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

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Companies

Symbol Name Price Change % Volume
HRB H&R Block Inc. 21.72 -0.06 -0.28 2,043,861
MMM 3M Company 172.43 -0.20 -0.12 1,871,524
UPS United Parcel Service Inc. 116.35 -0.08 -0.07 2,088,702
NEU NewMarket Corp 416.12 0.97 0.23 27,108
XEL Xcel Energy Inc. 38.74 0.20 0.52 2,692,549
LMT Lockheed Martin Corporation 267.62 1.22 0.46 1,090,977
PG Procter & Gamble Company (The) 82.40 0.54 0.66 9,079,412
CL Colgate-Palmolive Company 64.72 -0.36 -0.55 4,487,018
GE General Electric Co 31.34 -0.05 -0.16 21,401,028
HOG Harley-Davidson Inc. 59.71 -2.36 -3.80 3,249,409
TER Teradyne Inc. 23.94 0.51 2.18 1,855,971
CVX Chevron Corporation 113.00 -0.29 -0.26 6,167,368
SO Southern Company (The) 46.76 0.17 0.36 4,386,169
PCG Pacific Gas & Electric Co. 58.28 0.24 0.41 2,343,089
VALE VALE S.A. American Depositary Shares Each Represen 8.44 0.28 3.41 39,886,560
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 149.92 0.68 0.46 1,133,524
JNJ Johnson & Johnson 111.96 0.58 0.52 6,167,740
WMT Wal-Mart Stores Inc. 70.88 0.21 0.30 6,674,206
AA Alcoa Inc. 29.04 0.16 0.55 3,870,822
INTC Intel Corporation 34.16 0.40 1.18 21,492,534
IBM International Business Machines Corp 160.02 0.20 0.13 2,740,867
GD General Dynamics Corp. 178.67 2.27 1.29 1,716,030
AUO AU Optronics Corp American Depositary Shares 3.53 0.07 2.02 449,202
PEP Pepsico Inc. 100.60 1.57 1.59 4,594,602
D Dominion Resources Inc. 73.78 1.03 1.42 2,952,469
TRV The Travelers Companies Inc. 115.65 0.24 0.21 1,885,339
MO Altria Group Inc. 63.99 1.10 1.75 7,634,987
HFPA:CA Horizons Active Floating Rate Preferred Share ETF n/a n/a n/a 0
FFBC First Financial Bancorp. 26.85 -0.15 -0.56 179,054
XLNX Xilinx Inc. 54.22 0.83 1.55 3,328,962
HP Helmerich & Payne Inc. 79.45 1.60 2.06 2,217,503
POT Potash Corporation of Saskatchewan Inc. 18.07 -0.13 -0.71 4,040,665
AKAM Akamai Technologies Inc. 63.87 0.36 0.57 2,284,018
EIX Edison International 69.40 0.84 1.23 1,435,505
GG Goldcorp Inc. 13.56 0.34 2.57 8,671,250
MTSN Mattson Technology Inc. n/a n/a n/a 0
JPM JP Morgan Chase 81.60 -0.19 -0.23 16,931,504
AXP American Express Company 71.86 -0.67 -0.92 2,959,077
SCI Service Corporation International 27.05 0.01 0.04 1,044,965
UTX United Technologies Corporation 108.22 0.74 0.69 3,124,427
CTXS Citrix Systems Inc. 85.62 0.15 0.18 1,200,270
LOGI Logitech International S.A. 24.42 -0.08 -0.31 560,485
PDS Precision Drilling Corporation 5.59 0.28 5.27 4,863,163
DB Deutsche Bank AG 15.74 -0.32 -1.99 5,262,617
CSCO Cisco Systems Inc. 29.25 -0.20 -0.68 27,069,499
ERIC Ericsson 5.16 0.04 0.78 4,465,404
COP ConocoPhillips 48.12 -0.10 -0.21 5,804,976
DIS Walt Disney Company (The) 98.50 -0.44 -0.44 7,737,193
SKX Skechers U.S.A. Inc. 26.16 -0.24 -0.91 4,738,449
MSCC Microsemi Corporation 52.95 0.32 0.61 1,320,364
VZ Verizon Communications Inc. 49.81 -0.06 -0.12 10,650,716
WHR Whirlpool Corporation 166.84 4.23 2.60 1,550,222
AN AutoNation Inc. 44.67 -1.67 -3.60 825,580
BAC Bank of America Corporation 21.23 -0.27 -1.26 128,468,708
AET Aetna Inc. 133.49 -1.41 -1.05 3,522,666
LLL L-3 Communications Holdings Inc. 157.23 -0.26 -0.17 511,958
MCD McDonald\'s Corporation 118.24 -0.23 -0.19 3,348,723
LLY Eli Lilly and Company 67.71 1.74 2.64 12,272,207
DD E.I. du Pont de Nemours and Co. 73.13 -0.49 -0.67 3,233,772
CNX CONSOL Energy Inc. 20.89 0.69 3.42 4,024,224
TEX Terex Corporation 29.70 -0.18 -0.60 1,287,014
TCBI Texas Capital Bancshares Inc. 73.45 -0.55 -0.74 513,947
TYC Tyco International plc (Ireland) n/a n/a n/a n/a
HD Home Depot Inc. (The) 129.87 0.40 0.31 3,738,338
XOM Exxon Mobil Corporation 87.04 -0.20 -0.23 9,706,646
PFE Pfizer Inc. 31.63 0.17 0.54 19,007,839
KALU Kaiser Aluminum Corporation 82.80 0.29 0.35 103,402
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. 18.31 -0.08 -0.44 4,023,126
CAKE The Cheesecake Factory Incorporated 60.48 -0.33 -0.54 730,752
HPQ HP Inc. 15.12 0.06 0.40 8,377,096
AZN Astrazeneca PLC 25.89 0.08 0.31 8,836,805
BA Boeing Company (The) 152.25 -0.14 -0.09 2,105,577
OII Oceaneering International Inc. 27.04 -0.25 -0.92 2,473,520
MRK Merck & Company Inc. (new) 61.13 0.37 0.61 7,993,092
CLF Cliffs Natural Resources Inc 9.56 0.32 3.46 11,757,387
FE FirstEnergy Corporation 30.57 -0.42 -1.36 5,280,823
KO Coca-Cola Company (The) 40.36 0.19 0.47 11,176,301
NTGR NETGEAR Inc. 53.25 -0.60 -1.11 507,059
T AT&T Inc. 38.61 -0.27 -0.69 16,102,161
CAT Caterpillar Inc. 95.14 -1.10 -1.14 5,038,257
BG Bunge Limited 69.12 -0.88 -1.26 1,150,239
HOT Starwood Hotels & Resorts Worldwide Inc. n/a n/a n/a 0
CROX Crocs Inc. 7.37 0.18 2.50 1,036,290
MSFT Microsoft Corporation 59.25 0.05 0.08 25,515,665
PTEN Patterson-UTI Energy Inc. 28.09 0.39 1.41 3,705,281

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