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. 1.60 -0.02 -1.23 1,274,017
CBS CBS Corporation Class B 67.22 -0.24 -0.36 2,083,569
MMM 3M Company 185.90 2.53 1.38 1,839,327
PG Procter & Gamble Company (The) 91.38 -0.29 -0.32 4,667,824
GE General Electric Co 30.33 -0.19 -0.62 21,815,746
BRCD Brocade Communications Systems Inc. 12.39 0.03 0.20 1,863,497
CPK Chesapeake Utilities Corporation 66.05 0.05 0.08 15,280
CVX Chevron Corporation 110.68 -1.04 -0.93 3,669,215
SO Southern Company (The) 48.84 0.56 1.15 4,539,738
PCG Pacific Gas & Electric Co. 64.76 0.12 0.19 1,081,755
JNJ Johnson & Johnson 119.53 -0.13 -0.11 3,104,185
WMT Wal-Mart Stores Inc. 71.89 0.44 0.62 10,703,656
AA Alcoa Inc. 36.52 -0.19 -0.52 1,493,164
INTC Intel Corporation 35.91 -0.62 -1.68 21,544,745
IBM International Business Machines Corp 180.87 0.61 0.34 1,922,783
DGI DigitalGlobe Inc 34.15 0.15 0.44 616,847
D Dominion Resources Inc. 75.18 0.42 0.56 1,898,286
TRV The Travelers Companies Inc. 121.87 0.32 0.26 784,780
POR Portland General Electric Co 43.72 0.00 0.00 530,945
DHX.A:CA DHX Media Ltd. Variable Voting Shares 5.67 -0.10 -1.73 4,382
EIX Edison International 77.24 0.02 0.03 1,734,039
PLAB Photronics Inc. 11.00 -0.30 -2.65 126,653
JPM JP Morgan Chase 90.91 -0.10 -0.11 7,515,838
AXP American Express Company 79.92 -0.06 -0.07 2,038,883
UTX United Technologies Corporation 112.54 0.04 0.04 1,527,381
SNDK SanDisk Corp. n/a n/a n/a 0
CSCO Cisco Systems Inc. 34.05 -0.08 -0.23 19,070,373
COP ConocoPhillips 47.14 -1.00 -2.07 5,240,978
DIS Walt Disney Company (The) 110.11 0.10 0.09 3,682,614
MAR Marriott International 87.77 0.08 0.09 1,134,950
VZ Verizon Communications Inc. 49.57 0.14 0.27 9,294,747
ASX Advanced Semiconductor Engineering Inc. 6.17 0.03 0.49 1,692,749
UNFI United Natural Foods Inc. 44.61 -0.42 -0.93 272,349
BAC Bank of America Corporation 24.77 -0.01 -0.04 68,575,197
DG Dollar General Corporation 77.31 -0.55 -0.71 823,267
MRVL Marvell Technology Group Ltd. 16.25 0.04 0.22 2,221,571
GIII G-III Apparel Group LTD. 26.67 0.03 0.11 203,346
NAV Navistar International Corporation 27.08 -0.77 -2.76 146,921
MCD McDonald\'s Corporation 127.76 -0.28 -0.22 2,617,038
DD E.I. du Pont de Nemours and Co. 79.94 2.76 3.58 7,014,303
BMY Bristol-Myers Squibb Company 55.61 0.83 1.51 18,183,348
CMA Comerica Incorporated 72.15 -0.51 -0.70 679,697
JASO JA Solar Holdings Co. Ltd. 5.22 -0.19 -3.51 519,671
HD Home Depot Inc. (The) 145.22 0.20 0.14 3,592,013
XOM Exxon Mobil Corporation 81.00 -0.89 -1.09 8,733,290
PFE Pfizer Inc. 33.54 -0.09 -0.25 16,707,817
HPQ HP Inc. 16.15 0.02 0.09 9,133,396
AZN Astrazeneca PLC 28.93 -0.08 -0.28 4,201,162
BA Boeing Company (The) 175.03 -0.53 -0.30 1,970,782
MRK Merck & Company Inc. (new) 65.17 -0.31 -0.47 6,026,879
NX Quanex Building Products Corporation 19.55 0.05 0.26 62,901
SNY Sanofi American Depositary Shares (Each repstg one 42.60 -0.16 -0.37 2,067,233
FE FirstEnergy Corporation 30.72 -0.62 -1.96 5,211,472
KO Coca-Cola Company (The) 41.61 0.15 0.36 7,664,059
T AT&T Inc. 41.53 -0.20 -0.48 11,579,897
CAT Caterpillar Inc. 98.01 -0.09 -0.09 2,217,151
PNY Piedmont Natural Gas Company Inc. n/a n/a n/a 0
MSFT Microsoft Corporation 64.17 -0.33 -0.50 11,892,719

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