Equities Sector Coverage: Super Committee Concerns Fuel Sell-Off

Sector Recap |

Dollar CutsExisting Home Sales rose 1.4% in October to an annual rate of 4.97 million with the average sale price down to $162,500 from $165,800. Tomorrow we get Preliminary GDP for Q3, which should be revised down to 2.2% from 2.5%. On Wednesday we get Durable Goods Orders, Personal Income and Spending and Michigan Consumer Sentiment. The US Treasury auctions $35 billion 5-Year notes on Tuesday and $29 billion 7-Year notes. The Dow Jones Industrial Average traded down to 11,454.07 Monday morning below its 50-day simple moving average at 11,534. The Dow traded above the 50-day into the final half hour of trading. The NASDAQ gapped below its 50-day simple moving average at 2592 in a trading range of 2539.87 down to 2500.89 Monday morning then consolidating the loss into the final half hour of trading.

Asian stocks began the week lower with the Nikkei 225 down 0.32% to 8,348 and the Hang Seng losing 1.44% 1.44% to 18,226. European stocks also traded lower on European and US debt woes. The FTSE 100 slumped by 2.62% to 5,223 with the DAX plunged by 3.35% to 5,606 and the CAC 40 crushed by 3.41% to 2,895. The yield on the US Treasury 10-Year note traded down from 1.993 percent to 1.941 staying below its 50-day simple moving average at 2.044. The US Treasury auctioned $35 billion 2-Year notes at 0.280% with a very strong 4.07 bid to cover and indirect bit of 42.2%. Gold traded down from $1727.4 the Troy ounce to $1667.1. Crude oil traded down from $97.86 per barrel to $95.24 testing its 200-day simple moving average at $95.36. The euro versus the dollar declined from 1.3538 to 1.3434 then up to 1.3540 staying below its 50-day simple moving average at 1.3670.

Energy

In afternoon trading: Shares of Frontline (FRO) are down about 11.5%. Shares of GMX Resources (GMXR) are down about 11%. Shares of Overseas Shipholding Group (OSG) are down about 10%. Shares of Gastar Exploration (GST) are down about 9%.

Energy Select Sector SPDR (XLE) was trading at $66.93 at 4:00 PM on Monday, down 1.79% on the day – down 1.93% year-to-date.

Materials

MeadWestvaco (MWV) is moved to Market Perform from Underperform at BMO Capital. International Flavors & Fragrances (IFF) is now Overweight from Neutral at JPMorgan. Haynes International (HAYN) is moved to Overweight from Neutral at JPMorgan. Royal Gold (RGLD) is cut to Sector Perform from Outperform at RBC Capital. In afternoon trading: Shares of Mechel OAO (MTL) are down about 8%.

The Materials Select Sector SPDR (XLB) was trading at $32.68 at 4:00 PM on Monday, down 1.74% on the day – down 14.92% year-to-date.

Industrials

Fluor (FLR) is moved to Buy from Hold at BB&T Capital. In afternoon trading: Shares of Ultrapetrol (ULTR) are up about 10%. Shares of Broadwind Energy (BWEN) are up about 7.25%. Shares of Genco Shipping & Trading (GNK) are down about 8.25%. Shares of American Superconductor (AMSC) are down about 7.75%. Shares of The Manitowoc Company (MTW) are down about 7.5%.

The Industrial Select Sector SPDR (XLI) was trading at $32.16 at 4:00 PM on Monday, down 2.31% on the day – down 7.77% year-to-date.

Consumer Discretionary

Sally Beauty Holdings (SBH) is launched at Neutral by Bank of America-Merrill Lynch. Bally Technologies (BYI) is moved to Buy from Hold at Deutsche Bank. Hibbett Sports (HIBB) is hoisted to Buy from Neutral at Sterne Agee. Hot Topic (HOTT) is juiced to Overweight from Neutral at Piper Jaffray. Target (TGT) is moved to Neutral from Overweight at JP Morgan. Liberty Starz (LSTZA) is lowered to Equal Weight from Overweight at Barclays. Destination Maternity (DEST) is downgraded to In Line from Outperform at Imperial Capital Research. In afternoon trading: Shares of Global Education & Technology (GEDU) are up about 97%. Shares of Focus Media (FMCN) are down about 49%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $37.29 at 4:00 PM on Monday, down 1.56% on the day – down 0.32% year-to-date.

Consumer Staples

Wal-Mart (WMT) is upgraded to Overweight from Neutral at JPMorgan. Hershey Foods (HSY) is taken to Buy from Neutral at Ticonderoga with a new price objective of $66. Walgreen (WAG) is downgraded by 180 degrees, to Underweight from Overweight at Morgan Stanley. In afternoon trading: Shares of China-Biotics (CHBT) are up about 16%. Shares of Central European Distribution (CEDC) are up about 10.5%. Shares of NuPathe (PATH) are down about 10.25%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.56 at 4:00 PM on Monday, down 1.61% on the day – up 4.26% year-to-date.

Healthcare

AMAG Pharmaceuticals (AMAG) is a new Equal Weight at Morgan Stanley. Regeneron Pharmaceuticals (REGN) is lifted to Neutral from Underweight at Bank of America-Merrill Lynch. In afternoon trading: Shares of Pharmasset (VRUS) are up about 85%. Shares of Inhibitex (INHX) are up about 20%. Shares of Geron (GERN) are up about 17%. Shares of Regeneron Pharmaceuticals (REGN) are up about 11.75%.

The Health Care Select Sector SPDR (XLV) was trading at $32.22 at 4:00 PM on Monday, down 1.92% on the day – up 2.29% year-to-date.

Financials

Having spurned a series of suitors such as Warren Buffett, Transatlantic (TRH) is in talks with yet another buyer, Alleghany (Y), and the firms may even announce their engagement today. Alleghany will pay about $59-60 a share, a premium of up to 10% on Transatlantic's close on Friday. Lloyds (LYG) said CEO Antonio Horta-Osorio is making "good progress in his recovery" after taking medical leave, but that it will draft in David Roberts to become interim CEO if Horta-Osorio doesn't return by the year-end, as expected. American National Bankshares (AMNB) is covered with a Market Perform at Keefe Bruyette. Morgan Stanley (MS) is moved to Buy from Hold at brokerage Collins Stewart. Royal Bank of Scotland (RBS) is raised to Buy from Add at WestLB. Deutsche Bank (DB) is upgraded to Overweight from Neutral at HSBC Securities. Euronet Worldwide (EEFT) is upgraded to Overweight from Neutral at Piper Jaffray. Mack-Cali Realty (CLI) is lifted to Buy from Neutral increase at Goldman Sachs. Goldman gives ratings reductions to General Growth Properties (GGP), Simon Properties Group (SPG) (both now Neutral from Buy), and Vornado Realty Trust (VNO), slashed to to Sell from Neutral. Green Dot (GDOT) is now Neutral from Overweight at Piper Jaffray. In afternoon trading: Shares of MF Global (MFGLQ) are down about 18%.

The Financial Select Sector SPDR (XLF) was trading at $12.19 at 4:00 PM on Monday, down 2.48% on the day – down 23.57% year-to-date.

Information Technology

An arbitrator has ordered hard-drive maker Western Digital (WDC) to pay $525M to rival Seagate (STX) for misappropriation of confidential information and trade secrets. Hewlett Packard (HPQ) is expected to report that EPS and revenue declined to $1.13 and $32B respectively when it release its FQ4 results after the bell. NetApp (NTAP) is raised to Outperform from Sector Perform at FBN Securities. Western Digital (WDC) is boosted to Overweight from Equal Weight at Barclays. Veeco Instruments (VECO) is hoisted to Buy from Hold at ThinkEquity. Research In Motion (RIMM) is cut to Underperform from Market Perform at JMP Securities. In afternoon trading: Shares of Vanceinfo Technology (VIT) are down about 17.25%. Shares of Youku.com (YOKU) are down about 12.5%. Shares of Sina (SINA) are a down about 12%. Shares of Spreadtrum Communications (SPRD) are down about 12%. Shares of Yandex (YNDX) are down about 11%.

The Technology Select Sector SPDR (XLK) was trading at $24.77 at 4:00 PM on Monday, down 1.75% on the day – down 1.67% year-to-date.

Telecommunications Services

In afternoon trading: Shares of TerreStar (TSTRQ) are down about 11.5%. Shares of Leap Wireless (LEAP) are down about 8.25%. Shares of magicJack VocalTec (CALL) are down about 6.25%. Shares of Boingo Wireless (WIFI) are down about 6%. Shares of Clearwire (CLWR) are up about 12.25%.

The NASDAQ Telecommunications Index (IXTC) was trading at $195.63 at 4:00 PM on Monday, down 2.49% on the day – down 13.20% year-to-date.

Utilities

Alliant Energy (LNT) is upgraded to Buy from Hold with Wunderlich, which takes its target price up to $45 from $40. Great Plains Energy (GXP) is downgraded to Hold from Buy with a new $22 target at Wunderlich. In afternoon trading: Actives: Shares of Genon Energy (GEN) are down about 3.6%. Shares of Duke Energy (DUK) are down about 0.7%. Shares of AES Corp (AES) are down about 2.6%. Shares of Southern Company (SO) are down about a half of a percent.

The Utilities Select Sector SPDR (XLU) was trading at $34.21 at 4:00 PM on Monday, down 1.24% on the day – up 9.16% year-to-date.

STOCKS: FRO, GMXR, OSG, GST, MWV, IFF, HAYN, RGLD, MTL, FLR, ULTR, BWEN, GNK, AMSC, MTW, SBH, BYI, HIBB, HOTT, TGT, LSTZA, DEST, GEDU, FMCN, WMT, HSY, WAG, CHBT, CEDC, PATH, AMAG, REGN, VRUS. INHX, GERN, TRH, Y, LYG, AMNB, MS, RBS, DB, EEFT, CLI, GGP, SPG, VNO, GDOT, MFGLQ, WDC, STX, HPQ, NTAP, VECO, RIMM, VIT, YOKU, SINA, SPRD, YNDX, TSTRQ, LEAP, CALL, WIFI, CLWR, LNT, GXP, GEN, DUK, AES, SO

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
GST Gastar Exploration Inc 1.27 -0.05 -3.79 698,422
GXP Great Plains Energy Incorporated 26.31 0.11 0.42 3,810,806
GEN Genesis Healthcare Inc. 3.56 0.00 0.00 76,462
EEFT Euronet Worldwide Inc. 70.59 -1.20 -1.67 306,392
MTW Manitowoc Company Inc. (The) 5.98 -0.04 -0.66 1,863,983
SO Southern Company (The) 46.76 0.17 0.36 4,386,169
AMSC American Superconductor Corporation 7.76 -0.03 -0.39 22,165
YNDX Yandex N.V. 18.42 -0.19 -1.02 1,892,197
ANCX Access National Corporation 27.66 0.01 0.04 45,975
WMT Wal-Mart Stores Inc. 70.88 0.21 0.30 6,674,206
IFF Internationa Flavors & Fragrances Inc. 120.07 1.56 1.32 607,424
FLR Fluor Corporation 53.44 0.05 0.09 1,340,828
SINA Sina Corporation 70.34 -1.81 -2.51 2,528,284
GGP General Growth Properties Inc. 25.46 0.62 2.50 3,864,543
CLI Mack-Cali Realty Corporation 27.02 0.26 0.97 393,817
SPG Simon Property Group Inc. 179.36 2.54 1.44 1,273,895
MS Morgan Stanley 41.83 -0.33 -0.78 11,288,363
STX Seagate Technology 38.87 0.76 1.99 4,144,608
TGT Target Corporation 77.94 0.12 0.15 7,523,696
VNO Vornado Realty Trust 99.26 1.73 1.77 825,075
AMNB American National Bankshares Inc. 30.95 0.00 0.00 5,290
MTL Mechel PAO American Depositary Shares (Each rep. 1 5.40 -0.27 -4.76 492,386
DB Deutsche Bank AG 15.74 -0.32 -1.99 5,262,617
DEST Destination Maternity Corporation 6.74 -0.19 -2.74 77,004
AMAG AMAG Pharmaceuticals Inc. 33.23 1.33 4.15 862,221
AES The AES Corporation 11.18 0.15 1.36 5,521,035
BWEN Broadwind Energy Inc. 4.16 0.10 2.46 14,856
GDOT Green Dot 23.87 0.15 0.63 202,727
GERN Geron Corporation 2.01 0.05 2.55 727,954
GNK Genco Shipping & Trading Limited New (Marshall Isl 8.40 -0.40 -4.55 40,585
RBS Royal Bank of Scotland Group Plc New (The) ADS 4.91 -0.12 -2.39 1,028,013
ULTR Ultrapetrol (Bahamas) Limited 0.14 -0.02 -12.50 186,331
HSY The Hershey Company 97.08 0.80 0.83 825,619
LYG Lloyds Banking Group Plc American Depositary Share 2.94 0.03 1.03 4,307,503
LNT Alliant Energy Corporation 35.99 0.48 1.35 1,033,523
HIBB Hibbett Sports Inc. 40.45 -0.25 -0.61 328,548
VECO Veeco Instruments Inc. 26.20 0.20 0.77 213,843
FRO Frontline Ltd 7.04 0.00 0.00 613,174
HPQ HP Inc. 15.12 0.06 0.40 8,377,096
SBH Sally Beauty 26.52 0.03 0.11 1,608,239
Y Alleghany Corporation 576.57 7.63 1.34 55,869
WIFI Boingo Wireless Inc. 12.11 0.11 0.92 174,848
HAYN Haynes International Inc. 44.75 1.48 3.42 97,480
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0
WDC Western Digital Corporation 63.35 1.74 2.82 3,496,934
CALL magicJack VocalTec Ltd 7.10 -0.10 -1.39 62,592
REGN Regeneron Pharmaceuticals Inc. 372.71 -2.85 -0.76 723,571
DUK Duke Energy Corporation (Holding Company) 73.42 0.67 0.92 3,754,148
NTAP NetApp Inc. 35.96 0.52 1.47 3,094,111
RGLD Royal Gold Inc. 70.72 2.19 3.20 664,235

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