Next week’s economic data includes; On Tuesday, Consumer Confidence will remain subdued at below 50 in October. On Wednesday, Durable Goods Orders will rise 1.0% in October and New Home Sales should rise slightly to an annual rate of 300,000 in September. On Thursday we get the advanced reading for third quarter GDP which is expected to rise 2.7%. On Friday, Personal Income should rise by 0.2% with Spending up 0.7% in September. US Treasury supply will be put to a test with auctions of; $35 billion 2-Year notes on Tuesday, $35 billion 5-Year notes on Wednesday and $29 billion 7-Year notes on Thursday. The Dow Jones Industrial Average traded up from 11,542.84 to above 11,775 into the final half hour of trading. The NASDAQ traded between 2611.11 and 2646.92 on Friday.
Asian stocks were mixed on Friday. The Nikkei 225 slipped just 0.04% to 8,679 with the Hang Seng up just 0.24% to 18,026. European stocks surged on Friday as the ebbs and flow of the European debt crisis lingers on. The FTSE 100 gained 1.93% to 5,489 with the DAX soaring by 3.55% to 5,910 and the CAC 40 jumping by 2.83% to 3,171. The US Treasury 10-Year yield rose from 2.160 percent and 2.239 staying above its 50-day simple moving average at 2.059. Gold traded up from $1612.8 the Troy ounce to $1649.8 on Friday. Crude oil traded up from $85.95 per barrel to $88.89 staying above its 50-day simple moving average at $85.21 and its 200-week simple moving average at $83.54. The euro versus the dollar traded up from 1.3707 and 1.3899 on Friday.
Energy
Schlumberger (SLB) missed estimates by 3 cents, while beating revenue by $40M. Newfield Exploration (NFX) is moved to Neutral from Outperform at Macquarie. Cimarex (XEC) is downgraded to Market Perform from Outperform at BMO Capital.
Energy Select Sector SPDR (XLE) was trading at $68.551 at 4:00 PM on Friday, up 1.84% on the day – up 0.44% year-to-date.
Materials
Peabody Energy (BTU) and Arcelor Mittal (MT) have received a major boost in their quest to buy Macarthur Coal (MACDF) after China’s Citic Resources (CTJHF) said it will support the two companies’ A$4.9B ($5B) bid for the Australian miner. Air Products and Chemicals (APD) missed estimates by a penny and revenue by $20M, and sees FY12 EPS of $5.90-6.30, 1Q12 EPS of $1.31-1.39. Anglo Platinum (AGPPY) is begun with a Buy at UBS. BHP Billiton (BHP) gets downgraded by both SocGen (Hold from Buy) and HSBC Securities (Neutral from Overweight).
The Materials Select Sector SPDR (XLB) was trading at $33.37 at 4:00 PM on Friday, up 2.65% on the day – down 13.12% year-to-date.
Industrials
Manpower (MAN) beat estimates by 4 cents, while missing revenue by $20M. Dover (DOV) beat estimates by 7 cents and revenue by $20M. Honeywell (HON) beat estimates by 10 cents and revenue by $40M. General Electric (GE) reported Q3 EPS of $0.31 (in-line), while beating revenue by $430M. Acacia Research (ACTG) reported Q3 revenue of $63M and EPS of $0.42 (blowing past Street forecasts by $16.5M and $0.11). RSC Holdings (RRR) beat estimates by 2 cents and revenue by $9M. Embraer SA (ERJ) is initiated with a Buy at Deutsche Bank. Diana Shipping (DSX) is a new Underweight at Barclays. JB Hunt Transportation (JBHT) is a new Overweight at Barclays. Covanta (CVA) is lifted to Buy from Accumulate at Ardour Capital with a $21 target. 51job, Inc. (JOBS) is lifted to Outperform from Market Perform at Broker William Blair.
The Industrial Select Sector SPDR (XLI) was trading at $32.67 at 4:00 PM on Friday, up 1.93% on the day – down 6.31% year-to-date.
Consumer Discretionary
Tempur-Pedic’s (TPX) Q3 beat estimates on a 30% jump in Y/Y sales globally. McDonald’s (MCD) reported earnings of $1.45 / shares (topping estimates) on revenue of $7.17B. Meredith Corp (MDP) is a new Hold at Deutsche Bank. Wynn Resorts (WYNN) is upgraded to Outperform from Market Perform by BMO Capital. PetSmart (PETM) is moved to Market Perform from Outperform with Wells Fargo. New York & Co (NWY) is now Neutral from Buy at Janney Scott with a $3 price target. Penn National Gaming (PENN) is lowered to Hold from Buy at Brokerage Brean Murray. Stage Stores (SSI) is cut to Neutral from Buy at Suntrust. Pool Corp (POOL) is downgraded to Market Perform from Outperform by brokers William Blair.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.32 at 4:00 PM on Friday, up 2.77% on the day – up 5.11% year-to-date.
Consumer Staples
The Consumer Staples Select Sector SPDR (XLP) was trading at $31.47 at 4:00 PM on Friday, up 1.61% on the day – up 7.37% year-to-date.
Healthcare
Kinetic Concepts (KCI) beat estimates by 13 cents and revenue by $5.7M. Athenahealth (ATHN) beat estimates by 3 cents and revenue by $1M. Aastrom Biosciences (ASTM) gets picked up at Perform by Oppenheimer. Furiex Pharmaceuticals (FURX) is a fresh Buy and $18 target at Global Hunter Securities. Accretive Health (AH) is now Buy from Neutral at Goldman Sachs. Dentsply (XRAY) gets reduced to Neutral from Buy at Suntrust.
The Health Care Select Sector SPDR (XLV) was trading at $33.11 at 4:00 PM on Friday, up 2.00% on the day – up 5.11% year-to-date.
Financials
A cyber-attack last year on Nasdaq (NDAQ) was more serious than the exchange has let on, Reuters reports, with hackers installing software that enabled them to view confidential documents and the communications of board directors at publicly held companies. Duke Realty (DRE) has agreed to sell a portfolio of 82 suburban office complexes to Blackstone (BX) for $1.08B as a continuation of its plan to reduce its investments in such assets. SunTrust Banks (STI) beat estimates by 3 cents and revenue by $70M. Assoc Banc-Corp (ASBC) missed estimates by a penny. Hersha Hospitality Trust (HT) is initiated with an Outperform rating and $5 price objective at FBR Capital. Hatteras Financial (HTS) is lifted to Buy from Neutral at Sterne Agee. Huntington Bancshares (HBAN) is downgraded to Perform from Outperform at Oppenheimer. Sterling Bancorp (STL) is now Neutral from Buy at Janney Scott. EZCORP (EZPW) is cut to Underperform from Neutral at Sterne Agee.
The Financial Select Sector SPDR (XLF) was trading at $13.13 at 4:00 PM on Friday, up 2.58% on the day – down 17.68% year-to-date.
Information Technology
Microsoft’s (MSFT) FQ1 EPS grew 6.1% to $0.68 (meeting expectations) as revenue topped predictions with a 7% increase to $17.37B. Groupon (GRPN) has lowered the amount of money it intends to raise in its IPO to a maximum of $540M from an initial plan of $750M. Hittite Microwave (HITT) reported Q3 revenue of $68.1M and EPS of $0.73 (the latter beat by $0.04, but the former missed by $1M). The company is guiding for Q4 revenue of $58M-$61M and EPS of $0.50-$0.54 (well below a consensus of $71.3M and $0.69). Synaptics (SYNA) reported FQ1 revenue of $133.4M and EPS of $0.57 (beating consensus by $0.8M and $0.10). The company expects FY12 revenue to fall 1%-6% Y/Y (-1.1% consensus), but sees its gross profit rising. Rambus (RMBS) beat estimates by 13 cents on revenue of $100M. Acme Packet (APKT) reported Q3 EPS of $0.21 (in-line), while missing revenue by $0.37M. Informatica (INFA) beat estimates by 2 cents on revenue of $195.9M. TIBCO Software (TIBX) is begun with a Buy at ThinkEquity. Altera (ALTR) gets a Buy-from-Outperform boost at Credit Agricole. Seagate Technology (STX) is upgraded by both brokerage Robert W. Baird (Outperform from Neutral) and ThinkEquity (Buy from Hold). Synaptics (SYNA) is now Hold from Underperform at Needham. Checkpoint Systems (CKP) is cut to In-Line from Outperform at Imperial Capital. Aixtron (AIXG) is cut to Hold from Buy at Kaufman Brothers with a target of $14. FLIR Systems (FLIR) is now Hold from Buy at Needham. Freescale Semiconductor (FSL) is moved to Market Perform from Outperform at BMO Capital.
The Technology Select Sector SPDR (XLK) was trading at $25.53 at 4:00 PM on Friday, up 1.27% on the day – up 1.35% year-to-date.
Telecommunications Services
Verizon (VZ) reported Non-GAAP EPS of 56 cents (beating estimates by a penny).
The NASDAQ Telecommunications Index (IXTC) was trading at $194.43 at 4:00 PM on Friday, up 0.90% on the day – down 13.73% year-to-date.
Utilities
The Utilities Select Sector SPDR (XLU) was trading at $34.88 at 4:00 PM on Friday, up 1.69% on the day – up 11.30% year-to-date.
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