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) 0.42 0.01 1.92 447,841
MMM 3M Company 221.55 0.23 0.10 2,159,685 Trade
PG Procter & Gamble Company (The) 87.30 -0.95 -1.08 13,311,147 Trade
GE General Electric Co 22.32 -1.51 -6.34 186,513,347 Trade
CVX Chevron Corporation 118.93 0.29 0.24 3,869,667 Trade
ABT Abbott Laboratories 56.08 -0.24 -0.43 4,709,045 Trade
SO Southern Company (The) 52.20 -0.01 -0.02 2,999,697 Trade
PCG Pacific Gas & Electric Co. 57.26 -0.60 -1.04 6,345,072 Trade
JNJ Johnson & Johnson 143.62 1.22 0.86 6,684,865 Trade
IPI Intrepid Potash Inc 3.57 -0.21 -5.56 1,699,856 Trade
WMT Wal-Mart Stores Inc. 88.65 1.21 1.38 10,582,008 Trade
AA Alcoa Inc. 47.93 0.00 0.00 4,019,735 Trade
INTC Intel Corporation 40.83 0.40 0.99 28,596,883 Trade
IBM International Business Machines Corp 159.55 -2.52 -1.55 5,778,161 Trade
MANH Manhattan Associates Inc. 48.27 -0.52 -1.07 778,634 Trade
D Dominion Resources Inc. 80.38 0.38 0.48 2,016,208 Trade
TRV The Travelers Companies Inc. 134.45 1.13 0.85 1,790,192 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. 36.83 -0.78 -2.07 10,374,243 Trade
AAPL Apple Inc. 156.17 -0.08 -0.05 21,887,361 Trade
ADI Analog Devices Inc. 88.77 -0.16 -0.18 2,031,179 Trade
MPC Marathon Petroleum Corporation 56.34 -1.15 -2.00 3,734,415 Trade
KN.W Knowles Corp n/a n/a n/a 0 Trade
EIX Edison International 80.01 0.41 0.52 1,217,724 Trade
CSH Cash America International Inc. n/a n/a n/a 0 Trade
WMS Advanced Drainage Systems Inc. 18.30 0.00 0.00 195,982 Trade
BZH Beazer Homes USA Inc. 19.84 0.04 0.20 236,967 Trade
JPM JP Morgan Chase 99.34 -0.17 -0.17 9,203,483 Trade
AXP American Express Company 92.38 0.29 0.31 2,963,098 Trade
UTX United Technologies Corporation 120.89 -0.04 -0.03 2,577,450 Trade
HTWR Heartware International Inc. n/a n/a n/a 0 Trade
NVDA NVIDIA Corporation 196.62 -0.28 -0.14 10,689,531 Trade
TXN Texas Instruments Incorporated 96.21 1.03 1.08 7,291,499 Trade
AMD Advanced Micro Devices Inc. 14.10 0.29 2.10 49,651,896 Trade
PSX Phillips 66 91.24 0.44 0.48 2,036,034 Trade
CSCO Cisco Systems Inc. 34.35 0.10 0.29 22,618,812 Trade
DIS Walt Disney Company (The) 98.70 -0.70 -0.70 5,886,486 Trade
AGN Allergan plc 187.77 -0.51 -0.27 2,933,770 Trade
CRR Carbo Ceramics Inc. 6.47 -0.19 -2.85 1,032,167 Trade
BSX Boston Scientific Corporation 29.61 -0.08 -0.27 4,495,603 Trade
RS Reliance Steel & Aluminum Co. (DE) 76.34 -0.78 -1.01 471,943 Trade
PNRA Panera Bread Company n/a n/a n/a 0 Trade
VZ Verizon Communications Inc. 48.99 -0.54 -1.09 15,649,644 Trade
LAMR Lamar Advertising Company 66.90 -1.41 -2.06 554,449 Trade
GM General Motors Company 45.15 -0.46 -1.01 10,754,729 Trade
BAC Bank of America Corporation 27.16 -0.01 -0.04 69,229,213 Trade
MCD McDonald\'s Corporation 163.34 -2.96 -1.78 6,200,518 Trade
DD E.I. du Pont de Nemours and Co. 83.93 0.00 0.00 0 Trade
BBBY Bed Bath & Beyond Inc. 21.06 -0.41 -1.91 3,783,241 Trade
CRME Cardiome Pharma Corporation 1.66 -0.13 -7.26 270,599 Trade
RBCN Rubicon Technology Inc. 8.12 -0.05 -0.61 992 Trade
PEIX Pacific Ethanol Inc. 4.85 -0.15 -3.00 313,403 Trade
CWEI Clayton Williams Energy Inc. n/a n/a n/a 0 Trade
HD Home Depot Inc. (The) 164.74 1.31 0.80 3,991,376 Trade
AEZS AEterna Zentaris Inc. 2.00 -0.03 -1.48 150,601 Trade
F Ford Motor Company 12.04 -0.06 -0.50 21,477,409 Trade
XOM Exxon Mobil Corporation 83.24 0.13 0.16 9,825,856 Trade
PFE Pfizer Inc. 36.40 -0.02 -0.05 15,153,471 Trade
TEVA Teva Pharmaceutical Industries Limited American De 14.54 -0.36 -2.42 14,003,197 Trade
FDX FedEx Corporation 225.34 0.27 0.12 1,192,374 Trade
HPQ HP Inc. 22.12 0.10 0.45 8,678,275 Trade
WNR Western Refining Inc. Inc. n/a n/a n/a 0 Trade
BA Boeing Company (The) 262.32 -2.43 -0.92 3,301,394 Trade
MRK Merck & Company Inc. (new) 63.40 -0.48 -0.75 11,568,610 Trade
AOS A.O. Smith Corporation 61.55 -0.04 -0.06 770,194 Trade
GRPN Groupon Inc. 4.61 -0.19 -3.96 4,269,838 Trade
BMTC Bryn Mawr Bank Corporation 43.90 -1.25 -2.77 42,180 Trade
ENR Energizer Holdings Inc. 45.45 -0.08 -0.18 333,013 Trade
FE FirstEnergy Corporation 32.13 0.00 0.00 1,945,499 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
KO Coca-Cola Company (The) 46.32 -0.06 -0.13 7,137,909 Trade
T AT&T Inc. 35.25 -0.29 -0.82 30,883,623 Trade
CAT Caterpillar Inc. 131.68 0.32 0.24 5,536,226 Trade
SCHN Schnitzer Steel Industries Inc. 29.80 -0.25 -0.83 370,173 Trade
LL Lumber Liquidators Holdings Inc 34.65 -0.21 -0.60 541,920 Trade
SLB Schlumberger N.V. 61.91 -1.24 -1.96 14,004,645 Trade
MOH Molina Healthcare Inc 66.25 1.85 2.87 1,403,443 Trade
MYL Mylan N.V. 38.47 -0.04 -0.10 2,571,469 Trade
MSFT Microsoft Corporation 78.83 0.02 0.03 20,608,741 Trade

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