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
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