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 169.67 -1.77 -1.03 2,459,306 Trade
WLK Westlake Chemical Corporation 69.11 3.21 4.87 948,216 Trade
KRA Kraton Corporation 34.09 -0.21 -0.61 185,625 Trade
MCK McKesson Corporation 144.16 0.63 0.44 1,101,003 Trade
PG Procter & Gamble Company (The) 119.75 -2.37 -1.94 9,626,736 Trade
GE General Electric Company 9.38 0.04 0.43 45,748,351 Trade
DRH Diamondrock Hospitality Company 10.13 0.13 1.30 3,783,860 Trade
NI NiSource Inc 29.04 0.00 0.00 1,561,454 Trade
CVX Chevron Corporation 124.12 2.62 2.16 10,683,891 Trade
SO Southern Company (The) 59.86 -0.27 -0.45 4,658,642 Trade
PCG Pacific Gas & Electric Co. 11.01 -0.17 -1.52 5,830,156 Trade
GPRO GoPro Inc. 4.64 0.08 1.75 2,402,110 Trade
JNJ Johnson & Johnson 129.54 -1.24 -0.95 5,101,689 Trade
AA Alcoa Corporation 22.56 -0.33 -1.44 2,866,088 Trade
HLF Herbalife Nutrition Ltd. 42.34 0.46 1.10 906,559 Trade
INTC Intel Corporation 52.20 -0.34 -0.65 13,354,588 Trade
SFLY Shutterfly Inc. 50.91 0.00 0.00 281,390 Trade
VLO Valero Energy Corporation 82.39 -3.14 -3.67 9,945,793 Trade
D Dominion Energy Inc. 78.49 -0.03 -0.04 2,517,611 Trade
RIGL Rigel Pharmaceuticals Inc. 1.68 0.03 1.82 1,730,016 Trade
TRV The Travelers Companies Inc. 146.34 0.03 0.02 1,160,950 Trade
PNP:CA Pinetree Capital Ltd. 1.38 0.02 1.47 953
EXPE Expedia Group Inc. 131.28 -1.02 -0.77 1,272,576 Trade
CBL CBL & Associates Properties Inc. 1.05 -0.15 -12.50 3,817,255 Trade
XLNX Xilinx Inc. 104.39 -0.85 -0.81 1,375,009 Trade
DAL Delta Air Lines Inc. 59.07 -0.94 -1.57 9,556,386 Trade
DPZ Domino's Pizza Inc 244.79 -0.26 -0.11 1,064,701 Trade
EIX Edison International 71.48 -0.45 -0.63 975,879 Trade
RDN Radian Group Inc. 23.43 0.26 1.12 1,026,632 Trade
WMS Advanced Drainage Systems Inc. 33.24 1.04 3.23 419,513 Trade
ALLT Allot Ltd. 8.08 0.27 3.46 122,138 Trade
AEIS Advanced Energy Industries Inc. 57.35 1.01 1.79 281,158 Trade
AXP American Express Company 117.64 -1.56 -1.31 4,280,612 Trade
FDP Fresh Del Monte Produce Inc. 31.72 -0.01 -0.03 140,494 Trade
UTX United Technologies Corporation 138.08 0.02 0.01 2,112,032 Trade
AVP Avon Products Inc. 4.70 0.12 2.62 7,458,984 Trade
TXN Texas Instruments Incorporated 128.36 -1.25 -0.96 3,065,823 Trade
HOLX Hologic Inc. 49.45 -0.27 -0.54 935,915 Trade
IPGP IPG Photonics Corporation 145.46 -0.88 -0.60 234,517 Trade
SREV ServiceSource International Inc. 0.91 -0.02 -1.62 55,135 Trade
TECH Bio-Techne Corp 200.13 -0.82 -0.41 258,011 Trade
BRKR Bruker Corporation 42.86 -0.57 -1.31 444,546 Trade
CSCO Cisco Systems Inc. 49.96 -0.07 -0.14 13,025,571 Trade
CAM Cameron International Corp n/a n/a n/a 0 Trade
COP ConocoPhillips 62.53 5.19 9.05 17,897,999 Trade
LM Legg Mason Inc. 39.16 -0.34 -0.86 484,646 Trade
COST Costco Wholesale Corporation 288.69 -3.21 -1.10 1,508,893 Trade
VZ Verizon Communications Inc. 59.50 -0.46 -0.77 10,950,528 Trade
MMC Marsh & McLennan Companies Inc. 100.03 0.19 0.19 934,034 Trade
ODP Office Depot Inc. 1.70 0.02 1.19 4,347,251 Trade
SHLD SHLDQ Sears Holdings Corporation n/a n/a n/a 0
BAC Bank of America Corporation 30.13 -0.04 -0.13 43,391,344 Trade
GNK Genco Shipping & Trading Limited New (Marshall Islands) 10.59 -0.38 -3.46 167,581 Trade
TFX Teleflex Incorporated 329.13 -2.02 -0.61 218,129 Trade
MCD McDonald's Corporation 207.40 -2.41 -1.15 3,437,739 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. 3.89 0.20 5.42 2,404,814 Trade
SPWR SunPower Corporation 12.94 0.50 4.02 1,636,336 Trade
SXC SunCoke Energy Inc. 7.20 0.02 0.28 685,852 Trade
DRE Duke Realty Corporation 32.93 0.67 2.08 1,636,837 Trade
EMR Emerson Electric Company 65.66 0.11 0.17 2,279,358 Trade
ADM Archer-Daniels-Midland Company 41.96 0.33 0.79 2,652,870 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 2.67 -0.01 -0.37 4,676,134 Trade
HRS LHX Harris Corporation n/a n/a n/a 0
DENN Denny's Corporation 22.47 -0.17 -0.75 414,350 Trade
VECO Veeco Instruments Inc. 11.36 0.06 0.53 639,681 Trade
HUN Huntsman Corporation 23.30 -0.16 -0.68 2,335,011 Trade
SIRI Sirius XM Holdings Inc. 6.37 -0.02 -0.31 16,141,451 Trade
MAS Masco Corporation 42.72 -0.48 -1.11 2,847,694 Trade
CRK Comstock Resources Inc. 10.09 0.55 5.77 1,966,564 Trade
PFE Pfizer Inc. 36.83 -0.08 -0.22 18,858,707 Trade
GLT Glatfelter 15.80 -0.15 -0.94 90,766 Trade
BIIB Biogen Inc. 236.10 -0.53 -0.22 1,598,424 Trade
HPQ HP Inc. 18.87 -0.21 -1.10 7,849,496 Trade
AZN Astrazeneca PLC 42.51 -0.26 -0.61 2,502,206 Trade
GWR Genesee & Wyoming Inc. Class A 110.61 0.01 0.01 513,418 Trade
ENDP Endo International plc 4.20 0.32 8.25 7,617,768 Trade
EXR Extra Space Storage Inc 117.12 1.00 0.86 1,031,158 Trade
MRK Merck & Company Inc. (new) 82.03 -0.58 -0.70 5,907,730 Trade
ANF Abercrombie & Fitch Company 16.18 -1.53 -8.64 4,220,068 Trade
CETV Central European Media Enterprises Ltd. 4.48 0.03 0.67 199,774 Trade
BP BP p.l.c. 39.35 1.48 3.91 19,987,226 Trade
FE FirstEnergy Corp. 47.56 0.19 0.40 2,130,642 Trade
SBAC SBA Communications Corporation 246.29 2.78 1.14 512,863 Trade
KO Coca-Cola Company (The) 53.96 -0.30 -0.55 11,172,001 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. 115.57 -1.86 -1.58 6,090,303 Trade
IBM International Business Machines Corporation 142.48 -1.19 -0.83 1,928,500 Trade
JPM JP Morgan Chase & Co. 119.16 -1.07 -0.89 11,993,932 Trade
DIS The Walt Disney Company 135.80 -2.22 -1.61 6,329,260 Trade
XOM Exxon Mobil Corporation 73.73 1.09 1.50 19,830,182 Trade
BA The Boeing Company 378.85 -0.91 -0.24 3,055,451 Trade

Comments

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JPM

     
IBM

     

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