Equities Sector Coverage: Wall Street Recovers to Post Gains for Week

Sector Recap |

Wall Street Stock Market BullThe Consumer Price Index rose 0.2% in January. Leading Indicators rose 0.4% in January to the highest reading since July 2008.  The Dow Jones Industrial Average rallied to a new year to date high above 12,955 going into the final hour of trading. The NASDAQ traded up to 2962.78 then dipped into the red at 2941.55. The S&P 500, Dow Transports and Russell 2000 continue to lag their 2011 highs at 1370.58, 5627.85 and 868.57 respectively.

Asian stocks rebounded on Friday with the Nikkei 225 ending their session 9,384 – up 1.58% on the day. The Hang Seng closed at 21,492 – up 1.01% on the day. European stocks were higher as the Greek bailout appears imminent. The FTSE 100 ended their session at 5,905 – up 0.33% on the day; the DAX ended their session at 6,848 up 1.42% on the day; and the CAC 40 ended their session at 3,440 – up 1.37% on the day. The yield on the 10-Year US Treasury rose to 2.038 trending above its 50-day simple moving average at 1.941.

Gold rose to $1737.5 the Troy ounce then traded down to $1718.6 before consolidating. Crude oil traded up to $103.57 per barrel. The euro versus the dollar rallied to 1.3196 versus its 50-day simple moving average at 1.3014.


Just days after pushing for a sale, Carl Icahn announced yesterday a tender offer for all outstanding shares of CVR Energy (CVI) at $30 each, a 35% premium to the Jan. 12 close, when he first took a stake.
Energy Select Sector SPDR (XLE) was trading at $74.87 at 3:30 PM on Friday, up 0.38% on the day – up 8.30% year-to-date. The January change was +2.26%. The 2011 change was -1.29%

FRO: reported Q4 EPS -$4.41 (vs. -$0.58).
EOG: beat by 28 cents.
OIS: beat by 4 cents.

Upgrade: NXY, SU
Downgrade: STO, UPL, VLO, HFC

Big Movers: CSIQ (+16%), STP (+9%), VOG (+8%).


The Materials Select Sector SPDR (XLB) was trading at $37.37 at 3:30 PM on Friday, relatively unchanged on the day – up 11.55% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.

VMC: beat by 23 cents.

Upgrade: N/A
Downgrade: AKZOY

Big Movers: N/A

Heavily Traded: VALE (-1.6%), AA (-1.2%), FCX (-1.8%), CX (+1.5%).


Waste Management (WM) posted a mixed Q4 earlier today. Earnings fell 5.3% Y/Y amid higher charges though the waste-disposal company saw higher revenue. The company also issued a cautious full-year earnings estimate, now seeing its EPS towards the low-end of estimates at $2.22 - $2.30 per share. The Street is at $2.29.
The Industrial Select Sector SPDR (XLI) was trading at $37.28 at 3:30 PM on Friday, up 0.38% on the day – up 10.46% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.

RAIL: beat by 58 cents.

Initiation: XYL (Neutral)
Upgrade: N/A
Downgrade: ABB

Big Movers: RAIL (+19.75%), NFEC (+12.25%), TEU (+11.25%). CRTP (-14.25%).

Consumer Discretionary

Nordstrom’s (JWN) Q4 comes in relatively in line on strong sales in its high-end designer lines. The company is forecasting a weak profit range for the current year, calling for earnings between $3.30 - $3.45 per share. Analysts' projections are for $3.59.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.96 at 3:30 PM on Friday, up 0.87% on the day – up 10.10% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.

JWN: beat by a penny.

Initiation: FL (Hold), FINL (Buy).
Upgrade: NILE, PFCB
Downgrade: JWN

Big Movers: KSWS (-10.5%).

Consumer Staples

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.06 at 3:30 PM on Friday, up slightly on the day – up 1.75% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.

CPBL: beat by 2 cents.
PPC: missed by 9 cents.
HNZ: beat by 10 cents.
BGS: in-line with estimates.

Upgrade: N/A
Downgrade: N/A

Big Movers: FEED (-18.5%), IPSU (+13.25%).

Health Care

The Health Care Select Sector SPDR (XLV) was trading at $36.24 at 3:30 PM on Friday, down 0.33% on the day – up 4.47% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.

MDRX: in-line with estimates.

Upgrade: N/A
Downgrade: ARTC, MHS, WOOF

Big Movers: ALXA (-27.5%), ARTC (-18.5%), GILD (-14%), ACHN (+23.25%).


NYSE Euronext (NYX), CME Group (CME) and IntercontinentalExchange (ICE) have each submitted bids for the London Metal Exchange, valuing the commodities business at up to £1B. More details are filtering out on the emergency-planning list Bank of America (BAC) submitted to the Fed last year. In the event of a market shock or severe downturn that necessitates capital raising, BofA would reportedly consider selling its retail-branch network in Texas and its U.S. Trust wealth-management unit. A bank said to be UBS (UBS) has told Canada's regulators that traders and brokers successfully manipulated the yen Libor rate between 2007 and 2010, affecting loan rates around the world, all to increase trading profits. Ally Financial is reportedly considering a sale of all or part of its auto lending and banking businesses; an IPO is still a possibility, but is looking increasingly remote. Logical buyers for the various pieces include JPMorgan (JPM), Toronto-Dominion (TD), Wells Fargo (WFC) and GM (GM). Goldman Sachs (GS) and Morgan Stanley (MS) have reduced their use of "mark to market," shielding themselves from swings in the values of some loans. Washington Mutual (WAMUQ) reached a deal yesterday with preferred shareholders, and will now get the approval from creditors that it needs to exit bankruptcy.
The Financial Select Sector SPDR (XLF) was trading at $14.79 at 3:30 PM on Friday, up 0.65% on the day – up 13.77% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.

Initiation: JEF (Market Perform), CISG (Perform)
Upgrade: N/A
Downgrade: PBR

Big Movers: ALBKY (+12.75%), NTSP (+12%), WETF (+10.75%).

Information Technology

Applied Materials (AMAT) beat both earnings and revenue expectations in its FQ1 report yesterday. The company expects FQ2 sales of $2.3B-2.52B and EPS of $0.20-0.28, better than Street estimates of $2.08B and $0.16. Microsoft (MSFT) rose to the highest level since at least 2010 after Morgan Stanley analyst Adam Holt suggested Microsoft's weighting in the S&P 500 will likely be increased. Scrutiny of Google's (GOOG) privacy policy continues, as the WSJ reports Google and other ad companies have been bypassing the privacy settings of millions of people using Apple's Safari browser. Yelp (YELP) will be pricing its IPO in the range of $12-14, and plans to sell 7.15M shares in the offering, according to its latest S-1. Based on its price range, Yelp will sport an IPO market cap of $718M-838M. SunPower's (SPWR) Q4 earnings beat, driven by a 100 bps Q/Q increase in gross margin to 12.4%. SunPower is guiding for Q1 revenue of $500M-$575M and EPS of -$0.20 to -$0.05 (consensus of $610.3M and -$0.11), and 2012 revenue of $2.6B and EPS of breakeven or better (consensus of $2.72B and $0.28). Rogers (ROG) reported Q4 EPS of $0.22 (versus consensus of $0.29) with revenue in-line with estimates. Baidu.com (BIDU) beat estimates by 4 cents and revenue by $11M. The company expects Q1 revenue of $666.5M-$688M, in-line with a consensus of $678.5M. Applied Materials (AMAT) beat estimates by 6 cents and revenue by $200M. The company expects FQ2 sales of $2.3B-$2.52B and EPS of $0.20-$0.28, better than Street estimates of $2.08B and $0.16.

The Technology Select Sector SPDR (XLK) was trading at $28.52 at 3:30 PM on Friday, unchanged on the day – up 12.06% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.

Initiation: MSPD
Upgrade: ARMH
Downgrade: DELL, MXWL

Big Movers: DMD (+29.5%), OPWV (+17.25%). FIO (+14%), MITL (+11.25%), RP (-15.25%), ENER (-11.5%), LOCM (-11.25%), ARUN (-10.5%).

Telecommunication Services

Leap Wireless’ (LEAP) Q4 loss narrows on fewer charges but missed estimates as its traditionally lower-income customer base has been hit hard by high unemployment and economic weakness.
The NASDAQ Telecommunications Index (IXTC) was trading at $219.05 at 3:30 PM on Friday, up 0.19% on the day – up 11.23% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.

FTR: beat by 2 cents.
Upgrade: FTR
Downgrade: LEAP

Big Movers: CBEY (-11.5%)
Heavily Traded: FTR (+5.7%), T (+0.25%), S (+1.75%), VZ (+1.1%).


The Utilities Select Sector SPDR (XLU) was trading at $35.05 at 3:30 PM on Friday, down slightly on the day – down 2.58% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

Upgrade: N/A
Downgrade: N/A

Heavily Traded: DUK (-1%), NI (+2.9%), CNP (+1.2%), EXC (-0.25%), GEN (+1.75%).


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Symbol Name Price Change % Volume
GEN Genesis Healthcare Inc. 0.99 -0.03 -2.94 565,693 Trade
FTR Frontier Communications Corporation 12.04 -0.68 -5.35 4,105,921 Trade
NI NiSource Inc 26.94 0.16 0.60 1,663,448 Trade
ICE Intercontinental Exchange Inc. 65.50 0.95 1.47 1,606,677 Trade
WM Waste Management Inc. 76.20 0.66 0.87 1,526,438 Trade
TD Toronto-Dominion Bank 51.15 -0.09 -0.18 1,281,317 Trade
FINL The Finish Line Inc. 10.46 0.57 5.76 4,332,059 Trade
BIDU Baidu Inc. 226.11 3.63 1.63 2,463,932 Trade
VALE VALE S.A. American Depositary Shares Each Represen 10.00 0.01 0.10 22,043,002 Trade
PBR PETROLEO BRASILEIIRO SA PETROBRAS 8.98 0.28 3.22 20,174,460 Trade
MXWL Maxwell Technologies Inc. 5.54 0.00 0.00 90,461 Trade
YELP Yelp Inc. Class A 41.87 0.41 0.99 1,473,330 Trade
ARMH ARM Holdings plc n/a n/a n/a 0 Trade
AA Alcoa Inc. 39.77 1.30 3.38 3,869,159 Trade
VLO Valero Energy Corporation 65.58 0.88 1.36 2,865,842 Trade
CNP CenterPoint Energy Inc (Holding Co) 29.51 0.23 0.79 2,408,447 Trade
ONDK On Deck Capital Inc. 4.67 -0.03 -0.64 873,886 Trade
FL Foot Locker Inc. 33.18 1.36 4.27 10,510,197 Trade
WOOF VCA Inc. 92.61 0.00 0.00 167,057 Trade
XYL Xylem Inc. New 59.96 0.65 1.10 514,405 Trade
JWN Nordstrom Inc. 44.52 0.75 1.71 908,937 Trade
S Sprint Corporation 8.22 0.14 1.73 7,236,046 Trade
MITL Mitel Networks Corporation 8.35 0.25 3.09 1,269,741 Trade
GILD Gilead Sciences Inc. 73.34 0.74 1.02 4,729,252 Trade
BGS B&G Foods Inc. 31.95 0.50 1.59 660,584 Trade
MS Morgan Stanley 45.57 0.89 1.99 7,130,726 Trade
JPM JP Morgan Chase 91.56 0.93 1.03 9,211,781 Trade
OIS Oil States International Inc. 21.45 0.30 1.42 601,321 Trade
ALXA Alexza Pharmaceuticals Inc n/a n/a n/a 0
GS The Goldman Sachs Group Inc. 223.58 2.79 1.26 2,021,309 Trade
VZ Verizon Communications Inc. 48.35 0.21 0.44 11,005,501 Trade
GM General Motors Company 35.30 0.39 1.12 7,815,068 Trade
BAC Bank of America Corporation 23.83 0.45 1.92 59,228,595 Trade
DMD Demand Media Inc. n/a n/a n/a n/a
HFC HollyFrontier Corporation 27.78 0.25 0.91 1,419,341 Trade
GOOG Alphabet Inc. 924.69 18.03 1.99 1,166,737 Trade
FCX Freeport-McMoRan Inc. 15.07 0.34 2.31 31,871,092 Trade
NFEC NF Energy Saving Corporation 0.82 0.00 0.00 4,333 Trade
SPWR SunPower Corporation 8.91 0.07 0.79 1,455,143 Trade
ABB ABB Ltd 23.14 0.38 1.67 2,215,428 Trade
UBS UBS Group AG Registered 16.75 -0.01 -0.06 1,244,670 Trade
ROG Rogers Corporation 115.98 3.34 2.97 179,463 Trade
PPC Pilgrim\'s Pride Corporation 28.97 0.55 1.94 1,327,494 Trade
EOG EOG Resources Inc. 84.24 0.55 0.66 1,946,655 Trade
AMAT Applied Materials Inc. 44.45 1.24 2.87 8,664,516 Trade
VMC Vulcan Materials Company (Holding Company) 115.16 2.59 2.30 1,227,801 Trade
ACHN Achillion Pharmaceuticals Inc. 4.82 0.17 3.66 749,269 Trade
FRO Frontline Ltd 5.20 0.09 1.76 415,572 Trade
TEU null n/a n/a n/a 0
WFC Wells Fargo & Company 52.22 0.40 0.77 12,984,102 Trade
WETF WisdomTree Investments Inc. 9.03 0.13 1.46 681,586 Trade
CSIQ Canadian Solar Inc. 15.07 0.08 0.53 1,167,811 Trade
UPL Ultra Petroleum Corp. 8.14 -0.01 -0.12 3,368,377 Trade
STO Statoil ASA 18.50 0.23 1.26 1,165,546 Trade
CVI CVR Energy Inc. 18.44 0.57 3.19 498,701 Trade
EXC Exelon Corporation 38.23 0.27 0.71 1,899,469 Trade
CME CME Group Inc. 126.37 1.09 0.87 1,137,538 Trade
T AT&T Inc. 37.98 0.40 1.06 14,737,758 Trade
DUK Duke Energy Corporation (Holding Company) 86.55 -0.03 -0.03 1,719,810 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 9.13 -0.05 -0.54 4,498,519 Trade
CISG CNinsure Inc. n/a n/a n/a 0
MSFT Microsoft Corporation 73.16 1.01 1.40 14,343,674 Trade
RAIL Freightcar America Inc. 17.09 0.43 2.58 46,838 Trade
SU Suncor Energy Inc. 31.08 0.12 0.39 1,704,291 Trade


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