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 172.92 0.29 0.17 918,575
WLK Westlake Chemical Corporation
KRA Kraton Performance Polymers Inc 30.89 -0.21 -0.68 103,575
MCK McKesson Corporation 144.08 1.00 0.70 1,172,067
FCH FelCor Lodging Trust Incorporated 7.53 0.12 1.62 736,193
PG Procter & Gamble Company (The) 82.21 0.35 0.43 4,524,874
GE General Electric Co 31.37 -0.02 -0.06 11,287,226
DRH Diamondrock Hospitality Company 10.86 0.11 0.98 2,901,370
NI NiSource Inc 21.62 -0.10 -0.44 2,465,711
CVX Chevron Corporation 113.33 0.04 0.04 3,010,676
SO Southern Company (The) 46.72 0.13 0.27 2,124,189
PCG Pacific Gas & Electric Co. 58.11 0.07 0.11 1,028,941
GPRO GoPro Inc.
BGC General Cable Corporation 19.10 -0.10 -0.52 120,023
JNJ Johnson & Johnson 112.01 0.63 0.57 3,197,334
WMT Wal-Mart Stores Inc. 70.71 0.04 0.05 3,290,495
AA Alcoa Inc. 29.17 0.29 1.00 2,376,436
HLF Herbalife Ltd. 48.03 -0.20 -0.41 359,255
INTC Intel Corporation 34.03 0.27 0.80 13,291,474
IBM International Business Machines Corp 159.79 -0.03 -0.02 1,645,908
SFLY Shutterfly Inc. 50.57 0.14 0.28 148,984
VLO Valero Energy Corporation 61.16 0.63 1.04 2,746,034
D Dominion Resources Inc. 73.53 0.78 1.07 1,457,019
RIGL Rigel Pharmaceuticals Inc. 2.46 -0.05 -1.99 170,697
TRV The Travelers Companies Inc. 115.74 0.33 0.29 781,393
MDU MDU Resources Group Inc. 27.93 -0.10 -0.36 362,113
PNP:CA Pinetree Capital Ltd.
EXPE Expedia Inc. 121.25 -0.76 -0.62 692,569
CBL CBL & Associates Properties Inc.
XLNX Xilinx Inc. 53.85 0.46 0.86 1,296,726
DAL Delta Air Lines Inc. 48.59 0.82 1.72 5,886,282
PRXL PAREXEL International Corporation 58.94 0.40 0.68 467,649
DPZ Domino\'s Pizza Inc 168.23 -0.47 -0.28 172,130
EIX Edison International 69.09 0.53 0.77 787,132
RDN Radian Group Inc. 14.83 -0.06 -0.40 1,186,971
WMS Advanced Drainage Systems Inc. 20.95 -0.05 -0.24 324,633
ALLT Allot Communications Ltd. 4.63 0.08 1.76 25,552
AEIS Advanced Energy Industries Inc. 52.98 0.88 1.70 160,734
JPM JP Morgan Chase 81.12 -0.67 -0.82 9,554,199
AXP American Express Company 71.52 -1.01 -1.40 1,627,649
FDP Fresh Del Monte Produce Inc. 57.06 -0.93 -1.60 168,908
UTX United Technologies Corporation 108.16 0.68 0.63 1,393,306
AVP Avon Products Inc. 5.18 0.07 1.37 2,444,600
TXN Texas Instruments Incorporated 70.60 0.19 0.27 3,254,830
HOLX Hologic Inc. 38.01 0.37 0.98 715,314
IPGP IPG Photonics Corporation 94.23 0.16 0.17 153,987
SREV ServiceSource International Inc. 5.81 -0.10 -1.61 33,039
TECH Bio-Techne Corp 105.61 -0.26 -0.25 61,463
BRKR Bruker Corporation
CSCO Cisco Systems Inc. 29.25 -0.20 -0.68 13,962,515
CAM Cameron International Corp n/a n/a n/a 0
COP ConocoPhillips 48.22 0.00 0.00 2,967,935
DIS Walt Disney Company (The) 98.35 -0.59 -0.60 3,467,445
LM Legg Mason Inc. 31.33 -0.85 -2.63 1,007,368
COST Costco Wholesale Corporation 151.82 0.08 0.05 891,194
SAVE Spirit Airlines Inc. 56.85 1.64 2.97 813,818
VZ Verizon Communications Inc. 49.76 -0.11 -0.22 4,971,505
MMC Marsh & McLennan Companies Inc. 68.43 -0.47 -0.68 596,774
ODP Office Depot Inc. 4.87 0.01 0.21 2,362,274
SHLD Sears Holdings Corporation 12.76 -0.44 -3.33 487,131
BAC Bank of America Corporation 21.10 -0.41 -1.88 82,018,836
GNK Genco Shipping & Trading Limited New (Marshall Isl 8.42 -0.38 -4.32 26,047
TFX Teleflex Incorporated
MCD McDonald\'s Corporation 118.03 -0.44 -0.37 1,600,508
PMCS PMC-Sierra Inc. n/a n/a n/a 0
YGE Yingli Green Energy Holding Company Limited ADR 3.06 0.03 0.99 45,941
CYH Community Health Systems Inc. 5.57 0.13 2.39 1,526,037
APC Anadarko Petroleum Corporation 68.65 0.06 0.09 1,821,878
SPWR SunPower Corporation 6.73 0.21 3.14 1,546,294
SXC SunCoke Energy Inc. 12.12 0.44 3.77 430,614
DRE Duke Realty Corporation 25.51 0.36 1.43 1,237,261
EMR Emerson Electric Company 56.12 -0.66 -1.15 1,440,767
ADM Archer-Daniels-Midland Company 44.22 -0.09 -0.21 1,407,972
DD E.I. du Pont de Nemours and Co. 73.11 -0.51 -0.69 1,204,305
LYG Lloyds Banking Group Plc American Depositary Share 2.93 0.02 0.52 2,511,831
HRS Harris Corporation 104.63 0.29 0.28 228,132
DENN Denny\'s Corporation
VECO Veeco Instruments Inc. 25.75 -0.25 -0.96 77,567
HUN Huntsman Corporation 19.27 -0.11 -0.57 750,275
SIRI Sirius XM Holdings Inc. 4.39 -0.17 -3.62 46,039,726
MAS Masco Corporation 30.14 -0.20 -0.64 2,254,700
CRK Comstock Resources Inc.
XOM Exxon Mobil Corporation 87.35 0.11 0.13 4,288,687
PFE Pfizer Inc. 31.60 0.14 0.45 9,959,355
GLT Glatfelter
BIIB Biogen Inc. 297.71 1.93 0.65 818,435
HPQ HP Inc. 15.14 0.08 0.53 3,699,769
AZN Astrazeneca PLC 25.97 0.16 0.62 5,696,826
BA Boeing Company (The) 151.33 -1.06 -0.70 1,022,889
GWR Genesee & Wyoming Inc. Class A 75.56 -0.86 -1.13 154,095
ENDP Endo International plc 16.00 0.18 1.16 1,045,689
IDTI Integrated Device Technology Inc.
EXR Extra Space Storage Inc 70.36 1.15 1.66 430,778
MRK Merck & Company Inc. (new) 61.18 0.42 0.69 3,208,589
ANF Abercrombie & Fitch Company 14.44 0.18 1.26 1,779,355
CETV Central European Media Enterprises Ltd. 2.60 0.00 0.00 20,393
BP BP p.l.c. 35.58 0.19 0.54 3,001,926
FE FirstEnergy Corporation 30.45 -0.54 -1.74 1,933,799
SBAC SBA Communications Corporation 96.39 0.29 0.30 644,622
KO Coca-Cola Company (The) 40.26 0.09 0.21 5,603,053
T AT&T Inc. 38.70 -0.18 -0.46 7,234,365
CAT Caterpillar Inc. 95.15 -1.09 -1.13 2,976,220
AEO American Eagle Outfitters Inc. 16.33 -0.41 -2.45 5,073,676
NUVA NuVasive Inc. 63.41 0.00 0.00 295,266
MOH Molina Healthcare Inc
QCOM QUALCOMM Incorporated 65.75 1.59 2.48 5,873,062
CAR Avis Budget Group Inc. 38.55 -0.28 -0.72 300,466
SPF null n/a n/a n/a 0
MSFT Microsoft Corporation 59.16 -0.05 -0.08 13,584,308
CHK Chesapeake Energy Corporation 7.20 0.15 2.06 29,262,215
CIE Cobalt International Energy Inc. COBALT INTERNATIO
TXRH Texas Roadhouse Inc. 47.54 -0.21 -0.44 165,013

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