Equities Sector Coverage: Stocks Pare Gains But Still Closer Higher

Sector Recap |

Energy

Chevron (CVX) expects Q3 results to beat analyst forecasts and come in at the same level as Q2, when it reported EPS of $3.85. Energy Transfer Partners (ETP) is increased to Outperform from Perform with a $47.75 target at Morgan Keegan. Boardwalk Pipeline Partners (BWP) is also upgraded to Outperform from Perform at Morgan Keegan. Patriot Coal (PCX) gets cut to Sell from Neutral at Goldman. First Solar (FSLR) is taken to Sell from Neutral at Ticonderoga. In afternoon trading: Shares of General Maritime (GMR) are up about 51.5%. Shares of Frontline (FRO) are up about 17.25%. Shares of Cal Dive International (DVR) are up about 13.5%. Shares of W&T Offshore (WTI) are up about 12.25%.

Energy Select Sector SPDR (XLE) was trading at $64.13 at 4:00 PM on Wednesday, up 0.53% on the day – down 6.04% year-to-date.

Materials

Alcoa (AA) got the Q3 earnings season off to a poor start after reporting that EPS more than doubled to $0.15 but came in way below reduced expectations of $0.23. Revenue jumped 21% to $6.4B and beat forecasts. In afternoon trading: Shares of Cemex (CX) are up about 18%. Shares of Aluminum of China (ACH) are up about 12%. Shares of Rare Element (REE) are up about 8.25%. Shares of Mechel (MTL) are up about 7.5%. Shares of Louisiana-Pacific (LPX) are up about 7.25%.

The Materials Select Sector SPDR (XLB) was trading at $32.79 at 4:00 PM on Wednesday, up 0.99% on the day – down 14.63% year-to-date.

Industrials

Acuity Brands (AYI) is a new Hold and $38 target price at Jefferies. Norfolk Southern (NSC) and C.H. Robinson (CHRW) are now Hold from Buy at Deutsche Bank. In afternoon trading: Shares of A123 Systems (AONE) are up about 21.75%. Shares of Excel Maritime (EXM) are up about 17%. Shares of Paragon Shipping (PRGN) are up about 16.25%. Shares of WABCO (WBC) are up about 7.5%. Shares of DryShips (DRYS) are up about 7.5%. Shares of US Airways (LCC) are up about 7.5%.

The Industrial Select Sector SPDR (XLI) was trading at $31.89 at 4:00 PM on Wednesday, up 1.27% on the day – down 8.55% year-to-date.

Consumer Discretionary

AMC Networks (AMCX) is a new Underweight at Morgan Stanley. Cheesecake Factory (CAKE) is started with a Sell at Goldman Sachs, which has new Neutrals on DineEquity (DIN), Brinker International (EAT), and PF Chang’s (PFCB). Priceline.com (PCLN) is begun with a Buy and $580 price objective at Jefferies. In afternoon trading: Shares of Liz Claiborne (LIZ) is up about 32.5% after the company agreed to sell its Liz Claiborne, Monet and Kensie fashion brands for $328 million in cash, allowing the cash-strapped apparel maker to reduce its debt. Shares of Hovnanian (HOV) are up about 10%. Shares of Beazer Homes (BZH) are up about 9.5%. Shares of Eastman Kodak (EK) are down about 9%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $38.08 at 4:00 PM on Wednesday, up 0.90% on the day – up 1.79% year-to-date.

Consumer Staples

Bank of America-Merrill Lynch launches Buys on Altria (MO) and Philip Morris (PM) and assigns new Neutrals on Reynolds American (RAI) and Lorillard (LO). Carrefour SA (CRRFY) is cut Neutral from Buy at JP Morgan. In afternoon trading: Shares of AgFeed (FEED) are up about 17.75%. Shares of Zhongpin (HOGS) are up about 14.5%. Shares of Farmer Brothers (FARM) are up about 7.75%. Shares of Imperial Sugar (IPSU) are up about 7.25%. Shares of Coffee Holding (JVA) are down about 8%. Shares of Diamond Foods (DMND) are down about 6.5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.72 at 4:00 PM on Wednesday, down 0.79% on the day – up 4.81% year-to-date.

Healthcare

TE Connectivity (TEL) will replace Cephalon (CEPH) in the S&P 500 index after the close of trading on Friday. Cephalon is being acquired by Teva (TEVA) in a deal expected to be completed within the next few days. Align Technology (ALGN) is a new Neutral at Credit Suisse. Humana (HUM) and HealthSpring (HS) are each upgraded to Outperform from Perform at Oppenheimer, with respective increased price objectives of $87 and $45. WebMD Health (WBMD) is downgraded to Neutral from Buy at Goldman. In afternoon trading: Shares of Pacific Biosciences (PACB) are up about 28.25%. Shares of Gentiva Health Services (GTIV) are up about 16.25%. Shares of Metabolix (MBLX) are up about 13%.

The Health Care Select Sector SPDR (XLV) was trading at $32.60 at 4:00 PM on Wednesday, up slightly on the day – up 3.49% year-to-date.



Financials

Private-equity firm Bain Capital is in final negotiations to buy Japanese restaurant chain Skylark from Nomura (NMR) for up to ¥260B ($3.4B), including debt. Bank of America-Merrill Lynch has new Neutrals on SunTrust Banks (STI) and BB&T Corp (BBT). It begins Buys on U.S. Bancorp (USB), PNC Financial Services (PNC), and Wells Fargo (WFC). First Republic Bank (FRC) is initiated with a Buy at Cantor Fitzgerald. BNP Paribas (BNPQY) is upgraded to Buy from Hold at Societe Generale. Lloyds Banking (LYG) is lowered to Hold from Buy at Canaccord Genuity. Commerzbank AG (CRZBY) and Credit Agricole SA (CRARY) are both now Hold from Buy at Societe Generale, which cuts Natixis (NTXFF) by 180 degrees, to Sell from Buy. Waddell & Reed (WDR) is downgraded to Hold from Buy at Jefferies. Cullen/Frost Bankers (CFR) is cut to Underperform from Neutral at Sterne Agee.

The Financial Select Sector SPDR (XLF) was trading at $12.75 at 4:00 PM on Wednesday, up 2.53% on the day – down 20.09% year-to-date.

Information Technology

Hewlett Packard (HPQ) is reconsidering its plan to spin off or sell its PC arm, as new analyses show that the costs could outweigh the benefits. Matters continue to deteriorate for RIM (RIMM) as disruptions to its Blackberry service extend into a third day and spread further into Asia, having mainly affected Europe and Latin America until now. UPDATE: "BlackBerry subscribers in the Americas may be experiencing intermittent service delays this morning," RIM said in a statement. Samsung (SSNLF) says it will soon release amended versions of three Galaxy smartphones to bypass temporary sales bans in some European nations on handsets that violated an Apple (AAPL) patent. TE Connectivity (TEL) will replace Cephalon (CEPH) in the S&P 500 index after the close of trading on Friday. Cephalon is being acquired by Teva (TEVA) in a deal expected to be completed within the next few days. RBC Capital resumes Outperforms on Dow member Intel (INTC), along with Analog Devices (ADI), Cypress Semiconductor (CY), Marvell Technology (MRVL), and Texas Instruments (TXN). It starts Sector Perfoms on Altera (ALTR), Broadcom (BRCM), and Freescale (FSL), and names Sandisk (SNDK) a Top Pick. GT Advanced Technologies (GTAT) gets picked up at an Underperform at Jefferies. IAC/InterActiveCorp (IACI) is upgraded to Buy from Neutral at Goldman Sachs. Nokia (NOK) is moved to Neutral from Reduce at Nomura, but is now Sell from Neutral at WestLB. Xerox (XRX), Lexmark (LXK), and Brocade (BRCD) are each downgraded to Underweight from Neutral at JP Morgan, which takes Seagate Technology (STX) to Neutral from Overweight. Rackspace (RAX) is reduced to Hold from Buy at The Benchmark Company with a new target of $42. WebMD Health (WBMD) is downgraded to Neutral from Buy at Goldman. In afternoon trading: Shares of Broadsoft (BSFT) are up about 12%. Shares of Giant Interactive Group (GA) are up about 12%.

The Technology Select Sector SPDR (XLK) was trading at $25.27 at 4:00 PM on Wednesday, up 0.44% on the day – up 0.32% year-to-date.

Telecommunications Services

In afternoon trading: Actives: Shares of Sprint Nextel (S) are up about 8%. Shares of TerreStar (TSTRQ) are up about 7.5%. Shares of Clearwire (CLWR) are up about 7%. Shares of Telecom Italia (TI) are up about 5.8%. Shares of Premiere Global Services (PGI) are up about 5.4%. Shares of Turkcell (TKC) are up about 5.2%. Shares of NII Holdings (NIHD) are up about 5.1%. Shares of magicJack VocalTec (CALL) are down about 5.75%.

The NASDAQ Telecommunications Index (IXTC) was trading at $193.47 at 4:00 PM on Wednesday, up 0.83% on the day – down 14.15% year-to-date.

Utilities

Calpine (CPN) is initiated with a Buy at ISI Group, which has a Hold on rival Dynegy (DYN). In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about a quarter of a percent. Shares of CenterPoint Energy (CNP) are down about 0.4%. Shares of Exelon (EXC) are up about 1.5%. Shares of PPL Corp (PPL) are up about 0.4%. Shares of Genon Energy (GEN) are up about 0.7%. Shares of AES Corp (AES) are up about 2.6%. Shares of NV Energy (NVE) are up about 1.1%.

The Utilities Select Sector SPDR (XLU) was trading at $33.66 at 4:00 PM on Wednesday, down 0.24% on the day – up 7.40% year-to-date.

STOCKS: CVX, ETP, BWP, PCX, FSLR, GMR, FRO, DVR, WTI, AA, CX, ACH, REE, MTL, LPX, AYI, NSC, CHRW, AONE, EXM, PRGN, WBC, DRYS, LCC, AMCX, CAKE, DIN, EAT, PFCB, PCLN, LIZ, HOV, BZH, EK, MO, PM, RAI, LO, CRRFY, FEED, HOGS, FARM, IPSU, JVA, DMND, TEL, CEPH, TEVA, ALGN, HUM, HS, WBMD, PACB, GTIV, MBLX, NMR, STI, BBT, USB, PNC, WFC, FRC, BNPQY, LYG, CRZBY, CRARY, NTXFF, WDR, CFR, HPQ, RIMM, SSNLF, AAPL, INTC, ADI, CY, MRVL, TXN, ALTR, BRCM, FSL, SNDK, GTAT, IACI, NOK, XRX, LXK, BRCD, STX, RAX, BSFT, GA, S, TSTRQ, CLWR, TI, PGI, TKC, NIHD, CALL, CPN, DYN, DUK, CNP, EXC, PPL, GEN, AES, NVE

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
REE Rare Element Resources n/a n/a n/a n/a
AYI Acuity Brands Inc (Holding Company) 202.25 3.66 1.84 284,635 Trade
WDR Waddell & Reed Financial Inc. 16.90 0.27 1.62 169,005 Trade
RAI Reynolds American Inc 62.63 -0.12 -0.19 1,699,564 Trade
GEN Genesis Healthcare Inc. 2.51 -0.04 -1.38 38,581 Trade
FARM Farmer Brothers Company 33.60 -0.15 -0.44 17,350 Trade
BRCD Brocade Communications Systems Inc. 12.50 -0.03 -0.20 3,418,941 Trade
ACH Aluminum Corporation of China Limited American Dep 12.07 0.48 4.14 9,186 Trade
CVX Chevron Corporation 107.12 0.84 0.79 1,957,980 Trade
BWP Boardwalk Pipeline Partners LP 17.54 0.11 0.63 82,245 Trade
TI Telecom Italia S.P.A. New 9.18 -0.04 -0.43 13,279 Trade
VNDKD VendTek Systems Inc n/a n/a n/a 0 Trade
DRYS DryShips Inc. 1.48 0.08 5.71 12,399,269 Trade
BSFT BroadSoft Inc. 41.25 -0.30 -0.72 50,537 Trade
AA Alcoa Inc. 33.16 0.69 2.13 1,373,106 Trade
MBLX Metabolix Inc. n/a n/a n/a n/a
INTC Intel Corporation 35.46 0.07 0.20 4,783,278 Trade
CNP CenterPoint Energy Inc (Holding Co) 27.54 -0.15 -0.54 843,389 Trade
PNC PNC Financial Services Group Inc. (The) 119.60 1.40 1.18 662,586 Trade
CFR Cullen/Frost Bankers Inc. 85.86 1.65 1.95 193,330 Trade
MO Altria Group Inc. 72.94 -0.26 -0.35 1,517,667 Trade
AAPL Apple Inc. 142.35 1.47 1.04 10,493,417 Trade
ADI Analog Devices Inc. 81.96 0.56 0.68 773,305 Trade
WBMD WebMD Health Corp 50.00 -0.21 -0.41 261,485 Trade
S Sprint Corporation 8.25 -0.04 -0.48 3,959,036 Trade
PPL PPL Corp 37.52 -0.04 -0.11 849,691 Trade
BZH Beazer Homes USA Inc. 11.86 0.18 1.54 107,734 Trade
TKC Turkcell Iletisim Hizmetleri AS 8.44 0.03 0.40 135,112 Trade
PCLN The Priceline Group Inc. 1,788.49 16.49 0.93 114,873 Trade
STX Seagate Technology 44.92 0.01 0.02 1,107,080 Trade
TXN Texas Instruments Incorporated 80.64 0.11 0.14 802,707 Trade
SNDK SanDisk Corp. n/a n/a n/a 0 Trade
HUM Humana Inc. 204.06 0.58 0.29 343,793 Trade
HOV Hovnanian Enterprises Inc. Class A 2.27 0.02 0.67 149,840 Trade
MTL Mechel PAO American Depositary Shares (Each rep. 1 5.21 0.02 0.39 237,711 Trade
PRGN Paragon Shipping Inc n/a n/a n/a 0
AES The AES Corporation 11.20 0.07 0.58 804,723 Trade
CHRW C.H. Robinson Worldwide Inc. 77.45 0.43 0.56 386,001 Trade
BBT BB&T Corporation 44.77 0.60 1.36 1,875,200 Trade
MRVL Marvell Technology Group Ltd. 15.65 -0.09 -0.54 2,105,790 Trade
USB U.S. Bancorp 52.82 0.62 1.19 1,775,142 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 5.41 -0.05 -0.92 4,741,956 Trade
CPN Calpine Corporation 10.67 -0.11 -0.97 508,523 Trade
LYG Lloyds Banking Group Plc American Depositary Share 3.41 -0.02 -0.58 2,065,578 Trade
JVA Coffee Holding Co. Inc. 4.58 0.01 0.29 6,528 Trade
LIZ Liz Claiborne Inc. n/a n/a n/a 0 Trade
XRX Xerox Corporation 7.26 0.12 1.68 3,141,616 Trade
FSL Freescale Semiconductor n/a n/a n/a 0 Trade
FRO Frontline Ltd 6.83 0.04 0.59 617,252 Trade
PM Philip Morris International Inc 112.45 0.07 0.06 1,514,508 Trade
ALTR Altera Corp. n/a n/a n/a 0 Trade
FSLR First Solar Inc. 28.19 -0.04 -0.14 940,580 Trade
TEVA Teva Pharmaceutical Industries Limited American De 33.04 0.01 0.03 1,540,257 Trade
PGI Premiere Global Services n/a n/a n/a 0 Trade
ALGN Align Technology Inc. 113.67 -0.35 -0.31 123,893 Trade
DIN DineEquity Inc 52.11 0.83 1.62 62,579 Trade
WFC Wells Fargo & Company 56.08 0.69 1.25 5,194,415 Trade
CAKE The Cheesecake Factory Incorporated 61.60 0.66 1.08 100,990 Trade
FRC FIRST REPUBLIC BANK 91.78 1.44 1.59 260,785 Trade
HPQ HP Inc. 17.27 0.07 0.38 2,856,895 Trade
WTI W&T Offshore Inc. 2.79 -0.03 -1.06 579,726 Trade
PACB Pacific Biosciences of California Inc. 4.98 -0.05 -0.99 266,339 Trade
AMCX AMC Networks Inc. 57.42 -0.01 -0.02 113,193 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
LPX Louisiana-Pacific Corporation 23.81 0.13 0.55 189,770 Trade
CY Cypress Semiconductor Corporation 14.61 -0.12 -0.81 5,835,185 Trade
IACI IAC/InterActiveCorp n/a n/a n/a 0 Trade
CALL magicJack VocalTec Ltd 8.70 0.05 0.58 15,835 Trade
EXC Exelon Corporation 35.55 -0.30 -0.82 1,516,037 Trade
WBC Wabco Holdings Inc. 117.06 0.80 0.69 67,523 Trade
DUK Duke Energy Corporation (Holding Company) 82.62 -0.17 -0.21 624,756 Trade
DMND Diamond Foods Inc. n/a n/a n/a 0 Trade
TEL TE Connectivity Ltd. New Switzerland Registered Sh 74.87 0.41 0.55 446,660 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 8.96 0.10 1.13 2,330,766 Trade
NMR Nomura Holdings Inc ADR American Depositary Shares 6.47 0.09 1.41 45,689 Trade
RAX Rackspace Hosting Inc n/a n/a n/a 0 Trade
LXK Lexmark International Inc. n/a n/a n/a 0 Trade
NIHD NII Holdings Inc. 1.05 -0.10 -8.70 177,576 Trade
STI SunTrust Banks Inc. 54.99 0.65 1.20 1,057,896 Trade

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