The Dow Jones Industrial Average traded to a day’s low at 12,793.43 then consolidated well below its May 2nd 2011 high at 12,876.00. The NASDAQ traded between 2887.33 and 2903.03. The S&P 500, Dow Transports and Russell 2000 still lag their 2011 highs at 1370.58, 5627.85 and 868.57 respectively. Asian stocks were mixed on Monday with the Nikkei 225 ending their session 8,929 – up 1.10% on the day. The Hang Seng closed at 20,710 – down 0.23% on the day. European stocks were lower on another delay on a Greek debt solution. The FTSE 100 ended their session at 5,892 – down 0.15% on the day; the DAX ended their session at 6,765 – down 0.03% on the day; and the CAC 40 ended their session at 3,405 – down 0.66% on the day.
The yield on the 10-Year US Treasury declined from 1.931 percent to 1.898 then rose to 1.945 before declining again to 1.886 versus its 50-day simple moving average at 1.950. Gold traded down from $1740.9 the Troy ounce to $1714.0 after Friday’s key reversal, which followed a new year to date high at $1765.9. Crude oil declined from $97.75 per barrel to $96.38 versus 50-day and 200-day simple moving averages at $99.13 and $94.88. The euro versus the dollar traded down from 1.3130 to 1.3031 then up to 1.3141.
Energy
Mid-Con Energy Partners (MCEP) is a new Outperform at Wells Fargo. Royal Dutch Shell (RDS.A) is moved to Neutral from Outperform at Credit Suisse. In afternoon trading: Shares of Gulf Keystone Petroleum (GUKYF) are up about 10.5%. Shares of DHT Holdings (DHT) are up about 10%. Heavily Traded Stocks: Shares of Alpha Natural Resources (ANR) are up about 3.4%. Shares of Petroleo Brasileiro SA (PBR) are up about 0.3%. Shares of Halliburton (HAL) are up about 1%.
Energy Select Sector SPDR (XLE) was trading at $73.64 at 4:00 PM on Monday, up 1.20% on the day – up 6.52% year-to-date. The January change was +2.26%. The 2011 change was -1.29%.
Materials
European Competition Commissioner Joaquin Almunia could investigate Glencore’s proposed $35B acquisition of the shares in Xstrata (XSRAY) it doesn’t own, The Daily Telegraph reports. Randgold Resources (GOLD) reported Q4 EPS of $1.26 (versus consensus of $1.38). The company raised annual dividend to $0.40/share from $0.18. ArcelorMittal (MT) gets initiated with an Outperform at Imperial Capital. In afternoon trading: Heavily Traded Stocks: Shares of Alcoa (AA) are down about 0.7%. Shares of Vale SA (VALE) are down about 0.8%. Shares of Freeport McMoran (FCX) are down about a quarter of a percent.
The Materials Select Sector SPDR (XLB) was trading at $37.67 at 4:00 PM on Monday, down 0.55% on the day – up 12.45% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.
Industrials
Corning (GLW) is raised to Buy from Neutral at Piper Jaffray. FedEx (FDX) is lifted to Buy from Neutral at Bank of America-Merrill Lynch. Kelly Services (KELYA) is now Buy from Neutral at Citigroup. ABB Ltd (ABB) is now Neutral from Buy at UBS. Deere (DE) is moved to Hold from Buy at ISI Groups. In afternoon trading: Shares of TBS International (TBSI) are up about 99%. Shares of Excel Maritime Carriers (EXM) are up about 16.25%. Shares of DryShips (DRYS) are up about 11.75%.
The Industrial Select Sector SPDR (XLI) was trading at $37.17 at 4:00 PM on Monday, down 0.24% on the day – up 10.13% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.
Consumer Discretionary
GM (GM) will probably disclose that 2011 net income jumped 70% to a record $8B when it releases its results in ten days’ time, The Wall Street Journal reports, with the firm’s performance boosted by strength in North America and China. Hasbro (HAS) missed estimates by 2 cents with revenue in-line with estimates. Walt Disney (DIS) gets a Buy-from-Neutral boost at Davenport. Kenneth Cole Productions (KCP) is upgraded to Buy from Neutral at Stern Agee, which also raises ratings on K-Swiss (KSWS) and Skechers USA (SKX), both now Neutral from Underperform. Tenneco (TEN) is added to Goldman’s list of Conviction Buys. Ann Inc (ANN) is slashed substantially, to Underweight from Overweight by Barclays. Buffalo Wild Wings (BWLD) is moved to Hold from Buy at Miller Tabak. Cracker Barrel Old Country Store (CBRL) is moved to Hold from Buy at KeyBanc Capital. MGM Resorts (MGM) is moved to Neutral from Buy at Goldman. In afternoon trading: Shares of O Charleys (CHUX) are up about 42%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.17 at 4:00 PM on Monday, down 0.21% on the day – up 8.07% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.
Consumer Staples
Unilever PLC (UL) gets added to the pan European Buy list at Goldman Sachs. In afternoon trading: Heavily Traded Stocks: Shares of Walgreens (WAG) are up about 2.5%. Shares of SYSCO Corp. (SYY) are down about 4.1%. Shares of Procter & Gamble (PG) are up about 0.9%. Shares of Green Mountain Coffee Roasters (GMCR) are up about 4.8%. Shares of Altria Group (MO) are down about 0.9%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $32.46 at 4:00 PM on Monday, down slightly on the day – down 0.09% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.
Health Care
Humana (HUM) missed estimates by 8 cents and revenue by $120M. Novartis AG (NVS) is lowered to Underperform from Neutral by Bank of America-Merrill Lynch. Regeneron Pharmaceuticals (REGN) is reduced to Neutral from Overweight at Piper Jaffray. Teva Pharmaceuticals (TEVA) is moved to Equal Weight from Overweight at Morgan Stanley. MWI Veterinary Supply (MWIV) is moved to Market Perform from Outperform at Barrington Research. Nobel Biocare Holding AG (NBHGF) is now Hold from Buy at Jefferies. In afternoon trading: Shares of Biosante Pharmaceuticals (BPAX) are up about 29%. Shares of XOMA Corp. (XOMA) are up about 25.5%. Shares of Dendreon Corp. (DNDN) are up about 17.5%. Shares of Complete Genetics (GNOM) are up about 17%.
The Health Care Select Sector SPDR (XLV) was trading at $36.02 at 4:00 PM on Monday, down 0.55% on the day – up 3.83% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.
Financials
It’s taken a year, but states and five banks are on the cusp of finalizing a $25B deal over foreclosure abuse after California returned to negotiations following a four-month absence, and New York – another hold-out state – signalled it could support a settlement. [JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC), Bank of America (BAC) and Ally Financial]. Lazard (LAZ) missed estimates by 37 cents, while beating revenue by $10M. CNA Financial (CNA) beat estimates by 2 cents. Banco Santander Brasil (BSBR) gets a Buy-from-Neutral boost at Bank of America-Merrill Lynch. Camden Property (CPT) is lifted to Buy from Hold at ISI Group. Mitsubishi Financial (MTU) is moved to Hold from Sell at Jefferies. State Street (STT) is moved to Equal Weight from Overweight at Evercore. Weyerhaeuser (WY) is moved to Sell from Neutral at UBS. In afternoon trading: Shares of MF Global (MFGLQ) are up about 17%.
The Financial Select Sector SPDR (XLF) was trading at $14.665 at 4:00 PM on Monday, down 0.48% on the day – up 12.81% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.
Information Technology
Micron (MU) has named company President and COO Mark Durcan as permanent CEO to replace Steve Appleton, who was killed in a plane crash on Friday. Facebook plans to next month start showing ads to cellphone users as it attempts to succeed where Google and Twitter have so far fallen flat, The Financial Times reports. Sohu.com (SOHU) beat estimates by 10 cents with revenue in-line with estimates. The company issued guidance: Q1 EPS of $0.50-$0.55 (versus $1.06 consensus) and revenues of $219M-225M (versus $239.37M estimate). FactSet (FDS) is a new Sell at BTIG. Corning (GLW) is raised to Buy from Neutral at Piper Jaffray. In afternoon trading: Shares of Motricity (MOTR) are up about 23.5%. Shares of Smith Micro Software (SMSI) are up about 18.25%. Shares of THQ Inc. (THQI) are up about 13%. Shares of Microvision (MVIS) are up about 12.5%. Shares of Fusion-io (FIO) are up about 11%. Shares of CyberDefense (CYDE) are down about 25%. Shares of Sohu.com (SOHU) are down about 14.5%. Shares of Changyou.com (CYOU) are down about 12%.
The Technology Select Sector SPDR (XLK) was trading at $27.735 at 4:00 PM on Monday, up slightly on the day – up 8.96% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.
Telecommunication Services
China Telecom (CHA) is taken to Underperform from Neutral at Credit Suisse. Rogers Communications (RCI) is reduced to Neutral from Outperform at Macquarie. In afternoon trading: Shares of SureWest (SURW) are up about 44%. Heavily Traded Stocks: Shares of Sprint Nextel (S) are up about 3%, while shares of AT&T (T) are down about 0.4% and shares of Verizon (VZ) are up about 0.4%. Shares of Frontier Communications (FTR) are down about 4%.
The NASDAQ Telecommunications Index (IXTC) was trading at $217.50 at 4:00 PM on Monday, up 0.24% on the day – up 10.45% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.
Utilities
In afternoon trading: Heavily Traded Stocks: Shares of Genon Energy (GEN) are down about 0.4%. Shares of Duke Energy (DUK) are down about 0.6%. Shares of PPL Corp. (PPL) are down about a quarter of a percent. Shares of Exelon (EXC) are down about a quarter of a percent. Shares of American Electric Power (AEP) are relatively unchanged. Shares of NiSource (NI) are down about 0.7%.
The Utilities Select Sector SPDR (XLU) was trading at $34.68 at 4:00 PM on Monday, down 0.43% on the day – down 3.61% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.
STOCKS: MCEP, RDS.A, GUKYF, DHT, ANR, PBR, HAL, XSRAY, GOLD, MT, AA, VALE, FCX, GLW, FDX, KELYA, ABB, DE, TBSI, EXM, DRYS, GM, HAS, DIS, KCP, KSWS, SKX, TEN, ANN, BWLD, CBRL, MGM, CHUX, UL, WAG, SYY, PG, GMCR, MO, HUM, NVS, REGN, TEVA, MWIV, NBHGF, BPAX, XOMA, DNDN, GNOM, JPM, C, WFC, BAC, LAZ, CNA, BSBR, CPT, MTU, STT, WY, MFGLQ, MU, SOHU, FDS, MOTR, SMSI, THQI, MVIS, FIO, CYDE, CYOU, CHA, RCI, SURW, S, T, VZ, FTR, GEN, DUK, PPL, EXC, AEP, NI
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