Equities Sector Coverage: Stocks Pare Gains to Close Flat

Sector Recap |

NYSE Wall StreetThe Dow Jones Industrial Average traded between the narrow range of 12920 and 12976; ending the day above the 21- day simple moving average at 12920, which shifts the daily cycle to positive. The NASDAQ traded between the narrow range of 2973.65 and 2994.10; remaining above the 21- day simple moving average at 2953.33, which keeps the daily cycle positive.

Asian stocks were mixed on Monday. The Nikkei 225 ended their session at 9.890 – down 0.40% on the day. The Hang Seng ended their session at 21,134 – up 0.23% on the day. European stocks were up marginally on Monday. The FTSE 100 ended their session at 5,893 – up 0.09% on the day. The DAX ended their session at 6,901 – up 0.31% on the day. The CAC 40 ended their session at 3,490 – up 0.07% on the day. The yield on the 10-Year US Treasury traded between 1.989 and 2.033 percent; ending the session cheaper than the key 2% threshold.

Gold traded between $1692.5 and 1717.4 the Troy ounce to $1663.4; ending the day above the 50- day simple moving average at $1696.7. Crude oil traded between $105.38 and $107.56 per barrel. The euro versus the dollar traded between 1.3082 and 1.3154; ending the day above the 50- day simple moving average at 1.3091.

Energy

Seadrill Ltd (SDRL) is downgraded to Hold from Buy at Société Générale.
Energy Select Sector SPDR (XLE) was trading at $73.78 at 4:00 PM on Monday, down 0.55% on the day – up 6.73% year-to-date. The February 2012 change was +5.93%. The 2011 change was -1.29%

Big Movers: (OKS) +99.5%, (BPZ) +13.25%, (AMRS) +10.25%, (GUKYF) -16.25%.

Materials

Glencore (GLCNF) has reportedly made a £3.5B ($5.5B) offer for Canadian grain handler Viterra (VTRAF). Clean Diesel Technologies (CDTI) reported Q4 EPS of $0.06 (versus consensus $0.05 loss), while beating revenue by $2.8M. Silver Standard Resources (SSRI) beat estimates by 14 cents. Sherwin-Williams (SHW) is begun with a Buy at Nomura. Cabot Oil & Gas (CBT) is lifted to Buy from Hold at Jefferies. Sonoco Products (SON) is slashed to Sell from Neutral at Goldman.

The Materials Select Sector SPDR (XLB) was trading at $36.44 at 4:00 PM on Monday, down 0.55% on the day – up 8.78% year-to-date. The February 2012 change was -0.56%. The 2011 change was -12.78%.

Big Movers: (CDTI) +54.25%, (HW) +9.25%.

Industrials

JetBlue (JBLU) has put out feelers with Aer Lingus' management about possibly purchasing a stake in the Irish airliner, according to a report in the Irish Times. NN (NNBR) reported Q4 EPS of $0.21 (versus consensus of $0.24), while missing revenue by $3.4M. Douglas Dynamics (PLOW) beat estimates by 7 cents and revenue by $11.5M. FuelCell Energy (FCEL) beat estimates by a penny, while missing revenue by $1.3M. Equifax (EFX) gets taken to Buy from Neutral at Suntrust. Armstrong World Industries (AWI) and Mohawk (MHK) are each upgraded to Overweight from Equal Weight at Barclays. United Continental (UAL) and Southwest Airlines (LUV) are each lowered to Neutral from Buy at Bank of America-Merrill Lynch. American Railcar Industries (ARII) is downgraded to Hold from Buy at Keybanc, which cuts rival firm Freightcar America (RAIL) to Underweight from Hold.

The Industrial Select Sector SPDR (XLI) was trading at $37.01 at 4:00 PM on Monday, relatively unchanged on the day – up 9.66% year-to-date. The February 2012 change was +2.79%. The 2011 change was -3.21%.
Big Movers: (PNCL) +15.5%, (FCEL) +14%.

Consumer Discretionary

Amerigon (ARGN) beat estimates by 26 cents and revenue by $11M. AirMedia Group (AMCN) beat estimates by 2 cents and revenue by $9M. HomeAway (AWAY) is begun at Underperform by Bank of America-Merrill Lynch. Bon-Ton Stores (BONT) is assigned an Outperform and $13 target at Imperial Capital. Walt Disney (DIS) is upgraded to Buy from Neutral at Janney Montgomery Scott. Lowe’s (LOW) is lifted to Buy from Neutral at Nomura. Carnival PLC (CCL) is lifted 180 degrees, to Outperform from Underperform at BNP Paribas. KB Home (KBH) and Pulte Group (PHM) are each upgraded to Overweight from Equal Weight by Barclays. Armstrong World Industries (AWI) and Mohawk (MHK) are each upgraded to Overweight from Equal Weight at Barclays. Nike (NKE) is downgraded to Sell from Hold at McAdams Wright Ragen. Time Warner (TWX) is taken to Neutral from Buy at Janney Montgomery Scott. Under Armour (UA) is now Neutral from Buy at Sterne Agee. Tempur-Pedic (TPX) is moved to Market Perform from Strong Buy at Raymond James.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.86 at 4:00 PM on Monday, down 0.27% on the day – up 12.40% year-to-date. The February 2012 change was +10.09%. The 2011 change was +4.30%.

Big Movers: (APP) +14.5%, (ARGN) +10.25%, (ZZ) +9%.

Consumer Staples

Pepsi (PEP) is deepening its management line-up as it tries to get a potential successor in place for CEO Indra Nooyi. Hershey Foods (HSY) is lifted to Buy from Neutral at Goldman Sachs. J.M. Smucker (JSM) and General Mills (GIS) are each now Neutral from Buy at Goldman Sachs. China New Borun (BORN) is downgraded to Perform from Outperform at Oppenheimer.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.59 at 4:00 PM on Monday, up 0.36% on the day – up 3.39% year-to-date. The February 2012 change was +3.75%. The 2011 change was +10.85%.

Big Movers: (JVA) +31.5%, (PPC) +7%, (BORN) -7.5%.

Health Care

Japan's Asahi Kasei Corp. agreed to buy Zoll Medical Corp. (ZOLL) for $2.21B, or $93/share, a 24% premium over Zoll's Friday closing price. Theravance (THRX) is begun with a Buy recommendation and $24 price objective at Brean Murray. Orexigen Therapeutics (OREX) is now Buy from Neutral at Bank of America-Merrill Lynch, which adds Regeneron Pharmaceuticals (REGN) to its US 1 List of favored equities. Solta Medical (SLTM) is moved to Outperform from Market Perform at Morgan Keegan. Anthera Pharmaceuticals (ANTH) is now Neutral from Buy at Citigroup.

The Health Care Select Sector SPDR (XLV) was trading at $36.47 at 4:00 PM on Monday, unchanged on the day – up 5.13% year-to-date. The February 2012 change was +1.06%. The 2011 change was +10.32%.

Big Movers: (TZYM) -44%, (HGSI) -8.75%, (ZOLL) +23.5%, (OREX) +17.25%.

Financials

All the major U.K. banks, including HSBC (HBC), Barclays (BCS), Lloyds (LYG) and RBS (RBS), are facing legal action that could result in billions of pounds of damage payments, with small and medium-sized businesses claiming the banks profited at their expense by pushing them to buy complex interest rate derivatives. American Capital Agency (AGNC) is increased to Outperform from Market Perform at JMP Securities. Banco Santander (STD) gets hoisted to Buy from Hold at ING Groep. Banco Bilbao Vizcaya Argentaria (BBVA) is taken to Hold from Buy at ING Group. Danske Bank A/S (DNSKY) is cut to Reduce from Neutral at Nomura. Kimco Realty (KIM) is cut to Outperform from Top Pick at RBC Capital.

The Select Sector SPDR (XLF) was trading at $14.85 at 4:00 PM on Monday, down 0.27% on the day – up 14.23% year-to-date. The February 2012 change was +5.02%. The 2011 change was -18.50%; the weakest performing sector for the year.

Information Technology

Youku.com (YOKU) will merge with Tudou Holdings (TUDO) in an all-stock swap, creating a major online video provider. Youku holders will get 71.5% and Tudou holders get 28.5%. Apple (AAPL) said this weekend it has already sold out the supply of new iPads set aside for pre-order, and will push back their ship date to Friday, which is the official launch date. Velti (VELT) beat estimates by 11 cents and revenue by $6M. Youku (YOKU) missed estimates by 2 cents on revenue of $49.1M. SS&C Technologies (SSNC) is begun with a Buy and $26 target price at Needham. Lender Processing (LPS) is lifted to Overweight from Equal Weight at Barclays. Oracle (ORCL) is cut to Hold from Buy at Jefferies with a new objective of $32.

The Technology Select Sector SPDR (XLK) was trading at $29.22 at 4:00 PM on Monday, up slightly on the day – up 14.81% year-to-date. The February 2012 change was +7.08%. The 2011 change was +1.03%.

Big Mover: (TUDO) +150%, (YOKU) +28.5%, (PWAV) +21%, (VELT) +19.5%, (THQI) +11%.

Telecommunication Services

China Mobile (CHL) is lifted to Overweight from Equal Weight with HSBC Securities.
The NASDAQ Telecommunications Index (IXTC) was trading at $211.47 at 4:00 PM on Monday, down 0.30% on the day – up 7.38% year-to-date. The February 2012 change was +1.63%. The 2011 change was -12.62%.

Heavily Traded: (S) -2, (T) +0.9%, (CLWR) -1.9%, (CCI) +1.2%, (VZ) +0.7%.

Utilities

American States Water (AWR) reported Q4 EPS of $0.36 (versus consensus of $0.40), while missing revenue by $9M. Veolia Environnement (VE) is moved by Morgan Stanley to Overweight from Equal Weight.
The Utilities Select Sector SPDR (XLU) was trading at $35.57 at 4:00 PM on Monday, up 1.14% on the day – down 1.14% year-to-date. The February 2012 change was +0.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

Big Mover: (OKS) +100%, (DYN) -18.5%, (FGP) -7.5%.
Heavily Traded: (EXC) +2.5%, (CEG) +2.8%, (DUK) +1.1%.

STOCKS: SDRL, OKS, BPZ, AMRS, GUKYF, GLCNF, VTRAF, CDTI, SSRI, SHW, CBT, SON, CDTI, HW, JBLU, NNBR, PLOW, FCEL, EFX, AWI, MHK, UAL, LUV, ARII, RAIL, PNCL, ARGN, AMCN, AWAY, BONT, DIS, LOW, CCL, KBH, PHM, NKE, TWX, UA, TPX, APP, ZZ, PEP, HSY, JSM, GIS, BORN, JVA, PPC, ZOLL, THRX, OREX, REGN, SLTM, ANTH, TZYM, HGSI, HBC, BCS, LYG, RBS, AGNC, STD, BBVA, DNSKY, KIM, YOKU, TUDO, AAPL, VELT, SSNC, LPS, ORCL, PWAV, THQI, CHL, S, T, CLWR, CCI, VZ, AWR, VE, OKS, DYN, FGP, EXC, CEG, DUK

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
AWR American States Water Company 45.54 -0.64 -1.39 163,928
BORN China New Borun Corporation American Depositary Sh 1.34 -0.00 -0.01 73,855
ORCL Oracle Corporation 40.52 0.17 0.42 11,219,098
CCL Carnival Corporation 53.34 0.42 0.79 3,136,056
SDRL Seadrill Limited (Bermuda) 3.81 0.41 12.06 41,256,120
SHW Sherwin-Williams Company (The) 270.92 -0.44 -0.16 701,471
UAL United Continental Holdings 75.17 2.43 3.34 5,148,603
SON Sonoco Products Company 54.01 -0.76 -1.39 485,293
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.79 -0.10 -1.45 2,708,631
MHK Mohawk Industries Inc. 199.86 -1.41 -0.70 421,527
KBH KB Home 17.21 -0.05 -0.29 3,806,003
PEP Pepsico Inc. 103.57 1.42 1.39 5,040,175
HW Headwaters Incorporated 23.58 0.07 0.30 2,674,744
ROBKD Rotate Black Inc n/a n/a n/a 0
KIM Kimco Realty Corporation 25.98 -0.36 -1.37 3,947,182
CBT Cabot Corporation 53.72 -0.33 -0.61 331,934
AAPL Apple Inc. 113.95 1.83 1.63 34,402,627
BONT The Bon-Ton Stores Inc. 1.76 -0.06 -3.30 29,083
ARII American Railcar Industries Inc. 47.23 -0.14 -0.30 68,886
BCS Barclays PLC 11.74 -0.25 -2.09 4,751,300
S Sprint Corporation 8.48 -0.26 -2.97 19,560,796
UA Under Armour Inc. Class A 28.81 -0.01 -0.03 4,014,148
ANTH Anthera Pharmaceuticals Inc. 1.91 -0.09 -4.50 1,449,416
TWX Time Warner Inc. New 95.23 0.68 0.72 5,134,033
FGP Ferrellgas Partners L.P. 6.65 -0.05 -0.75 3,300,348
OKS ONEOK Partners L.P. 41.96 0.07 0.17 530,362
LOW Lowe\'s Companies Inc. 74.69 -0.55 -0.73 5,553,802
AWI Armstrong World Industries Inc 44.90 0.90 2.05 614,993
LUV Southwest Airlines Company 49.79 0.19 0.38 6,700,895
DIS Walt Disney Company (The) 104.86 1.48 1.43 12,173,909
JBLU JetBlue Airways Corporation 21.90 0.07 0.32 8,950,074
VZ Verizon Communications Inc. 51.49 0.36 0.70 10,101,462
OREX Orexigen Therapeutics Inc. 2.00 0.06 3.09 222,150
NKE Nike Inc. 51.72 0.17 0.33 5,869,828
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.49 -0.11 -1.96 1,604,001
AMRS Amyris Inc. 0.80 0.03 3.29 1,272,527
JSM SLM Corporation 22.47 -0.11 -0.49 11,002
AGNC American Capital Agency Corp. 18.49 -0.05 -0.27 2,955,684
HSY The Hershey Company 100.30 1.86 1.89 1,725,051
SSRI Silver Standard Resources Inc. 9.29 -0.60 -6.07 2,358,522
LYG Lloyds Banking Group Plc American Depositary Share 3.14 -0.05 -1.57 4,423,285
PPC Pilgrim\'s Pride Corporation 19.15 0.85 4.64 3,351,545
AWAY HomeAway Inc. n/a n/a n/a 0
JVA Coffee Holding Co. Inc. 4.90 0.09 1.87 11,750
GIS General Mills Inc. 63.20 0.72 1.15 1,938,701
NNBR NN Inc. 18.40 0.05 0.27 102,958
CDTI Clean Diesel Technologies Inc. 2.38 0.07 3.03 30,559
PHM PulteGroup Inc. 19.60 -0.25 -1.26 5,453,225
PLOW Douglas Dynamics Inc. 33.40 0.45 1.37 97,656
AMCN AirMedia Group Inc 2.57 0.06 2.39 95,246
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0
REGN Regeneron Pharmaceuticals Inc. 372.83 3.68 1.00 1,290,897
EXC Exelon Corporation 34.90 0.70 2.05 10,118,837
T AT&T Inc. 40.38 -0.03 -0.07 17,105,180
EFX Equifax Inc. 117.16 -0.44 -0.37 618,384
DUK Duke Energy Corporation (Holding Company) 75.82 1.09 1.46 3,196,119
CHL China Mobile Limited 54.26 -0.15 -0.28 714,234
FCEL FuelCell Energy Inc. 2.10 0.05 2.44 551,496
TPX Tempur Sealy International Inc. 65.05 -0.51 -0.78 1,020,864
THRX Theravance Inc n/a n/a n/a 0
CCI Crown Castle International Corp. (REIT) 85.57 0.57 0.67 1,871,292
SSNC SS&C Technologies Holdings Inc. 29.24 -0.11 -0.37 1,206,766
RAIL Freightcar America Inc. 16.18 0.66 4.25 194,027

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