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 195.52 -2.56 -1.29 2,420,380 Trade
WLK Westlake Chemical Corporation 105.87 0.88 0.84 1,261,530 Trade
KRA Kraton Corporation 47.14 -1.25 -2.58 136,256 Trade
MCK McKesson Corporation 146.46 -1.04 -0.71 1,163,861 Trade
PG Procter & Gamble Company (The) 76.44 0.59 0.78 8,691,201 Trade
GE General Electric Company 12.76 -0.12 -0.93 70,692,167 Trade
DRH Diamondrock Hospitality Company 12.35 0.03 0.24 1,446,689 Trade
NI NiSource Inc 24.78 -0.02 -0.08 2,853,825 Trade
CVX Chevron Corporation 122.59 -2.70 -2.16 7,290,823 Trade
SO Southern Company (The) 45.29 0.24 0.53 4,933,080 Trade
PCG Pacific Gas & Electric Co. 40.53 0.53 1.33 6,337,677 Trade
GPRO GoPro Inc. 6.71 0.07 1.05 3,719,241 Trade
JNJ Johnson & Johnson 121.45 -0.59 -0.48 4,417,154 Trade
WMT Walmart Inc. 84.21 0.60 0.72 8,091,999 Trade
AA Alcoa Corporation 44.81 -0.46 -1.02 2,251,182 Trade
HLF Herbalife Nutrition Ltd. 53.92 -0.38 -0.70 1,089,797 Trade
INTC Intel Corporation 52.19 -1.27 -2.38 44,435,555 Trade
IBM International Business Machines Corporation 141.25 -1.38 -0.97 3,887,650 Trade
SFLY Shutterfly Inc. 94.15 -1.19 -1.25 623,412 Trade
VLO Valero Energy Corporation 111.22 -4.51 -3.90 4,528,652 Trade
D Dominion Energy Inc. 66.60 0.17 0.26 3,989,943 Trade
RIGL Rigel Pharmaceuticals Inc. 3.19 0.03 0.95 2,773,154 Trade
TRV The Travelers Companies Inc. 123.45 -1.54 -1.23 1,593,824 Trade
MDU MDU Resources Group Inc. 28.41 -0.29 -1.01 628,702 Trade
PNP:CA Pinetree Capital Ltd. 2.32 0.00 0.00 50
EXPE Expedia Group Inc. 123.63 -1.27 -1.02 1,219,685 Trade
CBL CBL & Associates Properties Inc. 6.03 0.15 2.55 4,504,931 Trade
XLNX Xilinx Inc. 67.68 -0.96 -1.40 1,451,020 Trade
DAL Delta Air Lines Inc. 53.73 -0.11 -0.20 4,806,813 Trade
DPZ Domino's Pizza Inc 290.76 2.86 0.99 775,935 Trade
EIX Edison International 60.67 0.22 0.36 1,721,451 Trade
RDN Radian Group Inc. 17.20 0.15 0.88 1,607,480 Trade
WMS Advanced Drainage Systems Inc. 28.30 -0.60 -2.08 218,516 Trade
ALLT Allot Communications Ltd. 5.28 -0.19 -3.39 58,078 Trade
AEIS Advanced Energy Industries Inc. 60.42 -0.59 -0.97 304,157 Trade
JPM JP Morgan Chase & Co. 107.51 -0.03 -0.03 11,048,735 Trade
AXP American Express Company 96.63 0.21 0.22 3,350,692 Trade
FDP Fresh Del Monte Produce Inc. 44.61 0.04 0.09 139,861 Trade
UTX United Technologies Corporation 123.48 -1.88 -1.50 4,600,639 Trade
AVP Avon Products Inc. 1.59 0.02 1.27 5,217,588 Trade
TXN Texas Instruments Incorporated 112.11 -2.13 -1.86 3,480,145 Trade
HOLX Hologic Inc. 39.57 -0.18 -0.45 4,393,813 Trade
IPGP IPG Photonics Corporation 234.65 -4.44 -1.86 308,456 Trade
SREV ServiceSource International Inc. 4.03 -0.04 -0.98 186,485 Trade
TECH Bio-Techne Corp 161.17 -1.83 -1.12 111,756 Trade
BRKR Bruker Corporation 29.61 -0.68 -2.25 456,649 Trade
CSCO Cisco Systems Inc. 43.16 -0.58 -1.33 20,924,445 Trade
CAM Cameron International Corp n/a n/a n/a 0 Trade
COP ConocoPhillips 65.11 -2.36 -3.50 7,439,725 Trade
DIS The Walt Disney Company 105.89 -1.26 -1.18 7,707,762 Trade
LM Legg Mason Inc. 35.67 -0.09 -0.25 586,951 Trade
COST Costco Wholesale Corporation 209.96 1.98 0.95 1,825,824 Trade
VZ Verizon Communications Inc. 48.63 0.54 1.12 14,854,566 Trade
MMC Marsh & McLennan Companies Inc. 80.76 -0.28 -0.35 1,740,895 Trade
ODP Office Depot Inc. 2.89 -0.09 -3.02 10,754,870 Trade
SHLD Sears Holdings Corporation 2.37 -0.10 -4.05 1,258,577 Trade
BAC Bank of America Corporation 29.29 0.05 0.17 68,322,596 Trade
GNK Genco Shipping & Trading Limited New (Marshall Islands) 16.68 -0.51 -2.97 254,852 Trade
TFX Teleflex Incorporated 279.57 2.25 0.81 241,815 Trade
MCD McDonald's Corporation 160.53 -2.03 -1.25 4,655,807 Trade
PMCS PMC-Sierra Inc. n/a n/a n/a 0 Trade
YGE Yingli Green Energy Holding Company Limited ADR 1.59 0.02 0.98 15,763 Trade
CYH Community Health Systems Inc. 4.46 -0.18 -3.88 1,259,759 Trade
APC Anadarko Petroleum Corporation 69.46 -0.64 -0.91 4,884,449 Trade
SPWR SunPower Corporation 7.98 -0.08 -0.99 1,131,614 Trade
SXC SunCoke Energy Inc. 13.27 -0.37 -2.71 215,135 Trade
DRE Duke Realty Corporation 28.73 0.06 0.21 1,449,721 Trade
EMR Emerson Electric Company 69.20 -1.19 -1.69 3,272,752 Trade
ADM Archer-Daniels-Midland Company 46.00 -0.17 -0.37 3,685,311 Trade
LYG Lloyds Banking Group Plc American Depositary Shares 3.28 0.00 0.00 6,097,785 Trade
HRS Harris Corporation 143.15 -2.08 -1.43 802,050 Trade
DENN Denny's Corporation 16.39 0.05 0.31 169,984 Trade
VECO Veeco Instruments Inc. 15.45 -0.30 -1.90 412,904 Trade
HUN Huntsman Corporation 30.54 -0.71 -2.27 2,804,642 Trade
SIRI Sirius XM Holdings Inc. 7.16 -0.35 -4.66 30,537,171 Trade
MAS Masco Corporation 37.75 -0.69 -1.80 3,238,371 Trade
CRK Comstock Resources Inc. 9.72 -0.62 -6.00 440,332 Trade
XOM Exxon Mobil Corporation 79.69 -0.76 -0.94 10,990,663 Trade
PFE Pfizer Inc. 36.30 -0.16 -0.44 16,027,644 Trade
GLT Glatfelter 19.59 -0.23 -1.16 285,053 Trade
BIIB Biogen Inc. 297.34 0.48 0.16 1,206,670 Trade
HPQ HP Inc. 23.50 0.20 0.86 8,911,812 Trade
AZN Astrazeneca PLC 35.15 -0.98 -2.71 5,349,006 Trade
BA The Boeing Company 337.66 -5.03 -1.47 4,048,336 Trade
GWR Genesee & Wyoming Inc. Class A 81.33 -1.27 -1.54 629,533 Trade
ENDP Endo International plc 9.30 -0.13 -1.38 4,335,697 Trade
IDTI Integrated Device Technology Inc. 34.15 -0.38 -1.10 628,094 Trade
EXR Extra Space Storage Inc 99.69 1.49 1.52 855,643 Trade
MRK Merck & Company Inc. (new) 61.18 -0.10 -0.16 8,908,850 Trade
ANF Abercrombie & Fitch Company 27.59 0.06 0.22 2,435,015 Trade
CETV Central European Media Enterprises Ltd. 3.85 -0.03 -0.65 88,232 Trade
BP BP p.l.c. 44.16 -0.60 -1.34 5,016,745 Trade
FE FirstEnergy Corp. 35.15 0.26 0.75 2,598,460 Trade
SBAC SBA Communications Corporation 160.57 1.77 1.11 712,201 Trade
KO Coca-Cola Company (The) 43.09 -0.17 -0.39 10,465,212 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.

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