Equities Sector Coverage: Stocks Show Mixed Bag as Investors Get Defensive

Sector Recap |

Wall Street TraderAsian stocks were lower on Monday. The Nikkei 225 ended their session at 9,471 – down 1.74% on the day. The Hang Seng ended their session at 20,611 – down 0.44% on the day. European stocks were higher on Monday. The FTSE 100 ended their session at 5,684 – up 0.56% on the day. The DAX ended their session at 6,625 – up 0.36% on the day. The CAC 40 ended their session at 3,205 – up 0.51% on the day. The yield on the 10-Year US Treasury traded down from 1.998 percent to 1.946 below its 50-day and 200-day simple moving averages at 2.081 and 2.132.

Retail Sales in March came in stronger than expected at up 0.8%. The NY Empire Manufacturing Survey came in weaker than expected in April at a reading at 6.56. Business Inventories rose 0.6% in February. The National Association of Home Builders Housing Market Index fell three points to 25 the first decline in seven months. The Dow Jones Industrial Average rebounded to 12,986.77 on Monday morning staying below its 50-day simple moving average at 12,998. The NASDAQ’s declined to 2975.87 moving below its 50-day simple moving average at 3003.

Gold declined from $1658.7 the Troy ounce to $1642.0 then rose to $1659.6 staying below its 50-day and 200-day simple moving averages at $1694.3 and $1692.7, converging towards a “death cross”. Crude oil traded up to $103.37 per barrel then declined to $101.80 then consolidated below its 50-day simple moving average at $104.23. The euro versus the dollar declined from 1.3073 to 1.2998 then rebounded to 1.3146 below its 50-day simple moving average at 1.3209.

Energy

Exxon Mobil (XOM) and Russia’s Rosneft are expected to sign a wide-ranging strategic partnership at Vladimir Putin's residence today. Both firms search for oil in Russia's Arctic offshore, while Rosneft gains access to Exxon's North American projects. Kinder Morgan (KMP) has the largest natural gas system in the US and thus is positioned to take advantage of the increased demand that should evolve from extremely low natural gas prices. QR Energy LP (QRE) has been upgraded to Outperform from Perform at Robert W. Baird with a price target at $24. Chesapeake Energy (CHK) has been downgraded to Neutral from Buy at Citigroup. Marathon Petroleum (MPC), the oil outfit has been downgraded to Hold from Buy at Deutsche Bank. Dow components - Chevron (CVX) was up 0.6% Monday morning with Exxon Mobil (XOM) up 0.8%.

Energy Select Sector SPDR (XLE) was trading at $68.28 at 3:30 PM on Monday, down 0.61% on the day – down 1.23% year-to-date.

Materials

Alpha Natural Resources (ANR) and Freeport-McMoRan (FCX) have been upgraded to Buy from Neutral at Citigroup. BASF AG (BASFY), the chemical company has been upgraded to Overweight from Neutral at HSBC Securities. PPG Industries (PPG) has been upgraded to Buy from Neutral at Citigroup. Dow components - Alcoa (AA) slipped 0.2% on Monday morning with DuPont (DD) up 1.2%.

The Materials Select Sector SPDR (XLB) was trading at $36.29 at 3:30 PM on Monday, up 0.44% on the day – up 8.33% year-to-date.

Industrials

Stratasys (SSYS) will merge with privately-held Object in an all-stock transaction with a value at $1.4 billion. The combined 3D printer company will operate under the Stratasys name with headquarters in both Israel and Minnesota. Caterpillar (CAT) has been upgraded to Buy from Neutral at Bank of America-Merrill Lynch. Apogee Enterprises (APOG) has been upgraded to Outperform from Perform at Kansas City Capital with a price target at $15. Esterline Technologies (ESL) has been upgraded to Outperform from Neutral at Credit Suisse. Standard Motor (SMP) has been upgraded to Neutral from Sell at Goldman. Ball Corp (BLL) has been downgraded to Neutral from Outperform at Credit Suisse. GOL Linhas Aéreas Inteligentes S.A. (GOL), The Latin American airline has been downgraded to Neutral from Overweight at HSBC Securities. LaFarge (LFRGY) has been downgraded to Hold from Buy at Société Générale. Magna International (MGA) has been downgraded to Sell from Neutral at Goldman. Dow components - Boeing Co (BA) slipped 0.3%, Caterpillar (CAT) rebounded by 0.6%, General Electric (GE) rebounded by 0.3% 3M Company (MMM) was higher by 0.6%, and United Technologies (UTX) gained 0.3% all in morning trading.

The Industrial Select Sector SPDR (XLI) was trading at $36.50 at 3:30 PM on Monday, up 0.47% on the day – up 8.15% year-to-date.



Consumer Discretionary

Domino’s Pizza (DPZ) has been upgraded to Buy from Hold at Miller Tabak. Nordstrom (JWN) has been upgraded to Outperform from Underperform by Crédit Agricole with a price target upped to $64 from $55. Madison Square Garden (MSG) has been downgraded to Negative from Neutral at Susquehanna due to an excessive current valuation. Dow Components - Disney (DIS) lost 0.5%, and McDonalds (MCD) also slipped by 0.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.43 at 3:30 PM on Monday, down 0.27% on the day – up 13.86% year-to-date.

Consumer Staples

Home Depot (HD) has been upgraded to Overweight from Neutral by Piper Jaffray on optimism over accelerating earnings growth. Lowe’s (LOW) has been upgraded to Overweight from Neutral at Piper Jaffray. L’Oreal (LRLCY), the French cosmetics company has been upgraded to Buy from Hold at Jefferies. Dow components - Home Depot (HD) tacked on 1.0%, Kraft (KFT) gained 0.7%, Coca Cola (KO) gained 1.0%, Procter & Gamble (PG) gained 1.3%, and Wal-Mart (WMT) gained 1.2% all in morning trading.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.83 at 3:30 PM on Monday, up 0.59% on the day – up 4.12% year-to-date.

Health Care

Novadaq Technologies (NVDQ) is initiated with an Overweight rating at Piper Jaffrey. Aastrom Biosciences (ASTM), the small cap has been upgraded to Speculative Buy from Hold with a $3 price target at WBB Securities. eResearchTech (ERT) has been downgraded to Hold from Buy at Auriga. Dow Components - Johnson & Johnson (JNJ) gained 0.8%, Merck (MRK) was up 0.6%, and Pfizer (PFE) gained 0.5% in morning trading.

The Health Care Select Sector SPDR (XLV) was trading at $36.65 at 3:30 PM on Monday, up 0.19% on the day – up 5.65% year-to-date.

Financials

Private-equity firm Carlyle Group (CARL) will sell 30.5 million shares for $23 to $25 each in its IPO, which creates a valuation of over $7 billion. Citigroup (C) earned $1.11 a share in the first quarter beating expectations of $1.00. Shares were down pre-market as revenue falls 47%, but rebounded to be up 1.3% in morning trading. Goldman Sachs (GS) has sold $3.55 billion shares in Industrial & Commercial Bank of China to Temasek of Singapore for $2.3 billion. Credit Suisse (CS) may announce that it's cutting 5,000 jobs when it reports Q1 results next week. Janus Capital (JNS) and Waddell & Reed (WDR) have been upgraded to Neutral from Sell at Citigroup. Dow Components - American Express (AXP) gained 0.3%, Bank of America (BAC) gained 0.4%, JP Morgan (JPM) slipped 0.4%, and Travelers (TRV) gained 1.0% all in morning trading.

The Financial Select Sector SPDR (XLF) was trading at $15.25 at 3:30 PM on Monday, up 0.79% on the day – up 17.31% year-to-date.

Information Technology

Jury selection in the trial over whether Google (GOOG) violated Oracle's (ORCL) Java patents will begin today. Texas Instruments (TXN) will replace First Solar (FSLR) in the Nasdaq 100 on April 23. Cadence Design (CDNS) has been initiated with an Overweight by Piper Jaffray. Linear Technology (LLTC) has been upgraded to Buy from Neutral at Longbow due to improving fundamentals and valuation. Siliconware Precision (SPIL) has been upgraded to Overweight from Equal Weight by Barclays. United Microelectronics (UMC) has been upgraded to Equal Weight from Underweight at Barclays. Infosys (INFY) has been downgraded to Hold from Buy at Deutsche Bank and to Neutral from Overweight at HSBC Securities. Dow Components - Cisco Systems (CSCO) lost 0.8%, Hewlett-Packard (HPQ) was down 0.6, IBM (IBM) gained 0.6%, Intel Corp (INTC) rebounded 0.5%, and Microsoft (MSFT) gained 0.3% all in morning trading.

The Technology Select Sector SPDR (XLK) was trading at $29.36 at 3:30 PM on Monday, down 0.84% on the day – up 15.35% year-to-date.

Telecommunication Services

Deutsche Telekom (DTEGY) has been downgraded to Neutral from Outperform by BNP Paribas. Spreadtrum Communications (SPRD) has been downgraded to Equal Weight from Overweight at Morgan Stanley. Dow components - AT&T (T) gained 0.2% while Verizon (VZ) drifted higher by 0.1% in morning trading.

The NASDAQ Telecommunications Index (IXTC) was trading at $208.56 at 3:30 PM on Monday, down 0.32% on the day – up 5.91% year-to-date.

Utilities

SCANA Corp (SCG) has been downgraded to Sell from Neutral at Goldman. Dominion Resources (D) gained 0.5%, Edison International (EIX) was up 1.9%, First Energy (FE) was up 0.8%, and PG&E Corp (PCG) was up 1.5% in morning trading.

The Utilities Select Sector SPDR (XLU) was trading at $34.71 at 3:30 PM on Monday, up 1.11% on the day – down 3.53% year-to-date.

STOCKS: CVX, XOM, QRE, CHK, MPC, AA, DD, ANR, FCX, BASFY, PPG, BA, CAT, GE, MMM, UTX, SSYS, APOG, ESL, SMP, BLL, GOL, LFRGY, MGA, DIS, MCD, DPZ, JWN, MSG, HD, KFT, KO, PG, WMT, LOW, LRLCY, JNJ, MRK, PFE, NVDQ, ASTM, ERT, AXP, BAC, JPM, CARL, C, GS, CS, JNS, WDR, CSCO, HPQ, IBM, INTC, MSFT, GOOG, ORCL, TXN, FSLR, CDNS, LLTC, SPIL, UMC, INFY, T, VZ, DTEGY, D, EIX, FE, PCG, PPL,SCG

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 248.18 2.27 0.92 2,013,467 Trade
WDR Waddell & Reed Financial Inc. 22.97 0.24 1.06 892,795 Trade
ORCL Oracle Corporation 50.58 0.35 0.70 14,011,470 Trade
PG Procter & Gamble Company (The) 91.07 0.89 0.99 9,364,027 Trade
GE General Electric Co 16.26 -0.51 -3.04 214,947,168 Trade
CVX Chevron Corporation 131.30 -0.29 -0.22 6,048,904 Trade
ASTM Aastrom Biosciences Inc n/a n/a n/a 0 Trade
PCG Pacific Gas & Electric Co. 44.39 -0.11 -0.25 4,337,721 Trade
CDNS Cadence Design Systems Inc. 45.60 0.66 1.47 2,147,919 Trade
NVDQ Novadaq Technologies Inc n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 147.36 0.44 0.30 8,738,791 Trade
PPG PPG Industries Inc. 118.44 0.03 0.03 2,953,303 Trade
WMT Wal-Mart Stores Inc. 104.59 0.29 0.28 8,378,580 Trade
AA Alcoa Inc. 53.10 0.10 0.19 5,759,602 Trade
INTC Intel Corporation 44.82 0.34 0.76 25,780,217 Trade
IBM International Business Machines Corp 162.37 -6.75 -3.99 21,172,488 Trade
D Dominion Resources Inc. 74.99 0.10 0.13 6,529,907 Trade
ESL Esterline Technologies Corporation 76.00 1.85 2.49 204,343 Trade
CFR Cullen/Frost Bankers Inc. 101.51 1.36 1.36 297,394 Trade
SMP Standard Motor Products Inc. 46.25 0.64 1.40 142,107 Trade
MPC Marathon Petroleum Corporation 71.89 0.40 0.56 3,894,320 Trade
JWN Nordstrom Inc. 52.00 0.78 1.52 1,504,232 Trade
C Citigroup Inc. 78.30 0.91 1.18 17,813,995 Trade
PPL PPL Corp 31.59 -0.02 -0.06 8,504,068 Trade
DPZ Domino\'s Pizza Inc 213.54 2.63 1.25 615,679 Trade
EIX Edison International 62.12 0.20 0.32 3,222,289 Trade
UMC United Microelectronics Corporation (NEW) 2.44 0.02 0.83 1,213,304 Trade
SSYS Stratasys Ltd. 22.82 0.03 0.13 545,401 Trade
JPM JP Morgan Chase 113.01 -0.25 -0.22 18,785,468 Trade
AXP American Express Company 98.03 -1.83 -1.83 12,306,039 Trade
UTX United Technologies Corporation 135.90 1.29 0.96 3,235,284 Trade
TXN Texas Instruments Incorporated 116.83 0.42 0.36 6,367,294 Trade
APOG Apogee Enterprises Inc. 45.00 -0.17 -0.38 304,630 Trade
LOW Lowe\'s Companies Inc. 104.95 3.59 3.54 9,558,311 Trade
MSG The Madison Square Garden Company Class A (New) 212.00 1.56 0.74 103,183 Trade
CSCO Cisco Systems Inc. 41.29 -0.01 -0.02 24,582,041 Trade
DIS Walt Disney Company (The) 110.59 0.17 0.15 10,514,262 Trade
GS The Goldman Sachs Group Inc. 256.12 5.15 2.05 4,643,375 Trade
BLL Ball Corporation 38.72 -0.07 -0.18 3,922,993 Trade
VZ Verizon Communications Inc. 51.91 0.36 0.70 23,761,297 Trade
BAC Bank of America Corporation 31.72 0.24 0.76 66,490,985 Trade
GOOG Alphabet Inc. 1,137.51 7.72 0.68 1,778,229 Trade
LLTC Linear Technology Corporation n/a n/a n/a 0 Trade
MCD McDonald\'s Corporation 176.12 1.55 0.89 3,746,267 Trade
FCX Freeport-McMoRan Inc. 19.96 0.56 2.89 22,636,088 Trade
SCG SCANA Corporation 43.35 0.88 2.07 2,640,205 Trade
DD E.I. du Pont de Nemours and Co. 83.93 0.00 0.00 0 Trade
JNS Janus Capital Group Inc n/a n/a n/a 0 Trade
MGA Magna International Inc. 58.28 -1.19 -2.00 1,336,361 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 10.14 0.12 1.20 190,162 Trade
HD Home Depot Inc. (The) 201.33 3.00 1.51 5,809,640 Trade
XOM Exxon Mobil Corporation 87.15 -0.28 -0.32 13,090,032 Trade
PFE Pfizer Inc. 36.94 -0.05 -0.14 29,538,600 Trade
FSLR First Solar Inc. 70.03 -1.06 -1.49 1,430,107 Trade
HPQ HP Inc. 23.70 0.41 1.76 11,551,429 Trade
BA Boeing Company (The) 337.73 -2.43 -0.71 7,264,401 Trade
MRK Merck & Company Inc. (new) 61.28 0.15 0.25 12,161,865 Trade
FE FirstEnergy Corporation 29.40 -0.16 -0.54 6,574,475 Trade
KO Coca-Cola Company (The) 47.16 0.28 0.60 16,187,425 Trade
INFY Infosys Limited American Depositary Shares 17.99 0.07 0.39 3,853,169 Trade
T AT&T Inc. 37.21 0.06 0.16 27,919,839 Trade
CAT Caterpillar Inc. 170.41 2.36 1.40 5,796,683 Trade
SPIL Siliconware Precision Industries Company Ltd. 8.49 0.04 0.47 75,029 Trade
MSFT Microsoft Corporation 90.00 -0.10 -0.11 36,875,013 Trade
CHK Chesapeake Energy Corporation 3.95 -0.04 -1.00 22,388,586 Trade

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