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
AA Alcoa Inc. 9.65 -0.03 -0.31 11,470,339
AAPL Apple Inc. 113.09 0.21 0.19 24,607,412
ABT Abbott Laboratories 42.33 0.65 1.56 5,964,927
ADI Analog Devices Inc. 63.81 1.53 2.46 2,551,061
AEZS AEterna Zentaris Inc. 3.40 -0.02 -0.58 75,498
AGN Allergan plc 239.36 0.68 0.28 2,899,540
AMD Advanced Micro Devices Inc. 6.54 0.22 3.48 30,035,862
AOS A.O. Smith Corporation 98.53 2.32 2.41 554,579
AXP American Express Company 64.28 0.86 1.36 3,916,263
BA Boeing Company (The) 131.32 0.75 0.57 1,939,020
BAC Bank of America Corporation 15.29 0.20 1.33 81,992,627
BBBY Bed Bath & Beyond Inc. 42.16 -0.05 -0.12 2,105,077
BMTC Bryn Mawr Bank Corporation 31.58 0.40 1.28 26,531
BRCM Broadcom Corp. n/a n/a n/a 0
BSX Boston Scientific Corporation 23.72 -0.01 -0.04 12,317,512
BZH Beazer Homes USA Inc. 11.43 0.01 0.09 582,720
CAT Caterpillar Inc. 82.88 0.51 0.62 4,295,596
CRME Cardiome Pharma Corporation 3.10 0.03 0.98 82,987
CRR Carbo Ceramics Inc. 10.00 -0.07 -0.70 789,158
CSCO Cisco Systems Inc. 31.48 0.41 1.32 18,045,376
CSH Cash America International Inc. n/a n/a n/a 0
CVX Chevron Corporation 98.98 0.20 0.20 6,476,099
CWEI Clayton Williams Energy Inc. 76.51 -0.63 -0.82 400,669
D Dominion Resources Inc. 75.78 -0.82 -1.07 2,936,914
DD E.I. du Pont de Nemours and Co. 67.26 0.74 1.11 1,765,930
DIS Walt Disney Company (The) 91.72 -0.24 -0.26 9,167,391
DNN Denison Mines Corp (Canada) 0.48 0.01 1.47 173,819
EBAY eBay Inc. 31.94 0.27 0.85 5,914,060
EIX Edison International 74.24 -1.31 -1.73 1,769,825
ENR Energizer Holdings Inc. 46.74 -0.49 -1.04 476,399
F Ford Motor Company 11.98 -0.03 -0.25 28,965,759
FDX FedEx Corporation 177.30 1.96 1.12 2,133,240
FE FirstEnergy Corporation 33.67 -0.91 -2.63 5,301,436
GE General Electric Co 29.88 0.34 1.15 25,491,940
GM General Motors Company 31.60 -0.20 -0.63 14,465,340
GRPN Groupon Inc. 5.33 0.15 2.90 5,416,662
HD Home Depot Inc. (The) 126.82 1.37 1.09 4,433,646
HPQ HP Inc. 15.34 0.32 2.13 9,061,256
HTWR Heartware International Inc. n/a n/a n/a 0
IBM International Business Machines Corp 156.77 2.79 1.81 2,987,195
INTC Intel Corporation 37.18 0.53 1.45 22,391,576
IPI Intrepid Potash Inc 1.07 0.00 0.00 1,180,482
JIVE Jive Software Inc. 4.25 0.03 0.71 91,149
JNJ Johnson & Johnson 119.22 1.44 1.22 5,349,466
JPM JP Morgan Chase 66.36 0.58 0.88 13,711,386
KN.W Knowles Corp n/a n/a n/a 0
KO Coca-Cola Company (The) 42.59 0.54 1.28 11,920,432
LAMR Lamar Advertising Company 65.04 -0.24 -0.37 595,712
LL Lumber Liquidators Holdings Inc 18.01 0.22 1.24 826,527
MANH Manhattan Associates Inc. 58.21 0.43 0.74 448,209
MCD McDonald\'s Corporation 116.88 0.35 0.30 3,745,396
MMM 3M Company 176.30 0.35 0.20 2,433,570
MOH Molina Healthcare Inc 58.09 0.53 0.92 353,612
MPC Marathon Petroleum Corporation 41.85 0.37 0.89 4,728,435
MRK Merck & Company Inc. (new) 62.57 0.42 0.68 7,340,756
MSFT Microsoft Corporation 57.95 1.05 1.85 28,065,071
MYL Mylan N.V. 41.31 0.13 0.32 5,547,824
NVDA NVIDIA Corporation 66.54 2.20 3.42 10,068,769
PCG Pacific Gas & Electric Co. 62.85 -1.05 -1.64 2,941,282
PEIX Pacific Ethanol Inc. 6.52 0.07 1.09 319,302
PFE Pfizer Inc. 33.83 0.19 0.56 15,610,585
PG Procter & Gamble Company (The) 88.36 0.51 0.58 65,150,794
PNRA Panera Bread Company 193.51 -1.88 -0.96 987,168
PSX Phillips 66 79.41 -0.06 -0.08 2,274,587
RBCN Rubicon Technology Inc. 0.61 -0.00 -0.75 25,875
RS Reliance Steel & Aluminum Co. (DE) 72.05 0.65 0.91 426,080
SCHN Schnitzer Steel Industries Inc. 19.63 0.06 0.31 397,714
SLB Schlumberger N.V. 75.33 -0.25 -0.33 6,457,176
SO Southern Company (The) 52.84 -0.47 -0.88 5,774,119
T AT&T Inc. 41.46 0.32 0.78 18,440,158
TASR TASER International Inc. 28.41 0.11 0.39 568,899
TEVA Teva Pharmaceutical Industries Limited American De 49.47 -0.80 -1.59 6,099,387
TRV The Travelers Companies Inc. 114.41 0.47 0.41 1,758,557
TXN Texas Instruments Incorporated 69.45 1.03 1.51 4,560,225
UTX United Technologies Corporation 102.35 0.12 0.12 4,299,266
VZ Verizon Communications Inc. 52.49 0.34 0.65 8,259,032
WMS Advanced Drainage Systems Inc. 24.41 0.05 0.21 110,103
WMT Wal-Mart Stores Inc. 72.33 0.71 0.99 6,344,407
WNR Western Refining Inc. Inc. 26.17 0.27 1.04 3,178,198
XOM Exxon Mobil Corporation 83.24 0.18 0.22 9,595,020

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