Equities Sector Coverage: Wall Street Moves Higher on Improving Data

Sector Recap |

will markets keep rising, is economy recovering, will dow keep risingInitial Jobless Claims rose to 388,000 moving further above the 350,000 recessionary threshold. The Dow Jones Industrial Average rallied to a day’s high at 13,227.82 going into the final half hour of trading above its 50-day simple moving average at 13,027. The NASDAQ’s rebounded to 3056.77 going into the final half hour of trading above its 50-day simple moving average at 3018.

Asian stocks were higher on Thursday. The Nikkei 225 ended their session at 9,562 – up 0.01% on the day. The Hang Seng ended their session at 20,810 – up 0.79% on the day. European exchanges were mixed on Thursday. The FTSE 100 ended their session at 5,749 – up 0.52% on the day. The DAX ended their session at 6,740 – up 0.53% on the day. The CAC 40 ended their session at 3,229 – down 0.13% on the day. The yield on the 10-Year US Treasury declined from 1.996 percent to 1.928 below its 50-day and 200-day simple moving averages at 2.081 and 2.092.

Gold rallied from $1642.5 the Troy ounce to $1662.0 below the “death cross” defined by the 50-day simple moving average at $1680.5 being below the 200-day simple moving average at $1697.0. Crude oil rallied from $103.84 per barrel to $104.92, staying below its 50-day simple moving average at $105.05. The euro versus the dollar rallied from 1.3201 to 1.3261 above its 50-day simple moving average at 1.3209.

Energy

ExxonMobil (XOM) reported a first-quarter profit of $2.00 a share, below the $2.09 analysts expected. The largest US oil company’s revenue came in at $124.05 billion, also shy of the $124.76 billion forecast. Chevron (CVX) raised its quarterly dividend 11.1% to 90 cents per share, its 25th consecutive year of dividend hikes. CONSOL Energy (CNX) missed Q1 EPS estimates by sixteen cents with in-line revenue. Precision Drilling (PDS) missed Q1 EPS estimates by six cents with better than expected revenue. Helmerich & Payne (HP) reported Q2 EPS of $1.20 with a beat on the revenue line. Patterson-UTI Energy (PTEN) beat Q1 EPS estimates by four cents with better than expected revenue. Shell (RDS.A) reported Q1 earnings of $7.66 billion, up 11% from a year earlier, and warned that oil prices will be volatile in the coming months. Oceaneering International (OII) beat Q1 EPS estimates by a penny with better than expected revenue. ConocoPhillips (COP) has been upgraded to Neutral from Underperform at Macquarie. Dow components - Chevron (CVX) gained 1.7% in morning trading with Exxon Mobil (XOM) losing 1.5%.
Energy Select Sector SPDR (XLE) was trading at $70.73 at 3:30 PM on Thursday, up 0.91% on the day – up 2.31% year-to-date.

Materials

Dow Chemical (DOW) beat Q1 EPS estimates by a penny with a miss on the revenue line. Bunge (BG) missed Q1 EPS estimates by 51 cents but they beat on the revenue line. Potash (POT) missed Q1 EPS estimates by eight cents with in-line revenue. Vale (VALE) reported that their Q1 profits were slashed nearly by half to $3.83 billion after slowing growth in China pushed down the price of ore. NewMarket (NEU) beat Q1 EPS estimates by $1.53 with better than expected revenue. Kaiser Aluminum (KALU) beat Q1 EPS estimates by 34 cents with better than expected revenue. Goldcorp (GG) missed Q1 EPS estimates by a nickel and missed on the revenue line. Current 2012 gold production guidance is 2.6 million oz. Cliffs Natural Resources (CLF) reported Q1 EPS of $2.63 with in-line revenue. Dow components - Alcoa (AA) traded flat still below the $10 threshold. DuPont (DD) lost 0.5%.
The Materials Select Sector SPDR (XLB) was trading at $36.83 at 3:30 PM on Thursday, up 0.11% on the day – up 9.94% year-to-date.

Industrials

United Parcel Service (UPS) posted first-quarter earnings of $1.00 a share on sales of $13.1 billion, which missed estimates of $1.02 a share on $13.26 billion. The world’s largest package delivery company reaffirmed its full-year profit outlook of $4.75 to $5 a share. L-3 Communications (LLL) beat Q1 EPS estimates by sixteen cents on better than expected revenue. Raytheon (RTN) beat Q1 EPS estimates by fifteen cents with better than expected revenue. Tyco International (TYC) beat Q2 EPS estimates by seven cents on better than expected revenue. Lockheed Martin (LMT) beat Q1 EPS estimates by 32 cents with better than expected revenue. Terex (TEX) missed Q1 EPS estimates by a nickel but beat on the revenue line. General Dynamics (GD) has been downgraded to Equal Weight from Overweight at Morgan Stanley. Dow components - Boeing Co (BA) was flat in morning trading, with Caterpillar (CAT) up 0.1%, General Electric (GE) inched up 0.2%, 3M Company (MMM) was up 0.2%, and United Technologies (UTX) picked up 1.1%.

The Industrial Select Sector SPDR (XLI) was trading at $37.15 at 3:30 PM on Thursday, up 0.65% on the day – up 10.07% year-to-date.

Consumer Discretionary

Time Warner Cable's (TWC) added 261,000 net customers in the first quarter with 214,000 new residential high-speed data subscribers. Pulte Homes (PHM) beat Q1 EPS estimates by a penny and missed on the revenue line. Starwood Hotels (HOT) beat Q1 EPS estimates by twelve cents with better than expected revenue. Whirlpool (WHR) reported Q1 EPS of $1.17 with in-line revenue. Skechers USA (SKX) beat Q1 EPS estimates by fourteen cents on better than expected revenue. Ryland Group (RYL) reported Q1 EPS of -$0.11 with a miss on the revenue line. Crocs (CROX) beat Q1 EPS estimates by a nickel with better than expected revenue. AutoNation (AN) has been upgraded to Neutral from Sell at UBS. Dow Components - Disney (DIS) gained 1.1% in morning trading with McDonalds (MCD) was up just 0.1%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.37 at 3:30 PM on Thursday, up 1.39% on the day – up 16.27% year-to-date.



Consumer Staples

Wal-Mart's (WMT) board and several top executives received a lawsuit from an investor alleging shareholders were harmed by the company's image stemming from bribery allegations at its Mexican unit. Colgate-Palmolive Company (CL) reported Q1 EPS and revenue that was in-line with expectations. Pepsico (PEP) beat Q1 EPS estimates by two cents with in-line revenue. Altria (MO) reported in-line Q1 EPS with better than expected revenue. Service International (SCI) beat Q1 EPS estimates by two cents with in-line revenue. Cheesecake Factory (CAKE) beat: Q1 EPS estimates by a penny with a miss on the revenue line. Cheesecake Factory has been upgraded to Outperform from Market Perform at Raymond James. Harley-Davidson (HOG) has been upgraded to Overweight from Equal Weight at Barclays. Dow components - Home Depot (HD) lost 0.7% in morning trading with Kraft (KFT) up 0.4%, Coca Cola (KO) up 0.9%, Procter & Gamble (PG) was flat, and Wal-Mart (WMT) up 2.8%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.37 at 3:30 PM on Thursday, up 1.06% on the day – up 5.79% year-to-date.

Health Care

AstraZeneca (AZN) reported that Q1 net profit fell 44% to $1.64 billion, well short of the consensus of $2 billion. The loss of patent exclusivity and challenging market conditions were cited as the reasons for a difficult start for the year. David Brennan, the CEO since 2006 quit and was temporarily replaced by CFO Simon Lowth. Watson Pharmaceuticals (WPI) will buy Actavis Group for at least $5.6 billion in a deal that strengthens one of the world's biggest suppliers of generic drugs. Amylin Pharmaceuticals (AMLN) beat Q1 EPS estimates by four cents with a revenue miss. Zimmer (ZMH) reported in-line Q1 EPS of $1.30 and in-line revenue. Elan (ELN) missed Q1 EPS estimates by seven cents with better than expected revenue. Dow Components - Johnson & Johnson (JNJ) gained 0.5%, Merck (MRK) was down 0.1%, and Pfizer (PFE) advanced by 0.7%.
The Health Care Select Sector SPDR (XLV) was trading at $37.50 at 3:30 PM on Thursday, down 0.05% on the day – up 8.10% year-to-date.

Financials

H&R Block (HRB) announced plans to cut 350 jobs and close 200 offices as part of a plan to save up to $100 million by the end of FY 2013. Aetna (AET) missed Q1 EPS estimates by a nickel but reported better than expected revenue. Deutsche Bank (DB) missed profit expectations and did not give guidance, but noted that conditions remain challenging. Texas Capital Bancshares (TCBI) beat Q1 EPS estimates by eight cents. First Financial Bancorp (FFBC) missed Q1 EPS estimates by a penny. Susquehanna Bancshares (SUSQ) reported Q1 EPS of fourteen cents. Travelers (TRV) has been upgraded to Hold-from-Sell boost by Deutsche Bank. Dow Components - American Express (AXP) gained 0.4%, Bank of America (BAC) rebounded 1.0%, JP Morgan (JPM) rose by 1.0%, and Travelers (TRV) was up 0.7%.
The Financial Select Sector SPDR (XLF) was trading at $15.52 at 3:30 PM on Thursday, up 0.91% on the day – up 19.38% year-to-date.

Information Technology

AU Optronics (AUO) beat Q1 EPS estimates by 21 cents but missed on the revenue line. Logitech (LOGI) reported that their Q4 net income was much better than consensus due to widening gross margins and the company cut a layer of management to reduce operating costs. Teradyne (TER) beat Q1 EPS estimates by two cents on better than expected revenue. Netgear (NTGR) beat Q1 EPS estimates by five cents with better than expected revenue. Microsemi (MSCC) reported in-line Q2 EPS of $0.46 with in-line revenue. Mattson Technology (MTSN) beat Q1 EPS estimates by a nickel with better than expected revenue. Emulex (ELX) beat Q3 EPS estimates by three cents with better than expected revenue. Xilinx (XLNX) beat Q1 EPS estimates by eight cents with better than expected revenue. Citrix Systems (CTXS) beat Q1 EPS estimates by nine cents with better than expected revenue. Citrix Systems has been upgraded to Outperform from Perform at FBR Capital with a $100 price target. Akamai Technologies (AKAM): has been upgraded to Buy from Hold at Jefferies with a $42 price target. Dow Components - Cisco Systems (CSCO) was flat in morning trading, Hewlett-Packard (HPQ) was flat, IBM (IBM) rallied 1.0%, Intel Corp (INTC) was up 0.8%, and Microsoft (MSFT) fell 0.6%.
The Technology Select Sector SPDR (XLK) was trading at $30.08 at 3:30 PM on Thursday, up 0.91% on the day – up 18.19% year-to-date.

Telecommunication Services

Tellabs (TLAB) missed Q1 EPS estimates by a penny with lower than expected revenue. MetroPCS Communications (PCS) reported Q1 EPS of six cents with in-line revenue. Alcatel-Lucent's (ALU) reported bleak Q1 financials, which is in stark contrast to Ericsson's (ERIC) strong beat in Q1. Some analysts are hoping that telecom profitability might be improving. ALU predicted that Q1 would be their low point. Leap Wireless International (LEAP) missed Q1 EPS estimates by 27 cents with a miss on the revenue line. Leap Wireless has been downgraded to Neutral from Buy at Guggenheim. Dow components - AT&T (T) was up 2.2% in morning trading with Verizon (VZ) up 1.5%.
The NASDAQ Telecommunications Index (IXTC) was trading at $209.40 at 3:30 PM on Thursday, up 0.69% on the day – up 6.33% year-to-date.

Utilities

Xcel Energy (XEL) reported Q1 EPS that was in-line with a beat on the revenue line. Dominion Resources (D) was up 1.0% in morning trading, Edison International (EIX) slipped 0.3%, First Energy (FE) was up 0.7%, PG&E Corp (PCG) gained 0.5%, and Southern Company (SO) gained 0.6%.
The Utilities Select Sector SPDR (XLU) was trading at $35.53 at 3:30 PM on Thursday, up 0.68% on the day – down 1.25% year-to-date.

STOCKS: CVX, XOM, CNX, PDS, HP, PTEN, RDS.A, OII, COP, AA, DD, DOW, BG, POT, VALE, NEU, KALU, GG, CLF, BA, CAT, GE, MMM, UTX, UPS, LLL, RTN, TYC, LMT, TEX, GD, DIS, MCD, TWC, PHM, HOT, WHR, SKX, RYL, CROX, AN, HD, KFT, KO, PG, WMT, CL, PEP, MO, SCI, CAKE, HOG, JNJ, MRK, PFE, LLY, AZN, WPI, AMLN, ZMH, ELN, AXP, BAC, JPM, TRV, HRB, AET, DB, TCBI, FFBC, SUSQ, CSCO, HPQ, IBM, INTC, MSFT, AUO, LOGI, TER, NTGR, MSCC, MTSN, ELX, XLNX, CTXS, AKAM, T, VZ, TLAB, PCS, ALU, ERIC, LEAP, D, EIX, FE, PCG, SO, XEL

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
HRB H&R Block Inc. 20.51 -0.05 -0.24 4,405,050
MMM 3M Company 182.95 -0.46 -0.25 1,961,456
UPS United Parcel Service Inc. 106.90 -0.32 -0.30 2,918,957
NEU NewMarket Corp 441.27 -1.11 -0.25 24,898
XEL Xcel Energy Inc. 42.00 0.11 0.26 2,294,991
LMT Lockheed Martin Corporation 265.35 0.02 0.01 882,742
PG Procter & Gamble Company (The) 91.09 0.30 0.33 12,152,428
CL Colgate-Palmolive Company 71.98 2.98 4.32 15,036,943
GE General Electric Co 30.37 -0.08 -0.26 21,849,428
HOG Harley-Davidson Inc. 56.93 0.51 0.90 1,068,019
TER Teradyne Inc. 29.17 0.24 0.83 2,024,824
CVX Chevron Corporation 110.33 -0.35 -0.32 8,111,023
SO Southern Company (The) 47.80 -0.44 -0.91 7,118,347
PCG Pacific Gas & Electric Co. 63.92 0.53 0.84 2,501,732
VALE VALE S.A. American Depositary Shares Each Represen 10.97 0.11 1.01 25,051,593
TWC Time Warner Cable Inc n/a n/a n/a 0
WPI Watson Pharmaceuticals Inc. n/a n/a n/a 0
RTN Raytheon Company 152.86 0.47 0.31 1,529,202
JNJ Johnson & Johnson 118.86 0.78 0.66 8,691,397
WMT Wal-Mart Stores Inc. 69.37 0.50 0.73 12,837,447
AA Alcoa Inc. 36.21 -0.25 -0.69 4,516,838
INTC Intel Corporation 36.48 0.07 0.19 18,909,888
IBM International Business Machines Corp 180.67 -0.76 -0.42 3,552,495
GD General Dynamics Corp. 189.06 0.32 0.17 1,163,416
AUO AU Optronics Corp American Depositary Shares 3.76 -0.01 -0.27 2,897,092
PEP Pepsico Inc. 108.15 0.03 0.03 5,498,432
D Dominion Resources Inc. 73.77 0.49 0.67 3,426,440
TRV The Travelers Companies Inc. 121.95 0.16 0.13 1,334,680
MO Altria Group Inc. 72.97 0.26 0.36 5,568,728
HFPA:CA Horizons Active Floating Rate Preferred Share ETF n/a n/a n/a 0
FFBC First Financial Bancorp. 28.40 -0.15 -0.53 247,213
XLNX Xilinx Inc. 60.06 0.45 0.75 2,490,596
HP Helmerich & Payne Inc. 68.26 -0.23 -0.34 1,371,167
POT Potash Corporation of Saskatchewan Inc. 18.72 0.02 0.11 4,236,235
AKAM Akamai Technologies Inc. 62.34 -1.90 -2.96 3,981,112
EIX Edison International 76.34 0.55 0.73 1,985,051
GG Goldcorp Inc. 17.39 -0.28 -1.58 8,192,894
MTSN Mattson Technology Inc. n/a n/a n/a 0
JPM JP Morgan Chase 90.23 -0.30 -0.33 15,776,589
AXP American Express Company 79.71 0.20 0.25 2,690,300
SCI Service Corporation International 31.32 -0.03 -0.10 2,004,915
UTX United Technologies Corporation 112.15 0.08 0.07 2,531,804
CTXS Citrix Systems Inc. 80.50 0.56 0.70 2,056,915
LOGI Logitech International S.A. 29.36 -0.23 -0.78 188,455
PDS Precision Drilling Corporation 5.26 -0.09 -1.68 2,243,020
DB Deutsche Bank AG 19.41 -0.37 -1.87 5,811,773
CSCO Cisco Systems Inc. 33.74 0.14 0.42 31,841,239
ERIC Ericsson 5.96 -0.17 -2.77 3,384,589
COP ConocoPhillips 47.51 -0.83 -1.72 10,694,026
DIS Walt Disney Company (The) 110.06 -0.65 -0.59 6,349,161
SKX Skechers U.S.A. Inc. 26.28 0.71 2.78 2,409,805
MSCC Microsemi Corporation 54.26 0.32 0.59 633,806
VZ Verizon Communications Inc. 49.19 0.73 1.51 23,190,659
WHR Whirlpool Corporation 177.19 0.50 0.28 408,728
AN AutoNation Inc. 47.77 0.85 1.81 1,210,461
BAC Bank of America Corporation 24.52 -0.06 -0.24 85,789,239
AET Aetna Inc. 125.27 -4.22 -3.26 4,214,129
LLL L-3 Communications Holdings Inc. 168.23 -0.26 -0.15 841,312
MCD McDonald\'s Corporation 127.80 1.10 0.87 3,677,392
LLY Eli Lilly and Company 80.39 0.35 0.44 3,111,144
DD E.I. du Pont de Nemours and Co. 77.49 -0.30 -0.39 1,716,674
CNX CONSOL Energy Inc. 16.94 -0.09 -0.53 4,475,780
TEX Terex Corporation 32.00 0.00 0.00 1,098,164
TCBI Texas Capital Bancshares Inc. 87.90 0.40 0.46 355,019
TYC Tyco International plc (Ireland) n/a n/a n/a 0
HD Home Depot Inc. (The) 143.00 1.46 1.03 5,108,352
XOM Exxon Mobil Corporation 81.76 -0.54 -0.66 15,645,973
PFE Pfizer Inc. 33.62 0.00 0.00 34,992,707
KALU Kaiser Aluminum Corporation 82.07 -0.17 -0.21 188,548
ALU Alcatel-Lucent ADR (Sponsored) n/a n/a n/a 0
ELN Elan Corp. PLC ADS n/a n/a n/a 0
PHM PulteGroup Inc. 21.40 0.06 0.28 3,307,660
CAKE The Cheesecake Factory Incorporated 61.83 0.22 0.36 695,929
HPQ HP Inc. 15.95 0.03 0.19 17,366,721
AZN Astrazeneca PLC 29.16 0.40 1.39 4,496,430
BA Boeing Company (The) 172.71 1.90 1.11 4,982,894
OII Oceaneering International Inc. 27.20 -0.28 -1.02 900,773
MRK Merck & Company Inc. (new) 65.39 0.13 0.20 9,048,256
CLF Cliffs Natural Resources Inc 11.49 -0.09 -0.78 20,992,950
FE FirstEnergy Corporation 31.01 0.39 1.27 4,410,407
KO Coca-Cola Company (The) 41.23 0.03 0.07 15,065,148
NTGR NETGEAR Inc. 56.20 0.35 0.63 279,381
T AT&T Inc. 41.48 0.23 0.56 24,156,415
CAT Caterpillar Inc. 98.85 0.59 0.60 3,631,547
BG Bunge Limited 77.78 2.41 3.20 1,964,278
HOT Starwood Hotels & Resorts Worldwide Inc. n/a n/a n/a 0
CROX Crocs Inc. 6.98 -0.02 -0.29 821,926
MSFT Microsoft Corporation 64.62 0.10 0.15 21,248,818
PTEN Patterson-UTI Energy Inc. 27.43 -0.33 -1.19 3,275,194

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