Equities Sector Coverage: Stocks Stay Flat As Rally Cools

Sector Recap |

Stocks Stay Flat As Rally CoolsThe Dow Jones Industrial Average traded down to 13,517.81 then up to 13,582.12 in morning trading then consolidated this range in the afternoon. The NASDAQ traded down to 3169.41 then up to 3179.37 in morning trading then consolidated this range in the afternoon.

Asian stocks closed lower on Monday. The Nikkei 225 was closed at 9,124 – down 0.39%. The Hang Seng ended the day at 20,602 – down 0.27%. European exchanges traded lower on Tuesday. The FTSE 100 ended the day at 5,883 – down 0.18%. The DAX ended the day at 7,348 – down 0.76%. The CAC 40 ended the day at 3,513 – down 1.15%.

The yield on the 10-Year US Treasury declined from 1.840% to 1.777% back below the 200-day simple moving average at 1.829%. Comex gold traded down to $1753.2 the Troy ounce then rebounded to $1775.9. Nymex crude oil rebounded from $95.39 per barrel to $97.23 then declined to $95.11 trading back and forth around the 200-day simple moving average at $96.57. The euro versus the dollar declined from 1.3119 to 1.3032.

Energy

Clayton Williams Energy (CWEI) is a new Buy at Miller Tabak. Schlumberger (SLB) is begun with a Market Perform at William Blair. CARBO Ceramics (CRR) is lowered to Hold from Buy at Dahlman Rose. Marathon Petroleum (MPC), Phillips 66 (PSX), and Western Refining (WNR) are all now Neutral from Outperform at Credit Suisse.

Big Movers – Pacific Ethanol (PEIX) is down about 17%, Denison Mines (DNN) is up about 13.5%.
Dow components – Chevron (CVX) down 0.34%, Exxon Mobil (XOM) down 0.29%.
Energy Select Sector SPDR (XLE) was trading at $75.165 at 3:30 PM on Tuesday, down 1.09% on the day – up 8.73% year-to-date.

Materials

Intrepid Potash (IPI) is initiated with a Buy at Topeka. SilverCrest Mines (SVLC) is an Accumulate at Global Hunter. Alcoa (AA) is lowered to Hold from Buy at Jefferies. Randgold Resources (GOLD) gets downgraded to Hold from Buy at Stifel Nicolaus. Reliance Steel (RS) and Schnitzer Steel (SCHN) each reduced to Hold from Buy at Jefferies. Dow Components – Alcoa (AA) down 1.36%, DuPont (DD) down 1.08%. The Materials Select Sector SPDR (XLB) was trading at $37.64 at 3:30 PM on Tuesday, down 0.32% on the day – up 12.36% year-to-date.

Industrials

FedEx (FDX) beat estimates by 5 cents and revenue by $100M. The company sees FQ2 EPS of $1.30-$1.45 and full-year EPS of $6.20-$6.60. AO Smith Corp (AOS) is initiated with a Buy at Janney Capital. Pall Corp. (PLL) is lifted to Neutral from Underperform at Bank of America-Merrill Lynch. TASER International (TASR) is moved to Overweight from Neutral at JPMorgan. Dow components – Boeing Co (BA) down 0.46%, Caterpillar (CAT) up 0.50%, General Electric (GE) up 0.59%, 3M Company (MMM) down 0.53%, United Technologies (UTX) down 1.24%. The Industrial Select Sector SPDR (XLI) was trading at $37.56 at 3:30 PM on Tuesday, down 0.05% on the day – up 11.29% year-to-date.

Consumer Discretionary

Execs with Ford (F) are out in full force this week to drum up support for the new 2013 Ford Fusion. The automaker would like to rattle the dominance of rivals Toyota and Honda in the mid-size market with its fully redesigned Fusion entry to end a 15-year drought since it last had the best-selling car in the U.S. A plan by General Electric (GE) to put 85K workers on a high-deductible health care plan in order to lowers its mult-billion dollar health costs falls in line with the trend of other major corporations, but not with a painful side effect. Beazer Homes (BZH) is a new Neutral at Goldman Sachs. Bloomin’ Brands (BLMN) is a Hold at Deutsche Bank. Groupon (GRPN) gets picked up with a Neutral at Piper Jaffray. General Motors (GM) gets upgraded to Buy from Neutral at Buckingham. Lamar Advertising (LAMR) is upgraded to Conviction Buy from Neutral at Goldman Sachs. Bed Bath & Beyond (BBBY) is downgraded to Perform from Outperform at Oppenheimer. LVMH Moët Hennessy Louis Vuitton (LVMUY) is lowered to Neutral from Buy at UBS. Lumber Liquidators (LL) is downgraded to Underperform from Market Perform at Raymond James. Panera Bread (PNRA) is downgraded to Hold from Buy at Miller Tabak. WMS Industries (WMS) is slashed to Sell from Hold at Deutsche Bank. Dow Components – Disney (DIS) down 0.29%, Home Depot (HD) down 0.31%, McDonalds (MCD) up 0.82%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.274 at 3:30 PM on Tuesday, down 0.54% on the day – up 21.15% year-to-date.



Consumer Staples

Dole Foods (DOLE) will cash out of its worldwide packaged foods and Asia fresh produce businesses by selling them both to Itochu to the tune of $1.69B. Schiff Nutrition (SHF) reported FQ1 EPS of $0.20 (in-line), while beating revenue by $2M. L’Oreal (LRLCY) is lifted to Buy from Hold at Société Générale. Big Movers – China-Biotics (CHBT) is up about 60.5%, Energizer Holdings (ENR) is up about 11.5%. Dow components – Coca Cola (KO) up 0.83%, Procter & Gamble (PG) up 0.31%, Wal-Mart (WMT) up 0.03%. The Consumer Staples Select Sector SPDR (XLP) was trading at $36.07 at 3:30 PM on Tuesday, up 0.53% on the day – up 11.02% year-to-date.

Health Care

HeartWare (HTWR) is an Outperform at WallachBeth. Botox maker Allergan (AGN) is begun with a Buy at Guggenheim, which has new Neutrals on Mylan Labs (MYL) and Teva Pharmaceuticals (TEVA). Iris International (IRIS) is downgraded to Hold from Buy at The Benchmark Company. Abbott Labs (ABT) and Boston Scientific (BSX) are both lowered to Market Perform from Outperform at Leerink. Molina Healthcare (MOH) is moved to Underperform from Hold at Jefferies. Optimer Pharmaceuticals (OPTR) gets cut 180 degrees, to Underperform from Buy at Bank of America-Merrill Lynch. Big Movers – Cardiome Pharma (CRME) is up about 15.2%, AEterna Zentaris (AEZS) is up about 11.2%. Dow Components – Johnson & Johnson (JNJ) up 0.54%, Merck (MRK) up 0.25%, Pfizer (PFE) up 0.10%, United Health Group up 1.43%. The Health Care Select Sector SPDR (XLV) was trading at $40.01 at 3:30 PM on Tuesday, up 0.28% on the day – up 15.34% year-to-date.

Financial

Bryn Mawr Bank (BMTC) is begun with a Buy at Janney Capital. Cash America International (CSH) is downgraded to Hold from Buy at Jefferies. DFC Global (DLLR) is downgraded to Hold from Buy at Jefferies. Dow Components – American Express (AXP) down 0.95%, Bank of America (BAC) down 1.18%, JP Morgan Chase (JPM) down 0.38%, Travelers (TRV) down 0.12%. The Financial Select Sector SPDR (XLF) was trading at $16.04 at 3:30 PM on Tuesday, down 0.56% on the day – up 23.38% year-to-date.

Information Technology

Apple (AAPL) stock touched $700/share in after-hours trade Monday, charged with initial sales results for the iPhone 5 that exceeded expectations: Over 2 million pre-orders in the first 24 hours, twice what Apple logged for the iPhone 4S. No. 2 global PC maker Lenovo (LNVGY) makes its first software acquisition count, agreeing to buy Utah-based Stoneware to gain technology related to synchronizing data across mobile devices. Broadcom (BRCM) is upgraded to Outperform from Sector Perform at RBC Capital. Jive Software (JIVE) gets upgraded to Outperform from Market Perform with Wells Fargo. Manhattan Associates (MANH) is moved to Buy from Hold at ThinkEquity. OCZ Technology (OCZ) is upgraded to Buy from Hold at Craig Hallum. Rubicon Technology (RBCN) is raised to Buy from Hold at ThinkEquity. eBay Inc. (EBAY) is now Neutral from Buy at Compass Point. RBC Capital gives Sector Perform-from-Outperform ratings reductions to Dow component Intel (INTC), along with Analog Devices (ADI), Texas Instruments (TXN), and NVIDIA (NVDA). The analyst’s concerns include elevated inventory levels.
Big Movers – Velti PLC (VELT) is up about 11.9%, Advanced Micro Devices (AMD) is down about 9.5%.
Dow Components – Cisco Systems (CSCO) down 0.31%, Hewlett-Packard (HPQ) down 0.16%, IBM (IBM) down 0.14%, Intel Corp (INTC) up 0.04%, Microsoft (MSFT) down 0.08%. The Technology Select Sector SPDR (XLK) was trading at $31.59 at 3:30 PM on Tuesday, down 0.06% on the day – up 24.13% year-to-date.

Telecommunication Services

France Telecom (FTE) is taken to Neutral from Outperform by BNP Paribas. Big Movers – Clearwire (CLWR) is down about 9%.
Dow Components – AT&T (T) up 0.24%, Verizon (VZ) up 0.64%. The NASDAQ Telecommunications Index (IXTC) was trading at $199.84 at 3:30 PM on Tuesday, down 0.04% on the day – up 1.48% year-to-date.

Utilities

The Big Names – Dominion Resources (D) down 0.57%, Edison International (EIX) up 0.60%, First Energy (FE) up 0.05%, PG&E Corp (PCG) up 0.02%, Southern Company (SO) up 0.04%. The Utilities Select Sector SPDR (XLU) was trading at $36.17 at 3:30 PM on Tuesday, down 0.39% on the day – up 0.53% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KFT, KO, PG, WMT, JNJ, MRK, PFE, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, CWEI, SLB, CRR, MPC, PSX, WNR, PEIX, DNN, IPI, SVLC, AA, GOLD, RS, SCHN, FDX, AOS, PLL, TASR, F, GE, BZH, GRPN, GM, LAMR, BBBY, LVMUY, LL, PNRA, WMS, DOLE, SHF, LRLCY, CHBT, ENR, HTWR, AGN, MYL, TEVA, IRIS, ABT, BSX, MOH, OPTR, CRME, AEZS, BMTC, CSH, DLLR, AAPL, LNVGY, BRCM, JIVE, MANH, OCZ, RBCN, EBAY, INTC, ADI, TXN, NVDA, VELT, AMD, FTE, CLWR

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
DNN Denison Mines Corp (Canada) 0.45 0.00 0.93 188,803
MMM 3M Company 202.67 -1.61 -0.79 1,267,265 Trade
PG Procter & Gamble Company (The) 92.44 -0.35 -0.38 3,631,851 Trade
GE General Electric Co 24.39 -0.21 -0.85 34,533,592 Trade
CVX Chevron Corporation 106.61 0.25 0.24 4,185,754 Trade
ABT Abbott Laboratories 49.64 -0.07 -0.14 4,558,959 Trade
SO Southern Company (The) 48.04 0.09 0.19 3,224,177 Trade
PCG Pacific Gas & Electric Co. 69.90 0.23 0.33 1,066,341 Trade
JNJ Johnson & Johnson 132.80 -1.90 -1.41 5,129,946 Trade
IPI Intrepid Potash Inc 3.37 0.06 1.81 1,013,182 Trade
WMT Wal-Mart Stores Inc. 79.96 -0.06 -0.07 7,799,307 Trade
AA Alcoa Inc. 41.06 1.29 3.24 4,827,278 Trade
INTC Intel Corporation 34.66 0.01 0.03 19,648,464 Trade
IBM International Business Machines Corp 142.14 1.13 0.80 4,048,317 Trade
MANH Manhattan Associates Inc. 40.92 -0.57 -1.37 451,499 Trade
D Dominion Resources Inc. 79.22 0.25 0.32 1,588,755 Trade
TRV The Travelers Companies Inc. 127.16 -0.61 -0.48 946,955 Trade
JIVE Jive Software Inc. n/a n/a n/a 0 Trade
TASR TASER International Inc. n/a n/a n/a n/a
EBAY eBay Inc. 34.89 0.08 0.23 6,326,628 Trade
AAPL Apple Inc. 159.98 0.20 0.13 19,400,429 Trade
ADI Analog Devices Inc. 79.07 -0.10 -0.13 1,597,943 Trade
MPC Marathon Petroleum Corporation 50.17 0.50 1.01 4,527,197 Trade
KN.W Knowles Corp n/a n/a n/a 0 Trade
EIX Edison International 80.33 0.23 0.29 1,817,733 Trade
CSH Cash America International Inc. n/a n/a n/a 0 Trade
WMS Advanced Drainage Systems Inc. 19.05 -0.55 -2.81 195,613 Trade
BZH Beazer Homes USA Inc. 15.24 -0.34 -2.18 483,441 Trade
JPM JP Morgan Chase 91.67 0.11 0.12 8,811,292 Trade
AXP American Express Company 85.28 -0.02 -0.02 1,960,380 Trade
UTX United Technologies Corporation 117.03 1.34 1.16 6,203,459 Trade
HTWR Heartware International Inc. n/a n/a n/a 0 Trade
NVDA NVIDIA Corporation 165.80 3.25 2.00 14,491,280 Trade
TXN Texas Instruments Incorporated 80.89 0.14 0.17 4,109,686 Trade
AMD Advanced Micro Devices Inc. 12.48 0.31 2.55 44,359,447 Trade
PSX Phillips 66 82.36 0.13 0.16 1,159,758 Trade
CSCO Cisco Systems Inc. 30.92 -0.35 -1.12 22,436,605 Trade
DIS Walt Disney Company (The) 101.50 -1.27 -1.24 5,954,375 Trade
AGN Allergan plc 222.27 -1.48 -0.66 1,465,046 Trade
CRR Carbo Ceramics Inc. 6.45 0.16 2.54 724,044 Trade
BSX Boston Scientific Corporation 26.84 -0.37 -1.36 3,838,696 Trade
RS Reliance Steel & Aluminum Co. (DE) 71.44 0.55 0.78 466,327 Trade
PNRA Panera Bread Company n/a n/a n/a 0 Trade
VZ Verizon Communications Inc. 48.28 -0.07 -0.14 8,909,187 Trade
LAMR Lamar Advertising Company 65.27 0.43 0.66 682,151 Trade
GM General Motors Company 35.49 0.19 0.54 6,430,459 Trade
BAC Bank of America Corporation 23.76 -0.07 -0.29 39,825,662 Trade
MCD McDonald\'s Corporation 158.81 -0.83 -0.52 2,190,674 Trade
DD E.I. du Pont de Nemours and Co. 82.76 -0.25 -0.30 2,605,133 Trade
BBBY Bed Bath & Beyond Inc. 27.53 0.16 0.58 2,150,731 Trade
CRME Cardiome Pharma Corporation 2.33 0.22 10.43 967,371 Trade
RBCN Rubicon Technology Inc. 7.95 0.05 0.63 2,733 Trade
PEIX Pacific Ethanol Inc. 4.25 -0.15 -3.41 476,391 Trade
CWEI Clayton Williams Energy Inc. n/a n/a n/a 0 Trade
HD Home Depot Inc. (The) 149.10 -0.81 -0.54 5,235,444 Trade
AEZS AEterna Zentaris Inc. 1.86 -0.05 -2.62 131,639 Trade
F Ford Motor Company 10.71 0.06 0.56 35,406,268 Trade
XOM Exxon Mobil Corporation 76.61 -0.13 -0.17 7,054,254 Trade
PFE Pfizer Inc. 33.24 0.09 0.27 16,119,454 Trade
TEVA Teva Pharmaceutical Industries Limited American De 16.49 -0.52 -3.06 20,011,992 Trade
FDX FedEx Corporation 207.07 -2.21 -1.06 1,015,823 Trade
HPQ HP Inc. 18.86 -0.16 -0.84 15,066,966 Trade
WNR Western Refining Inc. Inc. n/a n/a n/a 0 Trade
BA Boeing Company (The) 238.09 -1.66 -0.69 2,518,275 Trade
MRK Merck & Company Inc. (new) 62.15 -0.27 -0.43 6,434,881 Trade
AOS A.O. Smith Corporation 54.21 -0.21 -0.39 918,252 Trade
GRPN Groupon Inc. 4.07 -0.01 -0.25 4,983,392 Trade
BMTC Bryn Mawr Bank Corporation 40.45 -0.15 -0.37 32,832 Trade
ENR Energizer Holdings Inc. 42.80 0.23 0.54 1,352,191 Trade
FE FirstEnergy Corporation 32.93 0.03 0.09 2,469,313 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
KO Coca-Cola Company (The) 45.54 -0.06 -0.13 6,528,405 Trade
T AT&T Inc. 37.92 -0.06 -0.16 19,935,030 Trade
CAT Caterpillar Inc. 114.75 -1.07 -0.92 2,447,682 Trade
SCHN Schnitzer Steel Industries Inc. 25.95 0.50 1.96 255,629 Trade
LL Lumber Liquidators Holdings Inc 35.39 -0.10 -0.28 697,459 Trade
SLB Schlumberger N.V. 63.19 -0.16 -0.25 4,433,403 Trade
MOH Molina Healthcare Inc 60.51 -0.03 -0.05 846,379 Trade
MYL Mylan N.V. 30.32 -0.41 -1.33 3,895,861 Trade
MSFT Microsoft Corporation 72.72 -0.44 -0.60 13,766,630 Trade

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