Equities Sector Coverage: Stocks Trade Higher Ahead of Thanksgiving Holiday

Sector Recap |

Stocks Trade Higher Ahead of Thanksgiving HolidayInitial Jobless Claims came in at 410,000 still well above the 350,000 recessionary threshold. The Dow Jones Industrial Average traded up to 12,845.99 staying well below the 200-day simple moving average at 12,991.82. The Nasdaq traded up to 2928.17 below the 200-day SMA at to 2984.97.

Asian stocks were higher on Wednesday. The Nikkei 225 closed at 9,223 – up 0.87%. The Hang Seng closed at 21,524 – up 1.39%. European exchanges closed higher on Wednesday. The FTSE 100 ended the day at 5,752 – up 0.07%. The DAX ended the day at 7,185 – up 0.16%. The CAC 40 ended the day at 3,477 – up 0.44%. The yield on the 10-Year US Treasury traded between 1.642% and 1.695% staying below the 50-day and 200-day simple moving averages at 1.702% and 1.773%.

Comex gold rebounded from $1718.4 the Troy ounce to $1732.0 still between the 200-day and 50-day simple moving averages at $1665.3 and $1743.3. Nymex crude oil rebounded from $86.65 per barrel to $87.89 still below its 50-day and 200-day simple moving averages at $89.57 and $94.20. The euro versus the dollar rebounded from 1.2740 to 1.2831 trading around its 200-day simple moving average at 1.2803.


Boardwalk Pipeline (BWP) gets lifted to Outperform from Neutral at Credit Suisse. Petróleo Brasileiro (PBR) is reduced to Market Perform from Outperform at Raymond James. LinnCo (LNCO) is begun with a Neutral at Bank of America-Merrill Lynch and an Outperform at Robert W. Baird. Linn Energy (LINE) is a new Neutral at Bank of America-Merrill Lynch, Credit Suisse, and Goldman Sachs. Marathon Petroleum (MPC) is resumed with a Buy at Bank of America-Merrill. Matrix Service (MTRX) is initiated with a Buy at DA Davidson. MPLX LP (MPLX) is begun with a Buy at Citigroup. Pioneer Natural Resources (PXD) is a new Buy at Citigroup. Inergy (NRGY) is now Outperform from Neutral at Robert W. Baird. Inergy Midstream (NRGM) is now Outperform from Perform at Robert W. Baird. Lukoil (LUKOY) is upgraded to Outperform from Market Perform at Credit Suisse. Repsol (REPYY) gets a Buy-from-Hold hoist at brokerage boutique Kepler. Dow components – Chevron (CVX) is up about 0.4%. Exxon Mobil (XOM) is up about 0.4%. Energy Select Sector SPDR (XLE) was trading at $70.54 at 3:30 PM on Wednesday, up 0.44% on the day – up 2.04% year-to-date.


AK Steel (AKS) is now Neutral from Sell at Goldman Sachs. Cliffs Natural Resources (CLF) is lowered to Sell from Neutral at Goldman Sachs. K+S Aktiengesellschaft (KPLUF) is cut to Underweight from Equal Weight at JPMorgan. Dow Components – Alcoa (AA) is down slightly. DuPont (DD) is down about 0.6%. The Materials Select Sector SPDR (XLB) was trading at $35.88 at 3:30 PM on Wednesday, unchanged on the day – up 7.10% year-to-date.


Deere's (DE) FQ4 net profit edged up 2.7% to $687.6M as EPS of $1.75 missed forecasts, although revenue climbed 14% to $9.79B and beat expectations. Joy Global (JOY) is boosted to Market Perform from Underperform at BMO Capital. Emerson Electric (EMR) is downgraded to Perform from Outperform at Oppenheimer. BE Aerospace (BEAV) is an Outperform at Imperial Capital. Wesco Aircraft (WAIR) is a new In-line at Imperial Capital. Dow components – Boeing Co (BA) is up about 0.9%. Caterpillar (CAT) is down slightly. General Electric (GE) is up about 0.3%. 3M Company (MMM) is down slightly. United Technologies (UTX) is up about 1.1%. The Industrial Select Sector SPDR (XLI) was trading at $36.24 at 3:30 PM on Wednesday, up 0.06% on the day – up 7.38% year-to-date.

Consumer Discretionary

Richard Schulze is now reportedly working separately with P-E firms Cerberus, TPG Capital and Leonard Green on a bid for Best Buy (BBY) despite previous speculation saying Cerberus had dropped out. Hedge fund Tiger Global disclosed it had acquired a 9.9% stake in Groupon (GRPN). Apollo (APO) and KKR (KKR) are unlikely to collaborate with Schulze on an offer. News Corp (NWS) is reportedly in preliminary negotiations to acquire CBS's (CBS) Simon & Schuster book business. Kid Brands (KID) missed estimates by 7 cents and revenue by $7M. Zale (ZLC) missed estimates by 20 cents and revenue by $7M. Books-A-Million (BAMM) reported Q3 EPS of -$0.18 on revenue of $104.7M. Coach Inc. (COH) is initiated with an Outperform at Wells Fargo. Deckers Outdoor (DECK) is a new Outperform with Wedbush. Six Flags Entertainment (SIX) is started with a Neutral at Longbow. Expedia (EXPE) is taken to Equal-Weight from Underweight by Barclays. Yum Brands (YUM) is initiated with an Outperform at Macquarie. Penn National Gaming (PENN) is now Buy from Neutral at Lazard Capital. Skechers USA (SKX) is moved to Positive from Neutral at Susquehanna. Big Movers – Zale (ZLC) is down about 26.5%. Groupon (GRPN) is up about 14.5%. Skechers USA (SKX) is up about 10%. Dow Components – Disney (DIS) is up about 0.7%. Home Depot (HD) is up about 0.5%. McDonalds (MCD) is up about 0.4%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.545 at 3:30 PM on Wednesday, up 0.36% on the day – up 19.28% year-to-date.

Consumer Staples

Hostess Brands will again ask bankruptcy Judge Robert Drain to authorize its liquidation after mediation talks with the company's striking bakers' union failed to resolve their differences. Potential suitors for all or part of Hostess' assets include Flowers Foods (FLO), which said on Monday that it has renegotiated lending terms to enable it to borrow additional cash. Archer Daniels Midland (ADM) is upgraded to Outperform from Market Perform by BMO Capital. Whole Foods (WFM) gets upgraded to Buy from Hold at Goldman. Brasil Foods (BRFS) is initiated with a Buy at Citigroup. Hormel Foods (HRL) is cut to Underperform from Outperform at Crédit Agricole. Dow components – Coca Cola (KO) is up about 0.5%. Procter & Gamble (PG) is up slightly. Wal-Mart (WMT) is down slightly. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.132 at 3:30 PM on Wednesday, up 0.09% on the day – up 8.13% year-to-date.

Health Care

Lazard launches Buys on Aetna (AET) and UnitedHealth (UNH). It has a new Neutral on WellPoint (WLP). Medicines Company (MDCO) is a new Outperform at Oppenheimer. Merck (MRK) is moved to Buy from Neutral at MKM Partners. Biogen Idec (BIIB), Celgene (CELG), and Threshold Pharmaceuticals (THLD) are all begun with Buys at Brean Capital. Infinity Pharmaceutical (INFI) is resumed with an Outperform at RBC Capital. Repros Therapeutics (RPRX) is resumed as a Buy at Roth Capital. HeartWare (HTWR) is moved to Market Perform from Outperform with Wells Fargo. St. Jude Medical (STJ) gets moved to Market Perform from Outperform with Wells Fargo. Big Movers – Sequenom (SQNM) is up about 13.5%. Vivus (VVUS) is up about 12.5%. Keryx Biopharmaceuticals (KERX) is up about 10%. St. Jude Medical (STJ) is down about 12%. Dow Components – Johnson & Johnson (JNJ) is down about 0.2%. Merck (MRK) is up about 0.75%. Pfizer (PFE) is up about 0.2%. United Health Group (UNH) is up about 0.8%. The Health Care Select Sector SPDR (XLV) was trading at $39.54 at 3:30 PM on Wednesday, down 0.05% on the day – up 13.98% year-to-date.


New York Attorney-General Eric Schneiderman reportedly plans to sue Credit Suisse (CS) for allegedly misleading investors who lost over $11.2B on mortgage bonds. A federal judge has allowed a lawsuit from the Federal Housing Finance Agency to go forward against Barclays (BCS) over the sale of $4.9B in questionable mortgage bonds to Fannie Mae (FNMA) and Freddie Mac (FMCC). Richard Schulze is now reportedly working separately with P-E firms Cerberus, TPG Capital and Leonard Green on a bid for Best Buy (BBY) despite previous speculation saying Cerberus had dropped out. Apollo (APO) and KKR (KKR) are unlikely to collaborate with Schulze on an offer. Credit Suisse assigns Outperforms on East West Bancorp (EWBC), First Republic Bank (FRC), Signature Bank (SBNY), and Susquehanna Bank (SUSQ). SVB Financial (SIVB) is taken to Buy from Hold at Citigroup. Realogy (RLGY) is a new Neutral at Citigroup. British Land (BTLCY) is moved to Overweight from Equal Weight at Morgan Stanley. First Republic Bank (FRC) is raised to Buy from Hold at Jefferies. Greenlight Capital (GLRE) gets upgraded to Buy from Neutral at UBS. Lloyds Banking Group (LYG) is lifted to Equal Weight from Underweight at Morgan Stanley. Webster Financial (WBS) is moved to Equal Weight from Overweight at Morgan Stanley. Commerce Bancshares (CBSH) is cut to Underweight from Equal-Weight at Morgan Stanley. Eaton Vance (EV) gets slashed to Sell from Neutral at Citigroup.

Big Movers – Ambac Financial (ABKFQ) is up about 12.5%. MBIA (MBI) is up about 12%. Dow Components – American Express (AXP) is up about 0.2%. Bank of America (BAC) is up about 1.25%. JP Morgan Chase (JPM) is up slightly. The Travelers Companies (TRV) is up about 0.5%. The Financial Select Sector SPDR (XLF) was trading at $15.635 at 3:30 PM on Wednesday, down 0.10% on the day – up 20.276% year-to-date.

Information Technology

Hewlett-Packard (HPQ) has taken an $8.8 billion write-down in its fourth-quarter earnings, including $5.3 billion on its acquisition of software company Autonomy. The FBI is reportedly investigating H-P's accusations of accounting improprieties at Autonomy prior to H-P buying the software company and for which it took an $8.8B charge in FQ4. The company’s Q4 earnings beat estimates by 2 cents, but revenue missed estimates by $430M. Hewlett-Packard (HPQ) is moved to Market Perform from Outperform at Raymond James. H-P is also taken to Underperform from Neutral at Mizuho and to Sector Perform from Outperform at RBC Capital. The FTC is reportedly uncertain that it can successfully sue Google (GOOG) for placing links to its products and services above those of its competitors in search results. A judge has to decide how much Microsoft (MSFT) should pay for the use of Google (GOOG) wireless and video patents following the end of a week-long trial yesterday. Google wants $4B a year, although Microsoft reckons that $1M+ is all that Google deserves. The Department of Justice and the FTC plan to hold informal hearings next month on whether patent trolls, which license IP but don't sell any tangible products, do more harm than good. A crackdown could well hurt the likes of Acacia (ACTG), InterDigital (IDCC) and Rambus (RMBS). Salesforce.com (CRM) beat estimates by a penny and revenue by $10.9M. The company expects FQ4 revenue of $825M-$830M and EPS of $0.38-$0.40 (versus consensus of $829.9M and $0.40). The company is setting FY14 revenue guidance of $3.8B-$3.85B (in-line with a $3.83B consensus). Millennial Media (MM) is a new Buy at Janney Montgomery Scott. NCR Corp. (NCR) is added to JPMorgan’s Focus List of favored equities. Research In Motion (RIMM) is raised to Hold from Underperform at Jefferies. Riverbed Technology (RVBD) is upgraded to Outperform at Northland Securities. ARM Holdings (ARMH) is downgraded to Outperform from Strong Buy at Raymond James. Intel (INTC) gets cut to Neutral from Buy at UBS.

Big Movers – China Digital TV Holdings (STV) is down about 38%. Nokia (NOK) is up about 14.5%. Dow Components – Cisco Systems (CSCO) is up about 0.6%. Hewlett-Packard (HPQ) is up about 2.7%. IBM (IBM) is up about 0.75%. Intel Corp (INTC) is down about 0.8%. Microsoft (MSFT) is up about 1.1%. The Technology Select Sector SPDR (XLK) was trading at $28.398 at 3:30 PM on Wednesday, up 0.35% the day – up 11.58% year-to-date.

Telecommunication Services

America Móvil (AMX) is taken to Neutral from Buy at Citigroup. Dow Components – AT&T (T) is up about 0.3%. Verizon (VZ) is up about 0.6%. The NASDAQ Telecommunications Index (IXTC) was trading at $188.33 at 3:30 PM on Wednesday, up 0.59% on the day – down 4.37% year-to-date.


Big Mover – Centrais Eletricas Brasileiras (EBR) is down about 10.5%. The Big Names – Dominion Resources (D) is down about 0.6%. Edison International (EIX) is down about 1.1%. First Energy (FE) is down about 0.9%. PG&E Corp (PCG) is down about 0.8%. Southern Company (SO) is down about 0.9%. The Utilities Select Sector SPDR (XLU) was trading at $34.06 at 3:30 PM on Wednesday, down 0.79% on the day – down 5.34% 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
FLO Flowers Foods Inc. 19.66 -0.38 -1.90 1,789,760
CBS CBS Corporation Class B 62.26 -0.06 -0.10 3,905,045
MMM 3M Company 177.26 -0.13 -0.07 1,555,447
UNH UnitedHealth Group Incorporated (DE) 160.66 -1.14 -0.70 5,472,154
WBS Webster Financial Corporation 52.16 -1.77 -3.28 614,354
DE Deere & Company 104.34 -1.45 -1.37 2,439,353
EV Eaton Vance Corporation 42.30 -0.85 -1.97 941,239
ACTG Acacia Research Corp. 5.90 -0.30 -4.84 721,949
BEAV B/E Aerospace Inc. 61.32 0.16 0.26 1,554,364
DECK Deckers Outdoor Corporation 58.99 0.56 0.96 1,025,046
PG Procter & Gamble Company (The) 85.21 1.20 1.43 13,136,314
GE General Electric Co 31.27 -0.09 -0.29 28,740,839
CRM Salesforce.com Inc 75.02 -0.62 -0.82 3,145,527
CVX Chevron Corporation 116.28 -0.10 -0.09 4,669,512
BWP Boardwalk Pipeline Partners LP 18.20 0.01 0.05 643,111
SO Southern Company (The) 49.69 0.89 1.82 4,881,707
PCG Pacific Gas & Electric Co. 61.78 1.20 1.98 2,505,323
AKS AK Steel Holding Corporation 9.45 -0.26 -2.68 15,188,418
PBR PETROLEO BRASILEIIRO SA PETROBRAS 11.27 -0.05 -0.44 13,723,619
RMBS Rambus Inc. 13.78 -0.16 -1.15 368,349
ARMH ARM Holdings plc n/a n/a n/a 0
KERX Keryx Biopharmaceuticals Inc. 6.02 -0.24 -3.83 1,947,754
JNJ Johnson & Johnson 114.87 0.27 0.24 6,250,015
WMT Wal-Mart Stores Inc. 68.42 1.29 1.92 13,152,131
AA Alcoa Inc. 32.64 -0.37 -1.12 1,382,007
INTC Intel Corporation 36.80 0.01 0.03 20,163,131
IBM International Business Machines Corp 167.89 0.55 0.33 3,312,855
MPLX MPLX LP Representing Limited Partner Interests 36.11 0.37 1.04 1,956,131
MBI MBIA Inc. 11.10 -0.10 -0.89 1,531,828
D Dominion Resources Inc. 76.20 0.99 1.32 2,111,330
TRV The Travelers Companies Inc. 117.46 0.41 0.35 1,607,915
MPC Marathon Petroleum Corporation 48.73 0.35 0.72 5,121,278
EXPE Expedia Inc. 118.58 -0.23 -0.19 1,319,448
BCS Barclays PLC 11.34 -0.04 -0.35 6,645,856
GLRE Greenlight Reinsurance Ltd. 22.95 -0.50 -2.13 96,663
EIX Edison International 72.51 0.41 0.57 1,674,231
TGZ:CA Teranga Gold Corporation
NCR NCR Corporation 41.59 -0.85 -2.00 404,020
JPM JP Morgan Chase 83.55 -3.15 -3.63 29,996,496
AXP American Express Company 76.60 -0.02 -0.03 6,450,009
IDCC InterDigital Inc. 88.20 -1.95 -2.16 199,537
UTX United Technologies Corporation 109.97 -0.25 -0.23 2,240,143
HTWR Heartware International Inc. n/a n/a n/a 0
MDCO The Medicines Company 37.59 -0.53 -1.39 1,120,729
EWBC East West Bancorp Inc. 49.11 -2.09 -4.08 577,186
SBNY Signature Bank 148.54 -4.17 -2.73 521,475
CSCO Cisco Systems Inc. 29.99 -0.08 -0.27 21,931,478
LINE Linn Energy LLC Unit Repstg Ltd Liability Co Ints n/a n/a n/a 0
DIS Walt Disney Company (The) 107.97 -0.09 -0.08 7,586,029
SKX Skechers U.S.A. Inc. 25.27 -0.19 -0.75 1,801,631
SQNM Sequenom Inc. n/a n/a n/a 0
COH Coach Inc. 35.73 0.65 1.85 2,659,443
STV China Digital TV Holding Co. Ltd. American Deposit 1.28 -0.05 -3.75 11,903
VZ Verizon Communications Inc. 52.74 0.19 0.36 11,380,971
BAMM Books-A-Million Inc. n/a n/a n/a 0
BAC Bank of America Corporation 22.05 -0.96 -4.17 152,242,716
YUM Yum! Brands Inc. 64.17 -0.49 -0.76 1,560,494
APO Apollo Global Management LLC Class A Representing 21.04 -0.38 -1.77 709,825
AET Aetna Inc. 121.04 -1.27 -1.04 2,763,527
HRL Hormel Foods Corporation 36.35 0.82 2.31 2,696,089
CBSH Commerce Bancshares Inc.
NOK Nokia Corporation Sponsored American Depositary Sh 4.74 -0.01 -0.21 9,240,937
GOOG Alphabet Inc. 804.61 -3.27 -0.40 1,360,984
SIVB SVB Financial Group 167.57 -9.02 -5.11 616,049
MCD McDonald\'s Corporation 122.75 1.25 1.03 4,073,581
SIX Six Flags Entertainment Corporation New 60.51 -0.09 -0.15 424,680
BRFS BRF S.A. 14.46 0.25 1.76 994,975
EMR Emerson Electric Company 56.31 -0.81 -1.42 3,152,560
ADM Archer-Daniels-Midland Company 44.69 1.13 2.59 4,411,674
DD E.I. du Pont de Nemours and Co. 72.97 -0.63 -0.86 2,726,666
LYG Lloyds Banking Group Plc American Depositary Share 3.31 0.05 1.53 15,678,500
RLGY Realogy Holdings Corp.
VVUS VIVUS Inc. 1.19 -0.01 -0.83 160,002
THLD Threshold Pharmaceuticals Inc. 0.54 0.03 6.23 2,149,955
STJ St. Jude Medical Inc. 80.51 0.00 0.00 0
JOY Joy Global Inc. 28.14 0.00 0.00 625,111
BBY Best Buy Co. Inc. 44.88 1.05 2.40 5,181,154
INFI Infinity Pharmaceuticals Inc. 1.66 0.16 10.67 1,103,408
WAIR Wesco Aircraft Holdings Inc. 14.85 -0.45 -2.94 376,663
HD Home Depot Inc. (The) 135.93 0.89 0.66 3,976,916
XOM Exxon Mobil Corporation 87.36 1.01 1.17 13,207,422
PFE Pfizer Inc. 32.06 -0.46 -1.41 32,098,833
BIIB Biogen Inc. 283.01 -1.74 -0.61 1,970,481
FRC FIRST REPUBLIC BANK 91.72 -1.23 -1.32 1,879,832
HPQ HP Inc. 14.58 -0.19 -1.29 11,976,799
BA Boeing Company (The) 157.67 -1.16 -0.73 2,758,738
CELG Celgene Corporation 114.95 -2.53 -2.15 5,361,586
MRK Merck & Company Inc. (new) 61.48 -0.86 -1.38 10,586,085
EBR Eletrobras S/A ADS
GRPN Groupon Inc. 3.54 -0.04 -1.12 9,314,071
CLF Cliffs Natural Resources Inc 9.16 -0.07 -0.76 7,900,903
FE FirstEnergy Corporation 31.15 0.54 1.76 4,092,617
WFM Whole Foods Market Inc. 30.98 0.30 0.98 3,793,150
MTRX Matrix Service Company 21.90 -0.20 -0.90 85,156
KO Coca-Cola Company (The) 41.22 0.34 0.83 12,469,343
PXD Pioneer Natural Resources Company 181.02 -0.95 -0.52 1,201,567
T AT&T Inc. 41.11 0.15 0.37 22,510,846
CAT Caterpillar Inc. 93.57 -0.91 -0.96 5,039,283
PENN Penn National Gaming Inc. 13.24 -0.11 -0.82 630,674
MSFT Microsoft Corporation 62.53 -0.17 -0.27 20,623,303
KKR KKR & Co. L.P. Representing Limited Partnership In 16.99 -0.24 -1.39 3,467,513
LNCO LinnCo LLC n/a n/a n/a 0
RPRX Repros Therapeutics Inc. 1.35 -0.05 -3.57 115,462
NWS News Corporation 12.70 0.25 2.01 529,766


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