Equities Sector Coverage: Wall Street Pushes Higher

Sector Recap |

Bull Wall StreetThe ISM Manufacturing Index rose to 54.1 in January from 53.1 in December. Construction Spending rose by 1.5% in December. The Dow Jones Industrial Average traded higher at the open to 12,784.62 still below last Thursday’s year to date high at 12,841.95 and below its May 2nd 2011 high at 12,876.00. The NASDAQ traded higher on Wednesday to a high of 2855.73, setting a new year to date high, but staying below its May 2nd 2011 high at 2887.75.

Asian stocks were mixed on Wednesday with the Nikkei 225 ending their session 8,810 – up 0.08% on the day. The Hang Seng closed at 20,333 – down 0.28% on the day. European stocks were higher on Wednesday as a Greek debt solution appeared near. The FTSE 100 ended their session at 5,788 – up 1.88% on the day; the DAX ended their session at 6,617 – up 2.44% on the day; and the CAC 40 ended their session at 3,367 – up 2.09% on the day. The yield on the 10-Year US Treasury note rose from 1.795 to percent to 1.854.

Gold traded up from $1735.4 the Troy ounce to $1754.0 a new high for 2012. Crude oil traded up from $98.12 per barrel to $99.49, before weakening to a low of $97.20. The euro versus the dollar traded up from 1.3029 to 1.3216.

Energy

Dawson Geophysical (DWSN) missed estimates by 5 cents and revenue by $50M. Subsea 7 SA (SUBCY) is now Neutral from Underweight at JP Morgan. Exxon Mobil (XOM) is downgraded to Hold from Buy at Argus. CGGVeritas (CGV) is moved to Underweight from Neutral at JP Morgan. Repsol SA (REPYY) gets cut to Hold from Buy at Collins Stewart. Sunoco (SUN) is slashed to Equal Weight from Overweight by Barclays. In afternoon trading: Shares of Treaty Energy (TECO) are down about 35.5%. Shares of Quicksilver (KWK) are down about 8.5%. Shares of Uranium Resources (URRE) are up about 11.5%. Shares of Uranium Energy (UEC) are up about 10.5%.

Energy Select Sector SPDR (XLE) was trading at $70.99 at 4:00 PM on Wednesday, up 0.42% on the day – up 2.69% year-to-date. The January change was +2.26%. The 2011 change was -1.29%.

Materials

The United Steelworkers union last night struck a new labor deal with the refiners just hours before the existing contract expired. SunCoke Energy (SXC) is reinstated with an Outperform at Credit Suisse. Eagle Materials (EXP) is downgraded to Hold from Buy at Jefferies. In afternoon trading: Shares of Cytec Industries (CYT) are up about 15%. Shares of Senomyx Inc. (SNMX) are up about 10%. Heavily Traded Stocks: Shares of Vale SA (VALE) are up about 4%. Shares of Alcoa (AA) are up about 1.5%. Shares of Cemex (CX) are up about 4%. Shares of United States Steel (X) are up about 4%. Shares of Freeport McMoran (FCX) are up about 0.8%.

The Materials Select Sector SPDR (XLB) was trading at $37.55 at 4:00 PM on Wednesday, up 1.00% on the day – up 12.09% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.

Industrials

Manpower (MAN) beat estimates by 11 cents and revenue by $60M. Northrop Grumman (NOC) beat estimates by 17 cents, while missing revenue by $170M. Manitowoc (MTW) beat estimates by a penny and revenue by $45M. Mueller Water Products (MWA) reported FQ1 EPS of -$0.07 (in-line), while beating revenue by $3M. C.H. Robinson (CHRW) missed estimates slightly on both EPS and revenue. In afternoon trading: Shares of Pinnacle Airlines (PNCL) are down about 16.25%. Shares of AMR Corp. (AAMRQ) are down about 12.5%. Shares of ManpowerGroup (MAN) are up about 13.25%. Shares of Terex (TEX) are up about 10.5%.

The Industrial Select Sector SPDR (XLI) was trading at $36.61 at 4:00 PM on Wednesday, up 1.08% on the day – up 8.47% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.

Consumer Discretionary

Sony (SNE) has appointed frontrunner Kazuo Hirai to replace Howard Stringer as CEO in April, with Stringer to remain at the company as Chairman. Amazon's (AMZN) glorious lack of concern about the short term continued in Q4 as the company's inordinate spending once again crimped profits. EPS plunged 54% to $0.38, while operating expenses rose 38% and headcount surged 67%. EPS handily beat forecasts but a 35% increase in revenue to $17.43B missed expectations and helped cause shares to slump 7.8% premarket. Tupperware (TUP) missed estimates by 3 cents and revenue by $13.5M. Whirlpool (WHR) reported Q4 EPS of $2.62 (versus consensus of $2.04), while missing revenue by $90M. Jack In The Box (JACK) is a new Buy at Lazard. Mattel (MAT) is downgraded to Hold from Buy at Stifel Nicolaus. Stryker (SKY) is moved to Market Perform from Outperform at BMO Capital. In afternoon trading: Shares of Corinthian Colleges (COCO) are up about 33%. Shares of Whirlpool (WHR) are up about 17.75%. Shares of Focus Media (FMCN) are up about 10%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $41.46 at 4:00 PM on Wednesday, up 0.34% on the day – up 6.25% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.

Consumer Staples

Energizer (ENR) beat estimates by 14 cents, while missing revenue by $40M. Hershey Foods (HSY) reported Q4 EPS of $0.70 (in-line) and revenue of $1.57B (in-line). Archer-Daniels-Midland (ADM) gets an Outperform-from-Market Perform upgrade at BMO Capital. In afternoon trading: Shares of Feihe International (ADY) are up about 16.75%. Shares of Central European Distribution (CEDC) are up about 10.5%. Heavily Traded Stocks: Shares of Altria Group (MO) are up about 0.7%. Shares of Walgreens (WAG) are down about 0.7%. Shares of Procter & Gamble (PG) are up about 0.6%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $32.26 at 4:00 PM on Wednesday, up 0.72% on the day – down 0.71% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.

Health Care

Vanguard Health System (VHS) missed estimates by 3 cents and revenue by $650M. Aetna (AET) beat estimates by a penny and revenue by $50M. Becton Dickinson (BDX) is cut to Outperform from Buy at Crédit Agricole. In afternoon trading: Shares of Medivation (MDVN) are up about 21.5%. Shares of Oncothyreon (ONTY) are up about 11.5%. Shares of YM Biosciences (YMI) are up about 11%. Shares of Amylin Pharmaceuticals (AMLN) are up about 10.5%. Shares of Savient Pharmaceuticals (SVNT) are down about 11.5%.

The Health Care Select Sector SPDR (XLV) was trading at $36.15 at 4:00 PM on Wednesday, up 0.98% on the day – up 4.21% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.

Financials

Deutsche Boerse (DBOEY) and NYSE Euronext (NYX) are ending their merger after the European Commission not unexpectedly blocked the tie-up. Investigators have worked out what happened to nearly all of the $1.2B of client money that disappeared from MF Global (MFGLQ), tracing it to the firm's banks, trading partners, and securities customers, The New York Times reports. Nasdaq (NDAQ) beat estimates by a penny and revenue by $6M. AFLAC (AFL) missed estimates by 3 cents and revenues by $0.1B. Blackstone (BX) is begun with a Buy at Deutsche Bank. Cantor Fitzgerald assigns Buys on AvalonBay (AVB) and Associated Estates (AEC). It has Holds on Essex Property (ESS) and Equity Residential (EQR), and starts a Sell on Home Properties (HME). FactSet (FDS) is a fresh Outperform at Raymond James, which establishes a price objective of $100. Meanwhile MSCI Inc (MSCI) is a new Market Perform. AXA SA (AXAHF) is increased Outperform from Neutral by BNP Paribas. Citigroup (C) and First Horizon (FHN) are each moved to Outperform from Market Perform with Wells Fargo. Home Properties (HME) is lifted to Market Perform from Underperform at Keefe Bruyette. Banco Santander (STD) gets slashed to Sell from Neutral at Goldman Sachs. T. Rowe Price (TROW) is downgraded to Sell from Neutral at Citigroup, while Waddell & Reed (WDR) gets an identical ratings reduction. Equity One Residential (EQR) is lowered to Underperform from Neutral at Bank of America-Merrill Lynch. In afternoon trading: Shares of Washington Mutual (WAMUQ) are up about 11%.

The Financial Select Sector SPDR (XLF) was trading at $14.28 at 4:00 PM on Wednesday, up 1.60% on the day – up 9.85% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.

Information Technology

Facebook is expected to file a preliminary prospectus for a $5B IPO this morning, IFR reports, although the company could eventually raise that lower-than-anticipated figure. IAC/InterActiveCorp (IACI) beat estimates by 15 cents and revenue by $30M. AOL (AOL) beat estimates by 3 cents and revenue by $3.7M. AudioCodes (AUDC) reported Q4 EPS of $0.04 (in-line), while missing revenue by $0.8M. Harmonic’s (HLIT) Q4 comes in roughly in-line to slightly better on revenue. The company guides FQ1 revenue in the range of $132M - $142M (versus estimates of $138M). Websense (WBSN) beat estimates by a penny and revenue by $1.7M. Unisys (UIS) beat estimates by 63 cents, while missing revenue by $17M. Seagate (STX) guides for FQ3 revenue to exceed $4.3B (consensus is for $4.34B). The company also expects FQ4 revenue to exceed $5B, and calendar 2012 sales to be roughly $20B. RadiSys (RSYS) beat estimates by 5 cents, while missing revenue by $1.2M. Bottomline Technologies (EPAY) reported FQ2 EPS of $0.26 (in-line), while beating revenue by $1M. Black Box (BBOX) beat estimates by 4 cents, while missing revenue by $10M. JDA Software’s (JDAS) Q4 top-line figure beat forecasts, but its software and subscription revenue fell 10% Y/Y, thanks to a 31% decline in sales to the Americas. Applied Micro Circuits (AMCC) beat estimates by 2 cents, while missing revenue by $0.7M. Seagate Technology (STX) beat estimates by 24 cents and revenue by $60M. Broadcom (BRCM) beat estimates by 3 cents and revenue by $2M, and expects Q1 revenue of $1.7B-$1.8B (versus $1.73B consensus). FactSet (FDS) is a fresh Outperform at Raymond James, which establishes a price objective of $100. Meanwhile MSCI Inc (MSCI) is a new Market Perform. Seagate Technology (STX) is taken to Buy from Hold with a target price of $35 at Stifel Nicolaus. Applied Micro Circuits (AMCC) is moved to Perform from Outperform at Oppenheimer. Broadcom (BRCM) is taken to Hold from Buy at Auriga. In afternoon trading: Shares of Key Tronic (KTCC) are up about 38.5%. Shares of Seagate Technology (STX) are up about 20%. Shares of JDA Software (JDAS) are down about 18%.

The Technology Select Sector SPDR (XLK) was trading at $27.29 at 4:00 PM on Wednesday, up 0.96% on the day – up 7.23% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.

Telecommunication Services

Sprint (S) has told LightSquared it has until mid-March to receive FCC clearance to build its 4G LTE cellular network, or Sprint will terminate their 15-year network-sharing deal. Sprint will need Clearwire's (CLWR) spectrum to build out its LTE network. In afternoon trading: Shares of magicJack (CALL) are down about 12%. Shares of TerreStar (TSTRQ) are down about 7.5%. Heavily Traded Stocks: Shares of Sprint Nextel (S) are up about 3.3%, while shares of AT&T (T) are up about 1.1% and shares of Verizon (VZ) are up about 0.8%. Shares of Frontier Communications (FTR) are down about 1.2%.

The NASDAQ Telecommunications Index (IXTC) was trading at $212.39 at 4:00 PM on Wednesday, up 1.11% on the day – up 7.85% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.

Utilities

In afternoon trading: Heavily Traded Stocks: Shares of Genon Energy (GEN) are down about 1.9%. Shares of Duke Energy (DUK) are up about 0.8%. Shares of Exelon (EXC) are relatively unchanged. Shares of American Electric Power (AEP) are relatively unchanged. Shares of CenterPoint Energy (CNP) are up about 1.5%. Shares of NiSource (NI) are up about 2.9%. Shares of Southern Company (SO) are down about a quarter of a percent. Shares of AES Corp. (AES) are up about 2%.

The Utilities Select Sector SPDR (XLU) was trading at $34.80 at 4:00 PM on Wednesday, up 0.35% on the day – down 3.28% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

STOCKS: DWSN, SUBCY, XOM, CGV, REPYY, SUN, TECO, KWK, URRE, UEC, SXC, EXP, CYT, SNMX, VALE, AA, CX, X, FCX, MAN, NOC, MTW, MWA, CHRW, PNCL, AAMRQ, TEX, SNE, AMZN, TUP, WHR, JACK, MAT, SKY, COCO, FMCN, ENR, HSY, ADM, ADY, CEDC, MO, WAG, PG, VHS, AET, BDX, MDVN, ONTY, YMI, AMLN, SVNT, DBOEY, NYX, MFGLQ, NDAQ, AFL, BX, AVB, AEC, ESS, EQR, HME, FDS, MSCI, AXAHF, C, FHN, HME, STD, TROW, WDR, EQR, WAMUQ, IACI, AOL, AUDC, HLIT, WBSN, UIS, STX, RSYS, EPAY, BBOX, JDAS, AMCC, BRCM, FDS, MSCI, AMCC, KTCC, S, CLWR, CALL, TSTRQ, T, VZ, FTR, GEN, DUK, EXC, AEP, CNP, NI, SO, AES

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
AA Alcoa Inc. 9.96 0.08 0.81 26,881,953
ADM Archer-Daniels-Midland Company 41.53 -0.32 -0.76 2,146,245
AEP American Electric Power Company 64.50 -0.86 -1.32 3,632,120
AES The AES Corporation 12.90 -0.25 -1.90 6,109,405
AET Aetna Inc. 115.03 -1.23 -1.06 1,523,505
AFL AFLAC Incorporated 71.56 -0.91 -1.26 1,280,265
AMCC Applied Micro Circuits Corporation 6.89 -0.10 -1.43 376,387
AMZN Amazon.com Inc. 829.05 0.33 0.04 4,922,248
AUDC AudioCodes Ltd. 5.37 -0.07 -1.29 79,595
AVB AvalonBay Communities Inc. 179.40 -2.19 -1.21 837,122
BBOX Black Box Corporation 13.70 -0.55 -3.86 85,895
BDX Becton Dickinson and Company 176.44 -2.73 -1.52 599,919
BRCM Broadcom Corp. n/a n/a n/a 0
BX The Blackstone Group L.P. Representing Limited Par 25.06 -0.06 -0.24 4,169,847
C Citigroup Inc. 45.80 -1.07 -2.28 28,066,787
CALL magicJack VocalTec Ltd 6.10 -0.07 -1.13 70,917
CHRW C.H. Robinson Worldwide Inc. 70.31 0.06 0.09 1,402,859
CNP CenterPoint Energy Inc (Holding Co) 23.58 -0.54 -2.24 3,571,312
CX Cemex S.A.B. de C.V. Sponsored ADR 8.19 0.09 1.11 18,872,187
CYT Cytec Industries Inc. n/a n/a n/a 0
DUK Duke Energy Corporation (Holding Company) 80.31 -0.79 -0.97 2,898,863
DWSN Dawson Geophysical Company 7.53 -0.12 -1.57 63,480
ENR Energizer Holdings Inc. 48.90 1.10 2.30 1,044,738
EPAY Bottomline Technologies Inc. 23.29 -0.13 -0.56 309,595
EQR Equity Residential of Beneficial Interest 64.43 -1.08 -1.65 2,899,036
ESS Essex Property Trust Inc. 225.63 -1.78 -0.78 346,098
EXC Exelon Corporation 33.29 -0.72 -2.12 5,315,208
EXP Eagle Materials Inc 78.32 0.60 0.77 827,122
FCX Freeport-McMoRan Inc. 10.69 -0.22 -2.02 25,147,855
FDS FactSet Research Systems Inc. 160.21 -2.18 -1.34 829,810
FHN First Horizon National Corporation 14.93 -0.24 -1.58 1,747,513
FTR Frontier Communications Corporation 4.25 -0.09 -2.07 15,052,276
GEN Genesis Healthcare Inc. 2.62 -0.09 -3.32 82,535
HLIT Harmonic Inc. 5.88 0.05 0.86 1,704,492
HSY The Hershey Company 94.64 -0.49 -0.52 976,326
IACI IAC/InterActiveCorp n/a n/a n/a 0
JACK Jack In The Box Inc. 94.37 -1.82 -1.89 659,679
KTCC Key Tronic Corporation 7.46 0.06 0.81 8,377
MAN ManpowerGroup 70.47 -1.06 -1.48 530,778
MAT Mattel Inc. 30.77 -0.28 -0.90 4,028,386
MDVN Medivation Inc. 81.44 0.00 0.00 0
MO Altria Group Inc. 62.82 -0.95 -1.49 5,211,490
MSCI MSCI Inc 83.52 -1.38 -1.63 343,745
MTW Manitowoc Company Inc. (The) 4.60 0.03 0.66 979,842
MWA MUELLER WATER PRODUCTS 12.37 -0.17 -1.36 694,292
NDAQ Nasdaq Inc. 67.48 -0.73 -1.07 889,638
NI NiSource Inc 24.21 -0.44 -1.79 2,276,491
NOC Northrop Grumman Corporation 213.61 -4.29 -1.97 985,214
ONTY Oncothyreon Inc. n/a n/a n/a n/a
PG Procter & Gamble Company (The) 88.23 -1.23 -1.37 74,587,460
RSYS RadiSys Corporation 5.26 -0.15 -2.77 119,783
S Sprint Corporation 6.66 -0.12 -1.77 11,222,097
SKY Skyline Corporation 12.77 0.14 1.11 40,255
SNE Sony Corporation 33.24 -0.34 -1.01 873,932
SNMX Senomyx Inc. 3.95 -0.07 -1.74 295,179
SO Southern Company (The) 52.05 -0.65 -1.23 5,877,940
STX Seagate Technology 37.79 -0.42 -1.10 4,046,487
SUN Sunoco LP representing limited partner interests 29.18 -0.51 -1.72 601,588
SXC SunCoke Energy Inc. 7.60 -0.22 -2.81 603,605
T AT&T Inc. 40.73 -0.12 -0.29 17,046,784
TEX Terex Corporation 24.29 0.01 0.04 904,069
TROW T. Rowe Price Group Inc. 65.54 -0.81 -1.22 1,266,110
TUP Tupperware Brands Corporation 64.38 -0.48 -0.74 266,350
UEC Uranium Energy Corp. 1.02 0.01 0.99 800,241
UIS Unisys Corporation New 9.56 0.02 0.21 621,377
URRE Uranium Resources Inc. 1.31 -0.02 -1.50 268,201
USB.P.A U.S. Bancorp Depositary Shares Each representing a 877.80 6.71 0.77 428
VALE VALE S.A. American Depositary Shares Each Represen 5.53 -0.12 -2.12 19,621,208
VZ Verizon Communications Inc. 52.12 0.06 0.12 10,804,738
WDR Waddell & Reed Financial Inc. 17.60 -0.27 -1.51 857,860
WHR Whirlpool Corporation 160.35 -1.94 -1.20 588,479
XOM Exxon Mobil Corporation 86.46 -0.44 -0.51 19,082,873

Comments

Private Markets

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…

Spotify

Spotify is a online music service offering providing digital content from a range of record labels and artists. Users can browse through the interface by artist, album, genre, playlist, record…