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

Sector Recap  |

The 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.


Discover: Trending Events

United Nations
Blockchain for Europe
Humanity 2.0
World Economic Forum

Companies

Symbol Name Price Change % Volume
BORN BORNY China New Borun Corporation American Depositary Shares n/a n/a n/a 0
GLW Corning Incorporated 25.03 -0.47 -1.84 7,333,419 Trade
FDS FactSet Research Systems Inc. 289.20 1.86 0.65 373,048 Trade
EXPR Express Inc. 3.78 -0.12 -3.08 1,114,741 Trade
RHI Robert Half International Inc. 52.26 -1.20 -2.24 1,276,352 Trade
AVAV AeroVironment Inc. 55.54 -3.88 -6.53 369,070 Trade
FTR Frontier Communications Corporation 0.53 -0.02 -3.86 1,154,106 Trade
MAN ManpowerGroup 78.84 -3.09 -3.77 581,033 Trade
GE General Electric Company 10.95 -0.37 -3.27 93,174,081 Trade
ADP Automatic Data Processing Inc. 166.33 -0.85 -0.51 2,319,739 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 10.18 -0.13 -1.26 49,291,855 Trade
CEL Cellcom Israel Ltd. 3.79 0.07 1.88 15,416 Trade
KFY Korn Ferry 37.58 -0.62 -1.62 271,095 Trade
AA Alcoa Corporation 14.12 -0.38 -2.62 4,804,522 Trade
MBLX First Majestic Silver Corp. n/a n/a n/a n/a
VLO Valero Energy Corporation 71.72 -2.72 -3.65 4,702,297 Trade
CNP CenterPoint Energy Inc (Holding Co) 24.08 -0.41 -1.67 5,898,577 Trade
DEI Douglas Emmett Inc. 41.53 -1.04 -2.44 987,287 Trade
STAA STAAR Surgical Company 28.75 -1.68 -5.52 1,301,440 Trade
CHKR Chesapeake Granite Wash Trust representing beneficial interests in the Trust 0.56 -0.01 -1.20 111,701 Trade
DTLK Datalink Corporation n/a n/a n/a 0 Trade
ACAD ACADIA Pharmaceuticals Inc. 40.22 -0.45 -1.11 1,192,685 Trade
BONT Bankers Petroleum Ltd. n/a n/a n/a n/a
XLNX Xilinx Inc. 82.60 -1.28 -1.53 3,493,361 Trade
C Citigroup Inc. 68.18 -1.25 -1.80 25,579,970 Trade
TSO ANDV Tesoro Corporation n/a n/a n/a 0
S Sprint Corporation 9.55 -0.09 -0.93 24,139,942 Trade
FITB Fifth Third Bancorp 26.65 -0.42 -1.55 5,840,798 Trade
MS Morgan Stanley 47.24 -0.79 -1.64 22,287,103 Trade
HON Honeywell International Inc. 166.28 -0.62 -0.37 3,412,316 Trade
TOT Total S.A. 43.91 -0.25 -0.57 3,083,791 Trade
CKEC Carmike Cinemas Inc. n/a n/a n/a 0 Trade
ROK Rockwell Automation Inc. 195.16 -1.71 -0.87 854,930 Trade
VSTM Verastem Inc. 2.01 0.04 2.03 1,263,259 Trade
HOV Hovnanian Enterprises Inc. Class A 26.30 0.35 1.35 118,655 Trade
CSCO Cisco Systems Inc. 42.16 -0.58 -1.36 38,532,119 Trade
GS Goldman Sachs Group Inc. (The) 215.78 -1.83 -0.84 4,172,467 Trade
CHEF The Chefs' Warehouse Inc. 31.91 -1.09 -3.30 167,767 Trade
UN Unilever NV 55.01 -0.48 -0.87 1,621,939 Trade
VZ Verizon Communications Inc. 57.14 0.02 0.04 16,806,347 Trade
BAC Bank of America Corporation 30.63 -0.45 -1.45 80,095,028 Trade
JNPR Juniper Networks Inc. 22.38 -0.27 -1.19 5,739,385 Trade
FCX Freeport-McMoRan Inc. 10.46 -0.27 -2.52 29,847,498 Trade
VRML Vermillion Inc. 0.89 -0.05 -5.34 83,826 Trade
CIEN Ciena Corporation 40.39 -0.54 -1.32 1,442,249 Trade
RF Regions Financial Corporation 14.58 -0.21 -1.42 11,385,956 Trade
LULU lululemon athletica inc. 238.56 -0.25 -0.10 1,219,291 Trade
GCA null n/a n/a n/a 0 Trade
F Ford Motor Company 7.21 -0.02 -0.28 92,528,640 Trade
PFE Pfizer Inc. 34.72 0.79 2.33 45,469,727 Trade
ALTR Altair Engineering Inc. 34.80 0.46 1.34 327,535 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 44.14 -0.98 -2.17 27,439,040 Trade
PLCE Children's Place Inc. (The) 60.82 -0.30 -0.49 579,517 Trade
CSIQ Canadian Solar Inc. 21.67 -0.18 -0.82 605,610 Trade
DKS Dick's Sporting Goods Inc 38.87 -1.84 -4.52 3,026,766 Trade
NFLX Netflix Inc. 379.24 19.15 5.32 8,966,081 Trade
AEGR Aegerion Pharmaceuticals Inc. n/a n/a n/a 0 Trade
MRK Merck & Company Inc. (new) 79.94 -0.33 -0.41 11,394,826 Trade
CCIH CCIHY ChinaCache International Holdings Ltd. n/a n/a n/a n/a
MCO Moody's Corporation 261.01 0.98 0.38 951,700 Trade
STO EQNR Statoil ASA n/a n/a n/a 0
MSCI MSCI Inc 305.61 5.30 1.76 789,780 Trade
CY Cypress Semiconductor Corporation 23.16 0.03 0.11 7,094,135 Trade
LINC Lincoln Educational Services Corporation 2.77 0.36 14.94 34,500 Trade
CVI CVR Energy Inc. 30.08 -1.69 -5.32 1,019,684 Trade
T AT&T Inc. 37.10 -0.25 -0.67 40,272,217 Trade
BG Bunge Limited 50.53 -0.49 -0.96 1,324,790 Trade
AEO American Eagle Outfitters Inc. 12.97 -0.47 -3.50 4,904,639 Trade
DUK Duke Energy Corporation (Holding Company) 98.94 -0.33 -0.33 3,152,236 Trade
SLM SLM Corporation 10.66 -0.33 -3.00 3,618,407 Trade
QLGC QLogic Corporation n/a n/a n/a 0 Trade
NTAP NetApp Inc. 48.48 -0.32 -0.66 2,239,577 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. 97.43 -0.74 -0.75 3,258,474 Trade
FFIV F5 Networks Inc. 126.45 -0.34 -0.27 609,315 Trade
WMT Walmart Inc. 113.78 -0.61 -0.53 6,674,072 Trade
AAPL Apple Inc. 292.65 4.57 1.59 49,748,142 Trade
JPM JP Morgan Chase & Co. 126.64 0.38 0.30 24,836,584 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

World Economic Forum at Davos 2019 - Joseph Weinberg CEO PayCase, Chairman Shyft

Matt Bird sits down with Joseph Weinberg CEO PayCase, Chairman Shyft at the World Economic Forum at Davos 2019