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
MMM 3M Company 187.41 0.22 0.12 2,126,326
WLK Westlake Chemical Corporation
KRA Kraton Performance Polymers Inc 26.81 -0.36 -1.33 379,797
MCK McKesson Corporation 150.85 1.88 1.26 1,248,900
FCH FelCor Lodging Trust Incorporated 7.08 -0.47 -6.23 6,221,481
PG Procter & Gamble Company (The) 91.05 -0.08 -0.09 6,643,365
GE General Electric Co 30.19 0.17 0.57 27,323,723
DRH Diamondrock Hospitality Company 11.16 0.03 0.27 3,102,960
NI NiSource Inc 24.01 0.24 1.01 3,693,833
CVX Chevron Corporation 110.12 -0.90 -0.81 6,189,419
SO Southern Company (The) 50.50 0.83 1.67 8,351,152
PCG Pacific Gas & Electric Co. 66.33 0.92 1.41 2,748,855
GPRO GoPro Inc.
BGC General Cable Corporation 16.35 0.10 0.62 656,117
JNJ Johnson & Johnson 122.73 1.83 1.51 10,834,986
WMT Wal-Mart Stores Inc. 72.39 1.08 1.51 13,889,852
AA Alcoa Inc. 34.48 0.16 0.47 5,763,834
HLF Herbalife Ltd. 56.72 -2.68 -4.51 3,733,530
INTC Intel Corporation 36.53 0.35 0.97 18,617,592
IBM International Business Machines Corp 181.35 -0.30 -0.17 3,300,093
SFLY Shutterfly Inc. 45.95 -0.79 -1.69 825,849
VLO Valero Energy Corporation 66.72 -0.31 -0.46 3,670,673
D Dominion Resources Inc. 77.00 0.84 1.10 2,384,826
RIGL Rigel Pharmaceuticals Inc. 2.30 -0.02 -0.86 913,402
TRV The Travelers Companies Inc. 122.27 -0.09 -0.07 1,698,631
MDU MDU Resources Group Inc. 27.13 0.08 0.30 1,007,259
PNP:CA Pinetree Capital Ltd.
EXPE Expedia Inc. 119.16 -0.47 -0.39 1,031,079
CBL CBL & Associates Properties Inc.
XLNX Xilinx Inc. 58.99 0.05 0.08 2,612,307
DAL Delta Air Lines Inc. 50.46 -0.02 -0.04 8,154,722
PRXL PAREXEL International Corporation 65.94 0.06 0.09 989,922
DPZ Domino\'s Pizza Inc 186.28 -0.02 -0.01 859,090
EIX Edison International 78.87 0.97 1.25 1,926,233
RDN Radian Group Inc. 18.63 -0.02 -0.11 1,281,793
WMS Advanced Drainage Systems Inc. 22.45 -0.30 -1.32 182,393
ALLT Allot Communications Ltd. 4.89 0.01 0.20 61,860
AEIS Advanced Energy Industries Inc. 62.38 0.72 1.17 331,299
JPM JP Morgan Chase 90.33 -0.80 -0.88 15,062,298
AXP American Express Company 79.76 -0.29 -0.36 3,932,313
FDP Fresh Del Monte Produce Inc. 57.72 1.05 1.85 303,564
UTX United Technologies Corporation 112.46 0.37 0.33 2,917,947
AVP Avon Products Inc. 4.54 0.29 6.82 11,154,617
TXN Texas Instruments Incorporated 77.24 0.10 0.13 3,516,648
HOLX Hologic Inc. 40.82 0.52 1.29 2,309,211
IPGP IPG Photonics Corporation 120.39 0.51 0.43 186,351
SREV ServiceSource International Inc. 4.01 0.02 0.50 705,913
TECH Bio-Techne Corp 106.59 0.25 0.24 135,212
BRKR Bruker Corporation
CSCO Cisco Systems Inc. 34.32 0.28 0.82 21,137,311
CAM Cameron International Corp n/a n/a n/a 0
COP ConocoPhillips 47.04 -0.26 -0.55 6,749,541
DIS Walt Disney Company (The) 110.32 0.59 0.54 4,786,814
LM Legg Mason Inc. 37.15 -0.12 -0.32 958,522
COST Costco Wholesale Corporation 177.56 1.71 0.97 1,684,258
SAVE Spirit Airlines Inc. 51.92 0.49 0.95 519,457
VZ Verizon Communications Inc. 50.60 0.29 0.58 14,357,936
MMC Marsh & McLennan Companies Inc. 73.51 -0.03 -0.04 1,908,356
ODP Office Depot Inc. 4.33 -0.06 -1.37 3,896,383
SHLD Sears Holdings Corporation 7.74 -0.17 -2.15 1,410,517
BAC Bank of America Corporation 24.23 -0.35 -1.42 97,074,433
GNK Genco Shipping & Trading Limited New (Marshall Isl 11.36 -0.36 -3.07 212,921
TFX Teleflex Incorporated
MCD McDonald\'s Corporation 128.65 0.38 0.30 3,537,175
PMCS PMC-Sierra Inc. n/a n/a n/a 0
YGE Yingli Green Energy Holding Company Limited ADR 2.71 -0.03 -1.09 99,269
CYH Community Health Systems Inc. 9.22 0.32 3.60 3,495,891
APC Anadarko Petroleum Corporation 64.77 -1.21 -1.83 4,833,040
SPWR SunPower Corporation 8.89 -0.10 -1.11 4,476,701
SXC SunCoke Energy Inc. 9.55 -0.24 -2.45 1,161,155
DRE Duke Realty Corporation 25.77 0.17 0.66 1,000,535
EMR Emerson Electric Company 60.48 -0.13 -0.21 7,139,458
ADM Archer-Daniels-Midland Company 45.26 0.17 0.38 2,371,286
DD E.I. du Pont de Nemours and Co. 79.81 0.22 0.28 2,369,617
LYG Lloyds Banking Group Plc American Depositary Share 3.50 -0.04 -1.13 6,539,415
HRS Harris Corporation 111.10 1.26 1.15 742,831
DENN Denny\'s Corporation
VECO Veeco Instruments Inc. 28.25 -0.15 -0.53 297,269
HUN Huntsman Corporation 22.08 0.09 0.41 2,259,656
SIRI Sirius XM Holdings Inc. 5.12 0.05 0.99 15,519,907
MAS Masco Corporation 34.02 -0.09 -0.26 3,782,271
CRK Comstock Resources Inc.
XOM Exxon Mobil Corporation 81.08 -0.70 -0.86 11,338,715
PFE Pfizer Inc. 34.26 0.20 0.59 24,711,954
GLT Glatfelter
BIIB Biogen Inc. 285.13 0.38 0.13 1,768,544
HPQ HP Inc. 17.65 0.05 0.28 19,816,072
AZN Astrazeneca PLC 29.35 -0.16 -0.54 3,539,599
BA Boeing Company (The) 177.44 0.58 0.33 4,197,152
GWR Genesee & Wyoming Inc. Class A 74.31 0.66 0.90 430,585
ENDP Endo International plc 13.15 -0.24 -1.79 5,925,999
IDTI Integrated Device Technology Inc.
EXR Extra Space Storage Inc 79.49 0.35 0.44 661,215
MRK Merck & Company Inc. (new) 66.16 0.31 0.47 8,444,253
ANF Abercrombie & Fitch Company 11.98 0.40 3.45 4,408,919
CETV Central European Media Enterprises Ltd. 2.80 -0.05 -1.75 19,851
BP BP p.l.c. 33.50 -0.36 -1.06 6,159,755
FE FirstEnergy Corporation 32.32 0.93 2.96 6,126,750
SBAC SBA Communications Corporation 111.16 -0.03 -0.03 724,010
KO Coca-Cola Company (The) 41.78 0.12 0.29 13,215,306
T AT&T Inc. 42.36 0.41 0.98 17,043,175
CAT Caterpillar Inc. 95.48 -0.07 -0.07 5,018,244
AEO American Eagle Outfitters Inc. 15.25 0.49 3.32 5,565,043
NUVA NuVasive Inc. 74.76 0.25 0.34 345,889
MOH Molina Healthcare Inc
QCOM QUALCOMM Incorporated 57.22 0.08 0.14 10,644,787
CAR Avis Budget Group Inc. 32.46 -0.94 -2.81 1,974,029
SPF null n/a n/a n/a 0
MSFT Microsoft Corporation 64.62 0.00 0.00 21,796,800
CHK Chesapeake Energy Corporation 5.66 -0.09 -1.57 58,786,984
CIE Cobalt International Energy Inc. COBALT INTERNATIO
TXRH Texas Roadhouse Inc. 42.22 0.13 0.31 1,041,661

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