Equities Sector Coverage: Tech and Utilities Up To End Market's Terrible Week

Sector Recap |

Wall StreetNext week the economic data releases include New Home Sales on Monday, Consumer Confidence on Tuesday, Durable Goods Orders on Wednesday, the final reading of Q2 GDP on Friday, and Personal Income & Spending and Chicago PMI on Friday. Thursday’s new year-to-date low for the Dow Jones Industrial Average was 10,597.14 which was a test of its 200-week and 120-month simple moving averages at 10,675 and 10,591. On Friday the Dow rebounded from 10,638.73 to 10,808.49. The NASDAQ rebounded from 2438.28 to 2490.72 on Friday.

Asian stocks declined again on Friday on continued concerns about global economic growth. The Nikkei 225 was closed at 8,560. The Hang Seng fell 1.36% to 17,669. European stocks opened higher as the G20 pledged support for the global economy, but gains were short-lived until late in their sessions when all three averages climbed back into the green. The FTSE 100 closed up just 0.24% to 5,054 with the DAX up 0.63% to 5,197 and the CAC 40 climbing 1.02% to 2,810. The yield on the 10-Year US Treasury declined to another record low of 1.671 percent then rose to 1.842. Gold declined from $1757.9 the Troy ounce to $1631.7 well below its 50-day simple moving average at $1744.1, as the double-top on the daily chart is confirmed. Crude oil fell from $81.81 per barrel to $77.55 then rebounded to $80.62 staying well below its 200-week simple moving average at $83.71, as global economic concerns continue. The euro versus the US dollar traded between 1.3422 and 1.3565.

Energy

Royal Dutch Shell (RDS-A) is raised to Hold from Sell at the Benchmark Company. Enbridge Energy (EEP) and Sunoco Logistics (SXL) are each upgraded to Equal Weight from Underweight at Morgan Stanley. Amyris (AMRS) is upgraded to Overweight from Neutral at Piper Jaffray. In afternoon trading: Shares of General Maritime (GMR) are up about 11.5%. Shares of Range Resources (RRC) are down about 10.1%. Shares of Tidewater (TDW) are down about 9.8%. Shares of Key Energy Services (KEG) are down about 7.6%.

Energy Select Sector SPDR (XLE) was trading at $58.70 at 4:00 PM on Friday, down 1.08% on the day – down 13.99% year-to-date.

Materials

In afternoon trading: Shares of ADA-ES (ADES) are up about 30%. Shares of RTI International Metals (RTI) are up about 6.7%. Shares of Cliffs Natural Resources (CLF) are up about 5.5%. Shares of Endeavour Silver (EXK) are down about 11%. Shares of Silver Wheaton (SLW) are down about 10.2%. Shares of Mag Silver (MVG) are down about 10.2%. Shares of New Gold (NGD) are down about 8.4%. Shares of Hecla Mining (HL) are down about 8.1%. Shares of Silver Standard Resources (SSRI) are down about 8%. Shares of Royal Gold (RGLD) are down about 8%. Shares of Yamana Gold (AUY) are down about 8%. Shares of Harmony Gold (HMY) are down about 8%.

The Materials Select Sector SPDR (XLB) was trading at $30.24 at 4:00 PM on Friday, down slightly on the day – down 21.27% year-to-date.

Industrials

Ingersoll-Rand (IR) is a new Buy and $45 target at Jefferies. Nielsen (NLSN) is now Hold from Buy at Needham. In afternoon trading: Shares of China Ming Yang (MY) are up about 16.1%. Shares of Broadwind Energy (BWEN) are up about 14.8%. Shares of American Superconductor (AMSC) are up about 14%. Shares of Box Ships (TEU) are up about 9.3%. Shares of China Eastern Airlines (CEA) are up about 8.3%. Shares of Genco Shipping (GNK) are up about 8.2%.

The Industrial Select Sector SPDR (XLI) was trading at $28.31 at 4:00 PM on Friday, down 2.41% on the day – down 18.81% year-to-date.

Consumer Discretionary

Nike (NKE) beat earnings estimates yesterday, posting FQ1 EPS of $1.36 (versus expectations of $1.32) on an 18% jump in Y/Y revenue that was boosted by currency gains. McDonald’s (MCD) and Yum Brands (YUM) are initiated with Outperforms at Raymond James. Vera Bradley Inc (VRA) is a new Outperform at Raymond James. Expedia (EXPE) is a new Neutral at Macquarie, which has an Outperform on Priceline.com (PCLN). UBS has new Neutrals on Gap (GPS), Coldwater Creek (CWTR), Talbots (TLB), American Eagle (AEO), Abercrombie (ANF), Aeropostale (ARO), Chico’s Fas (CHS), and Urban Outfitters (URBN). It has new Buys on Ross Stores (ROST), Limited (LTD), Express (EXPR), Ann Inc (ANN), and TJX Cos (TJX). Pandora Media (P) is upgraded to Overweight from Equal Weight at Morgan Stanley. V.F. Corp (VFC) is upgraded to Buy from Neutral at Bank of America/Merrill Lynch. In afternoon trading: Shares of Blockbuster (BLOAQ) are down about 17.2%. Shares of Wonder Auto Tech (WATG) are down about 13%. Shares of E-Commerce China Dangdang (DANG) are up about 12.9%. Shares of ReachLocal (RLOC) are up about 11.1%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $35.73 at 4:00 PM on Friday, up 1.51% on the day – down 4.49% year-to-date.

Consumer Staples

Archer-Daniels Midland (ADM) is a new Neutral at Goldman Sachs. McCormick (MKC) is initiated with a Buy and $52 target at KeyBanc Capital. PepsiCo (PEP) is downgraded to Hold from Buy at Stifel Nicolaus. In afternoon trading: Shares of China-Biotics (CHBT) are down about 13.8%. Shares of Pilgrim’s Pride (PPC) are up about 8.2%. Shares of Smart Balance (SMBL) are up about 6.4%. Shares of Central European Distribution (CEDC) are up about 5.9%. Shares of Clorox (CLX) are up about 4.5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $29.50 at 4:00 PM on Friday, up 0.20% on the day – up 0.65% year-to-date.

Healthcare

NuVasive (NUVA) is a new Overweight at Barclays. Edwards Lifesciences (EW) is launched as an Overweight at Barclays. Altera (ALTR) and Xilinx (XLNX) are each initiated with an Outperform by brokers William Blair. Myriad Genetics (MYGN) is moved to Neutral from Sell at Goldman, which boosts Cepheid (CPHD) to Buy from Neutral. Quest Diagnostics (DGX) is downgraded to Sell from Neutral at Goldman. In afternoon trading: Shares of MannKind (MNKD) are up about 17%. Shares of Pacific Biosciences (PACB) are up about 8.5%. Shares of Hospira (HSP) are up about 7.1%. Shares of Orexigen (OREX) are down about 7.1%.

The Health Care Select Sector SPDR (XLV) was trading at $31.48 at 4:00 PM on Friday, up slightly on the day – down 0.06% year-to-date.

Financials

Bank of America (BAC) is in talks to sell its share in NPC International - the largest U.S. Pizza Hut franchisee. Sources say the sale price could be more than $800M, but an analyst calculates the value as between $630-$735M. Banco Bilbao Vizcaya Argentaria (BBVA) is boosted to Outperform from Neutral at Exane BNP Paribas. FBR Capital cuts Ashford Hospitality Trust (AHT) and DiamondRock Hospitality (DRH) to Underperform from Market Perform. In afternoon trading: Shares of E House China Holdings (EJ) are up about 9%. Shares of Societe Generale (SCGLY) are up about 7.3%. Shares of BNP Paribas (BNPQY) are up about 7.1%. Shares of MPG Office Trust (MPG) are up about 7%. Shares of MGIC Investment (MTG) are down about 7.1%.

The Financial Select Sector SPDR (XLF) was trading at $11.68 at 4:00 PM on Friday, up 1.04% on the day – down 26.77% year-to-date.

Information Technology

Hewlett-Packard (HPQ) CEO Leo Apotheker is stepping down after less than a year on the job, and is being replaced by Meg Whitman. Investors are worried about Whitman's lack of enterprise experience and mixed track record at eBay. Sources say Yahoo's (YHOO) board hasn't begun its search for a Carol Bartz replacement. Instead, the board has spent its time reaching out to private-equity and media firms interested in buying all or part of the company, though the P-E firms have little interest in Yahoo's core business. Veeco Instruments (VECO) and Aixtron (AIXG) are each initiated with Holds at KeyBanc Capital. FEI (FEIC) is begun with a Buy rating and $42 price objective at Ticonderoga. Rambus (RMBS) is resumed at an Overweight at JP Morgan. Open Text (OTEX) is upgraded to Hold from sell by Benchmark. Youku.com (YOKU) is now Positive from Neutral at Susquehanna. ServiceSource International (SREV) is boosted to Buy from Outperform at Credit Agricole. Cavium Networks (CAVM) is cut to Hold from Buy at Deutsche Bank. TriQuint Semiconductor (TQNT) is downgraded to Sector Perform from Outperform at Pacific Crest. In afternoon trading: Shares of Energy Conversion Devices (ENER) are down about 23.5%. Shares of Youku are up about 18.4%. Shares of Powerwave (PWAV) are up about 16.3%. Shares of Aruba Networks (ARUN) are up about 10.5%.

The Technology Select Sector SPDR (XLK) was trading at $24.00 at 4:00 PM on Friday, up 1.14% on the day – down 4.72% year-to-date.

Telecommunications Services

Turkcell (TKC) is taken to Neutral from Sell at Goldman. In afternoon trading: Shares of Sprint Nextel (S) are up about 5.8%. Shares of AT&T (T) are up about 0.2%. Shares of Level 3 Communications (LVLT) are up about 2.8%. Shares of Verizon (VZ) are up about 0.7%. Shares of Vodafone (VOD) are up about 2%. Shares of Telefonica (TEF) are up about 2.6%. Shares of Frontier Communications (FTR) are relatively unchanged.

The NASDAQ Telecommunications Index (IXTC) was trading at $181.62 at 4:00 PM on Friday, up 1.14% on the day – down 19.41% year-to-date.

Utilities

Edison International (EIX) is initiated with an Outperform and $41 target at FBR Capital. In afternoon trading: Actives: Shares of Duke Energy (DUK) are up about 1.4%. Shares of AES Corp (AES) are up about 0.7%. Shares of Genon Energy (GEN) are relatively unchanged. Shares of CMS Energy (CMS) are up about 0.4%. Shares of Southern (SO) are up about 0.8%. Shares of Exelon (EXC) are up about a half of a percent. Shares of American Electric Power (AEP) are up about 1.2%. Shares of PPL Corp (PPL) are up about a quarter of a percent.

The Utilities Select Sector SPDR (XLU) was trading at $33.41 at 4:00 PM on Friday, up 1.00% on the day – up 6.60% year-to-date.

STOCKS: RDS.A, EEP, SXL, AMRS, GMR, RRC, TDW, KEG, ADES, RTI, CLF, EXK, SLW, MVG, NGD, HL, SSRI, RGLD, AUY, HMY, IT, NLSN, MY, BWEN, AMSC, TEU, CEA, GNK, NKE, MCD, YUM, VRA, EXPE, PCLN, GPS, CWTR, TLB, AEO, ANF, ARO, CHS, URBN, ROST, LTD, EXPR, ANN, TJX, P, VFC, BLOAQ, WATG, DANG, RLOC, ADM, MKC, PEP, CHBT, PPC, SMBL, CEDC, CLX, NUVA, EW, ALTR, XLNX, MYGN, CPHD, DGX, MNKD, PACB, HSP, OREX, BAC, BBVA, AHT, DRH, EJ, SCGLY, BNPQY, MPG, MTG, HPQ, YHOO, VECO, AIXG, FEIC, RMBS, OTEX, YOKU, SREV, CAVM, TQNT, ENER, PWAV, ARUN, TKC, S, T, LVLT, VZ, VOD, TEF, FTR, EIX, DUK, AES, GEN, CMS, SO, EXC, AEP, PPL

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
NGD New Gold Inc. 3.63 0.10 2.83 3,950,774
MVG MAG Silver Corp. n/a n/a n/a 0
AHT Ashford Hospitality Trust Inc 7.01 -0.17 -2.37 526,821
EXPR Express Inc. 10.79 0.15 1.41 5,174,447
GEN Genesis Healthcare Inc. 3.56 0.00 0.00 76,462
FTR Frontier Communications Corporation 3.48 -0.03 -0.85 14,273,991
ARO Aeropostale Inc. n/a n/a n/a n/a
TDW Tidewater Inc. 2.63 -0.08 -2.95 1,646,875
DRH Diamondrock Hospitality Company 10.75 0.00 0.00 4,380,099
SO Southern Company (The) 46.76 0.17 0.36 4,386,169
ATHM Autohome Inc. American Depositary Shares each repr 27.09 -0.06 -0.22 533,634
MPG Metaldyne Performance Group Inc. 20.75 -0.25 -1.19 787,679
AMSC American Superconductor Corporation 7.76 -0.03 -0.39 22,165
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.16 -0.07 -1.12 3,920,082
CLX Clorox Company (The) 114.02 0.44 0.39 835,188
CPHD CEPHEID n/a n/a n/a 0
RMBS Rambus Inc. 12.76 0.09 0.71 397,420
TEF Telefonica SA 8.18 -0.05 -0.61 1,298,546
EW Edwards Lifesciences Corporation 83.35 1.88 2.31 2,324,500
PEP Pepsico Inc. 100.60 1.57 1.59 4,594,602
CMS CMS Energy Corporation 39.94 0.25 0.63 1,676,853
CHS Chico\'s FAS Inc. 15.40 0.08 0.52 2,321,646
P Pandora Media Inc. 13.33 1.85 16.12 43,449,412
EXPE Expedia Inc. 121.00 -1.01 -0.83 1,467,838
XLNX Xilinx Inc. 54.22 0.83 1.55 3,328,962
CAVM Cavium Inc. 55.42 1.07 1.97 1,404,031
S Sprint Corporation 7.98 0.04 0.50 8,775,180
PPL PPL Corp 33.34 0.24 0.73 3,488,736
NLSN Nielsen N.V. 42.07 -0.04 -0.09 2,337,324
EIX Edison International 69.40 0.84 1.23 1,435,505
TKC Turkcell Iletisim Hizmetleri AS 6.44 0.02 0.31 387,881
PCLN The Priceline Group Inc. 1,473.00 -6.66 -0.45 336,892
VOD Vodafone Group Plc 24.44 0.14 0.58 7,637,625
SREV ServiceSource International Inc. 5.85 -0.05 -0.85 123,965
TJX TJX Companies Inc. (The) 77.10 -0.57 -0.73 3,196,469
VRA Vera Bradley Inc. 14.07 -0.01 -0.07 199,358
LVLT Level 3 Communications Inc. 55.82 0.63 1.14 1,860,229
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
OTEX Open Text Corporation 62.33 0.01 0.02 243,534
VZ Verizon Communications Inc. 49.81 -0.06 -0.12 10,650,716
VFC V.F. Corporation 55.79 0.02 0.04 2,699,954
OREX Orexigen Therapeutics Inc. 1.90 0.08 4.40 178,984
NKE Nike Inc. 50.46 -0.19 -0.38 6,933,279
SXL Sunoco Logistics Partners LP representing limited 23.18 0.66 2.93 3,287,318
BAC Bank of America Corporation 21.23 -0.27 -1.26 128,468,708
YUM Yum! Brands Inc. 62.42 -0.27 -0.43 2,048,499
GNK Genco Shipping & Trading Limited New (Marshall Isl 8.40 -0.40 -4.55 40,585
DANG E-Commerce China Dangdang Inc. American Depositary n/a n/a n/a 0
ROST Ross Stores Inc. 67.36 -0.02 -0.03 2,248,663
MKC McCormick & Company Incorporated 89.05 0.27 0.30 711,671
AMRS Amyris Inc. 0.84 0.02 1.91 1,636,088
MCD McDonald\'s Corporation 118.24 -0.23 -0.19 3,348,723
HL Hecla Mining Company 6.36 0.33 5.47 14,714,774
SSRI Silver Standard Resources Inc. 10.07 0.45 4.68 2,022,320
AUY Yamana Gold Inc. (Canada) 3.03 0.12 4.12 11,726,302
ADM Archer-Daniels-Midland Company 44.00 -0.31 -0.70 3,289,978
GPS Gap Inc. (The) 24.30 -0.75 -2.99 7,738,868
DGX Quest Diagnostics Incorporated 88.00 0.55 0.63 1,034,076
RLOC ReachLocal Inc. n/a n/a n/a 0
PPC Pilgrim\'s Pride Corporation 17.69 0.31 1.78 1,862,462
URBN Urban Outfitters Inc. 31.67 0.01 0.03 2,601,317
RRC Range Resources Corporation 36.36 -0.23 -0.63 3,669,015
MY China Ming Yang Wind Power Group n/a n/a n/a 0
VECO Veeco Instruments Inc. 26.20 0.20 0.77 213,843
AIXG Aixtron SE 3.97 -0.05 -1.24 28,309
TEU null n/a n/a n/a 0
ALTR Altera Corp. n/a n/a n/a 0
KEG Key Energy Services Inc. n/a n/a n/a n/a
HPQ HP Inc. 15.12 0.06 0.40 8,377,096
EEP Enbridge Energy L.P. Class A 23.55 -0.51 -2.12 1,375,166
YHOO Yahoo! Inc. 40.07 0.44 1.11 8,588,544
ANF Abercrombie & Fitch Company 14.20 -0.06 -0.42 3,102,129
PACB Pacific Biosciences of California Inc. 6.90 -0.20 -2.82 1,056,291
MYGN Myriad Genetics Inc. 16.66 0.02 0.12 654,868
CLF Cliffs Natural Resources Inc 9.56 0.32 3.46 11,757,387
SLW Silver Wheaton Corp (Canada) 18.69 0.59 3.26 5,272,670
YOKU Youku Tudou Inc ADR (Sponsored) n/a n/a n/a 0
FEIC FEI Company n/a n/a n/a 0
EXC Exelon Corporation 33.01 0.84 2.61 7,811,789
EXK Endeavour Silver Corporation (Canada) 3.92 0.20 5.38 2,332,003
HMY Harmony Gold Mining Company Limited 2.29 0.00 0.00 4,447,057
T AT&T Inc. 38.61 -0.27 -0.69 16,102,161
AEO American Eagle Outfitters Inc. 16.17 -0.57 -3.41 9,878,035
DUK Duke Energy Corporation (Holding Company) 73.42 0.67 0.92 3,754,148
NUVA NuVasive Inc. 63.50 0.09 0.14 655,491
CEA China Eastern Airlines Corporation Ltd. 23.80 0.04 0.17 10,711
MNKD MannKind Corporation 0.55 0.07 14.77 9,055,324
EJ E-House (China) Holdings Limited American Deposita n/a n/a n/a 0
MTG MGIC Investment Corporation 9.26 0.02 0.22 4,239,585
AEP American Electric Power Company 58.70 0.54 0.93 2,130,017
RGLD Royal Gold Inc. 70.72 2.19 3.20 664,235
IT Gartner Inc. 100.08 -0.89 -0.88 336,814

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