Thursday, February 11, 2010


· Industrials: Watching the 1071 level fail for the last few days leads us to believe that
buy stops might have accounted for the last 5 points. The next real levels will be
1085-1090. We are seeing institutions come back and sponsori groups and move
back into the higher beta names that have been absent for a few weeks. We are
seeing machinery, transports, materials, and semi’s lead today with defensive names
being used as a source of funds. We are seeing institutions trim positions in E&Cs
and Education names. We are seeing money move into the builders amid some
more positive news, this time regarding an FDIC portfolio purchase.
stocks are much stronger today as we are seeing somewhat of an oversold bounce
in the space. Hf's are trimming longs and covering in Aero/Def names.
· Transports: Transports are mostly stronger today. We are seeing rails outperform
on positive commentary from CSX at a Stifel conference. The news is prompting
some covering in the space. We are seeing institutions trim positions in trucking
names, although the space is acting pretty well despite the news that YRCW has
agreed purchase agreement for the rest of their notes (an overhang for LTLs). We
are also seeing HFs trim longs in airlines as the space moves higher.
· Materials: Materials are one of the stronger spaces in the market this morning
despite a stronger dollar. Metal stocks are up 2-3% as their respective commodities
are unfazed by a stronger dollar and move higher.
Steel stocks are outperforming
after yesterday’s selloff and after X was added to DB’s short term buy list. Fertilizers
are stronger today after Vale said it had reached an agreement with Mosaic to buy
20.3% of Fosfertil’s capital for around $1B
· Energy: Energy stocks are outperforming today as the market moves higher despite
a stronger dollar. Note oil is flat despite the dollar strength. Integrateds, servicers,
and drillers are all stronger today to the tune of 1-3 pct. Refiners are down today as
gas lags crude causing crack spreads get hit. E&Ps and coal stocks are
outperforming today after lagging yesterday and as natural gas moves higher.
Industrials/Materials/Energy Outliers
· Home builders are outperforming after some positive news regarding an FDIC
portfolio purchase.
· MMM is up close to 2% after being upgraded at Bernstein.
· CSX, up almost 5%, is leading rails higher after guiding earnings up 10% YoY and
positive comments on their coal export business.
· CNW is up over 2.5%, moving higher again, continuing its recent outperformance
after being very oversold.
· HWK is up over 4% after being upgraded at Keybanc.
· STRA is off over 4% after earnings this morning.
· Steel stocks are outperforming to the tune of 3-4% after X was added to the short
term buy list at Deutsche Bank and following yesterday’s selloff from MT’s guidance.
· ECL is off around 4% after earnings this morning.
· Coal stocks are up around 5% after selling off sharply yesterday.
· LUFK is up over 8% after reporting earnings this morning.

No comments:

Post a Comment