Equities Sector Coverage: Wall Street Unphased By Downgrade Scare

Sector Recap  |

The Dow Jones Industrial Average traded down to 12,076.71 then up to 12,215.71 staying below its October 27th high at 12,284.31. The NASDAQ traded down from 2661.92 to 2639.18 after a failed test of its 200-day simple moving average at 2672 on Monday, and thus staying below its October 27th high at 2753.37.

Asian stocks were lower on Tuesday with the Nikkei 225 at 8,575 - down 1.39% and the Hang Seng at 18,942 – down 1.24%. European stocks were mixed following Standard & Poor’s credit concerns in Europe. The FTSE 100 ended the day at 5,569 – up 0.01%; the DAX ended the day at 6,029 – down 1.27%; and the CAC 40 ended the day at 3,180 – down 0.68%. The yield on the US Treasury 10-Year note traded between 2.031 percent and 2.096 around its 50-day simple moving average at 2.056. Gold traded down from $1728.3 the Troy ounce to $1705.7 holding above its 50-day simple moving average at $1703.1 then rebounded to $1732.9. Crude oil traded between $100.20 per barrel and $101.42. The euro versus the dollar traded between 1.3336 and 1.3424.

Energy

Alpha Natural Resources (ANR) has reportedly agreed to a $200M settlement over civil and criminal charges connected to last year's Massey Energy mining disaster. Tesoro (TSO) is moved to Neutral from Outperform at Credit Suisse. Statoil ASA (STO) is now Hold from Buy at Deutsche Bank. In afternoon trading: Shares of DHT Holdings (DHT) are up about 22%. Shares of Frontline (FRO) are up about 17.5%. Shares of Comstock Resources (CRK) are up about 17.5%.

Energy Select Sector SPDR (XLE) was trading at $71.28 at 4:00 PM on Tuesday, down slightly on the day – up 4.44% year-to-date.

Materials

International Paper (IP) is assigned a Neutral at Credit Suisse. Vulcan Materials (VMC) is started at a Neutral by Sterne Agee. Martin Marietta Materials (MLM) is begun with a Buy and $90 objective at Sterne Agee. Huntsman (HUN) is cut to Hold from Buy at Jefferies. In afternoon trading: Shares of Mechel OAO (MTL) are down about 11.75%. Shares of Hecla Mining (HL) are up about 9.5%. Shares of CF Industries (CF) are up about 5.5%. Shares of Ivanhoe Mines (IVN) are up about 5.25%.

The Materials Select Sector SPDR (XLB) was trading at $34.72 at 4:00 PM on Tuesday, up 0.93% on the day – down 9.61% year-to-date.

Industrials

Ducommun (DCO) is a new Buy at EarlyBirdCapital. General Electric (GE) gets an Outperform-from-Market Perform increase at Sanford Bernstein. Alaska Air (ALK) is resumed at a Market Perform by brokers Raymond James. Canadian Pacific Railway (CP) is raised to Equal Weight from Underweight at Barclays. Ingersoll-Rand (IR) is now Neutral from Buy at Sterne Agee. Canadian National Railway (CNI) is cut to Underweight from Equal Weight by Barclays. In afternoon trading: Shares of AMR Corp. (AMR) are up about 75.5%. Shares of Broadwind Energy (BWEN) are up about 9%.

The Industrial Select Sector SPDR (XLI) was trading at $34.06 at 4:00 PM on Tuesday, down slightly on the day – down 2.32% year-to-date.

Consumer Discretionary

Ford (F) has begun to look for a replacement for CEO Alan Mulally, who is 66 and is expected to leave the automaker within two years. The EU is investigating major publishers and Apple (AAPL) for allegedly restricting competition in the e-book market. The publishers include Harper Collins (NWSA) and Simon & Schuster (CBS). AutoZone (AZO) beat estimates by 22 cents and revenue by $30M. Toll Brothers (TOL) beat estimates by 3 cents and revenue by $10M. Dollar General (DG) beat estimates by 3 cents and revenue by $30M. Orbitz (OWW) is upgraded to Buy from Hold at The Benchmark Company with a price objective of $5. Carter Holdings (CRI) is boosted to Buy from Neutral at Goldman Sachs. In afternoon trading: Shares of Darden Restaurants (DRI) are down about 11.5%. Shares of Orbitz are u pabout 15%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.30 at 4:00 PM on Tuesday, down 0.33% on the day – up 5.05% year-to-date.

Consumer Staples

Deutsche Bank begins a Buy on Altria (MO) and has a Hold on rival Reynolds American (RAI). In afternoon trading: Actively Traded Stocks: Shares of Altria Group are up about 2.6%. Shares of Wal-Mart (WMT) are up about 1.6%. Shares of Walgreens (WAG) are relatively unchanged. Shares of Procter & Gamble (PG) are up about 0.7%. Shares of Kraft Foods (KFT) are up about 1%. Shares of Coca Cola (KO) are up about 1.5%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.97 at 4:00 PM on Tuesday, up slightly on the day – up 9.08% year-to-date.

Healthcare

As expected, an investigative panel finds Olympus's (OCPNY) senior management was "rotten to the core" and hid up to $1.7B of losses from investors. Cantor Fitzgerald launches Buy rated coverage on Forest Labs (FRX) - $36 price target, Obagi Medical (OMPI) - $12 price target, and Salix Pharmaceuticals (SLXP) - $56 price target. It has a Hold and $12 target on Ironwood Pharmaceuticals (IRWD). In afternoon trading: Shares of Peregrine Pharmaceuticals (PPHM) are up about 28.5%. Shares of Tengion Inc. (TNGN) are up about 16.75%. Shares of Affymax (AFFY) are down about 10%.

The Health Care Select Sector SPDR (XLV) was trading at $33.71 at 4:00 PM on Tuesday, up 0.42% on the day – up 7.02% year-to-date.

Financials

Lehman (LEHMQ) is due to today begin one of the last stages of its three-year-old bankruptcy process with the presentation of its payout plan to a judge in Manhattan. MF Global's (MFGLQ) former Chief Risk Officer, Michael Roseman, warned Jon Corzine and directors several times about the firm's growing bet on European bonds before resigning in March this year. Bank of Montreal (BMO) missed estimates by 4 cents. ACE Limited (ACE) is begun with a Buy rating and $85 price objective at Ticonderoga. In afternoon trading: Shares of MF Global are down about 16.5%. Actively Traded Stocks: Shares of Bank of America (BAC) are up about 1.8%. Shares of Citigroup (C) are up about 0.7%. Shares of JP Morgan (JPM) are up about 0.3%.

The Financial Select Sector SPDR (XLF) was trading at $13.18 at 4:00 PM on Tuesday, up slightly on the day – down 17.37% year-to-date.

Information Technology

Starting today, Microsoft (MSFT) Xbox owners with Kinect motion controllers will be able to navigate through music, movies, TV shows and games with the wave of their hands or the sound of their voices. Google (GOOG) has accused Verizon Wireless (VZ) of blocking users from installing its Google Wallet payments app on the new Android-powered Galaxy Nexus line of smartphones. A joint venture called Isis between Verizon, AT&T (T), and T-Mobile (DTEGY) - due to be launched soon - will be a direct competitor to Google Wallet. The EU is investigating major publishers and Apple (AAPL) for allegedly restricting competition in the e-book market. The publishers include Harper Collins (NWSA) and Simon & Schuster (CBS). Novellus (NVLS) reaffirmed its FQ4 revenue guidance range of $260M-$290M and EPS of $0.42-$0.62. The company is, however, saying it now expects its Q/Q bookings growth to be in a range of 20%-30%, putting it at the high end of a prior range of 10%-30%. Barclays begins Microsoft (MSFT), Symantec (SYMC), and AutoDesk (ADSK) as Equal Weights. Its Overweights include Oracle (ORCL), Ariba (ARBA), Intuit (INTU), Informatica (INFA), Salesforce.com (CRM), SAP AG (SAP), Citrix Systems (CTXS), VMware (VMW), and Netsuite (N). Monster Worldwide (MWW) is launched as a Buy at Lazard. OpenTable (OPEN) is a new Neutral at Piper Jaffray. Novellus (NVLS) is a new Outperform at Crédit Agricole. eBay (EBAY) is named a Long Research Tactical Idea at Morgan Stanley. Texas Instruments (TXN) is moved to Outperform from Sector Perform at JMP Securities. LinkedIn (LNKD) is lifted to Overweight from Neutral at JPMorgan. Alliance Data Systems (ADS) is cut to Neutral from Overweight at Piper Jaffray. ADTRAN (ADTN) gets a Sell-from-Neutral ratings reduction at Goldman. Fortinet (FTNT) is reduced to Neutral from Outperform at Robert W. Baird with a $27 target price.

The Technology Select Sector SPDR (XLK) was trading at $26.02 at 4:00 PM on Tuesday, down slightly on the day – up 3.29% year-to-date.

Telecommunications Services

Google (GOOG) has accused Verizon Wireless (VZ) of blocking users from installing its Google Wallet payments app on the new Android-powered Galaxy Nexus line of smartphones. A joint venture called Isis between Verizon, AT&T (T), and T-Mobile (DTEGY) - due to be launched soon - will be a direct competitor to Google Wallet. MetroPCS (PCS) is moved to Outperform from Market Perform at Brokerage William Blair. In afternoon trading: Shares of MetroPCS are up about 8.75%. Shares of VimpelCom (VIP) are down about 5.5%. Shares of Mobile Telesystems (MBT) are down about 5%.

The NASDAQ Telecommunications Index (IXTC) was trading at $201.56 at 4:00 PM on Tuesday, down slightly on the day – down 10.56% year-to-date.

Utilities

Paris-based Veolia Environnement (VE) plans to sell €5B ($6.7B) in assets over the next two years, including in the U.S. and U.K., in order to cut debt to "less than" €12B by the end of 2013. In afternoon trading: Shares of Dynegy (DYN) are down about 9.5%. Actively Traded Stocks: Shares of Duke Energy (DUK) are up about 0.8%. Shares of AES Corp. (AES) are up about 1%. Shares of Exelon (EXC) are up about 0.8%.

The Utilities Select Sector SPDR (XLU) was trading at $35.12 at 4:00 PM on Tuesday, up 0.29% on the day – up 12.06% year-to-date.

STOCKS: ANR, TSO, STO, DHT, FRO, CRK, IP, VMC, MLM, HUN, MTL, HL, CF, IVN, DCO, GE, ALK, CP, IR, CNI, AMR, BWEN, F, AAPL, NWSA, CBS, AZO, TOL, DG, OWW, CRI, DRI, MO, RAI, WMT, WAG, PG, KFT, KO, OCPNY, FRX, OMPI, SLXP, IRWD, PPHM, TNGN, AFFY, LEHMQ, MFGLQ, BMO, ACE, BAC, C, JPM, MSFT, GOOG, VZ, T, DTEGY, NVLS, SYMC, ADSK, ORCL, ARBA, INTU, INFA, CRM, SAP, CTXS, VMW, N, MWW, OPEN, NVLS, EBAY, TXN, LNKD, ADS, ADTN, FTNT, PCS, VIP, MBT, VE, DYN, DUK, AES, EXC

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.


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Companies

Symbol Name Price Change % Volume
CBS VIAC ViacomCBS n/a n/a n/a 0 Trade
ORCL Oracle Corporation 54.68 -0.83 -1.50 9,078,643 Trade
CF CF Industries Holdings Inc. 39.35 -0.13 -0.33 2,065,724 Trade
ADTN ADTRAN Inc. 9.36 0.19 2.07 352,762 Trade
PG Procter & Gamble Company (The) 126.70 0.12 0.09 8,724,117 Trade
GE General Electric Company 12.25 -0.28 -2.23 42,921,245 Trade
CRM Salesforce.com Inc 189.50 -3.86 -2.00 5,244,259 Trade
AZO AutoZone Inc. 1,068.03 -14.49 -1.34 212,169 Trade
TSLA Tesla Inc. 901.00 1.59 0.18 14,339,446 Trade
ADSK Autodesk Inc. 201.91 -4.76 -2.30 1,774,916 Trade
IP International Paper Company 43.27 0.32 0.75 2,684,042 Trade
CRI Carter's Inc. 110.73 -0.62 -0.56 1,001,853 Trade
MO Altria Group Inc. 45.89 0.33 0.72 9,368,183 Trade
EBAY eBay Inc. 38.20 0.51 1.35 14,697,287 Trade
VIP UEX Corporation n/a n/a n/a n/a
C Citigroup Inc. 76.44 -1.78 -2.28 14,020,006 Trade
TSO ANDV Tesoro Corporation n/a n/a n/a 0
IR Ingersoll-Rand plc (Ireland) 145.64 -0.37 -0.25 1,528,217 Trade
BMO Bank Of Montreal 76.47 0.15 0.20 365,394 Trade
ALK Alaska Air Group Inc. 65.43 0.07 0.11 926,517 Trade
NVLS ALPN Cameco Corporation n/a n/a n/a n/a
TOL Toll Brothers Inc. 47.84 -0.30 -0.62 1,569,174 Trade
TXN Texas Instruments Incorporated 128.52 -2.95 -2.24 4,121,290 Trade
CTXS Citrix Systems Inc. 116.08 -3.49 -2.92 1,739,983 Trade
VMW VMware Inc. Class A 159.87 -2.33 -1.44 1,381,543 Trade
MLM Martin Marietta Materials Inc. 251.42 -6.66 -2.58 725,233 Trade
SYMC NLOK NortonLifeLock n/a n/a n/a 0 Trade
IVN Ivanhoe Mines Ltd n/a n/a n/a 0 Trade
MTL Mechel PAO American Depositary Shares (Each rep. 1) 3.17 0.02 0.63 23,723 Trade
AES The AES Corporation 20.75 -0.05 -0.24 3,948,989 Trade
BWEN Broadwind Energy Inc. 2.15 -0.03 -1.38 55,108 Trade
VZ Verizon Communications Inc. 58.20 0.11 0.19 15,704,333 Trade
NWSA News Corporation 14.34 -0.21 -1.41 1,656,766 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
BAC Bank of America Corporation 34.36 -0.49 -1.41 46,675,464 Trade
DG Dollar General Corporation 166.88 1.15 0.69 1,455,114 Trade
LNKD LinkedIn Corporation Class A n/a n/a n/a 0 Trade
GOOG Alphabet Inc. 1,485.11 -33.04 -2.18 1,732,273 Trade
HL Hecla Mining Company 3.29 0.04 1.23 9,139,366 Trade
INTU Intuit Inc. 297.57 -3.67 -1.22 1,173,734 Trade
FTNT Fortinet Inc. 114.48 -3.52 -2.98 896,737 Trade
DCO Ducommun Incorporated 56.95 14.16 33.09 939,677 Trade
CNI Canadian National Railway Company 93.61 -0.03 -0.03 704,038 Trade
N Netsuite Inc n/a n/a n/a 0 Trade
VMC Vulcan Materials Company (Holding Company) 133.95 -1.84 -1.36 1,032,321 Trade
HUN Huntsman Corporation 20.90 -0.57 -2.65 1,449,343 Trade
FRO Frontline Ltd. 8.13 -0.05 -0.61 974,099 Trade
PPHM CDMO Peregrine Pharmaceuticals Inc. n/a n/a n/a n/a
CRK Comstock Resources Inc. 6.73 -0.08 -1.17 335,737 Trade
F Ford Motor Company 7.89 -0.14 -1.74 58,326,329 Trade
IRWD Ironwood Pharmaceuticals Inc. 11.63 -0.38 -3.16 2,004,589 Trade
DRI Darden Restaurants Inc. 121.10 0.42 0.35 1,372,213 Trade
DHT DHT Holdings Inc. 5.51 -0.10 -1.78 1,803,796 Trade
MBT Mobile TeleSystems PJSC 10.91 0.09 0.83 2,157,348 Trade
SAP SAP SE ADS 136.63 -1.80 -1.30 379,369 Trade
STO EQNR Statoil ASA n/a n/a n/a 0
KO Coca-Cola Company (The) 60.13 0.41 0.69 10,842,358 Trade
CP Canadian Pacific Railway Limited 265.64 -4.45 -1.65 384,219 Trade
T AT&T Inc. 38.55 -0.06 -0.16 28,468,242 Trade
DUK Duke Energy Corporation (Holding Company) 102.43 1.00 0.99 3,520,070 Trade
ADS Alliance Data Systems Corporation 102.16 -0.90 -0.87 503,662 Trade
MSFT Microsoft Corporation 178.59 -5.83 -3.16 48,600,385 Trade
ACE ACE Ltd. n/a n/a n/a n/a
WMT Walmart Inc. 118.58 0.89 0.76 6,242,526 Trade
AAPL Apple Inc. 313.05 -7.25 -2.26 32,426,415 Trade
JPM JP Morgan Chase & Co. 135.81 -1.68 -1.22 9,772,770 Trade

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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

     

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