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
SKY Skyline Corporation 12.45 0.36 2.98 49,735
UEC Uranium Energy Corp. 1.47 0.03 2.08 1,020,304
BX The Blackstone Group L.P. Representing Limited Par 31.88 0.05 0.16 2,536,571 Trade
WDR Waddell & Reed Financial Inc. 19.20 0.38 2.02 934,209 Trade
FDS FactSet Research Systems Inc. 196.76 0.42 0.21 196,091 Trade
GEN Genesis Healthcare Inc. 0.88 -0.03 -3.13 227,731 Trade
FTR Frontier Communications Corporation 7.08 -0.15 -2.07 2,975,774 Trade
MAN ManpowerGroup 128.39 1.15 0.90 233,088 Trade
MTW Manitowoc Company Inc. (The) 40.48 0.14 0.35 856,455 Trade
PG Procter & Gamble Company (The) 88.72 0.45 0.51 6,196,431 Trade
NI NiSource Inc 27.22 0.13 0.48 2,381,719 Trade
SO Southern Company (The) 51.30 0.12 0.23 2,591,995 Trade
AFL AFLAC Incorporated 85.08 0.40 0.47 1,270,892 Trade
VALE VALE S.A. American Depositary Shares Each Represen 10.46 0.34 3.36 32,473,638 Trade
EPAY Bottomline Technologies Inc. 33.53 -0.02 -0.06 498,582 Trade
AA Alcoa Inc. 41.39 -0.82 -1.94 6,259,975 Trade
USB.P.A U.S. Bancorp Depositary Shares Each representing a 902.00 0.00 0.00 88 Trade
CNP CenterPoint Energy Inc (Holding Co) 29.09 -0.03 -0.10 1,665,845 Trade
URRE Uranium Resources Inc. n/a n/a n/a n/a
MO Altria Group Inc. 65.65 -0.18 -0.27 4,916,353 Trade
KTCC Key Tronic Corporation 7.78 -0.01 -0.13 3,519 Trade
EXP Eagle Materials Inc 106.35 0.82 0.78 423,003 Trade
C Citigroup Inc. 72.38 0.33 0.46 9,632,060 Trade
S Sprint Corporation 6.08 -0.13 -2.09 11,939,094 Trade
AUDC AudioCodes Ltd. 6.72 0.02 0.30 71,368 Trade
TUP Tupperware Brands Corporation 60.69 0.51 0.85 314,534 Trade
ESS Essex Property Trust Inc. 252.11 1.90 0.76 305,876 Trade
STX Seagate Technology 40.14 0.29 0.73 3,848,063 Trade
TROW T. Rowe Price Group Inc. 97.73 1.43 1.48 1,566,741 Trade
AMZN Amazon.com Inc. 1,139.49 13.18 1.17 2,479,397 Trade
JACK Jack In The Box Inc. 102.57 -0.41 -0.40 438,984 Trade
AES The AES Corporation 10.63 0.03 0.28 3,741,091 Trade
EQR Equity Residential of Beneficial Interest 68.10 0.18 0.27 2,297,997 Trade
CHRW C.H. Robinson Worldwide Inc. 78.79 0.36 0.46 1,314,633 Trade
MDVN Medivation Inc. n/a n/a n/a 0 Trade
VZ Verizon Communications Inc. 46.18 -0.02 -0.04 13,598,018 Trade
RSYS RadiSys Corporation 0.80 -0.01 -1.38 622,793 Trade
MAT Mattel Inc. 18.53 -0.20 -1.07 5,716,645 Trade
WHR Whirlpool Corporation 168.88 3.68 2.23 1,400,855 Trade
NOC Northrop Grumman Corporation 304.31 3.37 1.12 707,029 Trade
FHN First Horizon National Corporation 18.60 -0.01 -0.05 2,453,857 Trade
AET Aetna Inc. 176.45 1.51 0.86 2,194,123 Trade
FCX Freeport-McMoRan Inc. 14.15 0.20 1.43 12,985,276 Trade
HSY The Hershey Company 108.51 -0.93 -0.85 1,060,778 Trade
SXC SunCoke Energy Inc. 11.18 0.21 1.91 506,714 Trade
ADM Archer-Daniels-Midland Company 39.34 0.14 0.36 2,105,616 Trade
AMCC Applied Micro Circuits Corporation n/a n/a n/a 0 Trade
UIS Unisys Corporation New 7.55 0.25 3.42 393,872 Trade
DWSN Dawson Geophysical Company 5.05 -0.14 -2.70 88,992 Trade
TEX Terex Corporation 45.13 -0.51 -1.12 949,549 Trade
X United States Steel Corp. 28.16 0.31 1.11 7,174,397 Trade
AVB AvalonBay Communities Inc. 185.02 1.08 0.59 455,628 Trade
XOM Exxon Mobil Corporation 80.87 0.32 0.40 8,838,367 Trade
NDAQ Nasdaq Inc. 77.24 0.35 0.46 768,987 Trade
BDX Becton Dickinson and Company 226.83 5.33 2.41 1,476,576 Trade
SUN Sunoco LP representing limited partner interests 30.24 -0.30 -0.98 327,347 Trade
HLIT Harmonic Inc. 4.25 0.10 2.41 519,466 Trade
ONTY Oncothyreon Inc. n/a n/a n/a n/a
ENR Energizer Holdings Inc. 45.01 0.06 0.13 523,280 Trade
MSCI MSCI Inc 127.50 0.31 0.24 437,278 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
CYT Cytec Industries Inc. n/a n/a n/a 0 Trade
IACI IAC/InterActiveCorp n/a n/a n/a 0 Trade
CALL magicJack VocalTec Ltd 8.28 -0.03 -0.30 236,980 Trade
EXC Exelon Corporation 41.39 0.04 0.10 3,081,803 Trade
SNE Sony Corporation 47.11 0.14 0.30 752,167 Trade
T AT&T Inc. 34.33 -0.31 -0.89 35,417,001 Trade
MWA MUELLER WATER PRODUCTS 12.11 0.18 1.51 1,251,446 Trade
DUK Duke Energy Corporation (Holding Company) 88.81 0.15 0.17 2,466,994 Trade
BBOX Black Box Corporation 4.15 0.55 15.28 1,133,309 Trade
SNMX Senomyx Inc. 1.42 -0.09 -5.96 1,068,301 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 7.82 0.03 0.39 8,754,326 Trade
AEP American Electric Power Company 76.77 0.33 0.43 2,080,853 Trade

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