Equities Sector Coverage: Wall Street Trades Mostly Flat As Investors Look On

Sector Recap |

NYSE Wall StreetThe Dow Jones Industrial Average opened below 12,900 trading down to 12,817.69 and the afternoon rebound was below 12,900. The NASDAQ traded up to 2918.26 then declined to 2892.71 before consolidating above 2900. The S&P 500, Dow Transports and Russell 2000 still lag their 2011 highs at 1370.58, 5627.85 and 868.57 respectively.

Asian stocks closed higher on Wednesday with the Nikkei 225 ending their session 9,016 – up 1.10% on the day. The Hang Seng closed at 21,018 – up 1.54% on the day. European stocks were higher on Wednesday, but drifted lower into their closes. The FTSE 100 ended their session at 5,873 – down 0.30% on the day; the DAX ended their session at 6,746 – down 0.11% on the day; and the CAC 40 ended their session at 3,410 – down 0.05% on the day.

The yield on the 10-Year US Treasury rose to 2.005 above its 50-day simple moving average at 1.949. Gold traded up to $1754.8 the Troy ounce then declined to $1726.0. Crude oil traded up to $100.09 per barrel then declined to $98.10 versus 50-day and 200-day simple moving averages at $99.23 and $94.75. The euro versus the dollar declined from 1.3286 to 1.3225.

Energy

Exploration (PXP) is raised to Positive from Neutral at Susquehanna. BP Plc (BP) is lowered to Hold from Buy at Société Générale. In afternoon trading: Shares of Teekay Tankers (TNK) are down about 12%. Shares of Trina Solar (TSL) are up about 10.5%. Shares of Canadian Solar (CSIQ) are up about 10.25%.

Energy Select Sector SPDR (XLE) was trading at $73.77 at 4:00 PM on Wednesday, down 0.34% on the day – up 6.71% year-to-date. The January change was +2.26%. The 2011 change was -1.29%.

Materials

Noranda Aluminum (NOR) is cut to Neutral from Buy by Bank of America-Merrill Lynch. Louisiana-Pacific (LPX) is lowered to Sell from Neutral at UBS. In afternoon trading: Heavily Traded Stocks: Shares of Alcoa (AA) are up about 0.2%. Shares of Cemex (CX) are up about 1.3%. Shares of Arcelor Mittal (MT) are up about 4.3%. Shares of Freeport McMoran (FCX) are up about 1.4%.

The Materials Select Sector SPDR (XLB) was trading at $37.67 at 4:00 PM on Wednesday, up 0.11% on the day – up 12.45% year-to-date. The January change was +10.99%. The 2011 change was -12.78%.

Industrials

Genesee & Wyoming (GWR) beat estimates by 11 cents with revenue in-line with estimates. Ingersoll-Rand (IR) beat estimates by 9 cents, while missing revenue by $70M. Vitran (VTNC) missed estimates by 5 cents, while beating revenue by $4M. Owens Corning (OC) is cut to Neutral from Buy at Citigroup. In afternoon trading: Shares of Higher One Holdings (ONE) are down about 15.5%. Shares of SatCon Technology (SATC) are down about 15%. Shares of TBS International (TBSI) are down about 14.5%.

The Industrial Select Sector SPDR (XLI) was trading at $37.21 at 4:00 PM on Wednesday, up 0.22% on the day – up 10.25% year-to-date. The January change was +7.32%. The 2011 change was -3.21%.

Consumer Discretionary

Renesas Electronics (RNECY), Fujitsu (FJTSY) and Panasonic (PC) have begun discussions toward integrating their system chip operations. The move is aimed at ensuring the survival of the Japanese chip industry by creating a globally competitive system chip company. Disney's (DIS) FQ1 net income rose 12% to $0.80 and comfortably beat forecasts, although revenue edged up just 1% to $10.78B and missed expectations. Amazon (AMZN) plans to announce a deal with Viacom (VIA) to launch an online video subscription service this week, Reuters reports. Ralph Lauren (RL) beat estimates by 12 cents and revenue by $60M. Jones Apparel Group (JNY) beat estimates by 9 cents, while missing revenue by $37M. Hhgregg (HGG) missed estimates by a penny, while beating revenue by $4M. Time Warner (TWX): Broadcasting revenues +9% Y/Y; subscription revenues +6%; advertising +12%; content +21%; and filmed entertainment revenues +9%, led by the latest Harry Potter release. Panera Bread's (PNRA) Q4 saw average check growth of 5.7%, comprised of retail price increases of approximately 3.7% and positive mix impact of 2.0%. Vitamin Shoppe (VSI) is started at Equal Weight by Morgan Stanley. YUM! Brands (YUM) is raised to Neutral from Sell at Goldman Sachs. Buffalo Wild Wings (BWLD) is moved to Market Perform from Outperform at Raymond James. Beazer Homes (BZH) and Meritage Homes (MTH) both get downgraded to Sell from Neutral at Guggenheim. Gaylord Entertainment (GET) gets moved to Neutral from Overweight at JP Morgan. In afternoon trading: Shares of Buffalo Wild Wings (BWLD) are up about 14.5%. Shares of Ralph Lauren (RL) are up about 9.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.47 at 4:00 PM on Wednesday, up 0.24% on the day – up 8.84% year-to-date. The January change was +5.89%. The 2011 change was +4.30%.

Consumer Staples

CVS Caremark (CVS) reported Q4 EPS of $0.89 (in-line) and revenue of $28.3B (in-line). Costco (COST) gets resumed with a Market Perform at Raymond James. KeyBanc Capital begins Buy rated coverage on both J.M. Smucker (SJM) and Peet’s Coffee & Tea (PEET), assigning respective price objectives of $95 and $80. In afternoon trading: Heavily Traded Stocks: Shares of CVS Caremark (CVS) are up about 1.1%, while shares of Walgreens (WAG) are down about 1.1%. Shares of Safeway (SWY) are up about 2.2%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $32.50 at 4:00 PM on Wednesday, up slightly on the day – up 0.03% year-to-date. The January change was -1.42%. The 2011 change was +10.85%.



Health Care

Elan (ELN) missed estimates by 25 cents and revenue by $9M. Coventry Health Care (CVH) missed estimates by 5 cents, while beating revenue by $40M. Cerner’s (CERN) Q4 beats across the board as the company posted solid sales growth. Revenue rose by 23% Y/Y, with a 44% jump in bookings and a 24% increase in its revenue backlog. Genomic Health (GHDX) is cut to Hold from Buy at MLV & Co. In afternoon trading: Shares of Cerner (CERN) are up about 13.25%. Heavily Traded Stocks: Shares of Pfizer (PFE) are relatively unchanged. Shares of Biosante Pharmaceuticals (BPAX) are up about 7.25%. Shares of Dendreon (DNDN) are down about 3.5%.

The Health Care Select Sector SPDR (XLV) was trading at $36.15 at 4:00 PM on Wednesday, unchanged on the day – up 4.21% year-to-date. The January change was +3.20%. The 2011 change was +10.32%.

Financials

RBS's (RBS) restructuring since it almost collapsed in 2009 has so far cost £38B ($60.5B), CEO Stephen Hester has told employees in an email. Hester also told BBC radio that he considered resigning during the recent furor over his £1M ($1.59M) bonus. The combined costs of problematic mortgages and foreclosure abuse at five banks that were among the leading lenders during the real-estate boom exceed a combined $72B. Banks include: Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), JPMorgan (JPM) and Ally Financial. Annaly Mortgage Management (NLY) missed estimates by 3 cents. Lincoln National (LNC) reported Q4 EPS of $1.00 (in-line), while missing revenue by $200M. Banco Bilbao Vizcaya (BBVA) is raised to Neutral from Reduce at WestLB. Morgan Stanley (MS) is cut to Hold from Buy at Collins Stewart. Royal Bank of Scotland (RBS) is reduced to Neutral from Buy at Citigroup. UBS AG (UBS) is slashed to Sell from Hold at Deutsche Bank. ING Groep (ING) gets downgraded to Neutral from Buy at Goldman. Protective Life (PL) gets lowered downgraded to Neutral from Buy by Bank of America-Merrill Lynch. In afternoon trading: Shares of Apollo Investment (AINV) are down about 11.25%.

The Financial Select Sector SPDR (XLF) was trading at $14.77 at 4:00 PM on Wednesday, up 0.75% on the day – up 13.62% year-to-date. The January change was +8.12%. The 2011 change was -18.50%; the weakest performing sector for the year.

Information Technology

As expected, Yahoo (YHOO) Chairman Roy Bostock is stepping down in a boardroom shake-up that also includes the departure of three other directors and the recruitment of two. Renesas Electronics (RNECY), Fujitsu (FJTSY) and Panasonic (PC) have begun discussions toward integrating their system chip operations. The move is aimed at ensuring the survival of the Japanese chip industry by creating a globally competitive system chip company. Nokia (NOK) intends to slash 4,000 jobs at plants in Finland, Hungary and Mexico. The cuts are part of a plan to lower costs and help get products to market more quickly by moving smartphone assembly closer to suppliers in Asia. Cisco (CSCO) is expected to report continued progress in its turnaround when it releases its FQ2 results after the bell today, with analysts predicting that EPS climbed 16% to $0.43 and that revenue increased 7.9% to $11.23B. United Microelectronics (UMC) beat estimates by a penny and revenue by $11.4M. AU Optronics (AUO) missed estimates by 67 cents and revenue by $140M. Netgear (NTGR) beat estimates by 7 cents and revenue by $2M. FormFactor (FORM) beat estimates by 2 cents with revenue in-line with estimates. Silicon Graphics (SGI) missed estimates by 21 cents and revenue by $1.8M, and expects FY12 revenue of $770M-$800M (above $756.3M consensus) and FY12 EPS of $0.15-$0.30 (well below $0.67 consensus). Avid Technology’s (AVID) FQ1 easily beats EPS estimates despite a 5.1% overall dip in Y/Y revenue. OpenTable (OPEN) beat estimates by 7 cents and revenue by $0.4M. OpenTable (OPEN) is now Overweight from Neutral at Piper Jaffray. However, the company is downgraded by both Oppenheimer (Perform from Outperform with a $54 target price) and Credit Suisse (Neutral from Outperform.). Vishay Intertechnology (VSH) is taken to Overweight from Neutral at JP Morgan. NETGEAR (NTGR) is now Hold from Buy at Deutsche Bank. Demand Media (DMD) is moved to Underweight from Equal Weight at Morgan Stanley. In afternoon trading: Shares of FriendFinder (FFN) are up about 26%. Shares of Mitek Systems (MITK) are up about 22.5%. Shares of Silicon Graphics (SGI) are down about 23%.

The Technology Select Sector SPDR (XLK) was trading at $27.97 at 4:00 PM on Wednesday, up 0.61% on the day – up 9.90% year-to-date. The January change was +6.21%. The 2011 change was +1.03%.

Telecommunication Services

Sprint's (S) Q4: Net subscribers now total 55M, with 33M postpaid; prepaid net additions up 20% Y/Y to bring total prepaid subscribers to 14.8M; sold 1.8M iPhones in Q4, 40% to new customers. Level 3 Communications (LVLT) beat estimates by 18 cents, while missing revenue by $60M. In afternoon trading: Shares of Level 3 Communications (LVLT) are up about 9.25%. Heavily Traded Stocks: Shares of Sprint Nextel (S) are up about 0.8%, while shares of AT&T (T) are up slightly and shares of Verizon (VZ) are up slightly. Shares of Frontier Communications (FTR) are down abou t0.7%.

The NASDAQ Telecommunications Index (IXTC) was trading at $218.60 at 4:00 PM on Wednesday, up 0.37% on the day – up 11.00% year-to-date. The January change was +6.67%. The 2011 change was -12.62%.

Utilities

In afternoon trading: Heavily Traded Stocks: Shares of Genon Energy (GEN) are down about 1.3%. Shares of Calpine (CPN) are up about 5.25%. Shares of Duke Energy (DUK) are down about 0.7%. Shares of CenterPoint Energy (CNP) are up slightly. Shares of Exelon (EXC) are up about 0.3%. Shares of American Electric Power (AEP) are down about 1.4%.

The Utilities Select Sector SPDR (XLU) was trading at $34.97 at 4:00 PM on Wednesday, up 0.11% on the day – down 2.81% year-to-date. The January change was -3.61%. The 2011 change was +14.81%; the strongest performing sector for the year.

STOCKS: PXP, BP, TNK, TSL, CSIQ, NOR, LPX, AA, CX, MT, FCX, GWR, IR, VTNC, OC, ONE, SATC, TBSI, RNECY, FJTSY, PC, DIS, AMZN, VIA, RL, JNY, HGG, TWX, PNRA, VSI, YUM, BWLD, BZH, MTH, GET, CVS, COST, PEET, WAG, SWY, ELN, CVH, CERN, GHDX, PFE, BPAX, DNDN, RBS, BAC, WFC, C, JPM, NLY, LNC, BBVA, MS, UBS, ING, PL, AIVN, YHOO, NOK, CSCO, UMC, AUO, NTGR, FORM, SGI, AVID, OPEN, VHS, NTGR, DMD, FFN, MITK, S, LVLT, T, VZ, FTR, GEN, CPN, DUK, CNP, EXC, AEP

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
GEN Genesis Healthcare Inc. 4.36 -0.04 -0.91 88,792
FTR Frontier Communications Corporation 3.54 0.01 0.28 8,055,645
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.63 0.07 1.07 2,661,046
LNC Lincoln National Corporation 67.21 0.67 1.01 1,133,903
OC Owens Corning Inc New 53.87 1.62 3.10 2,030,305
AA Alcoa Inc. 33.01 -0.03 -0.09 3,026,712
CNP CenterPoint Energy Inc (Holding Co) 25.42 0.09 0.36 3,594,342
DY Dycom Industries Inc. 79.97 1.95 2.50 451,007
AUO AU Optronics Corp American Depositary Shares 4.03 0.05 1.26 719,715
NOR Noranda Aluminum Holding n/a n/a n/a 0
C Citigroup Inc. 59.63 0.40 0.68 21,045,164
S Sprint Corporation 8.61 0.15 1.77 11,828,108
GHDX Genomic Health Inc. 29.25 0.27 0.93 111,606
UMC United Microelectronics Corporation (NEW) 1.88 0.01 0.53 1,208,226
MITK Mitek Systems Inc. 6.65 0.35 5.56 234,654
IR Ingersoll-Rand plc (Ireland) 77.27 0.63 0.82 1,049,730
BZH Beazer Homes USA Inc. 13.31 0.07 0.53 406,305
MS Morgan Stanley 43.81 0.18 0.41 12,904,520
MTH Meritage Homes Corporation 35.35 -0.10 -0.28 103,101
TWX Time Warner Inc. New 94.14 0.29 0.31 3,162,407
JPM JP Morgan Chase 86.70 0.46 0.53 28,295,985
CERN Cerner Corporation 51.35 0.04 0.08 2,396,406
BWLD Buffalo Wild Wings Inc. 150.05 -3.30 -2.15 476,996
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) 10.12 0.27 2.74 1,059,016
AMZN Amazon.com Inc. 817.14 3.50 0.43 3,791,945
ONE Higher One Holdings Inc. n/a n/a n/a 0
CSCO Cisco Systems Inc. 30.07 0.03 0.10 17,136,585
LVLT Level 3 Communications Inc. 58.40 0.18 0.31 1,915,654
DIS Walt Disney Company (The) 108.06 0.53 0.49 6,488,966
COST Costco Wholesale Corporation 161.86 -0.01 -0.01 1,250,214
PNRA Panera Bread Company 213.34 -0.48 -0.22 426,071
VZ Verizon Communications Inc. 52.55 -0.13 -0.25 9,458,660
BAC Bank of America Corporation 23.01 0.09 0.39 161,930,864
YUM Yum! Brands Inc. 64.66 0.00 0.00 1,557,714
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.41 0.00 0.00 1,410,026
DMD Demand Media Inc. n/a n/a n/a n/a
NOK Nokia Corporation Sponsored American Depositary Sh 4.75 0.05 1.06 17,246,229
CPN Calpine Corporation 12.23 0.10 0.82 2,467,795
FCX Freeport-McMoRan Inc. 15.19 -0.08 -0.52 33,977,849
VSI Vitamin Shoppe Inc 23.00 0.15 0.66 147,134
TNK Teekay Tankers Ltd. 2.28 0.01 0.44 1,509,117
HGG HHGregg Inc. (IN) 0.72 0.01 0.71 287,351
UBS UBS Group AG Registered 17.06 0.39 2.34 3,311,903
FORM FormFactor Inc. 11.50 0.55 5.02 254,981
SGI Silicon Graphics International Corp n/a n/a n/a 0
AVID Avid Technology Inc. 5.11 0.08 1.59 362,796
PFE Pfizer Inc. 32.52 -0.08 -0.25 20,291,186
WFC Wells Fargo & Company 55.31 0.81 1.49 37,231,593
ELN Elan Corp. PLC ADS n/a n/a n/a 0
MT ArcelorMittal 8.04 0.14 1.77 10,719,158
CSIQ Canadian Solar Inc. 12.45 0.05 0.40 1,216,522
GWR Genesee & Wyoming Inc. Class A 73.82 1.57 2.17 545,518
YHOO Yahoo! Inc. 42.27 0.16 0.38 4,513,026
CVS CVS Health Corporation 81.98 -0.62 -0.75 4,809,230
ING ING Group N.V. 14.62 0.14 0.97 3,259,318
BP BP p.l.c. 37.66 -0.10 -0.26 3,815,512
LPX Louisiana-Pacific Corporation 19.90 0.24 1.22 932,954
EXC Exelon Corporation 35.44 0.00 0.00 5,052,922
NTGR NETGEAR Inc. 55.25 -0.10 -0.18 225,478
NLY Annaly Capital Management Inc 10.15 -0.03 -0.29 4,729,943
T AT&T Inc. 40.96 -0.05 -0.12 13,932,163
DUK Duke Energy Corporation (Holding Company) 77.21 -0.33 -0.43 1,954,531
VIA Viacom Inc. 42.80 0.55 1.30 52,899
CX Cemex S.A.B. de C.V. Sponsored ADR 7.97 -0.06 -0.75 4,799,070
RL Ralph Lauren Corporation 86.32 -0.07 -0.08 806,306
AEP American Electric Power Company 63.23 -0.06 -0.09 2,506,564

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