Equities Sector Coverage: Stocks Unable to Recoup from Lower Open

Sector Recap  |

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

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
GLW Corning Incorporated 27.45 -0.73 -2.59 5,438,688 Trade
FDS FactSet Research Systems Inc. 269.61 -6.20 -2.25 253,348 Trade
DE Deere & Company 147.02 -8.35 -5.37 2,994,795 Trade
GEN Genesis Healthcare Inc. 1.00 -0.00 -0.18 196,621 Trade
FTR Frontier Communications Corporation 0.74 -0.09 -10.85 1,631,474 Trade
LAZ Lazard LTD. LTD. Class A 33.47 -1.09 -3.15 491,403 Trade
PG Procter & Gamble Company (The) 117.32 -2.10 -1.76 7,336,907 Trade
NI NiSource Inc 29.02 -0.62 -2.09 2,038,969 Trade
MCEP Mid-Con Energy Partners LP 0.43 -0.03 -6.59 162,804 Trade
VALE VALE S.A. American Depositary Shares Each Representing one 10.46 -0.31 -2.88 24,436,984 Trade
CHA China Telecom Corp Ltd ADS 44.54 -0.36 -0.80 44,170 Trade
PBR Petroleo Brasileiro S.A.- Petrobras 12.97 -0.63 -4.63 22,168,115 Trade
DRYS DryShips Inc. 5.17 -0.02 -0.29 854,188 Trade
AA Alcoa Corporation 17.48 -0.57 -3.16 3,236,669 Trade
MTU MUFG Mitsubishi UFJ Financial Group Inc. n/a n/a n/a n/a
MLLGF Mullen Group Ltd 6.96 0.00 0.00 0
CYOU Changyou.com Limited 5.98 -0.05 -0.83 219,329 Trade
BSBR Banco Santander Brasil SA American Depositary Shares each representing one unit 9.86 -0.40 -3.90 1,250,291 Trade
MO Altria Group Inc. 46.41 -0.18 -0.39 10,741,849 Trade
C Citigroup Inc. 61.95 -1.96 -3.07 18,001,254 Trade
S Sprint Corporation 6.74 -0.13 -1.89 7,355,710 Trade
PPL PPL Corporation 29.45 -0.37 -1.24 3,877,650 Trade
RCI Rogers Communication Inc. 49.70 -0.40 -0.80 249,376 Trade
SYY Sysco Corporation 72.80 -0.49 -0.67 2,420,966 Trade
HUM Humana Inc. 286.96 -1.86 -0.64 847,532 Trade
CPT Camden Property Trust 106.37 -1.36 -1.26 357,057 Trade
MVIS Microvision Inc. 0.65 -0.00 -0.70 326,989 Trade
WY Weyerhaeuser Company 25.12 -0.52 -2.03 4,285,246 Trade
SKX Skechers U.S.A. Inc. 29.19 -1.90 -6.11 2,655,588 Trade
TEN Tenneco Inc. Class A Voting 8.15 -0.38 -4.45 1,538,693 Trade
VZ Verizon Communications Inc. 55.92 -0.86 -1.51 13,203,639 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
GM General Motors Company 36.06 -1.20 -3.22 7,834,868 Trade
BAC Bank of America Corporation 26.47 -0.72 -2.65 81,898,762 Trade
SMSI Smith Micro Software Inc. 6.36 -0.23 -3.49 609,897 Trade
FCX Freeport-McMoRan Inc. 8.83 -0.30 -3.29 22,537,670 Trade
UL Unilever PLC 61.09 -0.62 -1.00 659,289 Trade
ABB ABB Ltd 18.42 -0.22 -1.18 1,587,841 Trade
MGM MGM Resorts International 27.78 -0.73 -2.56 4,913,351 Trade
SOHU Sohu.com Limited 10.59 -0.24 -2.22 241,930 Trade
CNA CNA Financial Corporation 46.00 -1.22 -2.58 188,941 Trade
TEVA Teva Pharmaceutical Industries Limited American Depositary Shares 7.05 -0.21 -2.89 15,311,489 Trade
WFC Wells Fargo & Company 44.42 -1.20 -2.63 21,153,801 Trade
MT Arcelor Mittal NY Registry Shares NEW 13.37 -0.31 -2.27 4,812,601 Trade
NVS Novartis AG 88.44 -0.56 -0.63 2,116,352 Trade
FDX FedEx Corporation 151.97 -6.13 -3.88 2,806,789 Trade
DHT DHT Holdings Inc. 5.49 -0.19 -3.35 1,392,151 Trade
HAS Hasbro Inc. 104.13 -10.22 -8.94 2,048,036 Trade
CBRL Cracker Barrel Old Country Store Inc. 161.28 -3.48 -2.11 341,813 Trade
REGN Regeneron Pharmaceuticals Inc. 286.85 -8.17 -2.77 815,826 Trade
MU Micron Technology Inc. 42.96 -1.82 -4.06 27,547,277 Trade
EXC Exelon Corporation 44.88 -0.64 -1.41 6,977,954 Trade
T AT&T Inc. 34.82 -0.57 -1.61 33,864,032 Trade
HAL Halliburton Company 17.72 -0.95 -5.09 14,101,127 Trade
DUK Duke Energy Corporation (Holding Company) 90.74 -0.58 -0.64 3,153,865 Trade
KELYA Kelly Services Inc. Class A Common Stock 25.30 -0.85 -3.25 313,144 Trade
AEP American Electric Power Company Inc. 89.58 -1.39 -1.53 2,253,120 Trade
XOMA XOMA Corporation 17.32 -0.18 -1.03 42,813 Trade
JPM JP Morgan Chase & Co. 106.02 -2.70 -2.48 14,764,096 Trade
DIS The Walt Disney Company 131.67 -4.41 -3.24 10,197,685 Trade

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