurants Inc. 109.02 1.01 0.94 1,111,197 Trade
GRPN Groupon Inc. 3.79 0.06 1.61 4,052,887 Trade
CYT Cytec Industries Inc. n/a n/a n/a 0 Trade
REGN Regeneron Pharmaceuticals Inc. 418.84 1.46 0.35 710,405 Trade
EXC Exelon Corporation 46.08 0.06 0.13 4,821,555 Trade
CAT Caterpillar Inc. 136.60 2.92 2.18 6,122,435 Trade
HAL Halliburton Company 32.25 1.35 4.37 16,457,304 Trade
NEM Newmont Mining Corporation 31.77 0.15 0.47 8,021,635 Trade
DUK Duke Energy Corporation (Holding Company) 85.60 -0.04 -0.05 2,842,639 Trade
LL Lumber Liquidators Holdings Inc 11.54 0.21 1.85 479,946 Trade
WG Willbros Group Inc. (DE) n/a n/a n/a n/a
AEP American Electric Power Company Inc. 76.09 0.09 0.12 2,437,861 Trade
AAPL Apple Inc. 156.82 0.96 0.62 33,751,023 Trade
AMZN Amazon.com Inc. 1,696.20 2.98 0.18 6,020,503 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

     

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