Equities Sector Coverage: Stocks Rebound Modestly from Worst Day of 2012

Sector Recap  |

Wall Street Stock MarketThe Dow Jones Industrial Average rallied from a low of 12751.51 to a high of 12858, but the daily chart remains negative. The NASDAQ rallied from a low of 2920.54 to a high of 1940.28, but the daily chart remains negative.

Asian stocks were lower again on Wednesday. The Nikkei 225 ended their session at 9,576 – down 0.64% on the day. The Hang Seng ended their session at 20,628 – down 0.86% on the day. European stocks traded slightly higher on Wednesday. The FTSE 100 ended their session at 5,791 – up 0.44% on the day, the DAX ended their session at 6,671 – up 0.57% on the day, and the CAC 40 ended their session at 3,392 – up 0.89% on the day.

The yield on the 10-Year US Treasury traded between 1.986 percent and 1.944 versus its 50-day simple moving average at 1.947. Gold traded between $1671.7 and 1687.7 the Troy ounce versus 50-day and 200-day simple moving averages at $1689.8 and $1673.8. A trend below these moving averages where the 50-day falls below the 200-day defines a “death cross.” Crude oil traded between $104.35 per barrel and $106.55. The euro versus the dollar traded between 1.3100 and 1.3163.

Energy

Norway's Statoil (STO) is said to be the frontrunner to buy Anadarko Petroleum's (APC) Brazilian operations, edging out France's Total (TOT) and Denmark’s Maersk for the assets, which are valued at $3B-$4B. Tesoro (TSO) gets taken to Neutral from Underperform at Bank of America-Merrill Lynch. CVR Energy (CVI) is now Neutral from Outperform at Macquarie.

Energy Select Sector SPDR (XLE) was trading at $73.66 at 4:00 PM on Wednesday, up 0.84% on the day – up 6.55% year-to-date. The February 2012 change was +5.93%. The 2011 change was -1.29%
Heavily Traded: (VLO) +6.5%.

Materials

Bunge (BG) and Glencore (GLCNF) are reportedly among the companies that have expressed an interest in the possible sale of U.S. energy and grains trader Gavilon Group.

The Materials Select Sector SPDR (XLB) was trading at $36.03 at 4:00 PM on Wednesday, up 0.25% on the day – up 7.55% year-to-date. The February 2012 change was -0.56%. The 2011 change was -12.78%.
Heavily Traded: (VALE) -1.8%, (FCX) -0.9%, (AA) +1.2%.

Industrials

Honeywell (HON) reaffirms its 2012 outlook and reduces the range of its Q1 EPS guidance to $0.96-$0.98, the high-end of a prior range. Honeywell also says it's on track to achieve its 2014 sales target of $41B-$45B and its segment margin goal of 16%-18%. Hill International (HIL) missed estimates by 3 cents, while beating revenue by $17M. Schawk (SGK) missed estimates by 4 cents, while beating revenue by $5M. AeroVironment (AVAV) missed estimates by 17 cents and revenue by $15M. Manpower (MAN) and Robert Half International (RHI) are both begun with Buys at UBS, which has a new Neutral on Korn/Ferry (KFY). Rockwell Automation (ROK) is picked up with an Outperform by Sanford Bernstein. USG Corp (USG) is moved to Outperform from Neutral at Macquarie. AeroVironment (AVAV) is downgraded to Hold from Buy at EarlyBirdCapital.

The Industrial Select Sector SPDR (XLI) was trading at $36.42 at 4:00 PM on Wednesday, up 1.03% on the day – up 7.91% year-to-date. The February 2012 change was +2.79%. The 2011 change was -3.21%.

Heavily Traded: (GE) +2.3%, (GLW) +1.8%.

Consumer Discretionary

Ford (F) CEO Alan Mulally reaps the benefits of reviving the car maker's fortunes, receiving $58.3M in stock as part of an incentive plan from 2009. Netflix (NFLX) CEO Reed Hastings has "quietly met" with executives at top cable providers about making the video service available as a subscription option, Reuters reports. Hovnanian (HOV) beat estimates by 26 cents, while missing revenue by $2M. Speedway Motorsports (TRK) reported Q4 EPS of $0.00 (in-line), while beating revenue by $6.7M. American Eagle Outfitters (AEO) missed estimates by a penny and revenue by $10M. Bon-Ton Stores (BONT) reported Q4 EPS of $3.07 (versus consensus of $3.24), while missing revenue by $17M. For FY12, the company sees comparable store sales of 1% to 2% and EBITDA in a range of $180M-$200M. Maidenform Brands (MFB) missed estimates by 2 cents, while beating revenue by $8.3M. Lincoln Educational Services (LINC) beat estimates by 5 cents with revenue in-line with estimates. Express Inc (EXPR) beat estimates by 2 cents with revenue in-line with estimates. Children's Place (PLCE) missed estimates by 2 cents and revenue by $25M. Brown Shoe (BWS) missed estimates by 10 cents and revenue by $15M. Pandora Media (P) missed estimates by a penny and revenue by $1.8M. The company expects FQ1 revenue of $72M-$75M and EPS of -$0.18 to -$0.21 (below consensus of $86.6M and -$0.02) and FY13 revenue of $410M-$420M and EPS of -$0.11 to -$0.16 (largely below consensus of $418.3M and $0.01). Dick’s Sporting Goods (DKS) is now Neutral from Underperform at Sterne Agee. Lululemon athletica (LULU) is boosted to Outperform from Neutral at Credit Suisse. Jack in the Box (JACK) is raised to Neutral from Underperform at Credit Suisse. Carmike Cinemas (CKEC) is upgraded to Overweight from Neutral at Piper Jaffray. Sotheby’s (BID) is moved to Perform from Outperform by William’s Capital Group. Pandora Media (P) is cut by both Citigroup (Neutral from Buy) and Raymond James (Market Perform from Outperform).

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.29 at 4:00 PM on Wednesday, up 1.14% on the day – up 10.94% year-to-date. The February 2012 change was +10.09%. The 2011 change was +4.30%.
Big Movers: (BONT) +28.5%, (P) -24%, (BWS) -13%.

Consumer Staples

Bunge (BG) and Glencore (GLCNF) are reportedly among the companies that have expressed an interest in the possible sale of U.S. energy and grains trader Gavilon Group. The Fresh Market (TFM) reported Q4 EPS of $0.38 (in-line) and revenue of $320.8M (in-line). China New Borun (BORN) beat estimates by 5 cents and revenue by $4M. Chefs Warehouse (CHEF) beat estimates by a penny and revenue by $3M. Nestlé (NSRGY) is now Outperform from Neutral at BNP Paribas. Kraft Foods (KFT) is moved to Hold from Buy at Jefferies. Unilever (UN) is now Neutral from Outperform by BNP Paribas.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.13 at 4:00 PM on Wednesday, up slightly on the day – up 1.97% year-to-date. The February 2012 change was +3.75%. The 2011 change was +10.85%.
Heavily Traded: (WMT) +1.1%, (KFT) -1.4%.

Health Care

Forest Labs (FRX) and France's Pierre Fabre Medicament have reported a second set of positive results in Phase III trials of the anti-depressant drug levomilnacipran. Simcere Pharmaceutical (SCR) beat estimates by 7 cents, while missing revenue by $6M. Emeritus (ESC) reported Q4 EPS of $0.34 (versus consensus of $0.41) with revenue in-line with revenue. MAKO Surgical (MAKO) reported Q4 EPS of -$0.14 (in-line), while beating revenue by $2M. Analogic (ALOG) reported FQ2 EPS of $0.80 (versus consensus of $0.59) with revenue in-line with estimates. STAAR Surgical (STAA) reported Q4 EPS of $0.00 (versus consensus of $0.02) with revenue in-line with estimates. Metabolix (MBLX) beat estimates by 2 cents, while missing revenue by $61K. Acadia Pharmaceuticals (ACAD) reported Q4 EPS of -$0.10 (in line), while beating revenue by $38K. Allos Therapeutics (ALTH) beat estimates by 8 cents with revenue in-line with estimates. Verastem (VSTM) is a new Outperform at Oppenheimer, which establishes a price objective of $16. Express Scripts (ESRX) is increased to Outperform from Neutral at Macquarie. Medidata Solutions (MDSO) is raised to Neutral from Underweight at Piper Jaffray. Medco Health Solutions (MHS) is moved to Neutral from Outperform at Macquarie. Aegerion Pharmaceuticals (AEGR) is lowered to Neutral from Buy at Lazard. Vermillion (VRML) is slashed to Sell from Neutral at Ladenburg Thalmann. ZELTIQ Aesthetics (ZLTQ) is cut to Neutral from Buy at Goldman Sachs and to Neutral from Overweight at JPMorgan.

The Health Care Select Sector SPDR (XLV) was trading at $35.92 at 4:00 PM on Wednesday, up 0.45% on the day – up 3.55% year-to-date. The February 2012 change was +1.06%. The 2011 change was +10.32%.
Heavily Traded: (PFE) +0.5%, (MRK) -0.5%.

Financials

The steep fall in natural gas prices over recent years has sparked doubts about the future of Texas utility Energy Future Holdings, which, as TXU, was bought by a P-E consortium led by KKR (KKR) Goldman Sachs (GS) and TPG for $45B in debt and equity in 2007. ZipRealty (ZIPR) missed estimates by 3 cents and revenue by $3.5M. Douglas Emmett Inc (DEI) is started at an Overweight with Morgan Stanley. SLM Corp (SLM) is assumed with an Outperform at Keefe Bruyette. Moody’s (MCO) is a new Neutral at UBS.

The Financial Select Sector SPDR (XLF) was trading at $14.63 at 4:00 PM on Wednesday, up 1.28% on the day – up 12.54% year-to-date. The February 2012 change was +5.02%. The 2011 change was -18.50%; the weakest performing sector for the year.

Big Mover: (WAMUQ) -12.25%.

Heavily Traded: (BAC) +2.8%, (C) +3.3%, (MS) +3.1%, (JPM) +1.8%, (WFC) +1.9%, (FITB) +3.1%, (RF) +1.6%.

Information Technology

Apple (AAPL) is expected to unveil the iPad 3 today. However, bucking much of the bullish commentary, Global Equities thinks consumers won't line up for the new tablet if gas prices remain elevated. Ciena (CIEN) missed estimates by 13 cents with revenue in-line with estimates. Canadian Solar (CSIQ) missed estimates by $1.00 and revenue by $11M. ChinaCache (CCIH) missed estimates by 9 cents with revenue in-line with estimates. Cypress Semiconductor (CY) now expects Q1 revenue of $180M-$190M and EPS of $0.08-$0.11 (below a consensus of $205.9M and $0.17). Global Cash Access Holdings (GCA) beat estimates by 4 cents and revenue by $8M. TNS (TNS) beat estimates by 9 cents with revenue in-line with estimates. Cantor Fitzgerald begins Buy rated coverage on Dow component Cisco Systems (CSCO), Riverbed Technology (RVBD), Datalink (DTLK), and Emulex (ELX). It has Holds on Juniper Networks (JNPR), NetApp (NTAP), EMC Corp (EMC), F5 Networks (FFIV), QLogic (QLGC), and Brocade (BRCD). Altera (ALTR) initiated with a Reduce at Nomura, Xilinx (XLNX) initiated with a Neutral at Nomura. FactSet Research Systems (FDS) is a fresh Neutral at UBS, which resumes MSCI Inc (MSCI) at a Buy. Automatic Data (ADP) is added to the US Focus List at Credit Suisse.

The Technology Select Sector SPDR (XLK) was trading at $28.76 at 4:00 PM on Wednesday, up 0.75% on the day – up 13.01% year-to-date. The February 2012 change was +7.08%. The 2011 change was +1.03%.
Big Mover: (GCA) +18.5%.

Telecommunication Services

Cellcom Israel (CEL) reported Q4 EPS of $0.75 (versus consensus of $2.52), while missing revenue by $150M.
The NASDAQ Telecommunications Index (IXTC) was trading at $208.32 at 4:00 PM on Wednesday, up 0.40% on the day – up 5.78% year-to-date. The February 2012 change was +1.63%. The 2011 change was -12.62%.
Heavily Traded: (S) +2.4%, (T) +0.6%, (FTR) -0.8%, (CLWR) +3.1%, (VZ) +0.7%, (PCS) +3.1%.

Utilities

RWE AG (RWEOY) is cut to Underweight from Neutral at HSBC Securities.

The Utilities Select Sector SPDR (XLU) was trading at $34.92 at 4:00 PM on Wednesday, relatively unchanged on the day – down 2.95% year-to-date. The February 2012 change was +0.61%. The 2011 change was +14.81%; the strongest performing sector for the year.
Heavily Traded: (CNP) +1%, (AEP) +0.25%, (DUK) up slightly, (EXC) -0.6%, (POM) +0.9%.

STOCKS: STO, APC, TOT, TSO, CVI, VLO, BG, GLCNF, VALE, FCX, AA, HON, HIL, SGK, AVAV, MAN, RHI, KFY, ROK, USG, GE, GLW, F, NFLX, HOV, TRK, AEO, BONT, MFB, LINC, EXPR, PLCE, BWS, P, DKS, LULU, CKEC, BID, TFM, BORN, CHEF, NSRGY, KFT, UN, WMT, KFT, FCX, SCR, ESC, MAKO, ALOG, STAA, MBLX, ACAD, ALTH, VSTM, ESRX, MDSO, MHS, AEGR, VRML, ZLTQ, PFE, MRK, KKR, GS, ZIPR, DEI, SLM, MCO, WAMUQ, BAC, C, MS, JPM, WFC, FITB, RF, AAPL,, CIEN, CSIQ, CCIH, CY, GCA, TNS, CSCO, RVBD, DTLK, ELX, JNPR, NTAP, EMC, FFIV, QLGC, BRCD, ALTR, XLNX, FDS, MSCI, ADP, CEL, S, T, FTR, CLWR, VZ, PCS, RWEOY, CNP, AEP, DUK, EXC, POM

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
BORN China New Borun Corporation American Depositary Shares 1.12 0.01 0.90 6,284 Trade
GLW Corning Incorporated 35.99 -0.14 -0.39 2,954,088 Trade
FDS FactSet Research Systems Inc. 232.34 -0.93 -0.40 166,513 Trade
EXPR Express Inc. 11.06 0.13 1.19 1,174,279 Trade
RHI Robert Half International Inc. 70.93 0.63 0.90 613,967 Trade
AVAV AeroVironment Inc. 108.80 0.56 0.52 229,952 Trade
MDSO Medidata Solutions Inc. 74.78 -0.27 -0.36 333,149 Trade
FTR Frontier Communications Corporation 6.56 -0.04 -0.61 1,972,229 Trade
MAN ManpowerGroup 86.19 0.70 0.82 318,393 Trade
GE General Electric Company 12.37 -0.10 -0.76 43,340,085 Trade
ADP Automatic Data Processing Inc. 150.51 1.63 1.09 1,651,413 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 14.96 0.44 3.00 15,850,511 Trade
CEL Cellcom Israel Ltd. 6.79 -0.04 -0.53 1,753 Trade
KFY Korn/Ferry International 49.85 0.25 0.50 918,128 Trade
WMT Walmart Inc. 95.70 -0.06 -0.06 4,902,332 Trade
AA Alcoa Corporation 43.83 0.90 2.10 2,114,286 Trade
MBLX Metabolix Inc. n/a n/a n/a n/a
VLO Valero Energy Corporation 111.84 1.36 1.23 1,828,084 Trade
CNP CenterPoint Energy Inc (Holding Co) 28.15 0.15 0.52 2,028,539 Trade
DEI Douglas Emmett Inc. 38.77 0.33 0.86 366,902 Trade
STAA STAAR Surgical Company 47.20 -0.75 -1.56 513,339 Trade
CHKR Chesapeake Granite Wash Trust representing beneficial interests in the Trust 1.70 0.05 2.73 22,470 Trade
DTLK Datalink Corporation n/a n/a n/a 0 Trade
AAPL Apple Inc. 218.71 -1.32 -0.60 25,767,076 Trade
ACAD ACADIA Pharmaceuticals Inc. 19.90 0.79 4.13 9,847,770 Trade
P Pandora Media Inc. 9.22 -0.17 -1.81 4,185,684 Trade
BONT The Bon-Ton Stores Inc. n/a n/a n/a n/a
XLNX Xilinx Inc. 78.59 -0.38 -0.48 1,300,594 Trade
C Citigroup Inc. 74.66 -0.13 -0.17 10,516,836 Trade
TSO ANDV Tesoro Corporation n/a n/a n/a 0
S Sprint Corporation 6.49 0.05 0.72 2,710,858 Trade
FITB Fifth Third Bancorp 29.54 -0.25 -0.84 2,579,737 Trade
MS Morgan Stanley 49.34 -0.54 -1.08 5,447,991 Trade
JPM JP Morgan Chase & Co. 118.15 -0.49 -0.41 10,071,006 Trade
HON Honeywell International Inc. 167.10 0.56 0.34 1,586,938 Trade
TOT Total S.A. 63.67 0.38 0.61 778,768 Trade
CKEC Carmike Cinemas Inc. n/a n/a n/a 0 Trade
ROK Rockwell Automation Inc. 196.61 -0.34 -0.17 445,480 Trade
VSTM Verastem Inc. 8.60 -0.15 -1.71 1,134,841 Trade
HOV Hovnanian Enterprises Inc. Class A 1.67 -0.01 -0.60 361,822 Trade
ESRX Express Scripts Holding Company 95.09 0.05 0.05 4,156,340 Trade
CSCO Cisco Systems Inc. 48.42 0.69 1.45 18,916,442 Trade
HIL Hill International Inc. n/a n/a n/a 0
GS Goldman Sachs Group Inc. (The) 235.62 -1.78 -0.75 2,446,561 Trade
CHEF The Chefs' Warehouse Inc. 36.80 0.45 1.24 130,011 Trade
UN Unilever NV 56.53 0.01 0.02 469,184 Trade
VZ Verizon Communications Inc. 54.63 0.68 1.25 11,471,439 Trade
BAC Bank of America Corporation 31.04 -0.15 -0.48 37,498,420 Trade
BID Sotheby's 49.39 -0.45 -0.90 239,534 Trade
JNPR Juniper Networks Inc. 29.65 0.09 0.30 1,931,225 Trade
FCX Freeport-McMoRan Inc. 14.78 0.39 2.71 19,578,238 Trade
VRML Vermillion Inc. 0.67 0.08 13.99 135,678 Trade
CIEN Ciena Corporation 31.17 0.18 0.56 1,450,290 Trade
APC Anadarko Petroleum Corporation 64.44 0.58 0.91 2,396,721 Trade
RF Regions Financial Corporation 19.42 -0.07 -0.36 5,464,552 Trade
USG USG Corporation 43.31 0.02 0.03 147,200 Trade
LULU lululemon athletica inc. 156.74 0.77 0.49 778,877 Trade
GCA null n/a n/a n/a 0 Trade
F Ford Motor Company 9.82 0.01 0.05 24,134,955 Trade
PFE Pfizer Inc. 44.00 0.25 0.57 15,422,516 Trade
ALTR Altair Engineering Inc. 40.69 0.73 1.83 244,201 Trade
POM Pepco Holdings Inc. n/a n/a n/a 0 Trade
TFM Fresh Market Inc (The) n/a n/a n/a 0 Trade
WFC Wells Fargo & Company 55.10 -0.45 -0.81 13,924,396 Trade
PLCE Children's Place Inc. (The) 126.63 0.08 0.06 225,348 Trade
TRK Speedway Motorsports Inc. 17.52 -0.10 -0.57 32,999 Trade
CSIQ Canadian Solar Inc. 14.96 -0.37 -2.41 260,449 Trade
DKS Dick's Sporting Goods Inc 38.04 0.90 2.42 1,286,340 Trade
NFLX Netflix Inc. 364.51 -0.85 -0.23 5,407,453 Trade
AEGR Aegerion Pharmaceuticals Inc. n/a n/a n/a 0 Trade
MRK Merck & Company Inc. (new) 71.01 0.23 0.32 7,199,170 Trade
CCIH ChinaCache International Holdings Ltd. 1.13 0.03 2.73 4,507 Trade
MCO Moody's Corporation 174.65 -4.10 -2.29 1,489,570 Trade
STO EQNR Statoil ASA n/a n/a n/a 0
MSCI MSCI Inc 175.96 -0.36 -0.20 264,884 Trade
CY Cypress Semiconductor Corporation 16.08 -0.01 -0.06 3,083,418 Trade
LINC Lincoln Educational Services Corporation 2.32 -0.07 -2.93 7,278 Trade
CVI CVR Energy Inc. 39.05 0.78 2.04 318,889 Trade
EXC Exelon Corporation 43.61 0.22 0.51 4,844,010 Trade
T AT&T Inc. 34.03 0.59 1.77 33,926,727 Trade
BG Bunge Limited 65.87 -0.31 -0.47 711,933 Trade
AEO American Eagle Outfitters Inc. 24.06 0.26 1.07 2,020,901 Trade
DUK Duke Energy Corporation (Holding Company) 79.82 -0.80 -0.99 9,109,960 Trade
SLM SLM Corporation 11.99 -0.02 -0.13 2,399,162 Trade
QLGC QLogic Corporation n/a n/a n/a 0 Trade
NTAP NetApp Inc. 86.47 1.11 1.30 1,492,691 Trade
EMC EMC Corporation n/a n/a n/a 0 Trade
ZLTQ ZELTIQ Aesthetics Inc. n/a n/a n/a 0 Trade
AEP American Electric Power Company Inc. 71.44 0.36 0.51 2,608,288 Trade
FFIV F5 Networks Inc. 194.73 -0.12 -0.06 282,374 Trade

Comments

Emerging Growth

Goldrea Resources Corp.

Goldrea Resources Corp is engaged in the acquisition, exploration and development of mineral properties located in North America.