Equities Sector Coverage: Wall Street Inches Up As Investors Watch Europe

Sector Recap |

nyse, wall street, economy, stock marketThe Nonmanufacturing ISM index came in at 53.7 in May, above expectations, but the employment component fell to 50.8 questioning job creation. The Dow Jones Industrial Average traded down to 12,072.17 then up to 12,140.59 going into the final half hour of trading, staying well below its 200-day simple moving average at 12,263. The NASDAQ traded down to 2749.34 then up to 2780.99 trading on both sides of its 200-day simple moving average at 2761.

Asian stocks had a modest recovery on Tuesday. The Nikkei 225 ended the day at 8,382 – up 1.04%. The Hang Seng ended the day at 18,259 – up 0.40%. European exchanges were mixed again on Tuesday. The FTSE 100 remained closed at 5,260 – down 1.14% on Friday. The DAX ended the day at 5,922 – down 0.90%. The CAC 40 ended the day at 2.967 – up 0.40%. The yield on the 10-Year US Treasury set a record low of 1.439% on Friday and rose from 1.509% to 1.574% on Tuesday.

Gold traded up to $1624.8 the Troy ounce to the base of the 50-day and 200-day simple moving average “Death Cross” at $1622.8 and $1686.5 then declined to $1612.5. Crude oil traded between $83.31 and $84.92 per barrel after Monday’s near test of its 200-week simple moving average at $81.17. The euro versus the dollar traded up from 1.2413 to 1.2541.

Energy

According to Reuters, India's state-run ONGC oil company is considering bidding for part of ConocoPhillips' (COP) Canadian oil sands holdings worth around $5 billion. Conoco is looking to sell several assets as part of their global restructuring plan. JA Solar Holdings (JASO) missed Q1 EPS estimates by a loss of four cents less than expected and with revenue up better than expected shares were 14.6% higher premarket. Dow components – Chevron (CVX) down 0.68%, Exxon Mobil (XOM) down 0.59%.

Energy Select Sector SPDR (XLE) was trading at $62.42 at 3:30 PM on Tuesday, up 0.69% on the day – down 9.71% year-to-date.

Materials

Quanex Building Products (NX) slipped in trading late Monday after reporting a wider FQ2 loss due to lower sales volumes and higher costs in its aluminum segment. A flat housing market and rising prices for raw materials and production continue to be an ongoing challenge for the company. Uranium Energy (UEC) has been initiated with a Buy rating at Dahlman Rose, whose price target is $3.25. While the disaster in Japan has delayed the nuclear renaissance, the company continues to believe that over the medium term uranium prices will trend higher. Buckeye Technologies (BKI) has been upgraded to Outperform from Sector Perform at RBC Capital. Dow components – Alcoa (AA) up 0.11%, DuPont (DD) down 0.32%.

The Materials Select Sector SPDR (XLB) was trading at $33.39 at 3:30 PM on Tuesday, up 0.78% on the day – down 0.33% year-to-date.

Industrials

Navistar (NAV) has been downgraded to Neutral from Outperform at Robert W. Baird with a price target to $31. The brokerage is expecting disappointing Q2 earnings on June 7.Dow components – Boeing Co (BA) down 0.34%, Caterpillar (CAT) up 0.43%, General Electric (GE) up 0.27%, 3M Company (MMM) down 0.38%, United Technologies (UTX) down 0.71%.

The Industrial Select Sector SPDR (XLI) was trading at $33.44 at 3:30 PM on Tuesday, up 0.24% on the day – down 0.92% year-to-date.

Consumer Discretionary

Marriott (MAR) plans to hire up to 10,000 workers in the US this year and open 150 new hotels, despite global concerns about the US recovery and the eurozone debt crisis. Wynn Resorts (WYNN) reported that it’s latest Macau casino resort will cost $4 billion. CBS (CBS) is seeking bids for its outdoor billboard business after being approached by bankers. The issue on a deal is that CBS thinks this business is worth $6 billion, but potential suitors place the value at closer to $4 billion. Shuffle Master (SHFL) reported in-line Q2 EPS with a slight beat on the revenue line. Vail Resorts (MTM) has been initiated with a Buy rating at KeyBanc Capital with a $60 price target. Dow Components – Disney (DIS) down 0.36%, Home Depot down 0.43%, McDonalds (MCD) up 0.06%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.07 at 3:30 PM on Tuesday, up 0.43% on the day – up 7.82% year-to-date.

Consumer Staples

United Natural Foods' (UNFI) in their FQ3 earnings release reported that gross margin fell to 17.6%, from 18.2% year over year, but the company raised FY12 sales outlook and projects FY12 EPS of $1.92 to $1.96. G-III Apparel Group (GIII) reported in-line Q1 EPS with a beat on the revenue line. Dollar General (DG) beat Fq1 across the board on strong sales and better overall margins. The discount retailer also full year guidance. Shares were up 1.3% in after hours trading on Monday, but traded down by 3.0% Tuesday morning. Dow components – Kraft (KFT) down 0.84%, Coca Cola (KO) down 0.69%, Procter & Gamble (PG) down 0.57%, Wal-Mart (WMT) down 0.42%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.28 at 3:30 PM on Tuesday, up 0.03% on the day – up 2.43% year-to-date.

Health Care

Amylin (AMLN) has received takeover offers of $25 to $29 a share in a first round of bidding, which values the diabetes drug company at $4.1 to 4.7 billioon. AstraZeneca (AZN), Sanofi (SNY), Merck (MRK) and Bristol-Myers Squibb (BMY) have already made proposals, with Pfizer (PFE) dropping out. Amylin is seeking revised offers by the end of June and hopes to close a sale in July. Dow Components – Johnson & Johnson (JNJ) down 0.24%, Merck (MRK) down 0.29%, Pfizer (PFE) down 0.23%.

The Health Care Select Sector SPDR (XLV) was trading at $35.81 at 3:30 PM on Tuesday, up 0.62% on the day – up 3.23% year-to-date.

Financial

JP Morgan (JPM) could report a $4.2 billion trading loss up from $2 billion and such a loss would help cut Q2 EPS to 65 cents a share, down 30% from an earlier estimate of 93 cents. Comerica (CMA) has been upgraded to Hold from Sell at Stifel Nicolaus. Dow Components – American Express (AXP) up 0.41%, Bank of America (BAC) up 2.17%, JP Morgan Chase (JPM) up 3.18%, Travelers (TRV) up 0.25%.
The Financial Select Sector SPDR (XLF) was trading at $13.58 at 3:30 PM on Tuesday, up 1.65% on the day – up 4.46% year-to-date.

Information Technology

SanDisk (SNDK) has been initiated with an Outperform rating at Pacific Crest. Fusion-io (FIO) has been upgraded to Buy from Neutral at Sterne Agee. Marvell Technology (MRVL) has been upgraded to Market Perform from Underperform at JMP Securities. Photronics (PLAB) has been upgraded to Buy from Neutral at Mizuho. Advanced Semiconductor (ASX) has been downgraded to Hold from Buy at BNP Paribas. Brocade Communications (BRCD) has been downgraded to Hold from Buy at ThinkEquity. DigitalGlobe (DGI) has been downgraded to Neutral from Overweight at JP Morgan. Dow Components – Cisco Systems (CSCO) down 0.31%, Hewlett-Packard (HPQ) up 2.08%, IBM (IBM) flat, Intel Corp (INTC) up 0.24%, Microsoft (MSFT) down 0.49%.
The Technology Select Sector SPDR (XLK) was trading at $27.49 at 3:30 PM on Tuesday, up 0.48% on the day – up 8.02% year-to-date.

Telecommunication Services

Dow components – AT&T (T) down 0.06%, Verizon (VZ) up 0.15%.
The NASDAQ Telecommunications Index (IXTC) was trading at $176.50 at 3:30 PM on Tuesday, up 0.66% on the day – down 10.37% year-to-date.

Utilities

Portland General Electric (POR) has been initiated with a Buy rating at Deutsche Bank. Chesapeake Utilities (CPK) has been upgraded to Outperform from Neutral at Robert W. Baird with a $49 price target. The research says that the company would benefit from an economic recovery that boosts customer growth in the company’s natural gas distribution operations. Piedmont Natural Gas (PNY) has been upgraded to Outperform from Neutral at Robert W. Baird. Dominion Resources (D) down 0.31%, Edison International (EIX) up 0.18%, First Energy (FE) up 0.28%, PG&E Corp (PCG) down 0.59%, Southern Company (SO) up 0.41%.

The Utilities Select Sector SPDR (XLU) was trading at $36.04 at 3:30 PM on Tuesday, up 0.59% on the day – up 0.17% year-to-date.

STOCKS: CVX, XOM, COP, JASO, AA, DD, NX, UEC, BKI, BA, CAT, GE, MMM, UTX, NAV, DIS, HD, MCD, MAR, CBS, SHFL, MTM, KFT, KO, PG, WMT, UNFI, GIII, DG, JNJ, MRK, PFE, AMLN, AZN, SNY, BMY, AXP, BAC, JPM, TRV, CMA, CSCO, HPQ, IBM, INTC, MSFT, SNDK, MRVL, PLAB, ASX, BRCD, DGI, T, VZ, D, EIX, FE, PCG, SO, POR, CPK, PNY

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
UEC Uranium Energy Corp. 0.88 -0.01 -0.92 91,035
CBS CBS Corporation Class B 61.09 0.10 0.16 1,626,712
MMM 3M Company 171.75 0.13 0.07 304,578
PG Procter & Gamble Company (The) 83.04 0.05 0.06 1,408,412
GE General Electric Co 31.11 0.00 0.00 4,606,502
BRCD Brocade Communications Systems Inc. 12.42 0.01 0.04 2,162,088
CPK Chesapeake Utilities Corporation 64.30 0.05 0.08 4,942
CVX Chevron Corporation 112.74 -0.51 -0.45 1,332,510
SO Southern Company (The) 46.99 0.12 0.25 1,529,340
PCG Pacific Gas & Electric Co. 58.70 0.32 0.55 259,034
JNJ Johnson & Johnson 112.21 0.27 0.24 1,820,359
WMT Wal-Mart Stores Inc. 69.91 -0.04 -0.05 1,847,763
AA Alcoa Inc. 30.85 -0.37 -1.19 797,540
INTC Intel Corporation 34.47 0.08 0.23 3,165,191
IBM International Business Machines Corp 159.58 -0.26 -0.16 672,601
DGI DigitalGlobe Inc 32.05 -0.15 -0.47 41,564
D Dominion Resources Inc. 73.27 -0.21 -0.29 536,650
TRV The Travelers Companies Inc. 116.06 0.19 0.16 286,330
POR Portland General Electric Co 41.08 -0.01 -0.02 140,386
DHX.A:CA DHX Media Ltd. Variable Voting Shares 6.70 0.00 0.00 0
EIX Edison International 69.31 -0.43 -0.62 395,242
PLAB Photronics Inc. 9.95 0.15 1.53 221,626
JPM JP Morgan Chase 83.00 -0.26 -0.31 4,975,446
AXP American Express Company 72.51 0.48 0.67 857,408
UTX United Technologies Corporation 107.39 -0.03 -0.03 452,009
SNDK SanDisk Corp. n/a n/a n/a 0
CSCO Cisco Systems Inc. 29.45 -0.08 -0.27 6,642,719
COP ConocoPhillips 49.10 0.22 0.45 1,503,491
DIS Walt Disney Company (The) 100.15 0.19 0.19 1,698,053
MAR Marriott International 81.75 0.75 0.93 906,297
VZ Verizon Communications Inc. 50.50 0.75 1.51 3,886,630
ASX Advanced Semiconductor Engineering Inc. 5.34 0.07 1.33 143,494
UNFI United Natural Foods Inc. 49.09 -0.27 -0.55 155,711
BAC Bank of America Corporation 21.85 0.01 0.05 43,505,427
DG Dollar General Corporation 75.78 -0.59 -0.77 405,928
MRVL Marvell Technology Group Ltd. 14.13 0.10 0.71 811,545
GIII G-III Apparel Group LTD. 29.31 -0.65 -2.17 249,255
NAV Navistar International Corporation 30.93 0.17 0.55 109,662
MCD McDonald\'s Corporation 119.34 0.05 0.05 768,645
DD E.I. du Pont de Nemours and Co. 72.28 -0.61 -0.84 349,958
BMY Bristol-Myers Squibb Company 55.65 0.10 0.18 1,632,053
CMA Comerica Incorporated 66.11 0.05 0.07 303,152
JASO JA Solar Holdings Co. Ltd. 5.40 -0.05 -0.92 85,805
HD Home Depot Inc. (The) 129.74 0.06 0.05 895,910
XOM Exxon Mobil Corporation 86.99 -0.49 -0.56 2,856,119
PFE Pfizer Inc. 31.47 -0.13 -0.40 4,230,000
HPQ HP Inc. 15.57 0.02 0.13 1,746,359
AZN Astrazeneca PLC 25.92 0.10 0.39 2,116,350
BA Boeing Company (The) 151.37 -0.79 -0.52 1,092,651
MRK Merck & Company Inc. (new) 59.90 -0.35 -0.58 1,766,920
NX Quanex Building Products Corporation 20.15 0.10 0.50 8,654
SNY Sanofi American Depositary Shares (Each repstg one 40.43 -0.48 -1.17 420,443
FE FirstEnergy Corporation 30.38 -0.12 -0.39 1,055,576
KO Coca-Cola Company (The) 40.65 0.03 0.06 2,769,084
T AT&T Inc. 39.24 0.61 1.58 5,746,319
CAT Caterpillar Inc. 94.66 0.21 0.22 1,129,505
PNY Piedmont Natural Gas Company Inc. n/a n/a n/a 0
MSFT Microsoft Corporation 60.09 -0.13 -0.22 5,392,078

Comments

Emerging Growth

Kiwa Bio-Tech Products Group Corp

Kiwa Bio-Tech Products Group Corp develops, manufactures, distributes and markets, cost-effective and environmentally safe bio-technological products for agriculture in China.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…