U.S. stocks opened significantly lower on Friday with the Dow Jones Industrial Average trading as low as 12,104 with the NASDAQ as low as 2740. Nonfarm Payrolls was reported at just a gain of 54,000 jobs when expectations were above 150,000. The Unemployment Rate rose to 9.1%. Stocks rebounded on the 10:00 am report that Non-manufacturing ISM rose slightly to 54.6 from 52.8 in May and on the weaker dollar. The Dow rebounded to 12,220 with the NASDAQ up to 2762, but both faded into the close.
Asian stocks were lower again on Friday with the Nikkei 225 down 0.7% to 9,492 and the Hang Seng Index down 1.3%. European stocks bucked the trend and closed slightly higher on Friday with the FTSE 100 up 0.1%, the DAX up 0.5% and the CAC 40 up less than 0.1%. The yield on the 10-Year U.S. Treasury note was trading above 3% before the Employment Report Friday morning, but the much weaker than expected report pushed this yield down to 2.944 percent in a renewed flight to quality.
As the dollar weakened the 10-Year yield rose back to 3%. Comex gold, which traded as low as $1524.9 the Troy ounce pre-Employment Report popped to $1548.4 after the report on a flight to quality. Nymex crude oil was trading around the $100 per barrel milestone and slumped to $98.12 after the report then traded up to $100.87. The euro traded up to 1.4642 as stocks stabilized, but the correlation between a strong euro and strong stocks seems to have ended. US stocks were mixed on Thursday with the Dow Industrial Average down 41 points to 12,249 up 5.8% year to date. The NASDAQ picked up 4 points to 2773 up 4.5% year to date.
Chevron (CVX), Exxon Mobil (XOM) and Hess (HES) are all begun with a Buy at Societe Generale. The bank has a Hold on ConocoPhillips (COP). Cimarex (XEC) is a new Outperform with a $120 price target at Morgan Keegan. Frontline (FRO) is lowered to Market Perform from Outperform at Wells Fargo. In afternoon trading: Shares of Yanzhou Coal Mining Company (YZC) are down about 6.8%. Shares of Frontline are down about 5.6%. Shares of LDK Solar (LDK) are down about 4.8%.
The Energy Select Sector SPDR (XLE) was trading at $75.26 at 4:00 PM on Friday, up slightly on the day – up 10.27% year-to-date.
Rio Tinto (RIO) has struck deals with Aboriginals in Western Australia in which it will pay almost $2B over 40 years to landowners in return for access to their territory. In afternoon trading: Shares of AK Steel (AKS) are up about 1.75%. Shares of Dow Chemical (DOW) are down about 1.1%. Shares of Silver Wheaton (SLW) are up slightly. Shares of Barrick Gold (ABX) are down about 0.8%. Shares of Hecla Mining (HL) are down about 1.1%. Shares of Potash (POT) are down about 0.5%.
The Materials Select Sector SPDR (XLB) traded at $38.08 at 4:00 PM on Friday, down 1.27% on the day – down 0.86% year-to-date.
Swisher Hygiene (SWSH) is initiated with an Outperform and $7 target price by brokers Robert W. Baird. Pentair (PNR) is a new Neutral at UBS. DryShips (DRYS) is surging ahead of the open after being upgraded to Buy from Neutral at Goldman. Diana Shipping (DSX) gets downgraded to Neutral from Buy at Goldman. China Ming Yang Wind Power (MY) is moved to Hold from Buy at Maxim Group due to market and operation uncertainties. In afternoon trading: Shares of Hill International (HIL) are down about 9%. Shares of China Ming Yang are down about 6.7%. Shares of Paragon Shipping (PRGN) are down about 6%. Shares of DryShips are up about 8.5%.
The Industrial Select Sector SPDR (XLI) traded at $36.10 at 4:00 PM on Friday, down 1.34% on the day – up 3.53% year-to-date.
Hackers from a group called LulzSec have broken into servers that run Sony Pictures Entertainment (SNE) websites and accessed the information of more than 1M users. Meanwhile, the Chinese hackers who broke into Gmail (GOOG) accounts reportedly targeted White House staffers, possibly in the hope they were conducting administration business on their private emails. Newell Rubbermaid (NWL) has lowered its 2011 outlook on the back of "persistent softness in the U.S. economy," as well as "increased inflationary pressure" and "weak consumer spending trends." The government is set to formally exit from Chrysler after agreeing to sell its remaining 6% stake to Fiat (FIATY:US) for $500M. The transaction will take the Italian company's ownership to 52%, and it will pay a further $75M for the right to buy the 45.7% stake owned by the health-care trust fund of the United Auto Workers union. Mazda (MZDAF:US) will reportedly cease production in the U.S. by 2013 and terminate its equally held joint venture with Ford (F). Nike (NKE) and Finish Line (FINL) are each assigned Buys at Jefferies, which has Holds on Foot Locker (FL) and V.F. Corp (VFC). Quiksilver (ZQK) is upgraded to Overweight from Neutral at Piper Jaffray. Career Education (CECO) is raised to Market Perform from Underperform at FBR Capital with a new target of $23. Family Dollar (FDO) is now Neutral from Outperform at Credit Suisse. Exide Tech (XIDE) is taken to Accumulate from Buy at Ardour Capital. Stage Stores (SSI) is downgraded to Hold from Buy at Soleil Securities. In afternoon trading: Shares of Qwiksilver are up about 19%. Shares of Hyundai (HYMLF) are up about 17.5%. Shares of Newell Rubbermaid are down about 12.25%.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $38.92 at 4:00 PM on Friday, down 1.29% on the day – up 4.04% year-to-date.
Coca-Cola Hellenic (CCH) is boosted to Buy from Hold at Citigroup. Coca-Cola FEMSA (KOF) is now Neutral from Underperform at Credit Suisse. In afternoon trading: Shares of Zhongpin (HOGS) are down about 14.25%. Shares of Pilgrim’s Pride (PPC) are down about 7.3%. Shares of China-Biotics (CHBT) are down about 5.5%. Shares of Imperial Sugar (IPSU) are up about 10.5%.
The Consumer Staples Select Sector SPDR (XLP) traded at $31.31 at 4:00 PM on Friday, down 0.95% on the day – up 6.82% year-to-date.
Avanir Pharmaceuticals (AVNR) is assumed with a Hold at Jefferies, which has a Buy on Sagent Pharma (SGNT). Bristol-Myers (BMY) is initiated at a Hold at ISI Group. Forest Labs (FRX) is lifted to Overweight from Neutral at JPMorgan. Theravance (THRX) is now Neutral from Outperform at Robert W. Baird. In afternoon trading: Shares of Orexigen Therapeutics (OREX) are down over 33% after the company issued a press release saying that it will be halting the development process for its obesity drug Contrave in the U.S. until it can get more clarity on the approval process from the Food and Drug Administration.
The Health Care Select Sector SPDR (XLV) traded at $35.19 at 4:00 PM on Friday, down 0.96% on the day – up 11.71% year-to-date.
Rayonier (RYN) is resumed at Outperform by Raymond James. Newstar Financial (NEWS) gets upgraded to Outperform from Market Perform at Keefe Bruyette. Allstate (ALL) is cut to Hold from Buy at Citigroup. ViewPoint Financial (VPFG) is moved to Market Perform from Outperform at Keefe Bruyette. In afternoon trading: Shares of E House China (EJ) are down about 9.2%. Shares of Lehman Brothers (LEHMQ) are down about 8.1%.
The Financial Select Sector SPDR (XLF) traded at $15.22 at 4:00 PM on Friday, down 0.65% on the day – down 4.58% year-to-date.
Groupon (GRPN) has revealed the astonishing scale of its growth in a filing for a $750M IPO. The daily discount company generated Q1'11 sales of $644.7M, up from $44.2M a year earlier and putting it well on the way to surpassing the $713M it earned in the whole of 2010. Gross profit in Q1 was $270M vs. $20M. Hackers from a group called LulzSec have broken into servers that run Sony Pictures Entertainment (SNE) websites and accessed the information of more than 1M users. Meanwhile, the Chinese hackers who broke into Gmail (GOOG) accounts reportedly targeted White House staffers, possibly in the hope they were conducting administration business on their private emails. Pandora has revealed plans to offer 13.7M shares at $7-$9 each, which could value the firm at up to $1.4B. If underwriters exercise an option to buy another 2M shares, Pandora could raise as much as $141M. SAIC (SAI) beat estimates by 3 cents with revenue in-line with estimates. Verifone (PAY) beat estimates by 3 cents and revenue by $7M. Cisco Systems (CSCO) is initated with a Hold at Jefferies. Activision Blizzard (ATVI) is a new Buy at Brean Murray with a price objective of $15. Brean Murray is less bullish on Take-Two Interactive (TTWO) and Electronic Arts (ERTS), beginning both at Hold. Universal Display (PANL) gets picked up with a Buy at Goldman Sachs. Shanda Interactive (SNDA) is downgraded to Underweight from Neutral at HSBC Securities after it fell short of consensus and firm’s estimates. Skyworks (SWKS) is now Neutral from Buy at Sterne Agee. In afternoon trading: Shares of GT Solar (SOLR) are up about 12.25%. Shares of Ebix (EBIX) are down about 8.25%. Shares of Sina (SINA) are down about 8.1%. Shares of Youku.com (YOKU) are down about 7.75%.
The Technology Select Sector SPDR (XLK) traded at $25.54 at 4:00 PM on Friday, down 1.50% on the day – up 1.39% year-to-date.
Iridium Communications (IRDM) is a new Buy at Merriman. In afternoon trading: Shares of Clearwire (CLWR) are down about 5.1%. Shares of American Tower (AMT) are down about 4.6%. Shares of Sprint Nextel (S) are down about 3.7%. Shares of MetroPCS (PCS) are down about 3.6%. Shares of PAETEC (PAET) are up about 4.25%.
The NASDAQ Telecommunications Index (IXTC) traded at $217.78 at 4:00 PM on Friday, down 1.31% on the day – down 3.37% year-to-date.
In afternoon trading: Actives: Shares of Genon Energy (GEN) are up slightly. Shares of CenterPoint (CNP) are down about 1.2%. Shares of Duke Energy (DUK) are down about 0.75%. Shares of FirstEnergy (FE) are down about 0.3%. Shares of PPL (PPL) are down about a quarter of a percent. Shares of Exelon (EXC) are down about a quarter of a percent. Shares of AES (AES) are down about 1%.
The Utilities Select Sector SPDR (XLU) traded at $33.19 at 4:00 PM on Friday, down 0.69% on the day – up 5.90% year-to-date.
STOCKS: CVX, XOM, HES, COP, XEC, FRO, YZC, LDK, RIO, AKS, DOW, SLW, ABX, HL, POT, SWSH, PNR, DRYS, DSX, MY, HIL, PRGN, SNE, GOOG, NWL, FIATY, MZDAF, F, NKE, FINL, FL, VFC, ZQK, CECO, FDO, XIDE, SSI, HYMLF, CCH, KOF, HOGS, PPC, CHBT, IPSU, AVNR, SGNT, BMY, FRX, THRX, OREX, RYN, NEWS, ALL, VPFG, EJ, LEHMQ, SAI, PAY, CSCO, ATVI, TTWO, ERTS, PANL, SNDA, SWKS, SOLR, EBIX, SINA, YOKU, IRDM, CLWR, AMT, S, PCS, PAET, GEN, CNP, DUK, FE, PPL, EXC, AES
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