Housing Starts came in much weaker than expected in April declining by 10.6% to an annual rate of 523,000 units. Single Family Starts slumped 5.1% to 394,000. Building Permits were down 4.0% to 551,000. Industrial Production was weaker than expected in April with an unchanged reading. Capacity Utilization unexpectedly declined to 76.9%. The Dow Jones Industrial Average traded to a low of 12378.9 before ending Tuesday at 12480 (down 0.55%). The NASDAQ traded to a low of 2759.29 before ending Tuesday at 2783 (relatively unchanged).
Asian stocks were mixed on Tuesday with the Hang Seng slightly lower and the Nikkei 225 up fractionally to 9,567. European stocks were also mixed overnight but were lower by the US open. The FTSE 100 ended their session at 5,861.00 (down 1.06%), while the DAX was down 1.77% and the CAC 40 was down 1.21%. In Monday’s US session the Dow Industrial Average declined 56 points to 12,540, up 8.4% year to date. The NASDAQ plunged 46 points to 2782, still up 4.9% year to date.
The yield on the 10-Year US Treasury note remains stubbornly low trading down to 3.096 following weaker than expected economic data released pre-market Tuesday morning. Comex gold stayed below $1500 the Troy ounce overnight with a low of $1471.1 during Tuesday’s US session. Nymex crude oil traded below $97.00 per barrel overnight and traded as low as $95.02 during Tuesday’s session. The euro versus the dollar stayed above Monday’s low at 1.4053.
BP (BP) said it is continuing talks that will enable it to proceed with a $16B share swap and Arctic exploration deal with Rosneft despite a second deadline for finalizing the co-operation expiring last night. Paulson (PLCC) bought 25M shares in HP (HPQ) in the last quarter at a value about $1B billion. Paulson also bought 17.3M shares in Transocean (RIG), lifting its stake to 7.7%. SandRidge Energy (SD) is a new Neutral at brokerage Robert W. Baird. In afternoon trading: Shares of Trina Solar (TSL) are down about 9.7%. Shares of LDK Solar (LDK) are down about 7.4%. Shares of EV Energy Partners (EVEP) are down about 5.9%. Shares of ECA Marcellus Trust (ECT) are down about 5.9%. Shares of Uranium Energy (UEC) are down about 5.7%. Shares of Uranium Resources (URRE) are down about 5.5%. Shares of Alpha Natural Resources (ANR) are UP about 5.3%.
The Energy Select Sector SPDR (XLE) was trading at $73.23 at 4:00 PM on Tuesday, unchanged on the day – up 7.30% year-to-date.
KeyBanc Capital has a fresh Buy and $50 target on Quaker Chemical (KWR). In afternoon trading: Actives: Shares of Alcoa (AA) are down about 2.8%. Shares of Freeport McMoran (FCX) are down about 1.7%. Shares of Vale (VALE) are up about 1.7%. Shares of Cemex (CX) are up about 0.4%. Shares of Silver Wheaton (SLW) are up slightly.
The Materials Select Sector SPDR (XLB) traded at $38.06 at 4:00 PM on Tuesday, down 1.17% on the day – down 0.91% year-to-date.
Astronics (ATRO) is initiated with a Hold at EarlyBirdCapital. Iron Mountain (IRM) is resumed with a Buy recommendation and $39 price objective at Stifel Nicolaus. Cintas Corporation (CTAS) is picked up as a Hold at Stifel Nicolaus. Forward Air (FWRD) is upgraded to Outperform from Neutral at Robert W. Baird with a new target of $40. In afternoon trading: Shares of SatCon Technology (SATC) are down about 8.8%. Shares of SmartHeat (HEAT) are down about 7.6%. Shares of YRC Worldwide (YRCW) are down about 7.6%. Shares of Douglas Dynamics (PLOW) are down about 7.4%. Shares of Broadwind Energy (BWEN) are UP about 8.7%.
The Industrial Select Sector SPDR (XLI) traded at $37.03 at 4:00 PM on Tuesday, down 1.36% on the day – up 6.19% year-to-date.
Home Depot (HD) beat estimates by a penny, but FQ1 revenues missed expectations and fell 0.2% to $16.82B, due to harsh weather hurting demand for seasonal goods at the start of the spring season. Urban Outfitters (URBN) missed estimates by a penny, but beat revenue by $2M. True Religion (TRLG) gets begun with a Buy rating and $24 target price at The Benchmark Company. In afternoon trading: Shares of O’Charleys (CHUX) are up about 14.5%. Actives: Shares of Sirius XM (SIRI) are down about 2.5%. Shares of Ford Motor (F) are down about 1.9%. Shares of Home Depot are up about 1.4%. Shares of MGM Resorts (MGM) are up about 0.4%.
The Consumer Discretionary Select Sector SPDR (XLY) traded at $40.06 at 4:00 PM on Tuesday, up slightly on the day – up 7.08% year-to-date.
Wal-Mart (WMT) beat estimates by 3 cents. Ralcorp Holdings (RAH) is reduced to Hold from Buy at BB&T Capital. In afternoon trading: Shares of Winn-Dixie Stores (WINN) are up about 10.75%. Shares of Star Scientific (CIGX) are up about 4.25%. Shares of Yuhe International (YUII) are down about 10%. Shares of TJX Companies (TJX) are down about 4.1%.
The Consumer Staples Select Sector SPDR (XLP) traded at $32.19 at 4:00 PM on Tuesday, up 0.22% on the day – up 9.83% year-to-date.
MAKO Surgical (MAKO) gets begun with a Buy at Goldman Sachs. Hill-Rom (HRC) is a new Neutral at Goldman Sachs. Nektar Therapeutics (NKTR) is a new Outperform at Boenning & Scattergood. Pluristem Therapeutics (PSTI) is launched with an Outperform at Oppenheimer. Oppenheimer also assigns Outperforms on Keryx Biopharma (KERX) with a $7 target and Celldex Therapeutics (CLDX) with a $6 target. Alexion Pharmaceuticals (ALXN) gets pulled from the Conviction Buy List at Goldman. In afternoon trading: Shares of Tendion (TNGN) are down about 17.75%. Shares of MAKO are up about 15.25%. Shares of Pluristem are up about 9%. Shares of ZIOPHARM Oncology (ZIOP) are up about 7.5%.
The Health Care Select Sector SPDR (XLV) traded at $36.14 at 4:00 PM on Tuesday, unchanged on the day – up 14.73% year-to-date.
New York Attorney General Eric Schneiderman has become the latest public official to start investigating the packaging of mortgage loans into securities. Schneiderman plans to meet with executives of several major banks, including Bank of America (BAC), Morgan Stanley (MS) and Goldman Sachs (GS). Paulson (PLCC) bought 25M shares in HP (HPQ) in the last quarter at a value about $1B billion. Paulson also bought 17.3M shares in Transocean (RIG), lifting its stake to 7.7%. BNP Paribas (BNPQY) is moved to Overweight from Equal Weight at Morgan Stanley. Sovran Self Storage (SSS) is moved to Neutral from Underperform at Macquarie. Washington REIT (WRE) is raised to Buy from Hold at Stifel Nicolaus with a $36 price objective. China Life Insurance (LFC) is lifted to Neutral at Credit Suisse. NYSE Euronext (NYX) is now Hold from Buy at Argus, which says that with Nasdaq OMX (NDAQ) and IntercontinentalExchange (ICE) out of the picture. FXCM Inc. (FXCM) is cut to Sell from Hold at Citigroup. Credit Agricole (CRARY) is cut to Equal Weight from Overweight at Morgan Stanley. In afternoon trading: Shares of Life Partners (LPHI) are down about 18.4%. Shares of FXCM (FXCM) are down about 8%. Shares of The PMI Group (PMI) are down about 7%. Shares of Janus Capital Group (JNS) are down about 5.1%.
The Financial Select Sector SPDR (XLF) traded at $15.87 at 4:00 PM on Tuesday, up 0.76% on the day – down 0.50% year-to-date.
Paulson (PLCC) bought 25M shares in HP (HPQ) in the last quarter at a value about $1B billion. Paulson also bought 17.3M shares in Transocean (RIG), lifting its stake to 7.7%. Despite sitting on $37B of cash, Google (GOOG) yesterday issued bonds for the first time, selling $3B worth as it took advantage of low corporate interest rates to obtain what one portfolio manager called ‘free money.’ Toshiba (TOSBF.PK) is in final talks to acquire Swiss-based smart metering company Landis+Gyr from Australia’s Bayard Capital and other investors for about $2B. PMC-Sierra (PMCS) is a new Hold at Auriga U.S.A. with a price objective of $8. In afternoon trading: Shares of China Digital TV (STV) are down about 11.75%. Shares of JinkoSolar (JKS) are down about 9.5%. Shares of Vanceinfo Technologies (VIT) are down about 8.1%. Shares of Rambus (RMBS) are down about 7.6%. Shares of Hewlett-Packard (HPQ) are down about 7.4% after cutting a billion dollars from its sales forecast for the year and missing analysts’ profit projections as consumers shunned PCs and services margins narrowed. Shares of Evergreen Solar (ESLR) are down about 7.25%. Shares of Take Two Interactive Software (TTWO) are UP about 7.25%. Shares of Motricity (MOTR) are UP about 6.4%.
The Technology Select Sector SPDR (XLK) traded at $26.08 at 4:00 PM on Tuesday, unchanged on the day – up 3.53% year-to-date.
Vodafone (VOD) reported full year profit of £7.97B ($12.9B), down 7.8% on £6.15B of impairment losses related to some of its European businesses. However, full year revenue was £45.9B (versus estimates of £45.5B) and the company surprised investors with an upbeat forecast for 2012. In afternoon trading: Actives: Shares of Level 3 Communications (LVLT) are down about 1.1%. Shares of Sprint Nextel (S) are down slightly. Shares of AT&T (T) are up slightly. Shares of Frontier Communications (FTR) are up about 1%. Shares of Vodafone are up about 2.5%. Shares of Verizon (VZ) are up about 0.4%.
The NASDAQ Telecommunications Index (IXTC) traded at $220.63 at 4:00 PM on Tuesday, up slightly on the day – down 2.10% year-to-date.
In afternoon trading: Shares of Tokyo Electric Power (TKECF) are down about 7.75%. Actives: Shares of Duke Energy (DUK) are up about 0.9%. Shares of American Electric Power (AEP) are up about 3.2%. Shares of AES (AES) are down about 1%. Shares of PPL (PPL) are up about 1.1%. Shares of Genon Energy (GEN) are up about 1.4%. Shares of FirstEnergy (FE) are up about 2%.
The Utilities Select Sector SPDR (XLU) traded at $34.20 at 4:00 PM on Tuesday, up 0.74% on the day – up 9.13% year-to-date.
STOCKS: BP, PLCC, HPQ, RIG, SD, TSL, LDK, EVEP, ECT, UEC, URRE, ANR, KWR, AA, FCX, VALE, CX, SLW, ATRO, IRM, CTAS, FWRD, SATC, HEAT, YRCW, PLOW, BWEN, HD, URBN, TRLG, CHUX, SIRI, F, MGM, WMT, RAH, WINN, CIGX, YUII, TJX, MAKO, HRC, NKTR, PSTI, KERX, CLDX, ALXN, TNGN, ZIOP, BAC, MS, GS, BNPQY, SSS, WRE, LFC, NYX, NDAQ, ICE, FXCM, CRARY, LPHI, FXCM, PMI, JNS, GOOG, TOSBF, PMCS, STV, JKS, VIT, RMBS, HPQ, ESLR, TTWO, MOTR, VOD, LVLT, S, T, FTR, VZ, TKECF, DUK, AEP, AES, PPL, GEN, FE