The National ISM Manufacturing Index came in slightly lower than expected at 53.9. Construction Spending was stronger than expected at 1.2% in November. Fed minutes show slow economic recovery, but no signs of improvement in the housing market with only a slow improvement in employment. Risk remains from Eurozone and in the banking system.
The Dow Jones Industrial Average gapped higher on Tuesday to a day’s high at 12,479.65 going into the final hour of trading. The NASDAQ gapped higher from 2656.91 to 2665.90 testing its 200-day simple moving average at 2661 then faded to 2641.98 before recovering again. Going into the final hour of trading the NASDAQ was below the 200-day.
Asian stocks were higher on Tuesday with the Nikkei 225 still on holiday at 8,455. The Hang Seng ended their session at 18,877 – up 2.40% on the day. European stocks also moved higher on Tuesday. The FTSE 100 ended their session at 5,700 – up 2.29% on the day; the DAX ended their session at 6,167 – up 1.50% on the day; and the CAC 40 ended their session at 3,245 – up 0.72% on the day. The yield on the 10-Year US Treasury note rose from 1.876 to 1.965 still below its 50-day simple moving average at 2.006.
Gold rallied from $1566.8 the Troy ounce to $1608.7 still below its 200-day simple moving average at $1624.1. Crude oil stayed above its 50-day and 200-day simple moving averages at $97.11 and $95.76 in a day’s range up from $99.65 a barrel to $102.88. The euro versus the dollar rebounded from 1.2935 to 1.3075.
EnerVest. Total (TOT) has become the latest foreign company to buy into or strengthen its position in the U.S. shale sector, purchasing a 25% stake in an Ohio-based joint venture from Chesapeake Energy (CHK) and EnerVest (EOSOF) for a total of $2.3B. Venezuela said yesterday that it will pay Exxon (XOM) just $255M as compensation for nationalized assets, less than a third of what the oil company had been awarded by an arbitration panel and just a small fraction of the $10B Exxon had sought. BP (BP) has sued contractor Halliburton (HAL) to pay all the expenses and damages that BP incurred over the Deepwater Horizon oil spill, including clean-up costs and lost profits. Pioneer Southwest Energy (PSE) is a new Neutral at Bank of America-Merrill Lynch. In afternoon trading: Shares of James River Coal (JRCC) are up about 12.25%. Shares of RPC Inc. (RES) are up about 12%. Shares of GMX Resources (GMXR) are up about 12%. Shares of Peabody Energy (BTU) are up about 10.25%. Shares of Nabors Industries (NBR) are up about 10.25%.
Energy Select Sector SPDR (XLE) was trading at $71.05 at 4:00 PM on Tuesday, up 2.78% on the day – up 2.78% year-to-date. The 2011 change was +1.29%.
Potash Corp of Saskatchewan (POT) is upgraded to Positive from Neutral at Susquehanna. In afternoon trading: Shares of Golden Minerals (AUMN) are up about 14.25%. Shares of Yongye International (YONG) are up about 12.75%. Shares of Noranda Aluminum Holding (NOR) are up about 11.5%. Shares of Rare Elements (REE) are up about 10.5%. Shares of Avalon Rare Metals (AVL) are up about 10.25%.
The Materials Select Sector SPDR (XLB) was trading at $34.43 at 4:00 PM on Tuesday, up 2.78% on the day – up 2.78% year-to-date. The 2011 change was -12.78%.
RPX Corporation (RPXC) is increased to Overweight from Equal Weight by Barclays. Goodrich (GR) gets downgraded to Hold from Buy at Jefferies. PACCAR Inc (PCAR) is lowered to Neutral from Overweight at JPMorgan. In afternoon trading: Shares of A123 Systems (AONE) are up about 25.5%. Shares of Smartheat (HEAT) are up about 21.75%. Shares of Meritor (MTOR) are up about 12.5%. Shares of AMR Corp. (AMR) are DOWN about 11%.
The Industrial Select Sector SPDR (XLI) was trading at $34.49 at 4:00 PM on Tuesday, up 2.19% on the day – up 2.19% year-to-date. The 2011 change was -3.21%.
Advance Auto Parts (AAP) is a new Buy at Deutsche Bank. Chipotle Mexican Grill (CMG) is lifted to Buy from Hold at Deutsche Bank. Under Armour (UA) is upgraded to Outperform from Neutral at Robert W. Baird with a new price target of $90. American Eagle (AEO) gets lifted by both Piper Jaffray (Overweight from Neutral) and Jefferies (Buy from Hold). Ann Inc (ANN) is raised to Buy from Hold at Jefferies. Jack In The Box (JACK) is upgraded to Top Pick from Outperform at RBC Capital. V.F. Corp (VFC) is lifted to Buy from Neutral at Citigroup. TripAdvisor (TRIP) is taken to Buy from Neutral at Bank of America-Merrill Lynch. Group 1 Automotive (GPI) gets downgraded to Neutral from Buy at Goldman. Carmike Cinemas (CKEC) and Regal Entertainment (RGC) are each reduced to Neutral from Overweight at Piper Jaffray. Wolverine World Wide (WWW) is now Neutral from Outperform at Robert W. Baird with a lower objective of $38. Williams-Sonoma (WSM) is slashed to Sell from Neutral at Janney Montgomery Scott. Zumiez (ZUMZ) is reduced to Neutral from Overweight at Piper Jaffray. In afternoon trading: Shares of Dangdang (DANG) are up about 12%. Shares of Live Nation Entertainment (LYV) are up about 11%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.35 at 4:00 PM on Tuesday, up 0.85% on the day – up 0.85% year-to-date. The 2011 change was +4.30%.
Energizer (ENR) is moved to Overweight from Equal Weight at Morgan Stanley. In afternoon trading: Shares of American Oriental Bioengineering (AOB) are up about 11%. Shares of Medifast (MED) are up about 9.5%. Shares of Star Scientific (CIGX) are up about 7.25%. Shares of Yuhe International (YUII) are up about 7.25%. Heavily Active Stocks: Shares of Altria Group (MO) are down about 3.6%. Shares of Wal-Mart (WMT) are up about 1.7%. Shares of Procter & Gamble (PG) are up slightly.
The Consumer Staples Select Sector SPDR (XLP) was trading at $32.46 at 4:00 PM on Tuesday, down slightly on the day – down 0.09% year-to-date. The 2011 change was +10.85%.
Teva (TEVA) CEO Shlomo Yanai is stepping down, to be replaced in May by Jeremy Levin, formerly of Bristol-Myers Squibb. A kidney cancer drug from Aveo Pharmaceuticals (AVEO) outperformed an approved drug from Onyx Pharmaceuticals (ONXX) in a late-stage study comparing the two treatments head-to-head. Clovis Oncology (CLVS) is a new Overweight at JPMorgan. Cyberonics (CYBX) gets a Buy-from-Hold boost at Kaufman Brothers with a new target price of $38. Hologic (HOLX) is upgraded to Overweight from Equal Weight at Morgan Stanley. Becton Dickinson (BDX) is lowered to Underperform from Equal Weight at Morgan Stanley. Onyx Pharmaceuticals (ONXX) is cut to Hold from Buy at Jefferies. Healthsouth (HLS) is lowered to Underperform from Neutral at Bank of America-Merrill Lynch. St. Jude Medical (STJ) is pulled from Kaufman Brothers list of Top Picks and lowers its objective to $42. In afternoon trading: Shares of AVEO are down about 19.5%. Shares of MAKO Surgical (MAKO) are up about 12.5%.
The Health Care Select Sector SPDR (XLV) was trading at $35.14 at 4:00 PM on Tuesday, up 1.30% on the day – up 1.30% year-to-date. The 2011 change was +10.32%.
U.S. shareholders are suing Lloyds (LYG) and two of its former executives over the “reckless disregard for the truth” displayed during the rescue of lender HBOS in 2008. ProLogis (PLD) is initiated at an Outperform with Wells Fargo. American Tower (AMT) is now Neutral from Overweight at JPMorgan. CapitalSource (CSE) is cut to Neutral from Buy at Sterne Agee. Astoria Financial (AF) is taken to Underperform from Neutral at Sterne Agee. Regency Centers (REG) is now Neutral from Outperform at Credit Suisse. In afternoon trading: Shares of Washington Mutual (WAMUQ) are up about 9.5%. Shares of Synovus Financial (SNV) are up about 8.5%. Shares of Citigroup (C) are up about 8.25%.
The Financial Select Sector SPDR (XLF) was trading at $13.34 at 4:00 PM on Tuesday, up 2.62% on the day – up 2.62% year-to-date. The 2011 change was -18.50%; the weakest performing sector for the year.
Angie’s List (ANGI) is picked up at Perform by both Oppenheimer and RBC Cpaital. Janney Montgomery Scott and ThinkEquity are both more bullish, assigning Buy ratings. Bankrate (RATE) is resumed as a Buy at Goldman Sachs. Zynga (ZNGA) is assumed with a Market Perform at BMO Capital. Cisco Systems (CSCO) gets increased to Overweight from Neutral at JPMorgan. Altera (ALTR) is lifted to Buy from Neutral at Goldman. Micron Technology (MU) is taken to Overweight from Equal Weight at Barclays. Riverbed Technology (RVBD) is raised to Outperform from Perform at Oppenheimer with a price objective of $30. Fusion-io (FIO) is moved to Overweight from Equal Weight at Morgan Stanley. Intel (INTC) and Applied Materials (AMAT) are each reduced to Equal Weight from Overweight by Barclays. SanDisk (SNDK) and PMC-Sierra (PMCS) are both now Neutral from Buy at Goldman, which moves Microchip (MCHP) to Sell from Neutral. In afternoon trading: Shares of Motricity (MOTR) are up about 15.5%. Shares of Smith Micro Software (SMSI) are up about 15%. Shares of Openwave Systems (OPWV) are up about 13%. Shares of Fusion-io are up about 12%. Shares of Universal Display (PANL) are DOWN about 10.5%.
The Technology Select Sector SPDR (XLK) was trading at $25.81 at 4:00 PM on Tuesday, up 1.41% on the day – up 1.41% year-to-date. The 2011 change was +1.03%.
In afternoon trading: Shares of Towerstream (TWER) are up about 11%. Shares of TerreStar (TSTRQ) are up about 9.75%. Shares of MetroPCS (PCS) are up about 8%. Shares of Cbeyond (CBEY) are up about 6.75%. Shares of Leap Wireless (LEAP) are up about 5.5%. Shares of BT Group (BT) are up about 5.4%. Heavily Active Stocks: Shares of Sprint Nextel (S) are down about 0.4%, while shares of AT&T (T) are up about 0.6% and shares of Verizon (VZ) are down about 0.9%.
The NASDAQ Telecommunications Index (IXTC) was trading at $201.62 at 4:00 PM on Tuesday, up 2.38% on the day – up 2.38% year-to-date. The 2011 change was -12.62%.
In afternoon trading: Heavily Active Stocks: Shares of Genon Energy (GEN) are down about 0.4%. Shares of Duke Energy (DUK) are down about 1.8%. Shares of Exelon (EXC) are down about 3.3%. Shares of AES Corp. (AES) are up about 2.1%. Shares of Southern Company (SO) are down about 3.1%. Shares of PPL Corp. (PPL) are down about 2.2%.
The Utilities Select Sector SPDR (XLU) was trading at $35.34 at 4:00 PM on Tuesday, down 1.78% on the day – down 1.78% year-to-date. The 2011 change was +14.81%; the strongest performing sector for the year.
STOCKS: TOT, CHK, EOSOF, XOM, BP, HAL, PSE, JRCC, RES, GMXR, BTU, NBR, POT, AUMN, YONG, NOR, REE, AVL, RPXC, GR, PCAR, AONE, HEAT, MTOR, AMR, AAP, CMG, UA, AEO, ANN, JACK, VFC, TRIP, GPI, CKEC, RGC, WWW, WSM, ZUMZ, DANG, LYV, ENR, AOB, MED, CIGX, YUII, MO, WMT, PG, TEVA, AVEO, ONXX, CLVS, CYBX, HOLX, BDX, HLS, STJ, MAKO, LYG, PLD, AMT, CSE, AF, REG, WAMUQ, SNV, C, ANGI, RATE, ZNGA, CSCO, ALTR, MU, RVBD, FIO, INTC, AMAT, SNDK, PMCS, MCHP, MOTR, SMSI, OPWV, PANL, TWER, TSTRQ, PCS, CBEY, LEAP, BR, S, T, VZ, GEN, DUK, EXC, AES, SO, PPL