Equities Sector Coverage: Stocks Sag to Start Big Week

Sector Recap |

Wall StreetThis week the markets will react to PPI and Retail Sales on Tuesday, CPI and Industrial Production on Wednesday and Housing Starts and Jobless Claims on Thursday. The Dow Jones Industrial Average traded down from 12,170.56 to 12,027.03 staying above its 200-day simple moving average at 11,978. The NASDAQ stayed below its 200-day simple moving average at 2688 trading in a range between 2682.13 down to 2647.68.

Asian stocks rallied on Monday with the Nikkei 225 up 1.05% to 8,604 and the Hang Seng surging 1.94% to 19,504. European stocks opened higher but traded into the red as Italian yields rose. The FTSE 100 lost 0.41% to 5,522 with the DAX down 1.19% to 5,985 and the CAC 40 lower by 1.28% to 3,109. The yield on the US Treasury 10-Year note declined from 2.140 percent to 2.024 versus its 50-day simple moving average at 2.042. Gold traded down from $1797.6 the Troy ounce to $1774.2 as strength last week above $1800.0 could not be sustained. Crude oil traded down from $99.69 per barrel to $97.19 staying above its 200-day simple moving average at $95.13. The euro versus the dollar traded down from 1.3791 to 1.3595 back below its 50-day simple moving average at 1.3707.


Canada will prioritize increasing its Asian energy exports, Prime Minister Stephen Harper said yesterday at the APEC summit, due to the U.S. delaying approval of TransCanada’s (TRP) $7B Keystone XL pipeline until after the 2012 election. Iraq has told Exxon (XOM) that it should choose between its deal with Kurdistan, which the latter confirmed yesterday, or "lose its contract in southern Iraq." In afternoon trading: Shares of ATP Oil & Gas (ATPG) are down about 15%. Shares of DHT Holdings (DHT) are down about 8%. Shares of QEP Resources (QEP) are down about 7%. Shares of Cal Dive (DVR) are down about 7%.

Energy Select Sector SPDR (XLE) was trading at $71.31 at 4:00 PM on Monday, down 1.31% on the day – up 4.48% year-to-date.


Having spent nearly $17B on buying shale gas assets this year, BHP Billiton (BHP) intends to invest more than $4B next year on development and then increase that figure to $6B-$7B by 2020. Silver Standard Resources (SSRI) reported EPS of $0.27 (beating consensus by $0.15). In afternoon trading: Shares of China Shen Zhou Mining (SHZ) are up about 18%. Shares of Headwaters (HW) are up about 9.25%. Shares of Texas Industries (TXI) are down about 6.75%.

The Materials Select Sector SPDR (XLB) was trading at $34.80 at 4:00 PM on Monday, down 1.05% on the day – down 9.40% year-to-date.


Ignoring the EU's debt crisis and fears of a global slowdown, Emirates airline has ordered 50 Boeing (BA) 777 jets at the Dubai Air Show for $18B and taken an option for another 20, with the whole deal worth up to $26B. Caterpillar (CAT) is added to Goldman Sachs’ list of Conviction Buys. CSX Corp (CSX) is upgraded to Buy from Neutral with a $26 target at Sterne Agee. Spirit Aerosystems (SPR) is added to Bank of America-Merrill Lynch’s U.S. 1 list of favored stocks. KC Southern (KSU) is cut to Neutral from Buy at Sterne Agee. In afternoon trading: Shares of GeoEye (GEOY) are down about 10.5%.

The Industrial Select Sector SPDR (XLI) was trading at $33.72 at 4:00 PM on Monday, down 0.62% on the day – down 3.30% year-to-date.

Consumer Discretionary

J.C. Penney (JCP) reported Q3 EPS of $0.11 (in-line) and revenue of $4.0B (in-line). Lowe's (LOW) beat estimates by 2 cents with revenue in-line with estimates, and sees FY11 Non-GAAP EPS at $1.37 to $1.40. Walt Disney (DIS) posted a 30% jump in its quarterly profit and record fiscal year profit and revenue. Nomura maintains its Buy rating and lifts its price target to $43 from $38. Time Warner Telecom (TWTC) is lifted to Overweight from Equal Weight at Morgan Stanley. CBS Corp (CBS) is cut to Neutral from Buy at Nomura. DSW Inc (DSW) is reduced to Neutral from Buy at Citi. Ctrip.com (CTRP) is cut to Hold from Buy by Brean Murray after earnings. In afternoon trading: Shares of Ctrip.com are down about 11.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.18 at 4:00 PM on Monday, down 0.73% on the day – up 4.73% year-to-date.

Consumer Staples

Darling International (DAR) missed estimates by 6 cents and revenue by $1M. Colgate-Palmolive (CL) is lifted to Underperform from Sell at Crédit Agricole. Tyson Foods (TSN) is now Overweight from Neutral at JPMorgan. Hershey Foods (HSY) is cut to Hold from Buy at Argus. Green Mountain Coffee Roasters (GMCR) is reduced to Hold from Buy at Argus. In afternoon trading: Shares of AgFeed (FEED) are down about 17%. Actives: Shares of Green Mountain Coffee Roasters are down about 3.3%. Shares of Wal-Mart (WMT) are down about a half of a percent.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.21 at 4:00 PM on Monday, down 0.86% on the day – up 6.48% year-to-date.


In a Phase III trial, rivaroxaban, a blood thinner from J&J (JNJ) and Bayer (BAYRY), cut heart attacks, strokes, and cardiovascular deaths by 16% in patients who had suffered heart attacks or unstable chest pain. However, apixaban, an anticoagulant from Pfizer (PFE) and Bristol-Myers Squibb (BMY), isn’t safer or more effective than the standard treatment, Sanofi’s (SNY) Lovenox, at preventing blood clots in the legs and lungs of patients after hospitalization, a Phase III study has shown. Cadence Pharmaceuticals (CADX) is started with a Buy rating and $7 price objective at brokerage Collins Stewart. Amylin Pharmaceuticals (AMLN) is lifted to Outperform from Neutral by Robert W. Baird. Smith & Nephew (SNN) is boosted to Outperform from Neutral at Exane BNP Paribas. Pfizer (PFE) is moved to Market Perform from Outperform at Leerink Swann. Amgen (AMGN) is lowered to Market Perform from Outperform with Leerink. In afternoon trading: Shares of Cadence Pharmaceuticals (CADX) are down about 22%. Shares of Olympus (OCPNY) are up about 43%.

The Health Care Select Sector SPDR (XLV) was trading at $33.84 at 4:00 PM on Monday, down 0.68% on the day – up 7.43% year-to-date.


Banks may have backed down in charging for debit cards, but they have added or raised other "under-the-radar" fees instead as they look to recoup billions of dollars in lower transaction tariffs. Bank of America (BAC) charges $5-$20 for replacing a credit card, U.S. Bancorp (USB) wants 50 cents a check to deposit money with a mobile phone, while TD Bank will soon levy $15 for incoming domestic payments. Brookfield Asset Management (BAM) beat estimates by 8 cents and revenue by $400M. Annaly Capital Management (NLY) is a new Overweight at JPMorgan. Barclays PLC (BCS) is downgraded to Sell from Neutral at Goldman Sachs. Eaton Vance (EV) is now Sell from Neutral at Citigroup. Zurich Financial (SFSVY) is cut to Neutral from Buy at Credit Suisse. In afternoon trading: Shares of MF Global (MFGLQ) are down about 19%.

The Financial Select Sector SPDR (XLF) was trading at $12.97 at 4:00 PM on Monday, down 1.99% on the day – down 18.67% year-to-date.

Information Technology

Microsemi (MSCC) reported FQ4 revenue of $227.3M and EPS of $0.52 (the former beat by $0.9M, while the latter was in-line). Active Network (ACTV) reported Q3 revenue of $89.7M and EPS of -$0.03 (beating Street estimates by $3.9M and $0.01). ServiceSource (SREV) raised its full-year revenue outlook for a third time since going public in March. Ubiquiti Networks (UBNT) reported FQ1 revenue of $79.2M and EPS of $0.23. Renren (RENN) reported Q3 revenue of $34.2M and breakeven EPS (missing consensus by $0.9M and a penny). Citrix Systems (CTXS) is a new Positive at Susquehanna. Salesforce.com (CRM) is lifted to Buy from Neutral boost at Citigroup. Lenovo (LNVGY) is lowered to Underweight from Neutral at HSBC Securities. In afternoon trading: Shares of Netlist (NLST) are up about 22.5%. Shares of JinkoSolar (JKS) are down about 13%.

The Technology Select Sector SPDR (XLK) was trading at $25.96 at 4:00 PM on Monday, down 0.76% on the day – up 3.06% year-to-date.

Telecommunications Services

Telecom Italia (TI) reported Q3 revenue of €7.52B and net profit of €807M (beating a consensus of €7.48B and €608M). Telefonica (TEF) reported a Q3 net loss of €429M ($584M) (versus profit of €5.1B a year earlier) and forecasted for a loss of €213M. TEF reported revenues of +3.7% to €15.79B (versus forecasts of €15.73B). Telefónica SA (TEF) is cut to Neutral from Overweight at JPMorgan. In afternoon trading: Actives: Shares of Sprint Nextel (S) are down about 2%. Shares of AT&T (T) are down about 0.8%. Shares of Vodafone (VOD) are up about a half of a percent. Shares of Verizon (VZ) are down about 1.3%.

The NASDAQ Telecommunications Index (IXTC) was trading at $206.39 at 4:00 PM on Monday, down slightly on the day – down 8.42% year-to-date.


In afternoon trading: Actives: Shares of Duke Energy (DUK) are down about 0.7%. Shares of CenterPoint Energy (CNP) are down about 2.9%. Shares of Genon Energy (GEN) are down about 0.6%. Shares of AES Corp (AES) are down about 0.8%. Shares of Exelon (EXC) are down about 0.9%. Shares of Dynegy (DYN) are down about 3.7%. Shares of PG&E (PCG) are down about 0.9%. Shares of Southern Company (SO) are down about 0.9%. Shares of American Electric Power (AEP) are down about 1.2%.

The Utilities Select Sector SPDR (XLU) was trading at $34.94 at 4:00 PM on Monday, down 1.19% on the day – up 11.49% year-to-date.


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


Symbol Name Price Change % Volume
CBS CBS Corporation Class B 67.46 1.77 2.69 5,234,942
EV Eaton Vance Corporation 44.44 0.91 2.09 774,396
GEN Genesis Healthcare Inc. 3.88 0.00 0.00 460,342
TSN Tyson Foods Inc. 63.31 -1.95 -2.99 6,412,173
CL Colgate-Palmolive Company 73.18 1.20 1.67 10,552,902
CRM Salesforce.com Inc 82.18 0.71 0.87 4,324,431
SO Southern Company (The) 48.28 0.48 1.00 8,672,812
PCG Pacific Gas & Electric Co. 64.64 0.72 1.13 1,829,562
TI Telecom Italia S.P.A. New 8.20 -0.19 -2.26 94,974
ALXN Alexion Pharmaceuticals Inc. 129.89 1.07 0.83 2,715,532
TEF Telefonica SA 9.90 0.03 0.30 1,054,245
JNJ Johnson & Johnson 119.66 0.80 0.67 8,594,888
WMT Wal-Mart Stores Inc. 71.45 2.08 3.00 22,409,776
CSX CSX Corporation 48.91 0.37 0.76 7,528,836
CNP CenterPoint Energy Inc (Holding Co) 26.61 0.10 0.38 2,214,849
HW Headwaters Incorporated 23.19 0.13 0.56 435,569
NLST Netlist Inc. 1.00 0.00 0.00 74,707
BCS Barclays PLC 11.73 -0.04 -0.34 2,351,084
S Sprint Corporation 9.27 -0.03 -0.32 12,082,336
RENN Renren Inc. American Depositary Shares each repres 8.25 -0.07 -0.84 149,784
DAR Darling Ingredients Inc. 12.80 0.09 0.71 1,834,792
VOD Vodafone Group Plc 25.50 0.39 1.55 4,930,440
CTXS Citrix Systems Inc. 80.77 0.27 0.34 2,540,382
SREV ServiceSource International Inc. 6.05 0.22 3.77 711,431
LOW Lowe\'s Companies Inc. 77.25 0.51 0.66 5,293,925
AES The AES Corporation 11.78 0.32 2.79 4,089,946
DIS Walt Disney Company (The) 110.01 -0.05 -0.05 5,430,111
MSCC Microsemi Corporation 54.33 0.07 0.13 595,981
VZ Verizon Communications Inc. 49.43 0.24 0.49 19,200,534
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
BAC Bank of America Corporation 24.78 0.26 1.06 78,484,632
BHP BHP Billiton Limited 40.75 0.47 1.17 2,573,662
USB U.S. Bancorp 55.20 0.32 0.58 5,639,353
SPR Spirit Aerosystems Holdings Inc. 59.11 0.97 1.67 1,275,281
HSY The Hershey Company 108.48 1.23 1.15 1,335,122
SSRI Silver Standard Resources Inc. 11.12 -0.17 -1.51 1,866,230
SNN Smith & Nephew SNATS Inc. 30.88 0.44 1.45 545,396
BAM Brookfield Asset Management Inc. 37.29 -0.08 -0.21 1,250,266
BMY Bristol-Myers Squibb Company 54.78 0.19 0.35 26,804,692
AMGN Amgen Inc. 173.14 -0.15 -0.09 3,940,561
QEP QEP Resources Inc. 17.28 0.41 2.43 2,666,360
JKS JinkoSolar Holding Company Limited American Deposi 17.53 0.76 4.53 1,221,770
XOM Exxon Mobil Corporation 81.89 0.13 0.16 16,412,538
PFE Pfizer Inc. 33.62 0.00 0.00 24,089,012
KSU Kansas City Southern 87.66 0.77 0.89 1,388,297
BA Boeing Company (The) 175.56 2.85 1.65 4,230,503
TRP TransCanada Corporation 47.25 -0.25 -0.53 1,245,881
DHT DHT Holdings Inc. 4.86 0.07 1.46 994,042
SNY Sanofi American Depositary Shares (Each repstg one 42.76 -0.40 -0.93 2,853,253
EXC Exelon Corporation 35.92 0.34 0.96 4,473,522
NLY Annaly Capital Management Inc 10.83 0.01 0.09 5,326,937
T AT&T Inc. 41.73 0.25 0.60 17,501,814
CAT Caterpillar Inc. 98.10 -0.75 -0.76 3,915,566
DUK Duke Energy Corporation (Holding Company) 79.09 0.73 0.93 2,734,908
JCP J.C. Penney Company Inc. Holding Company 7.06 0.03 0.43 12,628,871
CTRP Ctrip.com International Ltd. 47.06 1.43 3.13 6,715,371
AEP American Electric Power Company 64.76 0.65 1.01 2,067,071
UBNT Ubiquiti Networks Inc. 49.30 0.02 0.04 1,010,923


Emerging Growth

IBC Advanced Alloys Corp.

IBC Advanced Alloys Corp is engaged in the production and development of specialty alloy products. Its products include copper alloys and berryllium aluminium alloys.

Private Markets

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…