The Dow Jones Industrial Average traded to another 2011 high at 12,832.83. The NASDAQ eked out a new 2011 high at 2876.83. The Dow Transports set a new all time high at 5551.31, quite surprising given near record high fuel costs. The Russell 2000 also traded to a new all time high at 866.90, which is sign of stock speculation given the slower than expected economic growth and Bernanke’s downgrade of future GDP growth made public on Wednesday.
U.S. stocks continued its Fed-induced rally on Thursday with the Dow Industrial Average tacking on 72 points to 12,763 up 10.2% year to date. The NASDAQ lagged adding only 3 points to 2873 up 8.3% year to date. In Asia stocks were mixed with the Nikkei 225 closed. In London the FTSE 100 was closed for the Royal Wedding. The US Treasury 10-Year note yield is down to 3.283 percent as a modest flight to quality continues. Gold set yet another new all time high at $1569.8 the Troy ounce on Friday, as commodity speculation continued. Crude oil is back above $113.00 per barrel to a new 2011 high at $114.18. The euro stayed firm against the dollar just under 1.49. Personal Income rose 0.5% in March with Spending up 0.6%. The Chicago PMI came in at 67.6 in April down from 70.6 in March.
As with other major oil companies, high crude prices helped boost Total's (TOT) earnings in Q1 2011, and also made up for lost production due to the Libyan uprising. Total announced yesterday a diversification into renewable energy with the purchase of 60% of U.S. solar-panel maker SunPower (SPWRA) for $1.37B, or $23.25/share. Southwestern Energy (SWN) reported Q1 EPS of $0.39 (in-line), while beating revenue by $80M. In afternoon trading: Shares of SunPower are up about 35%. Shares of Key Energy Services (KEG) are up about 13%. Shares of International Coal Group (ICO) are up about 8.5%.
The Energy Select Sector SPDR (XLE) was trading at $80.48 at 4:00 PM on Friday, UP 1.49% on the day – up 17.92% year-to-date.
Cliffs Natural Resources (CLF) beat estimates by 89 cents, but missed revenue by $220M. Eastman Chemical (EMN) beat estimates by 59 cents and revenue by $230M. Dow Chemical (DOW) is moved to Overweight from Neutral with JP Morgan. Methanex (MEOH) is now Neutral from Buy at UBS. In afternoon trading: Shares of Lundin Mining (LUNMF) are up about 12%. Shares of Harmony Gold (HMY) are up about 6.25%.
The Materials Select Sector SPDR (XLB) traded at $40.87 at 4:00 PM on Friday, UP 0.39% on the day – up 6.40% year-to-date.
Manitowoc (MTW) missed estimates by 10 cents and revenue by $53M. Republic Services (RSG) beat estimates by a penny and revenue by $20M. Caterpillar (CAT) reported Q1 EPS of $1.84 (beating estimates). Mine Safety (MSA) is moved to Outperform from Neutral at Robert W. Baird. Boeing (BA) is now Neutral from Underweight at HSBC Securities. Oshkosh Truck (OSK) is taken to Neutral from Buy at Robert W. Baird. Tal International (TAL) is now Neutral from Outperform at Robert W. Baird. Delta Air Lines (DAL) gets downgraded to Sell from Hold at Capstone.
The Industrial Select Sector SPDR (XLI) traded at $38.70 at 4:00 PM on Friday, up 0.42% on the day – up 10.98% year-to-date.
Chrysler (DDAIF) plans to soon repay $7.53B in loans that it took from the U.S. and Canadian governments during its bankruptcy in 2009 by selling bonds and taking out credit lines from several banks at lower interest rates they are currently paying. Fiat (FIATY.PK) intends to add to its 30% stake in Chrysler by purchasing a 16% stake for $1.27B. Newell Rubbermaid (NWL) beat estimates by 2 cents. Coinstar (CSTR) beat estimates by 24 cents and revenue by $15M. Crocs (CROX) beat estimates by 4 cents and revenue by $10M. Deckers Outdoor (DECK) beat estimates by 4 cents and revenue by $3M. Expedia (EXPE) missed estimates by a penny, but beat revenue by $27M. Leggett & Platt (LEG) beat estimates by 10 cents and revenue by $62M. Regal Entertainment (RGC) missed estimates by 4 cents and revenue by $24M. Discovery Communications (DISCA) gets boosted to Outperform at Barrington. IMAX Corp (IMAX) is reduced to Hold from Buy at Canaccord. Royal Caribbean (RCL) is reduced to Outperform from Strong Buy at Raymond James. Regal Entertainment (RGCC) is cut to Outperform from Strong Buy at Raymond James. In afternoon trading: Shares of Sonic (SONC) are up about 13.25%. Shares of Goodyear Tire (GT) are up about 12.5%. Shares of Conn’s (CONN) are up about 11%.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $40.55 at 4:00 PM on Friday, down slightly on the day – up 8.39% year-to-date.
Colgate-Palmolive (CL) and Procter & Gamble Co. (PG) are both boosted to Buy from Hold at Deutsche Bank. Molson Coors (TAP) is cut to Neutral from Overweight at JP Morgan. In afternoon trading: Shares of Star Scientific (CIGX) are up about 11.5%. Shares of Ralcorp Holding (RAH) are up about 8.5%. Shares of Feihe International (ADY) are up about 8.25%. Shares of Pilgrim’s Pride (PPC) are down about 8.5%.
The Consumer Staples Select Sector SPDR (XLP) traded at $31.52 at 4:00 PM on Friday, up 0.29% on the day – up 7.54% year-to-date.
Merck's (MRK) reported Q1 2011 EPS of $0.92 (versus estimates of $0.84; up from $0.83 a year earlier). ResMed (RMD) reported Q1 EPS of $0.35 (in-line) and revenue of $313M (in-line). Abiomed (ABMD) is now Outperform from Neutral at Robert W. Baird. In afternoon trading: Shares of Regeneron Pharmaceuticals (REGN) are down about 17.5%. Shares of Skilled Healthcare (SKH) are down about 13.25%. Shares of Kindred Healthcare (KND) are down about 12%. Shares of Zoll Medical (ZOLL) are up about 13.75%.
The Health Care Select Sector SPDR (XLV) traded at $35.24 at 4:00 PM on Friday, down slightly on the day – up 11.87% year-to-date.
The European Commission has opened two antitrust investigations into the market for credit default swaps. The probe includes 16 major U.S. and European banks, including JPMorgan (JPM), Barclays (BCS), HSBC (HBC), Citigroup (C) and Goldman Sachs (GS). Nasdaq OMX (NDAQ) and IntercontinentalExchange (ICE) are considering turning their $11.3B offer for NYSE-Euronext (NYX) into a hostile bid. Aon Corporation (AON) reported Q1 EPS of $0.80 (in-line), while beating revenue by $20M. Weyerhaeuser (WY) reported Q1 EPS of $0.18 (versus consensus of $0.15), while missing revenue by $90M. CBL & Associates (CBL) beat estimates by 12 cents and revenue by $6M. In afternoon trading: Shares of RAIT Financial (RAS) are down about 10.5%.
The Financial Select Sector SPDR (XLF) traded at $16.38 at 4:00 PM on Friday, down slightly on the day – up 2.70% year-to-date.
Microsoft (MSFT) beat earnings by 5 cents and revenue by $200M. Investors are a little concerned by the 4.4% revenue drop in the Windows division, as the growth of tablets chips away at the sale of computers running Microsoft's operating system. Amdocs (DOX) beat estimates by a penny and revenue by $7M. Amkor (AMKR) beat estimates by a penny, but missed revenue by $7M. Ariba (ARBA) reported FQ2 EPS of $0.19 (in-line) and revenue of $108M (in-line). Cavium Networks (CAVM) beat estimates by 4 cents and revenue by $1M. GSI Commerce (GSIC) beat estimates by 12 cents and revenue by $12M. Harmonic (HLIT) reported Q1 EPS of $0.09 (in-line) and revenue of $133M (in-line). Ingram Micro (IM) missed estimates by 14 cents and revenue by $100M. KLA-Tencor (KLAC) beat estimates by 7 cents and revenue by $24M. Monster Worldwide (MWW) beat estimates by 2 cents and revenue by $2M. NCR Corp (NCR) beat estimates by 4 cents and revenue by $20M. PMC-Sierra (PMCS) beat estimates by a penny and revenue by $2M. Skyworks (SWKS) beat estimates by 2 cents and revenue by $10M. Varian Semiconductor (VSEA) beat estimates by a penny and revenue by $9M. VeriSign (VRSN) reported Q1 EPS of $0.32 (in-line) and revenue of $182M (in-line). Booz Allen Hamilton (BAH) is begun with an Outperform at brokers William Blair. Unisys (UIS) is taken up to Neutral from Negative at Susquehanna. Research In Motion (RIMM) is downgraded to Underperform from Buy from at Jefferies. NetScout Systems (NTCT) is now Hold from Buy with Wunderlich. Ingram Micro (IM) gets pulled from the Conviction Buy list at Goldman Sachs. In afternoon trading: In afternoon trading: Shares of RIM (RIMM) are down about 14.25% after the company slashed its fiscal Q1 net EPS forecast to $1.30-$1.37 from $1.47-$1.55 due to weak BlackBerry shipments. Shares of Motorola Mobility Holdings (MMI) are up 8.5% about after it reported better-than-expected Q1 earnings; beating estimates by 4 cents and revenue by $200M. Shares of Ancestry.com (ACOM) are up about 38% after its quarterly results and full-year sales outlook topped Wall Street expectations. Shares of NETGEAR (NTGR) are up about 21.5% after a strong earnings report and outlook Shares of TeleNav (TNAV) are up about 18.5%. Shares of Skyworks Solutions (SWKS) are up about 14.75%. Shares of Qlik Technologies (QLIK) are up about 11.5%.
The Technology Select Sector SPDR (XLK) traded at $26.74 at 4:00 PM on Friday, down slightly on the day – up 6.15% year-to-date.
Verizon (VZ) is cut to Hold from Buy at Citigroup. SBA Communication (SBAC) reported Q1 EPS of -$0.30 (versus consensus of -$0.21), while beating revenue by $1M. In afternoon trading: Shares of SureWest Communications (SURW) are down about 9.5%. Shares of SBA Communications are down about 3.4%. Shares of Level 3 Communications (LVLT) are down about 3.1%. Shares of Sprint Nextel (S) are up about 0.9%, while shares of AT&T (T) are down about 0.4% and shares of Verizon (VZ) are down about 1.4%.
The NASDAQ Telecommunications Index (IXTC) traded at $228.37 at 4:00 PM on Friday, down 0.97% on the day – up 1.33% year-to-date.
Calpine (CPN) reported Q1 EPS of -$0.61 (versus consensus of -$0.13). Constellation Energy (CEG) gets cut to Hold from Buy at Wunderlich. In afternoon trading: Actives: Shares of Exelon (EXC) are relatively unchanged. Shares of Constellation Energy are up about 0.5%. Shares of Duke Energy (DUK) are relatively unchanged. Shares of PPL (PPL) are up slightly.
The Utilities Select Sector SPDR (XLU) traded at $33.16 at 4:00 PM on Friday, up 0.21% on the day – up 5.81% year-to-date.
STOCKS: TOT, SPWRA, SWN, KEG, ICO, CLF, EMN, DOW, MEOH, LUNKF, HMY, MTW, RSG, CAT, MSA, BA, OSK, TAL, DAL, DDAIF, FIATY, NWL, CSTR, CROX, DECK, EXPE, LEG, RGC, DISCA, IMAX, RCL, RGCC, SONC, GT, CONN, CL, PG, TAP, CIGX, RAH, ADY, PPC, MRK, RMD, ABMD, REGN, SKH, KND, ZOLL, JPM, BCS, HBC, C, GS, NDAQ, ICE, NYX, AON, WY, CBL, RAS, MSFT, DOX, AMKR, ARBA, CAVM, GSIC, HLIT, IM, KLAC, MWW, NCR, PMCS, SWKS, VSEA, VRSN, BAH, UIS, RIMM, NTCT, MMI, ACOM, NTGR, TNAV, SWKS, QLIK, VZ, SBAC, SURW, LVLT, S, T, CPN, CEG, EXC, DUK, PPL
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