Equities Sector Coverage: Wall Street Trades Flat to Close Strong Week

Sector Recap |

Wall Street Trades Flat to Close Strong Week gas prices inflationCPI rose 0.4% in February as gasoline prices rose 6.0% the highest amount since December 2010. CPI was up 2.9% year over year. Excluding food & energy CPI rose just 0.1%. Industrial Production was unchanged in February below expectations. The University of Michigan Consumer Sentiment Index falls to 74.3 in March from 75.3 in February. The Dow Industrial Average traded to a new year to date high at 13,289.08 then dipped to 13,239.06. The NASDAQ’s traded down from 3059.65 to 3047.69 then rebounded to a new year to date high at 3060.82.

Asian stocks were mixed on Friday. The Nikkei 225 ended their session at 10,130 – up 0.06% on the day. The Hang Seng ended their session at 21,318 – down 0.17% on the day. European stocks were higher on Friday. The FTSE 100 ended their session at 5,966 – up 0.42% on the day. The DAX ended their session at 7,158 – up 0.19% on the day. The CAC 40 ended their session at 3,595 – up 0.41% on the day. The yield on the 10-Year US Treasury rose from 2.272 percent to 2.363 then consolidated well above its 200-day simple moving average at 2.220.

Gold traded down from $1664.9 the Troy ounce to $1639.7 then consolidated below its 50-day and 200-day simple moving averages at $1703.4 and $1679.2. Crude oil rebounded from $105.13 per barrel to $107.24. The euro versus the dollar rebounded from 1.3051 to 1.3185 above its 50- day simple moving average at 1.3106.

Energy

Exxon Mobil (XOM) is in negotiations to sell its 60% stake in Hong Kong's Castle Peak Power to CLP Holdings (CLPHY) - which already owns the other 40% - and China Southern Power Grid. Chevron (CVX) has filed a request to suspend production at the 61,500 bpd Frade field off the coast of Brazil after a "small new seep" of oil was detected in the area. Tsakos Energy Navigation (TNP) beat estimates by 5 cents with revenue in-line with estimates. Golar LNG (GLNG) gets picked up at a Market Perform with Wells Fargo. Vantage Drilling (VTG) is increased to Buy from Hold at Dahlman Rose. Transocean (RIG) is raised to Buy from Neutral with an increased price target of $70 at Global Hunter Securities. Seadrill Ltd (SDRL) is taken to Hold from Buy at Dahlman Rose.
Energy Select Sector SPDR (XLE) was trading at $74.80 at 4:00 PM on Thursday, up 0.99% on the day – up 8.20% year-to-date. The February 2012 change was +5.93%. The 2011 change was -1.29%.

Materials

The Materials Select Sector SPDR (XLB) was trading at $37.10 at 4:00 PM on Thursday, down 0.19% on the day – up 10.75% year-to-date. The February 2012 change was -0.56%. The 2011 change was -12.78%.

Industrials

UPS (UPS) has reiterated its plan to make an offer for TNT Express and intends to file for the approval of its bid documents to Dutch market regulator AFM by May 11, UPS said in an obligatory update. Excel Maritime Carriers (EXM) beat estimates by a penny and revenue by $8M. Wabtec (WAB) is hoisted to Buy from Hold at BB&T Capital. Armstrong World Industries (AWI) is cut to Hold from Buy at KeyBanc Capital.
The Industrial Select Sector SPDR (XLI) was trading at $37.98 at 4:00 PM on Thursday, down 0.42% on the day – up 12.53% year-to-date. The February 2012 change was +2.79%. The 2011 change was -3.21%.

Consumer Discretionary

The new iPad (with its primitive 5 megapixel camera) went on sale today in stores across ten countries just hours after Apple (AAPL) shares touched $600 for the first time. Australia was the first country in which the iPad was sold, with Wal-Mart (WMT), Best Buy (BBY) and RadioShack (RSH), as well as Apple, selling it in the U.S. New York & Company (NWY) reported Q4 EPS of -$0.18 (in-line), while beating revenue by $4M. Coach Inc (COH) is begun with a Buy recommendation and $90 price objective at Argus. Cabela’s (CAB) is an Outperform at Wells Fargo. Dana Holding (DAN) is a new Buy at Bank of America-Merrill Lynch. Dick’s Sporting Goods (DKS) is a fresh Market Perform with Wells. Lear Corp (LEA) is added to the Conviction Buy List at Goldman Sachs. Porsche (POAHY) and Mercedes-Benz owner Daimler AG (DDAIF) are each cut to Underperform from Market Perform by Sanford Bernstein, which reduces Peugeot Citroën (PEUGY) to Market Perform from Outperform, sending all three lower in London. Buffalo Wild Wings (BWLD) is now Neutral from Outperform with Wedbush.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.35 at 4:00 PM on Thursday, down 0.63% on the day – up 13.66% year-to-date. The February 2012 change was +10.09%. The 2011 change was +4.30%.

Consumer Staples

Dole Food (DOLE) beat estimates by 8 cents, while missing revenue by $30M. Primo Water (PRMW) missed estimates by 2 cents with revenue in-line with estimates. Estée Lauder (EL) is cut to Above Average from Buy at Caris & Company. Primo Water (PRMW) is moved to Neutral from Buy at Janney Montgomery Scott.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.60 at 4:00 PM on Thursday, down 0.59% on the day – up 3.42% year-to-date. The February 2012 change was +3.75%. The 2011 change was +10.85%.

Health Care

Neurocrine Biosciences (NBIX) is a new Buy at Deutsche Bank. Par Pharmaceutical (PRX) is a new Neutral at JP Morgan. Shire plc (SHPGY) is moved to Overweight from Neutral at JPMorgan. Triple-S Management (GTS) gets taken to Market Perform from Outperform with Wells.

The Health Care Select Sector SPDR (XLV) was trading at $36.85 at 4:00 PM on Thursday, down 0.51% on the day – up 6.23% year-to-date. The February 2012 change was +1.06%. The 2011 change was +10.32%.

Financials

A federal appeals court yesterday chastised Judge Jed Rakoff for his rejection of the SEC's $285M settlement with Citigroup (C) over toxic mortgage debt, and said the agency and the bank are likely to win their attempt to get Rakoff's decision overturned. UBS (UBS) has joined three other strategic investors in investing $1.6B to buy a 16.5% stake in China Cinda Asset Management in advance of a future public offering of shares. Rolling Stone's Matt Taibbi continues to go after the financial community in a big way, setting his sights this time on "too crooked to fail" Bank of America (BAC). American Tower (AMT) and SBA Communications (SBAC) are each initiated with Outperforms at Credit Suisse, which has a new Neutral on Crown Castle International (CCI). Federal Realty Investment Trust (FRT) is assigned an In-Line and $99 target price at Imperial Capital. Royal Bank of Scotland (RBS) is boosted to Buy from Neutral at UBS. Morgan Stanley (MS), TD Ameritrade (AMTD), and BlackRock (BLK) are all downgraded to Hold from Buy at Deutsche Bank. Sun Communities (SUI) gets lowered to Underperform from Neutral by Bank of America-Merrill Lynch.
The Select Sector SPDR (XLF) was trading at $15.72 at 4:00 PM on Thursday, up slightly on the day – up 20.92% year-to-date (the strongest performing sector). The February 2012 change was +5.02%. The 2011 change was -18.50%; the weakest performing sector for the year.

Information Technology

The FTC and state attorneys-general have joined France in investigating Google (GOOG) for bybassing the privacy settings on Apple's (AAPL) Safari Web browser to install cookies, The Wall Street Journal reports. The new iPad (with its primitive 5 megapixel camera) went on sale today in stores across ten countries just hours after Apple (AAPL) shares touched $600 for the first time. Australia was the first country in which the iPad was sold, with Wal-Mart (WMT), Best Buy (BBY) and RadioShack (RSH), as well as Apple, selling it in the U.S. Comverge (COMV) beat estimates by 17 cents, while missing revenue by $3M. Perfect World (PWRD) beat estimates by 43 cents on revenue of $123M. Cogo Group (COGO) beat estimates by a penny and revenue by $22M. ManTech (MANT) is a new Underweight at Morgan Stanley. Microsoft (MSFT) is upgraded to Buy from Hold with a $39 target at Argus. Acme Packet (APKT) is now Outperform from Market Perform at Northland Securities. AXT Inc (AXTI) is upgraded to Outperform from Market Perform at Northland Securities, which takes its objective up to $8. Red Hat (RHT) is reduced to Equal Weight from Overweight at Morgan Stanley. ADTRAN (ADTN) is cut to Hold from Buy at ThinkEquity.

The Technology Select Sector SPDR (XLK) was trading at $29.88 at 4:00 PM on Thursday, down 0.37 on the day – up 17.41% year-to-date. The February 2012 change was +7.08%. The 2011 change was +1.03%.

Telecommunication Services

American Tower (AMT) and SBA Communications (SBAC) are each initiated with Outperforms at Credit Suisse, which has a new Neutral on Crown Castle International (CCI).
The NASDAQ Telecommunications Index (IXTC) was trading at $213.91 at 4:00 PM on Thursday, up 0.50% on the day – up 8.62% year-to-date. The February 2012 change was +1.63%. The 2011 change was -12.62%.

Utilities

Exxon Mobil (XOM) is in negotiations to sell its 60% stake in Hong Kong's Castle Peak Power to CLP Holdings (CLPHY) - which already owns the other 40% - and China Southern Power Grid. Veolia Environnement (VE) is raised to Neutral from Sell at UBS.
The Utilities Select Sector SPDR (XLU) was trading at $34.78 at 4:00 PM on Thursday, down 1% on the day – down 3.34% year-to-date (the weakest performing sector). The February 2012 change was +0.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

Stocks: XOM, CLPHY, CVX, TNP, GLNG, VTG, RIG, SDRL, XLE, XLB, UPS, EXM, WAB, AWI, XLI, AAPL, WMT, BBY, RSH, NWY, COH, CAB, DAN, DKS, LEA, POAHY, DDAIF, PEUGY, BWLD, XLY, DOLE, PRMW, EL, XLP, NBIX, PRX, SHPGY, GTS, XLV, C, UBS, BAC, AMT, SBAC, CCI, FRT, RBS, MS, AMTD, BLK, SUI, XLF, GOOG, AAPL, WMT, BBY, RSH, COMV, PWRD, COGO, MANT, MSFT, APKT, AXTI, RHT, ADTN, XLK, AMT, SBAC, CCI, IXTC, XOM, CLPHY, VE, XLU

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
AAPL Apple Inc. 113.05 0.87 0.78 36,343,003
ADTN ADTRAN Inc. 19.14 0.23 1.22 269,002
AMT American Tower Corporation (REIT) 113.33 -0.15 -0.13 2,777,281
AMTD TD Ameritrade Holding Corporation 35.24 0.77 2.23 3,444,763
AWI Armstrong World Industries Inc 41.32 0.81 2.00 509,416
AXTI AXT Inc 5.19 0.25 5.06 494,303
BAC Bank of America Corporation 15.65 0.49 3.23 119,286,067
BBY Best Buy Co. Inc. 38.18 0.77 2.06 4,877,888
BWLD Buffalo Wild Wings Inc. 140.74 -0.23 -0.16 438,430
C Citigroup Inc. 47.23 1.43 3.12 25,556,943
CAB Cabela\'s Inc Class A 54.93 1.38 2.58 1,532,282
CCI Crown Castle International Corp. (REIT) 94.21 0.20 0.21 2,689,040
COH Coach Inc. 36.56 0.35 0.97 4,743,277
CVX Chevron Corporation 102.92 1.65 1.63 9,417,974
DAN Dana Holding Corporation When-Issued 15.59 0.43 2.84 1,547,204
DKS Dick\'s Sporting Goods Inc 56.72 0.15 0.27 3,047,065
EL Estee Lauder Companies Inc. (The) 88.56 1.69 1.95 1,952,476
FRT Federal Realty Investment Trust (MD) 153.93 -1.39 -0.89 692,986
GLNG Golar LNG Limited 21.20 0.27 1.29 1,403,506
GOOG Alphabet Inc. 777.29 2.28 0.29 1,583,394
GTS Triple-S Management Corporation Class B 21.93 0.42 1.95 104,583
HTGC Hercules Capital Inc. 13.56 0.08 0.59 451,233
LEA Lear Corporation 121.22 2.45 2.06 573,747
MANT ManTech International Corporation 37.69 0.30 0.80 213,627
MS Morgan Stanley 32.06 1.02 3.29 16,187,124
MSFT Microsoft Corporation 57.60 0.20 0.35 29,878,420
NBIX Neurocrine Biosciences Inc. 50.64 0.31 0.62 1,040,583
NWY New York & Company Inc. 2.26 0.01 0.44 39,578
PRMW Primo Water Corporation 12.13 0.18 1.51 98,165
RBS Royal Bank of Scotland Group Plc New (The) ADS 4.66 0.16 3.56 2,555,005
RHT Red Hat Inc. 80.83 0.67 0.84 1,678,171
RIG Transocean Ltd (Switzerland) 10.66 0.03 0.28 15,525,691
SBAC SBA Communications Corporation 112.16 0.56 0.50 721,554
SDRL Seadrill Limited (Bermuda) 2.37 -0.12 -4.82 14,192,397
SUI Sun Communities Inc. 78.48 -0.95 -1.20 418,563
TNP Tsakos Energy Navigation Ltd 4.82 0.03 0.63 339,974
UBS UBS Group AG Registered 13.62 0.56 4.29 3,363,603
UPS United Parcel Service Inc. 109.36 1.15 1.06 2,952,536
WAB Westinghouse Air Brake Technologies Corporation 81.65 2.73 3.46 1,880,199
WMT Wal-Mart Stores Inc. 72.12 1.39 1.97 9,972,812
XOM Exxon Mobil Corporation 87.28 0.82 0.95 15,927,839

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