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. 1.18 0.01 0.85 744,306
CBS CBS Corporation Class B 57.83 0.87 1.53 1,966,845 Trade
MMM 3M Company 219.24 0.97 0.44 1,369,000 Trade
PG Procter & Gamble Company (The) 91.59 -0.49 -0.53 8,591,647 Trade
GE General Electric Co 23.58 0.46 1.99 76,221,943 Trade
BRCD Brocade Communications Systems Inc. 11.90 0.09 0.76 5,064,822 Trade
CPK Chesapeake Utilities Corporation 81.45 -0.45 -0.55 42,717 Trade
CVX Chevron Corporation 118.20 0.05 0.04 4,576,638 Trade
SO Southern Company (The) 52.00 0.73 1.42 4,804,567 Trade
PCG Pacific Gas & Electric Co. 57.00 0.56 0.99 10,742,081 Trade
JNJ Johnson & Johnson 142.04 1.36 0.97 9,181,326 Trade
WMT Wal-Mart Stores Inc. 86.40 0.18 0.21 7,029,824 Trade
AA Alcoa Inc. 46.54 -1.21 -2.53 6,033,142 Trade
INTC Intel Corporation 40.09 -0.16 -0.40 19,225,911 Trade
IBM International Business Machines Corp 160.90 1.37 0.86 9,914,892 Trade
DGI DigitalGlobe Inc n/a n/a n/a 0 Trade
D Dominion Resources Inc. 79.95 1.07 1.36 2,609,143 Trade
TRV The Travelers Companies Inc. 133.17 3.15 2.42 2,970,858 Trade
POR Portland General Electric Co 45.35 0.17 0.38 1,028,932 Trade
DHX.A:CA DHX Media Ltd. Variable Voting Shares 4.52 -0.14 -3.00 24,900
EIX Edison International 79.47 1.62 2.08 1,321,038 Trade
PLAB Photronics Inc. 9.45 -0.15 -1.56 650,233 Trade
JPM JP Morgan Chase 98.11 0.12 0.12 9,136,011 Trade
AXP American Express Company 91.90 -0.18 -0.20 6,512,906 Trade
UTX United Technologies Corporation 119.49 0.31 0.26 1,631,757 Trade
SNDK SanDisk Corp. n/a n/a n/a 0 Trade
CSCO Cisco Systems Inc. 33.75 0.20 0.60 13,213,126 Trade
COP ConocoPhillips 49.71 0.00 0.00 4,015,398 Trade
DIS Walt Disney Company (The) 99.01 0.76 0.77 5,634,429 Trade
MAR Marriott International 115.20 -0.57 -0.49 1,696,186 Trade
VZ Verizon Communications Inc. 49.21 0.56 1.15 29,174,933 Trade
ASX Advanced Semiconductor Engineering Inc. 6.23 -0.07 -1.11 569,756 Trade
UNFI United Natural Foods Inc. 40.45 0.24 0.60 354,057 Trade
BAC Bank of America Corporation 26.58 0.10 0.38 54,575,888 Trade
DG Dollar General Corporation 82.91 0.11 0.13 1,656,178 Trade
MRVL Marvell Technology Group Ltd. 18.41 -0.04 -0.22 1,865,097 Trade
GIII G-III Apparel Group LTD. 26.24 0.22 0.85 395,665 Trade
NAV Navistar International Corporation 41.58 -0.43 -1.02 693,560 Trade
MCD McDonald\'s Corporation 166.50 0.73 0.44 2,478,351 Trade
DD E.I. du Pont de Nemours and Co. 83.93 0.00 0.00 0 Trade
BMY Bristol-Myers Squibb Company 64.67 0.97 1.52 4,919,544 Trade
CMA Comerica Incorporated 77.48 0.91 1.19 1,833,007 Trade
JASO JA Solar Holdings Co. Ltd. 7.49 0.07 0.94 286,138 Trade
HD Home Depot Inc. (The) 163.24 -0.21 -0.13 2,676,062 Trade
XOM Exxon Mobil Corporation 82.74 -0.02 -0.02 7,945,461 Trade
PFE Pfizer Inc. 36.24 0.41 1.14 19,789,423 Trade
HPQ HP Inc. 21.96 0.24 1.11 10,247,841 Trade
AZN Astrazeneca PLC 34.71 0.06 0.17 2,456,808 Trade
BA Boeing Company (The) 259.04 -1.00 -0.38 2,589,385 Trade
MRK Merck & Company Inc. (new) 63.75 0.24 0.38 10,071,235 Trade
NX Quanex Building Products Corporation 22.30 0.15 0.68 226,031 Trade
SNY Sanofi American Depositary Shares (Each repstg one 50.02 0.49 0.99 457,502 Trade
FE FirstEnergy Corporation 32.30 0.31 0.97 3,206,729 Trade
KO Coca-Cola Company (The) 46.59 0.19 0.41 7,515,545 Trade
T AT&T Inc. 35.69 -0.02 -0.06 32,888,962 Trade
CAT Caterpillar Inc. 130.77 0.26 0.20 4,838,595 Trade
PNY Piedmont Natural Gas Company Inc. n/a n/a n/a 0 Trade
MSFT Microsoft Corporation 77.91 0.30 0.39 15,092,850 Trade

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