Equities Sector Coverage: Wall Street Rallies on Stimulus Hopes

Sector Recap |

Ben Bernanke, Federal Reserve ChairmanUS import prices fell 1% in May as expected, while export prices fell by 0.4%, more than the 0.1% decline expected. The Dow Jones Industrial Average rose to 12,548.64 going into the final half hour of trading. The NASDAQ rose to 2836.69 going into the final half hour of trading.

Asian stocks were lower on Tuesday. The Nikkei 225 ended the day at 8,537 – down 1.02%. The Hang Seng ended the day at 18,873 – down 0.43%. European exchanges traded higher on Tuesday. The FTSE 100 ended the day at 5,474 – up 0.76%. The DAX ended the day at 6,161 – up 0.33%. The CAC 40 ended the day at 3,047 – up 0.14%. The yield on the 10-Year US Treasury rose from 1.581% to 1.668%.

Gold declined from $1597.6 the Troy ounce to $1586.4 then rallied to $1618.9, testing the low end of the 50-day and 200-day simple moving averages at $1615.8 and $1681.1. Crude oil traded rose from $81.07 per barrel to $83.72. The euro versus the dollar rose from 1.2454 to 1.2526 then declined to 1.2446.

Energy

Triangle Petroleum (TPLM) reported Q1 production results: four gross operated wells in McKenzie County, all completed in May, with two wells currently producing and two undergoing flow-back testing. HollyFrontier (HFC) has been upgraded to Buy from Hold at Argus with a $40 price target. Dow components – Chevron (CVX) up 0.73%, Exxon Mobil (XOM) up 1.23%.

Energy Select Sector SPDR (XLE) was trading at $64.26 at 3:30 PM on Tuesday, up 1.01% on the day – down 7.04% year-to-date.

Materials

Agrium (AGU) expects Q2 EPS to be to be at the upper end of its guidance range, citing the strong performance of its crop input business, high global grain prices, and a favorable supply/demand situation for nutrients. Dow components – Alcoa (AA) up 1.62%, DuPont (DD) up 1.17%.
The Materials Select Sector SPDR (XLB) was trading at $34.42 at 3:30 PM on Tuesday, up 1.41% on the day – up 2.75% year-to-date.

Industrials

Berkshire Hathaway's (BRK.A) NetJets placed orders worth $9.6 billion to purchase Bombardier (BDRAF.PK) and Cessna for 425 new aircraft. Boeing (BA) has been upgraded to Outperform-from-Market Perform by Sanford Bernstein saying that the recent share price decline is an overreaction to economic conditions. easyJet (ESYJY) and Ryanair Holdings (RYAAY) have been downgraded to Neutral from Overweight at HSBC Securities. Dow components – Boeing Co (BA) up 2.35%, Caterpillar (CAT) up 1.02%, General Electric (GE) up 0.78%, 3M Company (MMM) up 0.88%, United Technologies (UTX) down 0.55%.

The Industrial Select Sector SPDR (XLI) was trading at $34.84 at 3:30 PM on Tuesday, up 1.46% on the day – up 3.23% year-to-date.

Consumer Discretionary

Michael Kors (KORS) reported that FQ4 net profit jumps to $43.6 million from $13.6 million on strong performances across the company's retail, wholesale and licensing operations. Under Armour (UA) has been added to the US 1 List of favored equities at Bank of America-Merrill Lynch. Dick’s Sporting Goods (DKS) - Bank of America-Merrill removed the stock from its US 1 List. Dow Components – Disney (DIS) up 0.38%, Home Depot up 1.27%, McDonalds (MCD) up 0.82%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.10 at 3:30 PM on Tuesday, up 0.82% on the day – up 10.46% year-to-date.

Consumer Staples

Sara Lee (SLE) has listed its coffee and tea unit, D.E Master Blenders, on the Amsterdam exchange at a market value of $5.9 billion. Shareholders received one share in D.E for every Sara Lee share. Ascena Retail Group (ASNA) aka Dress Barn has been upgraded to Outperform from Perform with a $23 price target at FBR Capital making the case for some multiple expansion. Dr Pepper Snapple (DPS) has been upgraded to Outperform from Market Perform at Wells Fargo. Dow components – Kraft (KFT) up 0.74%, Coca Cola (KO) up 0.32%, Procter & Gamble (PG) up 0.05%, Wal-Mart (WMT) up 0.28%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.05 at 3:30 PM on Tuesday, up 0.35% on the day – up 4.80% year-to-date.

Health Care

Sanofi (SNY) – Four new studies suggests that Lantus artificial insulin doesn't raise the risk of cancer. , Lantus is the top-selling insulin in the US and Sanofi's leading product. Sanofi (SNY) has been downgraded to Sell from Neutral at Goldman Sachs. Bio-Reference Labs (BRLI) - Bank of America-Merrill Lynch upgrades the stock to Buy from Neutral. IntegraMed (INMD) has been downgraded to Neutral from Overweight at Piper Jaffray. Dow Components – Johnson & Johnson (JNJ) up 0.86%, Merck (MRK) up 0.08%, Pfizer (PFE) down 0.09%.
The Health Care Select Sector SPDR (XLV) was trading at $36.53 at 3:30 PM on Tuesday, up 0.72% on the day – up 5.30% year-to-date.

Financial

JP Morgan's (JPM) management was alerted about the risk in derivative trades in London as long as two years ago according to the Wall Street Journal. Assoc Banc-Corp (ASBC) has been upgraded to Market Perform from Underperform at Raymond James. Citigroup (C) has been removed from the US 1 List at Bank of America-Merrill Lynch. Dow Components – American Express (AXP) up 1.22%, Bank of America (BAC) up 2.13%, JP Morgan Chase (JPM) up 1.22%, Travelers (TRV) up 0.08%.
The Financial Select Sector SPDR (XLF) was trading at $14.03 at 3:30 PM on Tuesday, up 1.30% on the day – up 7.92% year-to-date.

Information Technology

Apple (AAPL) signed a global mapping-data agreement with TomTom (TMOAF.PK) one day after the company said that would replace Google Maps with their own functionality including 3D models of cities and turn-by-turn navigation. At the Apple developer conference, CEO Tim Cook also unveiled Apple's expected MacBook refresh and Facebook (FB) integration in iOS 6. Microsoft (MSFT) considered making an offer for Nokia (NOK) in late 2011 but both parties decided against a sale according to The Registers. Nokia fell 8.3% yesterday after Samsung dismissed takeover interest. Texas Instruments (TXN) used its mid-quarter update to narrow its Q2 revenue and EPS guidance ranges. Finisar (FNSR) beat FQ4 EPS estimates with better than expected revenue. Dow Components – Cisco Systems (CSCO) up 1.70%, Hewlett-Packard (HPQ) up 1.40%, IBM (IBM) up 0.75%, Intel Corp (INTC) up 1.71%, Microsoft (MSFT) up 0.92%.
The Technology Select Sector SPDR (XLK) was trading at $28.14 at 3:30 PM on Tuesday, up 0.75% on the day – up 10.57% year-to-date.

Telecommunication Services

Microsoft (MSFT) considered making an offer for Nokia (NOK) in late 2011 but both parties decided against a sale according to The Registers. Nokia fell 8.3% yesterday after Samsung dismissed takeover interest. Dow components – AT&T (T) down 0.12%, Verizon (VZ) up 0.40%.
The NASDAQ Telecommunications Index (IXTC) was trading at $181.39 at 3:30 PM on Tuesday, up 1.92% on the day – down 7.89% year-to-date.

Utilities

E.ON AG (EONGY) has been upgraded to Buy from Neutral at UBS. Dominion Resources (D) down 0.36%, Edison International (EIX) down 0.68%, First Energy (FE) down 0.44%, PG&E Corp (PCG) down 0.68%, Southern Company (SO) down 0.65%.
The Utilities Select Sector SPDR (XLU) was trading at $36.81 at 3:30 PM on Tuesday, up 0.05% on the day – up 2.31% year-to-date.

STOCKS: CVX, XOM, TPLM, HFC, AA, DD, AGU, BA, CAT, GE, MMM, UTX, BRK.A, BDRAF.PK,, ESYJY, RYAAY, DIS, HD, MCD, KORS, UA, DKS, KFT, KO, PG, WMT, SLE, ASNA, DPS, JNJ, MRK, PFE, SNY, BRLI, INMD, AXP, BAC, JPM, TRV, ASBC, C, CSCO, HPQ, IBM, INTC, MSFT, AAPL, TMOAF.PK, FB, NOK, TXN, FNSR, T, VZ, D, EIX, FE, PCG, SO, WTR, EONGY

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 0.00 0.00 22,720
AAPL Apple Inc. 112.18 0.00 0.00 139,358
AGU Agrium Inc. 90.76 0.00 0.00 0
ASNA Ascena Retail Group Inc. 5.47 0.00 0.00 720
AXP American Express Company 63.37 0.00 0.00 0
BA Boeing Company (The) 131.03 0.00 0.00 312
BAC Bank of America Corporation 15.16 0.00 0.00 496,621
C Citigroup Inc. 45.80 0.00 0.00 33,467
CAT Caterpillar Inc. 87.47 0.00 0.00 1,868
CSCO Cisco Systems Inc. 31.39 0.00 0.00 3,241
CVX Chevron Corporation 101.27 0.00 0.00 9,719
D Dominion Resources Inc. 74.75 0.00 0.00 0
DD E.I. du Pont de Nemours and Co. 66.37 0.00 0.00 0
DIS Walt Disney Company (The) 91.80 0.00 0.00 152
DKS Dick\'s Sporting Goods Inc 56.57 0.00 0.00 0
DPS Dr Pepper Snapple Group Inc 90.72 0.00 0.00 0
EIX Edison International 72.68 0.00 0.00 0
FB Facebook Inc. 128.09 0.00 0.00 59,801
FE FirstEnergy Corporation 33.17 0.00 0.00 0
FNSR Finisar Corporation 29.48 0.00 0.00 0
GE General Electric Co 29.53 0.00 0.00 6,871
HD Home Depot Inc. (The) 127.93 0.00 0.00 27
HFC HollyFrontier Corporation 23.61 0.00 0.00 0
HPQ HP Inc. 15.39 0.00 0.00 1
IBM International Business Machines Corp 158.11 0.00 0.00 297
INTC Intel Corporation 37.32 0.00 0.00 272
JNJ Johnson & Johnson 117.27 0.00 0.00 213
JPM JP Morgan Chase 65.65 0.00 0.00 37,102
KO Coca-Cola Company (The) 42.03 0.00 0.00 4,201
KORS Michael Kors Holdings Limited 46.87 0.00 0.00 0
MCD McDonald\'s Corporation 114.79 0.00 0.00 1,951
MKTX MarketAxess Holdings Inc. 166.14 0.00 0.00 0
MMM 3M Company 175.37 0.00 0.00 0
MRK Merck & Company Inc. (new) 61.91 0.00 0.00 689
MSFT Microsoft Corporation 57.40 0.00 0.00 3,820
NOK Nokia Corporation Sponsored American Depositary Sh 5.72 0.00 0.00 202,512
PCG Pacific Gas & Electric Co. 61.76 0.00 0.00 0
PFE Pfizer Inc. 33.32 0.00 0.00 2,152
PG Procter & Gamble Company (The) 88.23 0.00 0.00 548,646
RYAAY Ryanair Holdings plc American Depositary Shares ea 74.04 0.00 0.00 0
SNY Sanofi American Depositary Shares (Each repstg one 37.83 0.00 0.00 62,485
SO Southern Company (The) 52.05 0.00 0.00 0
T AT&T Inc. 40.73 0.00 0.00 696
TPLM Triangle Petroleum Corporation (DE) 0.28 0.00 0.00 26
TRV The Travelers Companies Inc. 113.87 0.00 0.00 100
TXN Texas Instruments Incorporated 69.84 0.00 0.00 8,160
UTX United Technologies Corporation 101.06 0.00 0.00 0
VZ Verizon Communications Inc. 52.12 0.00 0.00 787
WMT Wal-Mart Stores Inc. 70.73 0.00 0.00 1,712
WTR Aqua America Inc. 30.89 0.00 0.00 0
XOM Exxon Mobil Corporation 86.46 0.00 0.00 3,203

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