Equities Sector Coverage: Stocks Take Off As Europe Prepares to Act

Sector Recap  |

RBS, LYG, ING, DB, BCS, CS, C, MS, BX, AIG, banks, euro, european union, eurozone, Mario Draghi, ECB, IMF, bond-buying, interest rates, debt crisisFirst Quarter Productivity fell more than expected, down 0.9% with labor costs up 1.3%. The Federal Reserve’s “beige book” of regional economic activity showed consumer spending was unchanged to up slightly in most regions, auto sales were strong, construction spending was picking up and capital spending plans were mostly positive. The Dow Jones Industrial Average traded up to 12,364.54 back above its 200-day simple moving average at 12,271. The NASDAQ traded up to 2840.80.

Asian stocks rebounded on Wednesday. The Nikkei 225 ended the day at 8,534 – up 1.81%. The Hang Seng ended the day at 18,521 – up 1.43%. European exchanges were higher on Wednesday. The FTSE 100 ended the day at 5,384 – up 2.36% on Friday. The DAX ended the day at 6,094 – up 2.09%. The CAC 40 ended the day at 3,058 – up 2.42%. The yield on the 10-Year US Treasury declined to 1.552% than rose to 1.671%.

Gold traded up from $1616.5 the Troy ounce to $1642.4 between the 50-day and 200-day simple moving averages at $1621.7 and $1685.2. Crude oil traded up from $84.03 per barrel to $86.27. The euro versus the dollar traded up from 1.2443 to 1.2571.


Chesapeake Energy (CHK) is in discussions to sell its 45.2% limited partner interest in Chesapeake Midstream (CHKM) and other pipeline assets to Global Infrastructure for over $4 billion. Mitcham Industries (MIND) missed Q1 EPS estimates by a penny with a miss on the revenue line. Continental Resources (CLR) has been upgraded to Buy from Hold at Jefferies. Forest Oil (FST) has been upgraded to Buy from Hold at Canaccord Genuity. Hess (HES) has been upgraded to Buy from Accumulate at Tudor Pickering. Dow components – Chevron (CVX) up 2.57%, Exxon Mobil (XOM) up 2.47%.

Energy Select Sector SPDR (XLE) was trading at $64.02 at 3:30 PM on Wednesday, up 2.40% on the day – down 7.39% year-to-date.


Midway Gold (MDW) has been initiated with a Buy rating at Stifel Nicolaus on the development assets in Nevada and Washington with total attributable resources of 4.8 million ounces of gold. Dow components – Alcoa (AA) up 1.57%, DuPont (DD) up 2.45%.

The Materials Select Sector SPDR (XLB) was trading at $34.09 at 3:30 PM on Wednesday, up 1.94% on the day – up 1.76% year-to-date.


Defense cuts may be on the horizon, Lockheed Martin (LMT) won a preliminary contract valued at up to $2.02 billion to build at least 42 interceptor missiles for the Pentagon's missile defense agency. PulteGroup (PHM) and Ryland Group (RYL) have been upgraded to Outperform from Neutral at Credit Suisse. Tata Motors (TTM) - The Indian auto maker has been upgraded to Hold from Sell at Deutsche Bank. Dow components – Boeing Co (BA) up 1.61%, Caterpillar (CAT) up 2.51%, General Electric (GE) up 1.97%, 3M Company (MMM) up 2.12%, United Technologies (UTX) up 3.13%.

The Industrial Select Sector SPDR (XLI) was trading at $34.16 at 3:30 PM on Wednesday, up 2.12% on the day – up 1.21% year-to-date.

Consumer Discretionary

Home Depot (HD) reaffirmed its sales and EPS guidance for 2012 and set new targets for an operating margin of 12% and return on invested capital of 24%. Coinstar (CSTR) has a deal with Starbucks (SBUX) to roll out thousands of Rubi coffee kiosks featuring Seattle's Best Coffee in groceries, drugstores and mass merchants. Vail Resorts (MTN) reported in-line FQ3 EPS with a beat on the revenue line. Oxford Industries (OXM) beat Q1 EPS estimates by a nickel with in-line revenue. Vera Bradley Inc (VRA) has been upgraded to Buy from Hold at KeyBanc with a price target at $26. Dow Components – Disney (DIS) up 1.29%, Home Depot up 3.03%, McDonalds (MCD) up 1.26%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.84 at 3:30 PM on Wednesday, up 1.73% on the day – up 9.79% year-to-date.

Consumer Staples

Coinstar (CSTR) has a deal with Starbucks (SBUX) to roll out thousands of Rubi coffee kiosks featuring Seattle's Best Coffee in groceries, drugstores and mass merchants. Brown-Forman Group (BF.B) missed FQ4 EPS estimates by three cents with better than expected revenue. Bob Evans (BOBE) missed FQ4 earnings on all counts with flat revenue year over year. Net earnings rose 20% on fewer charges and improved operating margins. Same-store sales were down 0.6%, and Evans lowered guidance for the fiscal year. Mattress Firm (MFRM) beat earnings estimate on a per share basis but was short on the revenue line. Ulta Salon (ULTA) beat Q1 estimates on a 22% year over year. Dick's Sporting Goods (DKS) have been upgraded to Outperform from Market Perform with Wells Fargo. Dow components – Kraft (KFT) up 0.61%, Coca Cola (KO) up 1.37%, Procter & Gamble (PG) up 0.55%, Wal-Mart (WMT) up 0.34%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.56 at 3:30 PM on Wednesday, up 0.99% on the day – up 3.29% year-to-date.

Health Care

Cyberonics (CYBX) beat FQ4 EPS estimates by three cents with better than expected revenue. NuVasive (NUVA) has been upgraded to Outperform from Sector Perform at RBC Capital. Dow Components – Johnson & Johnson (JNJ) up 0.42%, Merck (MRK) up 0.55%, Pfizer (PFE) up 0.93%.

The Health Care Select Sector SPDR (XLV) was trading at $36.14 at 3:30 PM on Wednesday, up 0.98% on the day – up 4.18% year-to-date.


Fannie Mae (FNMA.OB) named general counsel Timothy Mayopoulos as its new CEO. Mayopoulos was fired from Bank of America (BAC) on the just before their takeover of Merrill Lynch to make way for Brian Moynihan. Barclays (BCS) will likely recover around $1.5 billion of disputed assets related to the Lehman's bankruptcy, as a US federal judge ruled yesterday partially reversing a February 2011 decision. CIT Group (CIT) has been initiated with a Buy rating at Janney. First Republic Bank (FRC) has been initiated with an Outperform at Wells Fargo. FirstMerit Corp. (FMER) has been downgraded to Underperform from Neutral by Robert W. Baird with a price target reduced $2 to $13. Dow Components – American Express (AXP) up 2.06%, Bank of America (BAC) up 6.34%, JP Morgan Chase (JPM) up 2.53%, Travelers (TRV) up 0.72%.

The Financial Select Sector SPDR (XLF) was trading at $13.92 at 3:30 PM on Wednesday, up 2.50% on the day – up 7.08% year-to-date.

Information Technology

Ancestry.com (ACOM) surged 24% premarket after a Bloomberg report that the company is considering a sale and enlisted the help of tech banker Frank Quattrone to find buyers. American Superconductor (AMSC) beat FQ4 EPS estimates by six cents with in-line revenue. Facebook (FB) has been initiated with an Outperform at JPM Securities with a $37 price target. VeriSign (VRSN) has been initiated with an Outperform at Wells Fargo. Rackspace (RAX) has been downgraded to Hold from Buy at Jefferies. Symantec (SYMC) has been downgraded to Perform from Outperform at FBR Capital with the price target down to $16 from $20. Dow Components – Cisco Systems (CSCO) up 2.70%, Hewlett-Packard (HPQ) up 2.54%, IBM (IBM) up 2.15%, Intel Corp (INTC) up 2.12%, Microsoft (MSFT) up 1.91%.

The Technology Select Sector SPDR (XLK) was trading at $28.49 at 3:30 PM on Wednesday, up 1.89% on the day – up 10.18% year-to-date.

Telecommunication Services

Dow components – AT&T (T) up 0.82%, Verizon (VZ) up 0.95%.

The NASDAQ Telecommunications Index (IXTC) was trading at $179.97 at 3:30 PM on Wednesday, up 1.86% on the day – down 8.61% year-to-date.

Dominion Resources (D) up 1.15%, Edison International (EIX) up 0.84%, First Energy (FE) up 0.98%, PG&E Corp (PCG) up 1.69%, Southern Company (SO) up 1.43%.

The Utilities Select Sector SPDR (XLU) was trading at $36.35 at 3:30 PM on Wednesday, up 1.08% on the day – up 1.03% year-to-date.


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


Symbol Name Price Change % Volume
MMM 3M Company 211.53 2.00 0.95 1,651,271 Trade
CIT CIT Group Inc (DEL) 52.89 -0.37 -0.69 870,639 Trade
MTN Vail Resorts Inc. 292.35 2.48 0.86 336,460 Trade
LMT Lockheed Martin Corporation 343.22 3.88 1.14 1,142,258 Trade
PG Procter & Gamble Company (The) 84.00 -0.25 -0.30 5,926,616 Trade
GE General Electric Company 12.66 -0.04 -0.31 42,883,486 Trade
CVX Chevron Corporation 118.13 0.62 0.53 4,858,016 Trade
SO Southern Company (The) 44.79 0.40 0.90 5,845,818 Trade
PCG Pacific Gas & Electric Co. 47.20 0.38 0.81 3,182,002 Trade
CYBX Cyberonics Inc. n/a n/a n/a 0 Trade
AMSC American Superconductor Corporation 6.39 -0.08 -1.24 57,367 Trade
OXM Oxford Industries Inc. 89.95 -1.66 -1.81 119,322 Trade
FB Facebook Inc. 160.30 -0.28 -0.17 22,332,132 Trade
JNJ Johnson & Johnson 140.54 0.58 0.41 4,563,751 Trade
WMT Walmart Inc. 95.43 0.61 0.64 6,296,144 Trade
AA Alcoa Corporation 43.12 0.29 0.68 2,699,093 Trade
INTC Intel Corporation 46.10 0.68 1.50 20,366,287 Trade
IBM International Business Machines Corporation 148.56 0.62 0.42 3,413,147 Trade
D Dominion Energy Inc. 71.92 -0.07 -0.10 2,379,148 Trade
TRV The Travelers Companies Inc. 131.37 1.48 1.14 1,455,475 Trade
WPX:CA Western Potash Corp. n/a n/a n/a n/a
BCS Barclays PLC 9.10 -0.06 -0.66 2,131,034 Trade
EIX Edison International 68.31 -0.12 -0.18 1,864,843 Trade
JPM JP Morgan Chase & Co. 114.30 0.46 0.40 7,940,184 Trade
AXP American Express Company 109.64 0.44 0.40 2,173,159 Trade
UTX United Technologies Corporation 139.58 1.82 1.32 4,312,437 Trade
FMER FirstMerit Corporation n/a n/a n/a 0 Trade
SYMC Symantec Corporation 20.65 0.85 4.29 9,765,723 Trade
VRA Vera Bradley Inc. 16.05 -0.55 -3.31 316,703 Trade
CSCO Cisco Systems Inc. 47.46 0.35 0.74 16,308,232 Trade
DIS The Walt Disney Company 109.53 0.17 0.16 4,936,922 Trade
VZ Verizon Communications Inc. 54.39 -0.31 -0.57 13,795,203 Trade
VRSN VeriSign Inc. 162.93 1.52 0.94 658,288 Trade
BAC Bank of America Corporation 30.21 -0.07 -0.23 49,884,755 Trade
MCD McDonald's Corporation 157.77 -0.37 -0.23 3,708,064 Trade
SBUX Starbucks Corporation 55.07 0.50 0.92 7,541,323 Trade
TTM Tata Motors Ltd Limited 17.51 -0.16 -0.91 2,195,856 Trade
CLR Continental Resources Inc. 62.17 2.15 3.58 1,939,992 Trade
HD Home Depot Inc. (The) 211.02 2.62 1.26 4,337,697 Trade
XOM Exxon Mobil Corporation 83.63 0.22 0.26 8,836,241 Trade
PFE Pfizer Inc. 43.51 0.50 1.16 19,252,023 Trade
PHM PulteGroup Inc. 26.94 0.29 1.09 3,176,699 Trade
DKS Dick's Sporting Goods Inc 37.12 0.10 0.27 1,562,476 Trade
FRC FIRST REPUBLIC BANK 98.32 -0.23 -0.23 1,028,640 Trade
HPQ HP Inc. 25.16 0.15 0.60 7,597,414 Trade
BA The Boeing Company 363.58 7.62 2.14 3,002,423 Trade
MRK Merck & Company Inc. (new) 70.42 0.00 0.00 6,800,396 Trade
FE FirstEnergy Corp. 37.86 -0.07 -0.18 4,597,570 Trade
KO Coca-Cola Company (The) 45.93 -0.39 -0.84 9,846,715 Trade
T AT&T Inc. 33.72 0.10 0.30 33,650,988 Trade
CAT Caterpillar Inc. 149.07 2.85 1.95 4,494,759 Trade
NUVA NuVasive Inc. 70.45 0.53 0.76 485,151 Trade
ULTA Ulta Beauty Inc. 282.87 1.42 0.50 789,319 Trade
MSFT Microsoft Corporation 113.21 1.07 0.95 22,114,902 Trade
CHK Chesapeake Energy Corporation 4.13 0.15 3.77 23,670,519 Trade
MIND Mitcham Industries Inc. 3.95 -0.02 -0.50 3,570 Trade
RAX Rackspace Hosting Inc n/a n/a n/a 0 Trade
MFRM Mattress Firm Holding Corp. n/a n/a n/a 0 Trade


Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.