Equities Sector Coverage: Stocks Rebound as May Starts Off in Green

Sector Recap  |

Construction Spending in March was weaker than expected with a rise of just 0.1%. The ISM manufacturing index was stronger than expected in April at 54.8. The Dow Jones Industrial Average traded down to 13,174.65 then rebounded to 13,338.66 taking out the March 16th high at 13,289.08. The NASDAQ’s traded down to 3041.62 then rebounded to 3085.40 staying below it’s March 27th high at 3134.17.

Asian stocks were mixed on Tuesday. The Nikkei 225 ended their session at 9,351 – down 1.78% on the day. The Hang Seng was closed at 21,094. European exchanges were mixed on Tuesday. The FTSE 100 ended their session at 5,812 – up 1.30% on the day. The DAX was closed at 6,761. The CAC 40 was closed at 3,213. The yield on the 10-Year US Treasury ended the day at 1.952 below its 50-day and 200-day simple moving averages at 2.078 and 2.077.

Gold declined from $1672.3 the Troy ounce to $1657.5 still below the 50-day and 200-day simple moving averages at $1676.2 and $1698.1. Crude oil traded between $104.39 per barrel and $106.43 versus its 50-day simple moving average at $105.21. The euro versus the dollar traded down from 1.3282 to 1.3208 versus its 50-day simple moving average at 1.3210.

Energy

BP's (BP) reported that their clean replacement cost profit fell 12.8% in Q1 to $4.8B but revenue climbed 9.4% to $96.7 billion, as a drop in production following asset sales resulting from the Gulf oil spill offset higher oil prices. Delta Air Lines (DAL) has confirmed it will purchase the Trainer refinery in Philadelphia from ConocoPhillips (COP) saying that by doing so the airline will cut its fuel expenses by $300 million a year. SunCoke Energy (SXC) missed Q1 EPS estimates by two cents but reported better than expected revenue. Valero (VLO) beat estimates by 3 cents and revenue by $9B. Cobalt International Energy (CIE) beat estimates by a penny. Talisman Energy (TLM) missed estimates by 3 cents with revenue in-line with estimates. Comstock Resources (CRK) missed estimates by 3 cents and revenue by $5M. Forest Oil (FST) missed estimates by 9 cents and revenue by $29M. Anadarko Petroleum (APC) beat estimates by 9 cents with revenue in-line with estimates. Cameron International (CAM) is lifted to Overweight from Neutral at HSBC Securities.

Big Movers – Forest Oil (FST) -11%, Chesapeake Energy (CHK) +7.5%.

Dow components – Chevron (CVX) +2%, Exxon Mobil (XOM) +1.3%.

Energy Select Sector SPDR (XLE) was trading at $72.54 at 3:30 PM on Tuesday, up 1.83% on the day – up 4.94% year-to-date.

Materials

P.H. Glatfelter (GLT) beat Q1 EPS estimates by four points but missed on the revenue line. Westlake Chemical (WLK) beat Q1 EPS estimates by a nickel and reported better than expected revenue. Huntsman (HUN) reported Q1 EPS of $0.74 (versus consensus of $0.39), while beating revenue by $90M. Kraton Performance Polymers (KRA) reported Q1 EPS of $0.50 (versus consensus of $0.64), while beating revenue by $64M.
Big Mover – Huntsman (HUN) +10%.
Dow components – Alcoa (AA) +2%, DuPont (DD) +0.7%.
The Materials Select Sector SPDR (XLB) was trading at $36.99 at 3:30 PM on Tuesday, up 0.87% on the day – up 10.40% year-to-date.

Industrials

Delta Air Lines (DAL) has confirmed it will purchase the Trainer refinery in Philadelphia from ConocoPhillips (COP) saying that by doing so the airline will cut its fuel expenses by $300 million a year. Spirit Airlines (SAVE) reported in-line Q1 EPS and in-line revenue. Emerson (EMR) reported weaker than expected earnings due to weakness in Europe, China and Brazil. Emerson Electric (EMR) missed estimates by 6 cents and revenue by $80M. Masco (MAS) beat estimates by 11 cents and revenue by $70M. Genco Shipping (GNK) missed estimates by 17 cents and revenue by $9M.
Big Movers – Avid Budget (CAR) +20%, General Cable (BGC) +10.75%, Genesee & Wyoming (GWR) +10.25%, A123 Systems (AONE) +10%.
Dow components – Boeing Co (BA) +1.2%, Caterpillar (CAT) flat, General Electric (GE) +1.7%, 3M Company (MMM) +0.6%, United Technologies (UTX) +0.3%.
The Industrial Select Sector SPDR (XLI) was trading at $37.18 at 3:30 PM on Tuesday, up 0.43% on the day – up 10.13% year-to-date.

Consumer Discretionary

P.F.Chang's China Bistro (PFCB) missed estimates by a penny and revenue by $2M. Office Depot (ODP) reported Q1 EPS of $0.05 (in-line) and revenue of $2.87B (in-line). Sirius XM Radio (SIRI) beat estimates by a penny and revenue by $2M. The company’s subscriber base rose to an all-time high of 22.3M subscribers. Domino's Pizza (DPZ) missed estimates by 3 cents and revenue by $19M. Texas Roadhouse (TXRH) beat estimates by 2 cents and revenue by $1M. Shutterfly (SFLY) beat estimates by 4 cents and revenue by $6.8M. The company expects Q2 revenue of $90M-$92M and 2012 revenue of $576M-$586M, above Street estimates of $88.4M and $556.3M. Denny's (DENN) beat estimates by a penny, while missing revenue by $1M. WMS Industries (WMS) missed estimates by 2 cents and revenue by $14M. Standard Pacific (SPF) reported Q1 EPS of $0.02 (versus consensus of $0.03), while beating revenue by $7M. Abercrombie & Fitch (ANF) is added to Top Picks Live list at Citigroup and boosted to Buy from Neutral at UBS. American Eagle (AEO) is upgraded to Outperform from Neutral with Wedbush. Texas Roadhouse (TXRH) is moved to Outperform from Market Perform at Raymond James. WMS Industries (WMS) is upgraded to Outperform from Neutral at Credit Suisse. Expedia (EXPE) is downgraded to Underweight from Equal Weight by Barclays.
Big Movers – P.F. Chang’s (PFCB) +29.75%, Sears Holdings (SHLD) +17%, Central European Media Enterprises (CETV) +11%, Exceed Co (EDS) -17%.
Dow Components – Disney (DIS) +2.1%, Home Depot +1.4%, McDonalds (MCD) flat.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.01 at 3:30 PM on Tuesday, up 0.86% on the day – up 17.86% year-to-date.

Consumer Staples

Fresh Del Monte Produce (FDP) beat estimates by 26 cents, while missing revenue by $59M. Avon (AVP) missed estimates by 18 cents with revenue in-line with estimates. Corn Products International (CPO) beat estimates by 4 cents with revenue in-line with estimates. Archer Daniels Midland (ADM) beat estimates by 18 cents, while missing revenue by $400M. Herbalife (HLF) beat estimates by 7 cents, while missing revenue by $29M. The company raised FY12 EPS guidance to a range of $3.58 to $3.74. Costco (COST) is downgraded to Hold from Buy at Deutsche Bank.
Big Movers – Imperial Sugar (IPSU) +57.5%, Herbalife (HLF) -21.5%.
Dow components – Kraft (KFT) flat, Coca Cola (KO) +0.7%, Procter & Gamble (PG) flat, Wal-Mart (WMT) +0.5%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.31 at 3:30 PM on Tuesday, up 0.38% on the day – up 5.60% year-to-date.

Health Care

Teleflex (TFX) beat Q1 EPS estimates by four cents on better that expected revenue. Techne (TECH) beat FQ3 EPS estimates by a penny with a beat on the revenue line. Rigel Pharmaceuticals (RIGL) beat Q1 EPS estimates by a penny with better than expected revenue. Pfizer (PFE) beat estimates by a penny with revenue in-line with estimates. The company expects FY revenue of $58B-$60B versus estimates of $62.1B. Endo Pharmaceuticals (ENDP) beat estimates by a penny, while missing revenue by $9M. Biogen Idec (BIIB) missed estimates by 9 cents and revenue by $20M. Bruker BioSciences (BRKR) beat estimates by 2 cents and revenue by $17M. ViroPharma (VPHM) reported Q1 EPS of $0.37 (versus consensus of $0.42), while missing revenue by $14M. PAREXEL International (PRXL) beat estimates by 2 cents and revenue by $6M. NuVasive (NUVA) beat estimates by 2 cents and revenue by $8M. McKesson (MCK) beat estimates by 5 cents and revenue by $1.4B. Molina Healthcare (MOH) beat estimates by a penny, while missing revenue by $60M. AstraZeneca (AZN) is lifted to Neutral from Underperform at Bank of America-Merrill Lynch. Community Health (CYH) is upgraded to Neutral from Sell at Goldman Sachs. NuVasive (NUVA) is upgraded to Outperform from Perform at Robert W. Baird. Accretive Health (AH) is cut to Neutral from Buy at UBS. Gen-Probe (GPRO) is downgraded to Market Perform from Outperform at Raymond James. Hologic (HOLX) is now Neutral from Outperform at Macquarie. McKesson (MCK) is lowered to Market Perform from Outperform at Raymond James.
Big Movers – NuVasive (NUVA) +23%, InterMune (ITMN) +11%, Savient Pharmaceuticals (SVNT) -21.5%.
Dow Components – Johnson & Johnson (JNJ) +0.2%, Merck (MRK) +0.25%, Pfizer (PFE) +0.25%.
The Health Care Select Sector SPDR (XLV) was trading at $37.69 at 3:30 PM on Tuesday, up 0.45% on the day – up 8.65% year-to-date.

Financials

Bank of America (BAC) plans to cut 2,000 positions at its investment banking, commercial banking and non-U.S. wealth-management businesses. Marsh & McLennan (MMC) beat estimates by a penny with revenue in-line with estimates. Legg Mason (LM) best estimates by 8 cents and revenue by $3M. Extra Space Storage (EXR) reported Q1 EPS of $0.33 (in-line), while beating revenue by $10M. CBL & Associates Properties (CBL) beat estimates by 2 cents and revenue by $5M. CapitalSource (CSE) is upgraded to Buy from Neutral at Sterne Agee, whose target price is $7.50. Diamondrock Hospitality (DRH) is upgraded to Perform from Underperform at FBR Capital. Travelers (TRV) is upgraded by Sanford Bernstein. Duke Realty (DRE) is downgraded to Neutral from Buy at Citigroup.
Big Movers – Radian Group (RDN) -10.5%, FelCor Lodging Trust (FCH) +9%, Lloyds Banking Group (LYG) +8.5%.
Dow Components – American Express (AXP) +1.4%, Bank of America (BAC) +3.6%, JP Morgan Chase (JPM) +2.9%, Travelers (TRV) +0.5%.
The Financial Select Sector SPDR (XLF) was trading at $15.635 at 3:30 PM on Tuesday, up 1.33% on the day – up 20.23% year-to-date.

Information Technology

Allot Communications (ALLT) beat estimates by 4 cents and revenue by $3M. Harris (HRS) beat estimates by 5 cents with revenue in-line with estimates. Sourcefire (FIRE) beat estimates by 3 cents and revenue by $5M. The company is guiding for Q2 revenue of $46.5M-$48.5M and EPS of $0.12-$0.14, compared with a consensus of $46.5M and $0.13. PLX Technology (PLXT) missed estimates by 6 cents and revenue by $1.4M. Advanced Energy Industries (AEIS) beat estimates by 6 cents and revenue by $5.8M. Servicesource International (SREV) beat estimates by a penny and revenue by $2M. Veeco Instruments (VECO) beat estimates by 26 cents and revenue by $14M. The company is guiding for Q2 revenue of $120M-$145M and EPS of $0.29-$0.48, compared with a consensus of $128.2M and just $0.23. PMC-Sierra (PMCS) beat estimates by a penny, while missing revenue by $1.6M. SunPower (SPWR) is boosted to Buy from Neutral at Citigroup, where Yingli Green Energy (YGE) is now Buy from Sell. Qualcomm (QCOM) is moved to Outperform from Neutral at Macquarie. Macquarie takes Texas Instruments (TXN), Altera (ALTR), and Xilinx (XLNX) to Neutral from Outperform.
Big Movers – IPG Photonics (IPGP) +14.25%, Advanced Energy Industries (AEIS) +13.75%, Sourcefire (FIRE) +12.75%, Veeco Instruments (VECO) +12.25%, Suntech Power (STP) +10.75%, ServiceSource (SREV) -15.25%, Integrated Device Technology (IDTI) -10.5%.
Dow Components – Cisco Systems (CSCO) -0.25%, Hewlett-Packard (HPQ) +2.4%, IBM (IBM) +0.75%, Intel Corp (INTC) +2.1%, Microsoft (MSFT) +0.5%.
The Technology Select Sector SPDR (XLK) was trading at $29.99 at 3:30 PM on Tuesday, up 0.57% on the day – up 17.84% year-to-date.

Telecommunication Services

SBA Communications (SBAC) missed estimates by 2 cents with revenue in-line with estimates. Leap Wireless (LEAP) is lowered to Sector Perform from Outperform at RBC Capital.
Dow components – AT&T (T) +1%, Verizon (VZ) +0.9%.
The NASDAQ Telecommunications Index (IXTC) was trading at $211.42 at 3:30 PM on Tuesday, relatively unchanged on the day – up 7.36% year-to-date.

Utilities

NiSource (NI) beat estimates by 4 cents, while missing revenue by $400M. MDU Resources (MDU) missed estimates by 2 cents on revenue of $35.6M.
Dominion Resources (D) +0.6%, Edison International (EIX) +1%, First Energy (FE) +1.25%, PG&E Corp (PCG) flat, Southern Company (SO) +0.6%.
The Utilities Select Sector SPDR (XLU) was trading at $35.875 at 3:30 PM on Tuesday, up 0.60% on the day – down 0.29% year-to-date.

STOCKS: BP, DAL, COP, SXC, VLO, CIE, TLM, CRK, FST, APC, CAM, CHK, CVX, XOM, GLT, WLK, HUN, KRA, AA, DD, SAVE, EMR, MAS, GNK, CAR, BGC, GWR, AONE, BA, CAT, GE, MMM, UTX, PFCB, ODP, SIRI, DPZ, TXRH, SFLY, DENN, WMS, SPF, ANF, AEO, EXPE, SHLD, CETV, EDS, DIS, MCD, FDP, AVP, CPO, ADM, HLF, COST, IPSU, KFT, KO, PG, WMT, TFX, TECH, RIGL, PFE, ENDP, BIIB, BRKR, VPHM, PRXL, NUVA, MCK, MOH, AZN, CYH, AH, GPRO, HOLX, ITMN, SVNT, JNJ, MRK, PFE, BAC, MMC, LM, EXR, CBL, CSE, DRH, TRV, DRE, RDN, FCH, LYG, AXP, JPM, TRV, ALLT, HRS, FIRE, PLXT, AEIS, SREV, VECO, PMCS, SPWR, YGE, QCOM, TXN, XLNX, IPGP, STP, SREV, IDTI, CSCO, HPQ, IBM, INTC, MSFT, SBAC, LEAP, T, VZ, NI, MDU, D, EIX, FE, PCG, SO

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 218.88 1.24 0.57 1,780,159 Trade
WLK Westlake Chemical Corporation 75.21 -0.55 -0.73 561,871 Trade
KRA Kraton Corporation 36.49 0.08 0.22 147,778 Trade
MCK McKesson Corporation 114.10 1.61 1.43 1,193,561 Trade
PG Procter & Gamble Company (The) 106.05 0.20 0.19 7,249,033 Trade
GE General Electric Company 9.35 0.23 2.52 51,509,079 Trade
DRH Diamondrock Hospitality Company 10.78 0.05 0.47 1,286,697 Trade
NI NiSource Inc 27.56 -0.03 -0.11 1,878,833 Trade
CVX Chevron Corporation 119.86 -0.41 -0.34 9,546,462 Trade
SO Southern Company (The) 51.96 -0.20 -0.38 3,717,099 Trade
PCG Pacific Gas & Electric Co. 21.00 -0.85 -3.89 5,209,478 Trade
GPRO GoPro Inc. 6.38 -0.05 -0.78 2,579,290 Trade
JNJ Johnson & Johnson 137.52 -1.00 -0.72 10,485,289 Trade
AA Alcoa Corporation 26.66 -1.06 -3.82 9,476,158 Trade
HLF Herbalife Nutrition Ltd. 50.67 -0.74 -1.44 1,988,325 Trade
INTC Intel Corporation 58.49 -0.07 -0.12 20,464,197 Trade
SFLY Shutterfly Inc. 39.99 -0.67 -1.65 489,460 Trade
VLO Valero Energy Corporation 88.04 -1.38 -1.54 2,670,278 Trade
D Dominion Energy Inc. 74.92 -0.35 -0.46 3,307,676 Trade
RIGL Rigel Pharmaceuticals Inc. 2.37 0.05 2.16 2,057,631 Trade
TRV The Travelers Companies Inc. 138.93 3.06 2.25 2,199,201 Trade
PNP:CA Pinetree Capital Ltd. 1.25 -0.03 -2.34 100
EXPE Expedia Group Inc. 124.51 -0.31 -0.25 1,154,739 Trade
CBL CBL & Associates Properties Inc. 1.19 -0.09 -7.03 3,438,476 Trade
XLNX Xilinx Inc. 134.95 -0.87 -0.64 4,030,901 Trade
DAL Delta Air Lines Inc. 58.17 -0.26 -0.44 4,108,117 Trade
DPZ Domino's Pizza Inc 267.61 2.36 0.89 971,954 Trade
EIX Edison International 63.09 -0.32 -0.50 1,287,204 Trade
RDN Radian Group Inc. 22.52 -0.15 -0.66 1,181,274 Trade
WMS Advanced Drainage Systems Inc. 27.47 -0.24 -0.87 141,871 Trade
ALLT Allot Ltd. 8.01 0.20 2.56 50,272 Trade
AEIS Advanced Energy Industries Inc. 57.52 0.64 1.13 364,234 Trade
AXP American Express Company 113.67 1.91 1.71 6,186,823 Trade
FDP Fresh Del Monte Produce Inc. 26.80 0.10 0.37 155,616 Trade
UTX United Technologies Corporation 137.00 1.21 0.89 2,498,772 Trade
AVP Avon Products Inc. 2.64 -0.04 -1.49 2,149,485 Trade
TXN Texas Instruments Incorporated 115.51 -0.09 -0.08 4,195,777 Trade
HOLX Hologic Inc. 43.40 -0.03 -0.07 1,766,139 Trade
IPGP IPG Photonics Corporation 175.48 1.72 0.99 281,036 Trade
SREV ServiceSource International Inc. 0.90 -0.00 -0.01 813,078 Trade
TECH Bio-Techne Corp 189.16 0.44 0.23 490,834 Trade
BRKR Bruker Corporation 38.17 0.00 0.00 633,484 Trade
CSCO Cisco Systems Inc. 56.40 0.09 0.16 18,331,954 Trade
CAM Cameron International Corp n/a n/a n/a 0 Trade
COP ConocoPhillips 65.90 0.12 0.18 6,033,432 Trade
LM Legg Mason Inc. 32.83 -0.15 -0.45 564,855 Trade
COST Costco Wholesale Corporation 245.81 0.25 0.10 1,365,116 Trade
VZ Verizon Communications Inc. 58.04 0.26 0.45 13,189,013 Trade
MMC Marsh & McLennan Companies Inc. 93.72 -0.69 -0.73 2,286,743 Trade
ODP Office Depot Inc. 2.46 -0.07 -2.77 4,617,367 Trade
SHLD SHLDQ Sears Holdings Corporation n/a n/a n/a 0
BAC Bank of America Corporation 30.03 0.00 0.00 61,796,624 Trade
GNK Genco Shipping & Trading Limited New (Marshall Islands) 8.67 -0.07 -0.80 108,774 Trade
TFX Teleflex Incorporated 277.05 -0.70 -0.25 382,556 Trade
MCD McDonald's Corporation 194.91 3.30 1.72 2,918,415 Trade
PMCS PMC-Sierra Inc. n/a n/a n/a 0 Trade
YGE Yingli Green Energy Holding Company Limited ADR n/a n/a n/a n/a
CYH Community Health Systems Inc. 3.26 0.10 3.16 1,731,857 Trade
APC Anadarko Petroleum Corporation 64.18 0.15 0.23 10,900,494 Trade
SPWR SunPower Corporation 7.43 -0.08 -1.07 959,835 Trade
SXC SunCoke Energy Inc. 8.44 -0.24 -2.77 366,278 Trade
DRE Duke Realty Corporation 30.13 0.42 1.41 1,546,526 Trade
EMR Emerson Electric Company 72.51 0.20 0.28 3,219,574 Trade
ADM Archer-Daniels-Midland Company 42.76 -0.28 -0.65 2,318,217 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 3.38 -0.08 -2.31 4,624,750 Trade
HRS Harris Corporation 165.65 -0.51 -0.31 485,851 Trade
DENN Denny's Corporation 17.14 0.18 1.06 222,686 Trade
VECO Veeco Instruments Inc. 12.65 -0.13 -1.02 191,483 Trade
HUN Huntsman Corporation 24.79 -0.02 -0.08 1,757,636 Trade
SIRI Sirius XM Holdings Inc. 6.04 0.03 0.50 27,593,233 Trade
MAS Masco Corporation 40.04 0.05 0.13 4,037,463 Trade
CRK Comstock Resources Inc. 6.58 -0.15 -2.23 105,942 Trade
PFE Pfizer Inc. 39.38 -0.50 -1.25 47,988,381 Trade
GLT Glatfelter 14.48 0.20 1.40 209,587 Trade
BIIB Biogen Inc. 226.39 -0.79 -0.35 2,760,973 Trade
HPQ HP Inc. 20.52 0.02 0.10 7,436,041 Trade
AZN Astrazeneca PLC 38.80 0.03 0.08 5,430,254 Trade
GWR Genesee & Wyoming Inc. Class A 87.02 0.42 0.48 232,736 Trade
ENDP Endo International plc 7.12 -0.03 -0.42 2,615,470 Trade
EXR Extra Space Storage Inc 100.70 0.91 0.91 625,095 Trade
MRK Merck & Company Inc. (new) 73.19 -0.73 -0.99 31,267,836 Trade
ANF Abercrombie & Fitch Company 28.14 0.08 0.29 1,460,408 Trade
CETV Central European Media Enterprises Ltd. 4.06 -0.01 -0.25 284,339 Trade
BP BP p.l.c. 44.39 -0.23 -0.52 3,682,320 Trade
FE FirstEnergy Corp. 40.50 0.27 0.67 4,477,140 Trade
SBAC SBA Communications Corporation 198.18 0.88 0.45 630,292 Trade
KO Coca-Cola Company (The) 47.48 0.20 0.42 12,167,116 Trade
T AT&T Inc.
CAT Caterpillar Inc.
AEO American Eagle Outfitters Inc.
NUVA NuVasive Inc.
MOH Molina Healthcare Inc
QCOM QUALCOMM Incorporated
CAR Avis Budget Group Inc.
SPF null
MSFT Microsoft Corporation
CHK Chesapeake Energy Corporation
CIE Cobalt International Energy Inc. COBALT INTERNATIO
TXRH Texas Roadhouse Inc.
WMT Walmart Inc. 103.18 0.02 0.02 3,727,937 Trade
IBM International Business Machines Corporation 140.33 1.22 0.88 4,960,015 Trade
JPM JP Morgan Chase & Co. 113.46 -0.84 -0.73 12,501,949 Trade
DIS The Walt Disney Company 132.45 0.70 0.53 11,890,584 Trade
XOM Exxon Mobil Corporation 81.13 -0.30 -0.37 9,493,885 Trade
BA The Boeing Company 380.07 2.55 0.68 4,703,105 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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