Equities Sector Coverage: Wall Street Soars As Fed Eases Pressure from Europe

Sector Recap  |

Stocks advanced as central banks around the world lowered rates on dollar swaps by 50 basis points. The Federal Reserve said that these actions were done to ease strain in the financial markets. Mortgage applications fell 11.7% in the week ending November 25th. The ADP employment report said that the private sector added 206,000 jobs in November. The Chicago PMI improved to 62.6 in November. On Thursday national manufacturing ISM should be 52.0 in November with Construction Spending up 0.1% in October. Then we have the drum-roll for November’s Employment Data with the economy creating 125,000 jobs with a 9.0% unemployment rate. The Dow Jones Industrial Average surged at the open to a morning high at 11,994.60. A rally into the close reached a high of 12045.04. A close today above 11,791 keeps the monthly chart neutral. The NASDAQ traded between 2582.49 and 2607.53 in morning trading above its 50-day simple moving average at 2582. A rally into the close reached a high of 2620.10. A close today below 2642 shifts the monthly chart to negative.

Asian stocks declined on Wednesday with the Nikkei 225 down 0.51% to 8,435 and the Hang Seng down 1.46% to 17,989.  The FTSE 100 gained 2.85% to 5,489, the DAX surged 4.86% to 6,082 and the CAC 40 also surged 4.22% to 3,155. The yield on the US Treasury 10-Year note rose from 1.974 to 2.108 above the 50-day simple moving average at 2.041. Gold tested and held its 50-day simple moving average at $1699.8 and traded as high as $1749.2 the Troy ounce. Crude oil traded up from $98.92 per barrel to $101.75. The oversold euro versus the dollar traded up from 1.3262 to 1.3530.

Energy

SeaDrill (SDRL) reported Q3 EPS of $0.07 (may not be comparable to consensus of $0.72), while beating revenue by $20M. Subsea 7 SA (SUBCY) is initiated with an Overweight at HSBC Securities. Barclays gives Overweight-from-Equal Weight boosts to Anadarko Petroleum (APC), Cenovus Energy (CVE), Nexen (NXY), and Spain’s Repsol SA (REPYY). Cameron International (CAM) is upgraded to Overweight from Neutral at HSBC Securities with a target price of $63. FirstEnergy (FE) is lifted to Buy from Hold at ISI Group. OAO Gazprom (OGZPY) is upgraded to Neutral from Underperform at Credit Suisse. Southwestern Energy (SWN) is downgraded to Equal Weight from Overweight by Barclays. Transocean (RIG) is reduced to Hold from Buy at Argus. In afternoon trading: Shares of Patriot Coal (PCX) are up about 18.25%. Shares of James River Coal (JRCC) are up about 18.25%. Shares of Canadian Solar (CSIQ) are up about 17.5%. Shares of Trina Solar (TSL) are up about 15%.

Energy Select Sector SPDR (XLE) was trading at $70.87 at 4:00 PM on Wednesday, up 5.51% on the day – up 3.84% year-to-date.

Materials

Alcoa (AA) is a new Neutral at Macquarie, which assigns Underperforms on U.S. Steel (X) and AK Steel (AKS) and has an Outperform on Freeport-McMoRan Copper & Gold (FCX). Syngenta (SYT) is a new Buy at Jefferies. Agrium (AGU) is upgraded to Action List Buy from Buy at TD Securities. OM Group (OMG) is upgraded to Buy from Hold at Keybanc. Vulcan Materials (VMC) is moved to Sell from Neutral at Goldman. In afternoon trading: Shares of Avalon Rare Metals (AVL) are up about 19.5%. Shares of U.S. Steel are up about 14%. Shares of ArcelorMittal (MT) are up about 13.5%.

The Materials Select Sector SPDR (XLB) was trading at $34.52 at 4:00 PM on Wednesday, up 5.73% on the day – down 10.13% year-to-date.

Industrials

Siemens (SI) and Diageo (DEO) are among the multinational companies that are preparing for a possible eurozone break-up. Navistar International (NAV) gets boosted to Neutral from Sell at Goldman. Corning (GLW) is cut by 180 degrees, to Underperform from Outperform, at Credit Agricole. In afternoon trading: Shares of AMR Corp. (AMR) are up about 25%. Shares of Manitowoc (MTW) are up about 14%. Shares of A123 Systems (AONE) are up about 11%. Shares of YRC Worldwide (YRCW) are DOWN about 10%.

The Industrial Select Sector SPDR (XLI) was trading at $33.89 at 4:00 PM on Wednesday, up 5.12% on the day – down 2.81% year-to-date.

Consumer Discretionary

Culp’s (CFI) FQ2 beats estimates on a 19% Y/Y jump in revenue. New Oriental Education & Technology (EDU) is covered at Outperform at Credit Suisse. American Axle (AXL), Dana Holding (DAN), and Lear Corp (LEA) are all launched at Sector Perform by RBC Capital, which assigns Outperforms on both Borg Warner (BWA) and Johnson Controls (JCI), and names Tenneco (TEN) a Top Pick. Netflix (NFLX) is now Underperform from Neutral with Wedbush with a price objective of $45. Daimler AG (DDAIF) gets lowered to Neutral from Overweight at JPMorgan. In afternoon trading: Shares of China MediaExpress Holdings (CCME) are up about 300%. Shares of Sotheby’s (BID) are up about 14.5%. Shares of Melco Crown Entertainment (MPEL) are up about 13.25%. Shares of Exide Tech (XIDE) are up about 12%. Shares of Boyd Gaming (BYD) are up about 12%. Shares of Shutterfly (SFLY) are DOWN about 12%. Shares of StoneMor Partners (STON) are DOWN about 11.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $38.74 at 4:00 PM on Wednesday, up 3.11% on the day – up 3.56% year-to-date.

Consumer Staples

Siemens (SI) and Diageo (DEO) are among the multinational companies that are preparing for a possible eurozone break-up. Ralcorp (RAH) missed estimates by 4 cents with revenue in-line with estimates. ConAgra (CAG) is a new Buy at Janney Montgomery Scott. In afternoon trading: Shares of Imperial Sugar (IPSU) are down about 19.25%. Shares of United Natural Foods (UNFI) are up about 8%. Shares of Winn Dixie (WINN) are up about 7.75%. Shares of Central European Distribution (CEDC) are up about 7.5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.90 at 4:00 PM on Wednesday, up 2.34% on the day – up 8.84% year-to-date.

Healthcare

The patent on Pfizer's (PFE) Lipitor, which has generated over $130B in sales, ends today, although the company is hoping it can hold onto a third of the three million Americans who take it. Citigroup begins Buys on British based GlaxoSmithKline (GSK) and Shire PLC (SHPGY) and assigns a Neutral on AstraZeneca (AZN). Accretive Health (AH) gets increased to Outperform from Perform at Oppenheimer. In afternoon trading: Shares of Progenics Pharmaceuticals (PGNX) are up about 18.25%. Shares of Metabolix (MBLX) are up about 17.5%.

The Health Care Select Sector SPDR (XLV) was trading at $33.88 at 4:00 PM on Wednesday, up 3.61% on the day – up 7.56% year-to-date.

Financials

S&P yesterday lowered the rating on 37 of the largest financial institutions in the world, including almost all major U.S. banks, with Bank of America (BAC), Citigroup (C), Morgan Stanley (MS) and Goldman Sachs (GS) among those hit. RenaissanceRe (RNR) is a new Buy at Goldman Sachs. RLJ Lodging Trust (RLJ) is a new Neutral at Janney Montgomery Scott, which begins Chesapeake Lodging Trust (CHSP) with a Buy. Amerisafe (AMSF) is taken to Neutral from Buy at Suntrust. In afternoon trading: Shares of Ambac Financial Group (ABKFQ) are up about 23.75%. Shares of MBIA Inc. (MBI) are up about 17.5%. Shares of Regions Financial (RF) are up about 12%. Shares of Alpha Bank (ALBKY) are DOWN about 23%.

The Financial Select Sector SPDR (XLF) was trading at $12.81 at 4:00 PM on Wednesday, up 6.17% on the day – down 19.69% year-to-date.

Information Technology

The consortium led by Silver Lake and Microsoft (MSFT) has bid around $16.60 a share for a minority stake in Yahoo (YHOO), somewhat lower than an offer made by TPG Capital. OmniVision Technologies’ (OVTI) reported Q2 EPS of $0.48 on revenue of $217.9M (versus consensus of $0.32 and $214.6M). The company is guiding for FQ3 revenue of $160M-$180M and EPS of $0.05-$0.17 (well below a consensus of $201.4M and $0.26). Moneygram (MGI) is a new Neutral at JPMorgan. SanDisk (SNDK) is named a Long Research Tactical Idea at Morgan Stanley. In afternoon trading: Shares of Zoom Tech (ZOOM) are up about 24%. Shares of Hanwha SolarOne (HSOL) are up about 18.5%. Shares of JA Solar (JASO) are up about 16.25%.

The Technology Select Sector SPDR (XLK) was trading at $25.62 at 4:00 PM on Wednesday, up 3.85% on the day – up 1.71% year-to-date.

Telecommunications Services

Despite approving AT&T's (T) request to withdraw its T-Mobile (DTEGY) application, the FCC yesterday issued a blistering 109-page report saying the $39B deal would limit competition in virtually every U.S. city. Leap Wireless (LEAP) is lifted to Outperform from Sector Perform at RBC Capital. In afternoon trading: Shares of Leap Wireless are up about 15.25%. Shares of Towerstream (TWER) are up about 9.25%. Shares of Neutral Tandem (TNDM) are up about 8.25%. Shares of MetroPCS (PCS) are up about 7.75%.

The NASDAQ Telecommunications Index (IXTC) was trading at $201.13 at 4:00 PM on Wednesday, up 4.26% on the day – down 10.76% year-to-date.

Utilities

Calpine (CPN) is cut to Hold from Buy at Jefferies. In afternoon trading: Shares of Dynegy (DYN) are up about 9%. Shares of Veolia Environment (VE) are up about 6.6%. Actives: Shares of Duke Energy (DUK) are up about 2.4%. Shares of Southern Company (SO) are up about 0.8%. Shares of AES Corp. (AES) are up about 1.8%. Shares of Exelon (EXC) are up about 2.25%. Shares of PPL Corp. (PPL) are up about 2%. Shares of Genon Energy (GEN) are up about 4%. Shares of PG&E (PCG) are up about 1.3%.

The Utilities Select Sector SPDR (XLU) was trading at $35.21 at 4:00 PM on Wednesday, up 2.89% on the day – up 12.35% year-to-date.

STOCKS: SDRL, SUBCY, APC, CVE, NXY, REPYY, CAM, FE, OGZPY, SWN, RIG, PCX, JRCC, CSIQ, TSL, AA, X, AKS, FCX, SYT, AGU, OMG, VMC, AVL, MT, SI, DEO, NAV, GLW, AMR, MTW, AONE, YRCW, CFI, EDU, AXL, DAN, LEA, BWA, JCI, TEN, NFLX, DDAIF, CCME, BID, MPEL, XIDE, BYD, SFLY, STON, RAH, CAG, IPSU, UNFI, WINN, CEDC, PFE, GSK, SHPGY, AZN, AH, PGNX, MBLX, BAC, C, MS, GS, RNR, RLJ, CHSP, AMSF, ABKFQ, MBI, RF, ALBKY, MSFT, YHOO, OVTI, MGI, SNDK, ZOOM, HSOL, JASO, T, DTEGY, LEAP, TWER, TNDM, PCS, CPN, DYN, VE, DUK, SO, AES, PPL, GEN, PCG

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
GLW Corning Incorporated 28.95 -0.07 -0.24 3,641,910 Trade
GSK GlaxoSmithKline PLC 44.50 0.17 0.38 2,168,766 Trade
GEN Genesis Healthcare Inc. 1.58 0.01 0.64 195,584 Trade
MTW Manitowoc Company Inc. (The) 15.14 -0.14 -0.92 559,674 Trade
DEO Diageo plc 161.61 1.08 0.67 222,495 Trade
CFI CULP Culp Inc. n/a n/a n/a n/a
OMG OM Group Inc. n/a n/a n/a 0 Trade
SO Southern Company (The) 62.21 -0.27 -0.43 3,639,228 Trade
PCG Pacific Gas & Electric Co. 6.84 -0.25 -3.53 11,670,713 Trade
AKS AK Steel Holding Corporation 2.55 -0.03 -1.16 3,294,287 Trade
RIG Transocean Ltd (Switzerland) 4.66 -0.16 -3.32 11,597,502 Trade
CVE Cenovus Energy Inc 8.89 -0.26 -2.84 3,291,554 Trade
YELP Yelp Inc. 34.35 -0.43 -1.24 678,707 Trade
AA Alcoa Corporation 20.57 -0.19 -0.92 2,341,855 Trade
AMSF AMERISAFE Inc. 66.96 1.46 2.23 112,239 Trade
MBLX First Majestic Silver Corp. n/a n/a n/a n/a
MBI MBIA Inc. 9.54 -0.13 -1.34 403,174 Trade
BWA BorgWarner Inc. 43.51 -0.25 -0.57 1,604,967 Trade
BYD Boyd Gaming Corporation 30.41 0.30 1.00 791,404 Trade
JCI Johnson Controls International plc 42.91 0.38 0.89 5,009,541 Trade
C Citigroup Inc. 74.82 0.42 0.56 9,096,818 Trade
PPL PPL Corporation 33.57 -0.08 -0.24 5,148,079 Trade
DAN Dana Incorporated 16.80 0.09 0.54 531,363 Trade
EDU New Oriental Education & Technology Group Inc. Sponsored ADR representing 1 (Cayman Islands) 121.97 -0.12 -0.10 522,968 Trade
MS Morgan Stanley 49.33 0.30 0.61 6,980,321 Trade
SNDK SanDisk Corp n/a n/a n/a 0 Trade
SWN Southwestern Energy Company 1.90 -0.07 -3.55 14,319,685 Trade
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
MGI Moneygram International Inc. 2.86 -0.07 -2.39 1,627,524 Trade
MPEL BlackBerry Limited n/a n/a n/a n/a
CAM Cameron International Corp n/a n/a n/a 0 Trade
AES The AES Corporation 18.48 -0.01 -0.05 5,964,403 Trade
STON StoneMor Partners L.P. Rep Limited Partnership Interests 1.10 0.01 0.48 70,688 Trade
TEN Tenneco Inc. Class A Voting 12.24 -0.11 -0.89 1,175,895 Trade
GS Goldman Sachs Group Inc. (The) 220.04 0.31 0.14 1,817,120 Trade
RNR RenaissanceRe Holdings Ltd. 186.80 2.12 1.15 242,524 Trade
YRCW YRC Worldwide Inc. 3.41 -0.05 -1.45 449,359 Trade
BAC Bank of America Corporation 32.94 -0.02 -0.06 33,195,390 Trade
NAV Navistar International Corporation 31.92 -0.60 -1.85 212,181 Trade
OVTI OmniVision Technologies Inc n/a n/a n/a 0 Trade
FCX Freeport-McMoRan Inc. 11.28 0.27 2.45 20,574,048 Trade
LEA Lear Corporation 120.90 -1.02 -0.84 527,977 Trade
RF Regions Financial Corporation 16.52 -0.06 -0.36 5,926,951 Trade
PGNX Progenics Pharmaceuticals Inc. 5.78 0.10 1.76 338,225 Trade
VMC Vulcan Materials Company (Holding Company) 141.15 0.75 0.53 796,358 Trade
X United States Steel Corporation 12.83 -0.45 -3.39 9,292,455 Trade
PFE Pfizer Inc. 37.66 0.44 1.18 25,119,176 Trade
HSOL HSOL n/a n/a n/a 0 Trade
MT Arcelor Mittal NY Registry Shares NEW 16.44 0.19 1.17 1,874,079 Trade
CSIQ Canadian Solar Inc. 15.10 0.13 0.87 907,024 Trade
AZN Astrazeneca PLC 47.67 -0.27 -0.56 2,185,163 Trade
NFLX Netflix Inc. 302.60 0.03 0.01 5,919,710 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
RLJ RLJ Lodging Trust of Beneficial Interest $0.01 par value 16.75 -0.03 -0.18 1,511,484 Trade
AXL American Axle & Manufacturing Holdings Inc. 10.16 0.43 4.42 2,614,566 Trade
FE FirstEnergy Corp. 46.43 -0.34 -0.73 4,241,740 Trade
T AT&T Inc. 38.00 -1.63 -4.11 64,556,823 Trade
DUK Duke Energy Corporation (Holding Company) 87.03 -1.62 -1.83 16,085,084 Trade
CAG ConAgra Brands Inc. 29.32 0.27 0.93 3,620,958 Trade
MSFT Microsoft Corporation 150.39 0.05 0.03 23,960,164 Trade
TWER Towerstream Corp 0.72 0.00 0.00 90

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

Blockchain in Fintech - Discussion at the EU Parliament

From the recent Blockchain For Europe Summit in Brussels: Panel on Financial Market Infrastructure