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

Sector Recap |

Stocks Rebound as May Starts Off in GreenConstruction 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
AA Alcoa Inc. 9.65 -0.03 -0.31 11,470,339
ADM Archer-Daniels-Midland Company 41.89 -0.01 -0.02 2,363,748
AEIS Advanced Energy Industries Inc. 47.23 1.23 2.67 556,855
AEO American Eagle Outfitters Inc. 18.11 0.25 1.40 2,781,363
ALLT Allot Communications Ltd. 5.14 0.01 0.10 38,222
ANF Abercrombie & Fitch Company 16.24 0.10 0.62 2,946,510
APC Anadarko Petroleum Corporation 58.27 -0.27 -0.46 6,082,682
AVP Avon Products Inc. 5.74 0.13 2.32 2,735,497
AXP American Express Company 64.28 0.86 1.36 3,916,263
AZN Astrazeneca PLC 33.61 0.06 0.18 3,677,853
BA Boeing Company (The) 131.32 0.75 0.57 1,939,020
BAC Bank of America Corporation 15.29 0.20 1.33 81,992,627
BGC General Cable Corporation 14.21 0.14 1.00 266,015
BIIB Biogen Inc. 314.53 4.71 1.52 1,104,517
BP BP p.l.c. 33.61 -0.07 -0.21 4,171,938
BRKR Bruker Corporation
CAM Cameron International Corp n/a n/a n/a 0
CAR Avis Budget Group Inc. 35.77 -3.16 -8.12 7,187,372
CAT Caterpillar Inc. 82.88 0.51 0.62 4,295,596
CBL CBL & Associates Properties Inc.
CETV Central European Media Enterprises Ltd. 2.31 -0.01 -0.43 59,799
CHK Chesapeake Energy Corporation 6.23 -0.39 -5.89 83,665,778
CIE Cobalt International Energy Inc. COBALT INTERNATIO
COP ConocoPhillips 39.43 -0.59 -1.47 7,796,387
COST Costco Wholesale Corporation 150.45 -0.74 -0.49 2,569,036
CRK Comstock Resources Inc.
CSCO Cisco Systems Inc. 31.48 0.41 1.32 18,045,376
CVX Chevron Corporation 98.98 0.20 0.20 6,476,099
CYH Community Health Systems Inc. 10.44 0.13 1.26 2,919,132
D Dominion Resources Inc. 75.78 -0.82 -1.07 2,936,914
DAL Delta Air Lines Inc. 39.21 1.17 3.08 9,596,607
DD E.I. du Pont de Nemours and Co. 67.26 0.74 1.11 1,765,930
DENN Denny\'s Corporation
DIS Walt Disney Company (The) 91.72 -0.24 -0.26 9,167,391
DPZ Domino\'s Pizza Inc 153.63 0.14 0.09 279,901
DRE Duke Realty Corporation 27.42 -0.30 -1.08 1,499,211
DRH Diamondrock Hospitality Company 8.88 -0.13 -1.44 2,438,017
EIX Edison International 74.24 -1.31 -1.73 1,769,825
EMR Emerson Electric Company 51.82 0.39 0.76 2,803,238
ENDP Endo International plc 22.53 0.54 2.46 5,465,989
EXPE Expedia Inc. 113.10 4.01 3.68 2,604,674
EXR Extra Space Storage Inc 80.88 -0.50 -0.61 658,871
FCH FelCor Lodging Trust Incorporated 6.44 -0.08 -1.23 641,513
FDP Fresh Del Monte Produce Inc. 59.82 0.19 0.32 177,610
FE FirstEnergy Corporation 33.67 -0.91 -2.63 5,301,436
GE General Electric Co 29.88 0.34 1.15 25,491,940
GLT Glatfelter
GNK Genco Shipping & Trading Limited New (Marshall Isl 4.80 0.07 1.48 18,599
GPRO GoPro Inc.
GWR Genesee & Wyoming Inc. Class A 66.22 -0.10 -0.15 247,978
HLF Herbalife Ltd. 61.17 0.04 0.07 421,056
HOLX Hologic Inc. 38.76 0.79 2.08 3,219,505
HPQ HP Inc. 15.34 0.32 2.13 9,061,256
HRS Harris Corporation 91.58 1.45 1.61 580,045
HUN Huntsman Corporation 15.53 0.28 1.84 2,405,786
IBM International Business Machines Corp 156.77 2.79 1.81 2,987,195
IDTI Integrated Device Technology Inc.
INTC Intel Corporation 37.18 0.53 1.45 22,391,576
IPGP IPG Photonics Corporation 83.03 0.51 0.62 135,215
JNJ Johnson & Johnson 119.22 1.44 1.22 5,349,466
JPM JP Morgan Chase 66.36 0.58 0.88 13,711,386
KO Coca-Cola Company (The) 42.59 0.54 1.28 11,920,432
KRA Kraton Performance Polymers Inc 34.25 0.62 1.84 309,722
LM Legg Mason Inc. 33.37 0.35 1.06 708,814
LYG Lloyds Banking Group Plc American Depositary Share 2.92 0.04 1.39 10,561,058
MAS Masco Corporation 34.82 0.49 1.43 4,783,429
MCD McDonald\'s Corporation 116.88 0.35 0.30 3,745,396
MCK McKesson Corporation 166.36 1.18 0.71 1,192,408
MDU MDU Resources Group Inc. 25.35 -0.12 -0.47 690,145
MMC Marsh & McLennan Companies Inc. 67.40 0.39 0.58 2,364,670
MMM 3M Company 176.30 0.35 0.20 2,433,570
MOH Molina Healthcare Inc
MRK Merck & Company Inc. (new) 62.57 0.42 0.68 7,340,756
MSFT Microsoft Corporation 57.95 1.05 1.85 28,065,071
NI NiSource Inc 24.69 -0.41 -1.63 2,358,360
NUVA NuVasive Inc. 67.13 0.98 1.48 436,951
ODP Office Depot Inc. 3.62 0.02 0.56 9,850,709
PCG Pacific Gas & Electric Co. 62.85 -1.05 -1.64 2,941,282
PFE Pfizer Inc. 33.83 0.19 0.56 15,610,585
PG Procter & Gamble Company (The) 88.36 0.51 0.58 65,150,794
PMCS PMC-Sierra Inc. n/a n/a n/a 0
PRXL PAREXEL International Corporation 70.28 0.83 1.20 266,573
QCOM QUALCOMM Incorporated 63.31 1.00 1.60 5,228,334
RDN Radian Group Inc. 13.55 0.03 0.22 1,634,291
RIGL Rigel Pharmaceuticals Inc. 3.43 0.02 0.59 1,254,296
SAVE Spirit Airlines Inc. 41.95 0.82 1.99 1,887,112
SBAC SBA Communications Corporation 111.89 0.49 0.44 551,953
SFLY Shutterfly Inc. 44.16 0.05 0.11 400,264
SHLD Sears Holdings Corporation 11.20 0.21 1.91 387,695
SIRI Sirius XM Holdings Inc. 4.16 -0.01 -0.12 22,051,566
SO Southern Company (The) 52.84 -0.47 -0.88 5,774,119
SPF null n/a n/a n/a 0
SPWR SunPower Corporation 8.70 0.43 5.20 2,964,706
SREV ServiceSource International Inc. 4.92 0.06 1.23 135,985
SXC SunCoke Energy Inc. 7.33 0.02 0.27 415,554
T AT&T Inc. 41.46 0.32 0.78 18,440,158
TECH Bio-Techne Corp 109.37 1.12 1.03 189,948
TFX Teleflex Incorporated
TRV The Travelers Companies Inc. 114.41 0.47 0.41 1,758,557
TXN Texas Instruments Incorporated 69.45 1.03 1.51 4,560,225
TXRH Texas Roadhouse Inc. 41.02 -0.48 -1.16 1,737,286
UTX United Technologies Corporation 102.35 0.12 0.12 4,299,266
VECO Veeco Instruments Inc. 19.38 0.15 0.78 135,160
VLO Valero Energy Corporation 55.02 0.73 1.34 5,951,975
VZ Verizon Communications Inc. 52.49 0.34 0.65 8,259,032
WLK Westlake Chemical Corporation
WMS Advanced Drainage Systems Inc. 24.41 0.05 0.21 110,103
WMT Wal-Mart Stores Inc. 72.33 0.71 0.99 6,344,407
XLNX Xilinx Inc. 53.22 0.64 1.22 1,928,127
XOM Exxon Mobil Corporation 83.24 0.18 0.22 9,595,020
YGE Yingli Green Energy Holding Company Limited ADR 3.83 -0.11 -2.79 50,512

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