Stocks Surge On EU Deal, Strong Economic Numbers

Sector Recap  |

Initial Jobless Claims came in at 402,000 well below the 350,000 recessionary threshold. On Friday, Personal Income should rise by 0.2% with Spending up 0.7% in September. The Dow Jones Industrial Average gapped above its 200-day simple moving average at 11,970 at the open trading to a final hour high above 12,280. The NASDAQ gapped above its 200-day simple moving average at 2691 at the open to a final hour high above 2750.

Asian stocks surged as European leaders clinched a debt crisis deal. The Nikkei 225 rallied 2.04% to 8,927 with the Hang Seng gaining 3.26% to 19,689. European stocks surged on debt relief with the FTSE 100 gaining 2.89% to 5,714 with the DAX surging 5.35% to 6,338 and the CAC 40 powering higher by 6.28% to 3,369. The US Treasury 10-Year yield rose from 2.182 percent to 2.407 on Thursday. Gold traded up from $1707.2 the Troy ounce to $1751.3 above its 50-day simple moving average at $1736.8. Crude oil traded up from $90.74 per barrel to $94.25 staying below its 200-day simple moving average at $94.77. The euro versus the dollar is trading between its 50-day and 200-day simple moving averages at 1.3847 and 1.4097 then popped to 1.4245. Advanced third quarter GDP came in at 2.5% in line with expectations.

Energy

Cameron International (CAM) beat estimates by 4 cents, while missing revenue by $100M. ExxonMobil (XOM) reported Q3 EPS of $2.13 (in-line). Occidental Petroleum (OXY) beat estimates by 21 cents and revenue by $300M. Triangle Petroleum (TPLM) is started with a Hold at KeyBanc Capital. Voyager Oil & Gas (VOG) is begun with a Buy and $4 price objective at brokers C.K. Cooper. In afternoon trading: Shares of McDermott International (MDR) are down about 24%. Shares of LDK Solar (LDK) are up about 25.5%. Shares of Suntech Power (STP) are up about 20.75%.

Energy Select Sector SPDR (XLE) was trading at $72.55 at 4:00 PM on Thursday, up 4.43% on the day – up 6.30% year-to-date.

Materials

International Paper (IP) beat estimates by 12 cents, while missing revenue by $160M. Barrick Gold (ABX) beat estimates by 4 cents and revenue by $130M. Agrium (AGU) is resumed with an Outperform at RBC Capital, which starts Sector Performs on rivals Mosaic (MOS) and Potash (POT). MeadWestvaco (MWV) is moved180 degrees to Underweight from Outperform at BMO Capital. CRH Plc. (CRH) is cut to Neutral from Outperform at Credit Suisse. In afternoon trading: Shares of Century Aluminum (CENX) are up about 18.5%. Shares of Cemex (CX) are up about 18.75%. Shares of ArcelorMittal (MT) are up about 16.25%.

The Materials Select Sector SPDR (XLB) was trading at $35.74 at 4:00 PM on Thursday, up 5.43% on the day – down 6.95% year-to-date.

Industrials

Goodrich (GR) beat estimates by 20 cents and revenue by $40M. United Continental (UAL) missed estimates by 7 cents with revenue in-line with estimates. GrafTech International Ltd (GTI) beat estimates by 4 cents and revenue by $16M. Raytheon (RTN) beat estimates by 6 cents, while missing revenue by $250M. Owens Corning (OC) is upgraded to Buy from Hold with a $36 price target at Stifel Nicolaus. Lockheed Martin (LMT) is lowered to Neutral from Buy at Suntrust. In afternoon trading: Shares of Terex (TEX) are up about 20.25%. Shares of Polypore International (PPO) are up about 14%. Shares of The Manitowoc Company (MTW) are up about 13.75%.

The Industrial Select Sector SPDR (XLI) was trading at $34.26 at 4:00 PM on Thursday, up 4.36% on the day – down 1.75% year-to-date.

Consumer Discretionary

As expected, Sony (SNE) is to buy Ericsson's (ERIC) 50% share of Sony Ericsson for €1.05B ($1.47B) in a deal that also provides Sony with a broad IP cross-licensing agreement and ownership of five essential patent families. Toyota (TM) and other Japanese car makers have started to reduce domestic production because of a shortage of parts due to the worst flooding in Thailand in five decades, which has wiped out hundreds of factories. Dell (DELL) and Western Digital (WDC) are also affected. IMAX (IMAX) missed estimates by 4 cents, while beating revenue by $400,000. Dana Holding (DAN) beat estimates by 3 cents and revenue by $90M. Johnson Controls (JCI) missed estimates by a penny, while beating revenue by $220M. Brinker International (EAT) is now Underperform from Neutral at Sterne Agee with a $20 target price. Sterne also cuts Panera Bread (PNRA) to Neutral from Buy. AnnTaylor (ANN) is pulled from Citigroup’s list of Top Picks Live. In afternoon trading: Shares of Bally Technologies (BYI) are up about 13%. Shares of DiamondRock Hospitality (DRH) are up about 13%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $39.94 at 4:00 PM on Thursday, up 2.73% on the day – up 6.76% year-to-date.

Consumer Staples

Mead Johnson Nutrition (MJN) beat estimates by a penny with revenue in-line with estimates. Coca-Cola Enterprises (CCE) beat estimates by 2 cents with revenue in-line with estimates. Hershey Foods (HSY) beat estimates by 2 cents with revenue in-line with estimates. Colgate-Palmolive Company (CL) beat estimates by a penny with revenue in-line with estimates. Avon (AVP) missed estimates by 8 cents and revenue by $120M. Altria (MO) reported Q3 EPS of $0.56 (in-line), while beating revenue by $1.7B. Dr. Pepper Snapple (DPS) is cut to Underweight from Equal Weight at Morgan Stanley. In afternoon trading: Shares of Avon are down about 17.25%. Shares of American Oriental Bioengineering (AOB) are up about 30.75%. Shares of Coffee Holding Company (JVA) are up about 12.5%. Shares of Rite Aid (RAD) are up about 10.25%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $31.59 at 4:00 PM on Thursday, up 1.28% on the day – up 7.78% year-to-date.

Healthcare

Incyte (INCY) beat estimates by 3 cents and revenue by $300,000. Endo Pharmaceuticals (ENDP) beat estimates by 6 cents and revenue by $9M. Celgene (CELG) beat estimates by 7 cents and revenue by $50M. Bristol-Myers (BMY) beat estimates by 3 cents with revenue in-line with estimates. Zimmer (ZMH) beat estimates by a penny with revenue in-line with estimates. Cardinal Health (CAH) beat estimates by a penny and revenue by $600M. Hospira (HSP) is boosted to Buy from Neutral at Bank of America-Merrill Lynch. Thermo Fisher (TMO) is taken to Neutral from Overweight at JPMorgan. Healthspring (HS) is cut to Hold from Buy at Jefferies, as their shares are no longer trading on fundamentals following an acquisition offer from Cigna (CI). Coventry Health Care (CVH) gets cut to Market Perform from Outperform by Sanford Bernstein. In afternoon trading: Shares of Community Health Systems (CYH) are down about 14.25%. Shares of Dendreon (DNDN) are up about 12%. Shares of DENTSPLY International (XRAY) are up about 11%. Shares of Geron (GERN) are up about 11%.

The Health Care Select Sector SPDR (XLV) was trading at $34.18 at 4:00 PM on Thursday, up 2.43% on the day – up 8.51% year-to-date.

Financials

As it has done in every quarter since going public in March 2008, Visa's (V) FQ4 EPS exceeded analyst forecasts, rising 14% to $1.27 (versus a consensus of $1.25). However, revenues missed expectations despite growing 12.6% to $2.39B. North Carolina is probing Encore Capital (ECPG), the U.S.'s largest buyer of consumer debts, for the way it collects those debts. Lazard (LAZ) missed estimates by 3 cents, while beating revenue by $22M. Mack-Cali Realty (CLI) beat estimates by 5 cents, while missing revenue by $2M. Moody's (MCO) beat estimates by 8 cents, while beating revenue by $10M. Digital Realty Trust (DLR) beat estimates by 2 cents and revenue by $6M. Legg Mason (LM) beat estimates by 24 cents, while missing revenue by $4M. Prudential Plc (PUK) is picked up with a Hold at Jefferies. Bank of America (BAC) is downgraded to Equal weight from Overweight at Morgan Stanley. Visa (V) is cut to Market Perform from Outperform at FBR Capital after earnings. United Bankshares (UBSI) is lowered to Hold from Buy at Stifel Nicolaus. In afternoon trading: Shares of MF Global (MF) are down about 12.5% following a credit-rating downgrade by Fitch. Shares of Deutsche Bank (DB) are up about 18.5%. Shares of ING Group (ING) are up about 17.5%. Shares of Axa SA (AXAHY) are up about 17.5%. Shares of Lazard (LAZ) are up about 17.5%. Shares of Jeffries Group (JEF) are up about 17.25%. Shares of Barclays Bank (BCS) are up about 16.5%. Shares of Morgan Stanley (MS) are up about 16%.

The Financial Select Sector SPDR (XLF) was trading at $14.04 at 4:00 PM on Thursday, up 5.96% on the day – down 11.97% year-to-date.

Information Technology

As expected, Sony (SNE) is to buy Ericsson's (ERIC) 50% share of Sony Ericsson for €1.05B ($1.47B) in a deal that also provides Sony with a broad IP cross-licensing agreement and ownership of five essential patent families. Toyota (TM) and other Japanese car makers have started to reduce domestic production because of a shortage of parts due to the worst flooding in Thailand in five decades, which has wiped out hundreds of factories. Dell (DELL) and Western Digital (WDC) are also affected. As it has done in every quarter since going public in March 2008, Visa's (V) FQ4 EPS exceeded analyst forecasts, rising 14% to $1.27 (versus a consensus of $1.25). However, revenues missed expectations despite growing 12.6% to $2.39B. Akamai (AKAM) said yesterday that its President, David Kenny, is leaving the company to "pursue more opportunities in the consumer Internet space." This could increase speculation that he might be headed for the top job at Yahoo - where he is already a director. Solarwinds (SWI) beat estimates by 8 cents and revenue by $2M. Monster Worldwide (MWW) beat estimates by a penny, while missing revenue by $6M, and sees Q4 bookings flat, revenue up 3%-7% Y/Y to push EPS to a range of $0.11-$0.15. Yandex N.V. (YNDX) beat estimates by 3 cents, while missing revenue by $2M. Citrix Systems (CTXS) beat estimates by 6 cents and revenue by $19M, and expects Q4 revenue of $610M-$620M and EPS of $0.75-$0.76 (above consensus of $609.3M and $0.74) and 2012 revenue of $2.47-$2.48 (above consensus of $2.46B). Movie Star (MSI) beat estimates by 5 cents with revenue in-line with estimates. Movie Star (MSI) beat estimates by 5 cents with revenue in-line with estimates. Itron (ITRI) is begun as a Buy and $46 price objective at Jefferies. Cisco Systems (CSCO) gets a Buy-from-Neutral boost at UBS. Acme Packet (APKT) is added to Deutsche Bank’s Buy List. Visa (V) is cut to Market Perform from Outperform at FBR Capital after earnings. Aeroflex (ARX) is now Neutral from Overweight, also at JPMorgan. In afternoon trading: Shares of TriQuint Semiconductor (TQNT) are down about 25%. Shares of AXT (AXTI) are down about 20.5%. Shares of BMC Software (BMC) are down about 11.75%. Shares of Plexus (PLXS) are down about 10.5%. Shares of Vanceinfo (VIT) are up about 1.5%. Shares of Acme Packet are up about 20.5%.

The Technology Select Sector SPDR (XLK) was trading at $26.39 at 4:00 PM on Thursday, up 2.97% on the day – up 4.76% year-to-date.

Telecommunications Services

NII (NIHD) missed estimates by 61 cents with revenue in-line with estimates. In afternoon trading: Shares of NII Holdings are down about 14.5%. Shares of Leap Wireless (LEAP) are up about 7.75%. Shares of Cincinnati Bell (CBB) are up about 7.5%. Shares of Level 3 Communications (LVLT) are up about 7%. Shares of Telefonica (TEF) are up about 6.75%. Shares of France Telecom (FTE) are up about 5.5%. Shares of Sprint (S) are up about 5%, while shares of AT&T (T) are up about 2.75% and shares of Verizon (VZ) are up about 2.5%.

The NASDAQ Telecommunications Index (IXTC) was trading at $202.69 at 4:00 PM on Thursday, up 3.56% on the day – down 10.06% year-to-date.

Utilities

CMS Energy (CMS) beat estimates by 3 cents and revenue by $300M. Xcel Energy (XEL) beat estimates by 4 cents with revenue in-line with estimates. CenterPoint Energy (CNP) are moved to Neutral from Outperform at Macquarie. In afternoon trading: Shares of Calpine (CPN) are up about 7.25%. Shares of Dynegy (DYN) are up about 6%. Shares of AES Corp. (AES) are up about 5.5%. Shares of NRG Energy (NRG) are up about 5.25%.

The Utilities Select Sector SPDR (XLU) was trading at $35.30 at 4:00 PM on Thursday, up 2.38% on the day – up 12.64% year-to-date.

STOCKS: CAM, XOM, OXY, TPLM, VOG, MDR, LDK, STP, IP, ABX, AGU, MOS, POT, MWV, CRH, CENX, CX, MT, GR, UAL, GTI, RTN, OC, LMT, TEX, PPO, MTW, SNE, ERIC, TM, DELL, WDC, IMAX, DAN, JCI, EAT, PNRA, ANN, BYI, DRH, MJN, CCE, HSY, CL, AVP, MO, DPS, AOB, JVA, RAD, INCY, ENDP, CELG, BMY, ZMH, CAH, HSP, TMO, HS, CI, CVN, CYH, DNDN, XRAY, GERN, V, ECPG, LAZ, CLI, MCO, DLR, LM, PUK, BAC, UBSI, MF, DB, ING, AXAHY, LAZ, JEF, BCS, MS, TM, AKAM, SWI, MWW, YNDX, CTXS, MSI, MSI, ITRI, CSCO, APKT, ARX, TQNT, AXTI, BMC, PLXS, VIT, NIHD, LEAP, CBB, LVLT, TEF, FTE, S, T, VZ, CMS, XEL, CNP, CPN, DYN, AES, NRG

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
TPLM Triangle Petroleum 0.01 0.00 0.73 57,357
VOG Voyager Oil & Gas Inc n/a n/a n/a 0
CI Cigna Corporation 206.11 -8.18 -3.82 2,556,413 Trade
PUK Prudential Public Limited Company 36.24 -0.65 -1.76 478,986 Trade
CCE CCEP Coca-Cola European Partners plc n/a n/a n/a n/a
LMT Lockheed Martin Corporation 285.40 -0.95 -0.33 1,407,197 Trade
LAZ Lazard LTD. LTD. Class A 35.48 -1.56 -4.21 1,030,077 Trade
MTW Manitowoc Company Inc. (The) 16.14 -0.74 -4.38 510,779 Trade
UAL United Continental Holdings Inc. 88.23 -4.80 -5.16 5,052,598 Trade
TM Toyota Motor Corporation 119.97 -1.86 -1.53 206,128 Trade
CL Colgate-Palmolive Company 62.71 -0.52 -0.82 4,072,682 Trade
DRH Diamondrock Hospitality Company 10.05 -0.26 -2.52 3,945,139 Trade
MOS Mosaic Company (The) 33.52 -1.03 -2.98 4,314,657 Trade
UBSI United Bankshares Inc. 33.92 0.05 0.15 446,835 Trade
MODN Model N Inc. 14.17 -0.44 -3.01 174,069 Trade
ITRI Itron Inc. 51.99 -1.18 -2.22 237,787 Trade
YNDX Yandex N.V. 28.68 0.08 0.28 1,929,075 Trade
TEF Telefonica SA 8.72 -0.01 -0.11 1,734,677 Trade
IP International Paper Company 44.76 -0.36 -0.80 3,213,693 Trade
RTN Raytheon Company 165.11 -3.07 -1.83 2,466,274 Trade
OC Owens Corning Inc New 49.01 -0.54 -1.09 1,459,020 Trade
CNP CenterPoint Energy Inc (Holding Co) 28.38 0.21 0.75 5,079,205 Trade
CMS CMS Energy Corporation 52.93 0.02 0.04 2,478,524 Trade
RAD Rite Aid Corporation 1.01 -0.02 -1.94 6,712,590 Trade
MO Altria Group Inc. 54.18 -0.22 -0.40 12,371,713 Trade
CBB Cincinnati Bell Inc. 11.54 0.23 2.03 555,989 Trade
DLR Digital Realty Trust Inc. 115.72 -1.18 -1.01 916,419 Trade
JCI Johnson Controls International plc 32.66 -0.73 -2.19 5,435,237 Trade
BCS Barclays PLC 7.73 -0.14 -1.78 8,191,534 Trade
CLI Mack-Cali Realty Corporation 21.64 -0.22 -1.01 1,050,198 Trade
S Sprint Corporation 6.01 -0.12 -1.96 13,121,102 Trade
AKAM Akamai Technologies Inc. 66.65 -2.37 -3.43 2,093,627 Trade
NRG NRG Energy Inc. 40.53 -0.03 -0.07 4,017,963 Trade
DAN Dana Incorporated 13.70 -0.62 -4.33 1,774,925 Trade
MS Morgan Stanley 41.32 -1.29 -3.03 15,499,771 Trade
AVP Avon Products Inc. 1.99 0.01 0.51 4,381,805 Trade
CTXS Citrix Systems Inc. 107.37 -1.95 -1.78 2,333,205 Trade
V Visa Inc. 137.11 -3.94 -2.79 14,007,711 Trade
INCY Incyte Corporation 64.51 -0.59 -0.91 1,258,178 Trade
CENX Century Aluminum Company 8.60 -0.05 -0.58 1,223,876 Trade
DB Deutsche Bank AG 8.73 -0.17 -1.91 5,797,588 Trade
CSCO Cisco Systems Inc. 46.44 -1.95 -4.03 38,297,966 Trade
ERIC Ericsson 8.66 -0.14 -1.59 4,196,864 Trade
CAM Cameron International Corp n/a n/a n/a 0 Trade
AES The AES Corporation 15.53 0.08 0.52 3,844,517 Trade
MDR McDermott International Inc. 7.54 -0.07 -0.92 4,278,322 Trade
LM Legg Mason Inc. 27.06 -0.35 -1.28 735,742 Trade
VZ Verizon Communications Inc. 57.68 -0.40 -0.69 16,948,126 Trade
ABX Barrick Gold Corporation 13.68 0.31 2.32 20,303,790 Trade
MWW Monster Worldwide Inc. n/a n/a n/a 0 Trade
GERN Geron Corporation 1.49 -0.06 -3.87 3,526,893 Trade
BAC Bank of America Corporation 25.43 -0.85 -3.23 107,477,614 Trade
TMO Thermo Fisher Scientific Inc 235.86 -6.18 -2.55 1,564,804 Trade
HSY The Hershey Company 107.14 -1.00 -0.92 1,101,920 Trade
CYH Community Health Systems Inc. 4.62 -0.01 -0.22 1,143,929 Trade
BMY Bristol-Myers Squibb Company 53.08 -0.17 -0.32 10,462,854 Trade
CRH CRH PLC American Depositary Shares 25.76 -0.29 -1.11 1,123,640 Trade
JVA Coffee Holding Co. Inc. 3.89 0.14 3.73 10,320 Trade
TEX Terex Corporation 28.35 -1.27 -4.29 1,704,520 Trade
OXY Occidental Petroleum Corporation 66.54 -0.20 -0.30 5,494,595 Trade
XRAY DENTSPLY SIRONA Inc. 36.31 -0.16 -0.44 1,945,506 Trade
XOM Exxon Mobil Corporation 77.64 -0.75 -0.96 16,224,694 Trade
DPS KDP Dr Pepper Snapple Group Inc n/a n/a n/a n/a
MT Arcelor Mittal NY Registry Shares NEW 21.60 -0.46 -2.09 3,189,044 Trade
ECPG Encore Capital Group Inc 24.88 -1.07 -4.12 531,896 Trade
ENDP Endo International plc 11.57 -0.03 -0.26 2,363,413 Trade
CELG Celgene Corporation 70.08 -2.72 -3.74 6,602,562 Trade
SWI SolarWinds Corporation 16.16 0.06 0.37 630,251 Trade
PLXS Plexus Corp. 56.84 -2.41 -4.07 244,018 Trade
AXTI AXT Inc 5.03 -0.17 -3.27 263,800 Trade
ING ING Group N.V. 11.41 -0.18 -1.55 5,560,569 Trade
MCO Moody's Corporation 145.78 -4.06 -2.71 1,165,785 Trade
WDC Western Digital Corporation 42.03 -1.57 -3.60 4,731,850 Trade
SNE Sony Corporation 51.13 -0.73 -1.41 635,018 Trade
T AT&T Inc. 30.14 -0.39 -1.28 37,474,553 Trade
CAH Cardinal Health Inc. 53.91 -0.90 -1.64 4,184,723 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 5.02 0.04 0.80 7,819,983 Trade
NIHD NII Holdings Inc. 4.54 -0.44 -8.84 1,695,655 Trade

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