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 51.29 0.14 0.27 93,564 Trade
BORN China New Borun Corporation American Depositary Sh 1.28 -0.01 -0.78 6,895 Trade
ORCL Oracle Corporation 48.16 0.19 0.40 15,341,907 Trade
CCL Carnival Corporation 64.33 -0.12 -0.19 3,513,512 Trade
SDRL Seadrill Limited (Bermuda) 0.39 0.02 4.98 22,072,921 Trade
SHW Sherwin-Williams Company (The) 349.76 0.15 0.04 570,171 Trade
UAL United Continental Holdings 58.80 0.27 0.46 4,279,702 Trade
SON Sonoco Products Company 48.62 -0.49 -1.00 446,156 Trade
BBVA Banco Bilbao Vizcaya Argentaria S.A. 8.99 0.02 0.22 1,289,708 Trade
MHK Mohawk Industries Inc. 245.67 -8.44 -3.32 1,163,236 Trade
KBH KB Home 20.88 0.10 0.48 5,762,489 Trade
PEP Pepsico Inc. 111.85 -0.95 -0.84 3,746,257 Trade
HW Headwaters Incorporated n/a n/a n/a 0 Trade
ROBKD Rotate Black Inc n/a n/a n/a 0 Trade
KIM Kimco Realty Corporation 19.18 -0.08 -0.42 2,562,805 Trade
CBT Cabot Corporation 55.80 0.49 0.89 319,418 Trade
AAPL Apple Inc. 151.89 -1.50 -0.98 46,645,443 Trade
BONT The Bon-Ton Stores Inc. 0.44 -0.00 -0.21 248,397 Trade
ARII American Railcar Industries Inc. 37.12 0.50 1.37 60,841 Trade
BCS Barclays PLC 10.36 0.03 0.29 1,803,524 Trade
S Sprint Corporation 8.52 0.49 6.10 26,203,014 Trade
UA Under Armour Inc. Class A 15.04 -0.09 -0.59 2,378,142 Trade
ANTH Anthera Pharmaceuticals Inc. 1.40 0.05 3.70 410,618 Trade
TWX Time Warner Inc. New 102.40 -0.09 -0.09 3,976,076 Trade
FGP Ferrellgas Partners L.P. 5.33 0.31 6.18 227,752 Trade
OKS ONEOK Partners L.P. n/a n/a n/a 0 Trade
LOW Lowe\'s Companies Inc. 78.23 0.19 0.24 5,981,210 Trade
AWI Armstrong World Industries Inc 49.85 0.75 1.53 192,749 Trade
LUV Southwest Airlines Company 54.93 0.30 0.55 3,053,770 Trade
DIS Walt Disney Company (The) 98.60 -0.29 -0.29 6,359,080 Trade
JBLU JetBlue Airways Corporation 18.62 -0.28 -1.48 8,916,712 Trade
VZ Verizon Communications Inc. 49.90 0.96 1.96 20,646,413 Trade
OREX Orexigen Therapeutics Inc. 2.12 -0.17 -7.22 193,680 Trade
NKE Nike Inc. 53.24 0.05 0.09 10,962,392 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.16 0.02 0.28 657,151 Trade
AMRS Amyris Inc. 3.50 -0.07 -1.96 272,719 Trade
JSM SLM Corporation 24.17 0.26 1.09 12,865 Trade
AGNC American Capital Agency Corp. 21.60 0.20 0.93 8,498,748 Trade
HSY The Hershey Company 106.48 -1.07 -0.99 1,148,751 Trade
SSRI Silver Standard Resources Inc. n/a n/a n/a 0 Trade
LYG Lloyds Banking Group Plc American Depositary Share 3.64 -0.01 -0.27 2,747,331 Trade
PPC Pilgrim\'s Pride Corporation 28.67 0.08 0.28 1,245,387 Trade
AWAY HomeAway Inc. n/a n/a n/a 0 Trade
JVA Coffee Holding Co. Inc. 4.33 0.13 3.10 16,390 Trade
GIS General Mills Inc. 51.23 -0.46 -0.89 4,499,061 Trade
NNBR NN Inc. 28.25 0.45 1.62 71,432 Trade
CDTI Clean Diesel Technologies Inc. 1.97 0.04 2.07 45,285 Trade
PHM PulteGroup Inc. 25.88 0.23 0.90 4,243,384 Trade
PLOW Douglas Dynamics Inc. 38.05 0.00 0.00 71,814 Trade
AMCN AirMedia Group Inc 2.51 0.00 0.00 79,102 Trade
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0 Trade
REGN Regeneron Pharmaceuticals Inc. 432.72 -0.73 -0.17 626,312 Trade
EXC Exelon Corporation 37.12 -0.03 -0.08 3,383,822 Trade
T AT&T Inc. 38.59 0.37 0.97 23,212,623 Trade
EFX Equifax Inc. 105.04 6.79 6.91 12,473,475 Trade
DUK Duke Energy Corporation (Holding Company) 84.25 -0.91 -1.07 1,799,186 Trade
CHL China Mobile Limited 50.64 -0.44 -0.86 938,107 Trade
FCEL FuelCell Energy Inc. 1.74 0.09 5.45 2,839,959 Trade
TPX Tempur Sealy International Inc. 63.76 0.89 1.42 414,270 Trade
THRX Theravance Inc n/a n/a n/a 0
CCI Crown Castle International Corp. (REIT) 100.60 -1.00 -0.98 2,720,047 Trade
SSNC SS&C Technologies Holdings Inc. 38.60 0.04 0.10 558,994 Trade
RAIL Freightcar America Inc. 18.79 0.10 0.54 29,490 Trade

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