Equities Sector Coverage: Stocks Resume Downward Trend

Sector Recap |

Wall StreetThe Dow Jones Industrial Average traded down to 12,661.48 Monday morning then rebounded above 12,760 in the afternoon before fading in the final hour of trading. The NASDAQ traded down to 2898.90 Monday morning then rebounded to 2924.89 then consolidated that range.

Asian stocks were mixed on Monday. The Nikkei 225 ended their session at 8,974 – up 0.23% on the day. The Hang Seng ended their session at 19,735 – down 1.15% on the day. European exchanges were lower on Monday. The FTSE 100 ended their session at 5,466 – down 1.97% on the day. The DAX ended their session at 6,452 – down 1.94% on the day. The CAC 40 ended their session at 3,058 – down 2.29% on the day. The yield on the 10-Year US Treasury declined from 1.839 percent to 1.765, a new year to date low and well below its 50-day and 200-day simple moving averages at 2.057 and 2.033.

Gold traded down from $1585.8 the Troy ounce to $1555.0 well below the “Death Cross” 50-day and 200-day simple moving averages at $1651.6 and $1698.2. Crude oil traded down from $95.83 per barrel to $93.65, a new year to date low below its 200-day simple moving average at $96.26. The euro versus the dollar traded down from 1.2904 to 1.2829 below its 50-day simple moving average at 1.3153.


Chesapeake Energy (CHK) reported that its received a $3 billion unsecured loan from Goldman Sachs and Jefferies Group, which will be repaid from 2012 asset sales. McDermott (MDR) was a major upside mover on Friday after better than expected Q1 earnings and assuring analysts that the company is returning to normal levels of profitability with strong growth in operating margin. Concho Resources (CXO) will buy all the oil and natural gas assets of Three Rivers Operating for $1 billion. Interoil (IOC) beat Q1 EPS estimates by 39 cents with better than expected revenue. Seadrill (SDRL) beats Q1 EPS estimates by eighteen cents with in-line revenue. Walter Energy (WLT) has been initiated with an Outperform rating with Wells Fargo. Arch Coal (ACI) has been upgraded by UBS to Buy from Neutral with $11 price target. McDermott International (MDR) has been upgraded to Overweight from Neutral at JP Morgan. Dow components – Chevron (CVX) – down 0.65%, Exxon Mobil (XOM) down 0.87%.
Energy Select Sector SPDR (XLE) was trading at $66.32 at 3:30 PM on Monday, down 1.51% on the day – down 4.06% year-to-date.


IAMGOLD Corp (IAG) beat Q1 EPS estimates by four cents with a miss on the revenue line. Cabot (CBT) will boost its quarterly dividend by 11% to $0.20 from $0.18 per share. Silver Wheaton (SLW) missed Q1 EPS estimates by a penny with a miss on the revenue line. Darling International (DAR) recently reported missed Q1 quarterly results as lower raw material volumes and lower finished product prices weighed on bottom line margins. Louisiana-Pacific (LPX) has been upgraded to Outperform from Sector Perform at RBC Capital. Dow components – Alcoa (AA) down 0.44%, DuPont (DD) down 0.97%.
The Materials Select Sector SPDR (XLB) was trading at $34.55 at 3:30 PM on Monday, down 1.31% on the day – up 3.13% year-to-date.


Three former executives of General Electric (GE) affiliates were convicted by a federal jury in New York of conspiracy related to rigging contracts in the municipal bond market. On Homebuilders, Guggenheim gives D.R. Horton (DHI), Lennar (LEN), PulteGroup (PHM), and Toll Brothers (TOL) have been upgraded to Buy from Neutral, and Meritage Homes (MTH) and Ryland (RYL) upgraded to Buy from Sell. Magna International (MGA) have been upgraded to Hold from Sell at Société Générale. Dow components – Boeing Co (BA) down 0.18%, Caterpillar (CAT) down 1.21%, General Electric (GE) down 1.45%, 3M Company (MMM) down 0.55%, United Technologies (UTX) down 1.28%.
The Industrial Select Sector SPDR (XLI) was trading at $35.31 at 3:30 PM on Monday, down 1.01% on the day – up 4.62% year-to-date.

Consumer Discretionary

Shares of Francesca's Holdings (FRAN) moved down sharply on Friday on word that the company may float another secondary offering. Gamestop (GME) is initiated with a Neutral rating at Lazard. Tumi Holdings (TUMI), the apparel outfit is a recent IPO that has been initiated with a Buy rating at Jefferies and an Outperform rating with William Blair. Francesca’s (FRAN) have been upgraded to Positive from Neutral at Susquehanna. Dow Components – Disney (DIS) down 0.50%, Home Depot down 0.50%, McDonalds (MCD) down 0.54%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.69 at 3:30 PM on Monday, down 1.24% on the day – up 11.97% year-to-date.

Consumer Staples

Avon (AVP) shares are up 8.4% premarket after the cosmetics company indicated it would consider Coty's improved $10.7 billion bid and expects to respond within a week. Coty will stop making further public steps to acquire the company to allow Avon to conduct due diligence. Caribou Coffee (CBOU) has been upgraded to Buy from Hold at Dougherty. US Airways (LCC) has been upgraded to Buy from Neutral at Sterne Agee with an $18 price target, citing lower fuel prices, stronger domestic yields, and acquisition opportunities. Dole Food (DOLE) has been downgraded to Hold from Buy at Auriga. Jetblue Airways (JBLU) has been downgraded to Neutral from Buy at Sterne Agee. Dow components – Kraft (KFT) up 0.38, Coca Cola (KO) down 0.67%, Procter & Gamble (PG) down 0.31%, Wal-Mart (WMT) down 0.10%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.92 at 3:30 PM on Monday, down 0.32% on the day – up 4.40% year-to-date.

Health Care

Hologic (HOLX) has been upgraded to Overweight from Neutral by JP Morgan. St. Jude Medical (STJ) has been upgraded by Goldman Sachs giving the medical device maker a Buy from Neutral rating. Medivation (MDVN) has been added to Citigroup’s list of Top Picks. Vertex Pharmaceuticals (VRTX) has been upgraded to Overweight from Neutral at JP Morgan. Dow Components – Johnson & Johnson (JNJ) down 0.51%, Merck (MRK) up 0.76%, Pfizer (PFE) up 0.15.
The Health Care Select Sector SPDR (XLV) was trading at $36.89 at 3:30 PM on Monday, down 0.32% on the day – up 6.34% year-to-date.


Three JPMorgan (JPM) executives involved in the $2 billion trading loss will leave the bank this week, according to media reports. "The London Whale" will be stripped of trading duties. Fannie Mae had 114,157 single-family REO properties at the end of the first quarter, and almost half were considered unable to market because of delays in the appraisal process. Major Spanish banks move to comply with new rules. BBVA (BBVA) is setting aside provisions worth $2.3 billion to satisfy new capital requirements. Santander (STD) it will set aside an extra five billion euros to comply with the new rules. Dow Components – American Express (AXP) down 1.16%, Bank of America (BAC) down 0.66, JP Morgan Chase (JPM) down 1.87%, Travelers (TRV) up 0.22%.
The Financial Select Sector SPDR (XLF) was trading at $14.55 at 3:30 PM on Monday, down 1.76% on the day – up 11.92% year-to-date.

Information Technology

Yahoo (YHOO) confirmed that Scott Thompson is out as CEO, and will be replaced by Ross Levinsohn, while Fred Amoroso becomes Chairman of the Board. Apple (AAPL) continues its patent fight with Samsung accusing Samsung of destroying evidence. Hewlett Packard (HPQ) will re-enter the tablet market to take advantage of Microsoft's (MSFT) forthcoming Windows 8 platform. Teradata (TDC): Barclays takes the tech stock to Overweight from Equal Weight. Yandex (YNDX) has been upgraded to Neutral from Underweight at HSBC Securities. Symantec (SYMC) has been downgraded to Sell from Neutral at Goldman Sachs. Dow Components – Cisco Systems (CSCO) up 1.33%, Hewlett-Packard (HPQ) down 0.78, IBM (IBM) down 0.61, Intel Corp (INTC) down 1.92%, Microsoft (MSFT) down 0.90%.
The Technology Select Sector SPDR (XLK) was trading at $28.51 at 3:30 PM on Monday, down 0.63% on the day – up 12.02% year-to-date.

Telecommunication Services

Ciena (CIEN) shares surged after Verizon (VZ) said it is using Ciena’s technology as part of plans to build additional control panel technology into its network infrastructure. Nokia (NOK) has been downgraded to Sell from Hold at SocGen. Dow components – AT&T (T) down 0.89%, Verizon (VZ) down 1.06%.
The NASDAQ Telecommunications Index (IXTC) was trading at $186.12 at 3:30 PM on Monday, down 0.12% on the day – down 5.49% year-to-date.


WGL Holdings (WGL) has been downgraded to Long-term Buy from Buy at Hilliard Lyons. Dominion Resources (D) up 0.19%, Edison International (EIX) flat, First Energy (FE) up 0.17%, PG&E Corp (PCG) flat, Southern Company (SO) flat.
The Utilities Select Sector SPDR (XLU) was trading at $35.84 at 3:30 PM on Monday, down 0.39% on the day – down 0.39% year-to-date.


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Symbol Name Price Change % Volume
MMM 3M Company 177.27 1.39 0.79 1,078,314
SDRL Seadrill Limited (Bermuda) 3.74 0.34 10.00 29,100,992
PG Procter & Gamble Company (The) 84.09 0.59 0.71 4,150,481
GE General Electric Co 31.77 0.24 0.76 13,438,579
CVX Chevron Corporation 115.33 0.16 0.14 2,146,993
SO Southern Company (The) 47.55 0.14 0.29 1,908,133
PCG Pacific Gas & Electric Co. 59.64 0.45 0.75 1,192,212
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.74 -0.15 -2.18 1,658,506
YNDX Yandex N.V. 19.89 -0.06 -0.30 581,320
JNJ Johnson & Johnson 112.04 1.05 0.95 3,027,312
WMT Wal-Mart Stores Inc. 69.94 -0.40 -0.57 4,295,654
AA Alcoa Inc. 31.39 0.08 0.26 1,969,501
INTC Intel Corporation 35.71 0.01 0.03 7,532,549
IBM International Business Machines Corp 165.47 0.11 0.07 1,456,267
D Dominion Resources Inc. 73.92 0.42 0.57 892,621
TRV The Travelers Companies Inc. 118.31 -0.07 -0.06 760,737
IOC InterOil Corporation 48.72 -0.22 -0.44 14,984
CBT Cabot Corporation 53.57 -0.48 -0.89 120,363
IAG Iamgold Corporation 3.75 -0.20 -5.06 4,815,367
UHT Universal Health Realty Income Trust 64.64 0.20 0.31 15,857
AAPL Apple Inc. 114.17 2.05 1.82 20,289,936
WGL WGL Holdings IncCommon Stock 77.76 0.49 0.63 72,303
EIX Edison International 69.90 0.46 0.66 724,854
MTH Meritage Homes Corporation 38.30 -0.65 -1.67 76,613
JPM JP Morgan Chase 84.64 -0.48 -0.56 7,265,409
AXP American Express Company 74.44 -0.47 -0.63 1,104,205
DAR Darling Ingredients Inc. 14.03 -0.03 -0.18 358,901
UTX United Technologies Corporation 109.73 1.30 1.20 1,424,896
TOL Toll Brothers Inc. 32.28 -0.70 -2.12 1,316,796
AVP Avon Products Inc. 5.56 0.03 0.54 1,458,797
HOLX Hologic Inc. 39.19 0.23 0.59 1,199,122
SYMC Symantec Corporation 24.64 0.08 0.33 4,712,795
CSCO Cisco Systems Inc. 29.88 -0.07 -0.23 10,941,245
DIS Walt Disney Company (The) 104.10 0.72 0.70 6,092,623
JBLU JetBlue Airways Corporation 21.77 -0.06 -0.27 4,516,641
MDR McDermott International Inc. 7.85 0.13 1.68 1,465,003
MDVN Medivation Inc. n/a n/a n/a 0
VZ Verizon Communications Inc. 51.19 0.06 0.11 3,108,338
TDC Teradata Corporation 28.51 -0.25 -0.85 581,505
BAC Bank of America Corporation 23.02 0.07 0.31 77,663,357
NOK Nokia Corporation Sponsored American Depositary Sh 4.61 0.03 0.66 5,447,095
MCD McDonald\'s Corporation 120.67 0.22 0.18 871,070
DHI D.R. Horton Inc. 28.65 -0.84 -2.85 2,171,233
CIEN Ciena Corporation 24.96 0.09 0.34 2,858,494
DD E.I. du Pont de Nemours and Co. 74.54 -0.14 -0.19 774,474
GME Gamestop Corporation 26.11 0.14 0.54 1,109,128
MGA Magna International Inc. 46.88 0.45 0.97 428,687
STJ St. Jude Medical Inc. 80.22 0.32 0.40 818,073
LEN Lennar Corporation Class A 44.45 -1.23 -2.68 1,133,337
FRAN Francesca\'s Holdings Corporation 21.37 -0.89 -4.00 934,050
HD Home Depot Inc. (The) 132.36 -0.17 -0.13 1,989,439
XOM Exxon Mobil Corporation 88.49 0.17 0.19 3,295,984
PFE Pfizer Inc. 31.73 0.79 2.54 15,127,208
CXO Concho Resources Inc. 142.01 -0.77 -0.54 518,982
PHM PulteGroup Inc. 19.38 -0.47 -2.37 2,526,431
HPQ HP Inc. 15.84 -0.32 -2.01 4,598,690
BA Boeing Company (The) 156.45 1.06 0.68 1,149,931
YHOO Yahoo! Inc. 41.69 0.28 0.68 2,591,242
ACI Arch Coal Inc. n/a n/a n/a 0
MRK Merck & Company Inc. (new) 61.33 1.21 2.00 4,688,098
FE FirstEnergy Corporation 30.88 0.35 1.13 1,982,445
LPX Louisiana-Pacific Corporation 20.75 -0.12 -0.55 531,764
SLW Silver Wheaton Corp (Canada) 18.65 -0.38 -2.00 2,708,741
KO Coca-Cola Company (The) 42.15 1.17 2.86 15,659,798
T AT&T Inc. 40.30 -0.11 -0.27 6,905,705
CAT Caterpillar Inc. 95.43 -0.84 -0.87 1,885,556
MSFT Microsoft Corporation 61.79 0.78 1.28 10,730,136
CHK Chesapeake Energy Corporation 7.67 0.07 0.88 25,638,062


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