Sector Investing

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From Briefing.com: 4:30 pm : The stock market drifted from a modest gain in the early going to a loss of more than 1%, but market participants gradually bid stocks higher in the second half of the session. In the end, the three major indices settled with slight gains.

Sellers showed strength for the first part of the session. Their efforts had taken more than 80% of the names in the S&P 500 into negative territory. Cyclical stocks seemed to be their primary target as materials, industrials, and financials all fell to a loss of more than 1%. Energy stocks saw some of the worst price action as they dropped more than 2% -- the energy sector's slide was exacerbated by continued weakness in oil prices, which fell to a three-month low and closed pit trade with a 2.1% loss at $70.08 per barrel.

However, buyers started to step back in and helped energy stocks cut their losses. The sector still finished with a 1.0% loss, but that was less than half the loss that the sector had seen at its session low.

Meanwhile, materials stocks settled with just a 0.2% loss. Industrials closed 0.3% lower and financials finished flat. Financials were helped by strength among consumer finance plays, a few of which reported improvements in their monthly delinquency metrics. A few big banks also saw some improvement in their monthly credit card metrics.

Shares of home improvement retailers had been down almost 4%. They were hurt by broader market weakness and what was deemed a lackluster latest quarterly report Lowe's (LOW 25.08, -0.99). The company posted better-than-expected quarterly earnings, but its guidance was uninspiring. However, shares home improvement retailers were able to finish with a modest 0.4% loss.

While support for cyclical plays eventually surfaced, buyers still favored defensive-oriented telecom (+1.2%) and consumer staples (+0.9%).

The afternoon recovery came as the greenback gave up nearly all of its gain for the session. It had set a fresh 52-week high in overnight trade, but it finished with only a fractional gain. Its pullback was partly owed to the euro's rally from a multiyear low of 1.2235 per dollar to a 0.3% gain against the dollar at 1.2397 per dollar.

Advancing Sectors: Telecom (+1.2%), Consumer Staples (+0.9%), Consumer Discretionary (+0.6%), Tech (+0.2%), Utilities (+0.1%), Health Care (+0.1%)
Declining Sectors: Energy (-1.0%), Industrials (-0.3%), Materials (-0.2%)
Unchanged: Financials DJ30 +5.67 NASDAQ +7.38 NQ100 +0.4% R2K +0.3% SP400 +0.2% SP500 +1.26 NASDAQ Adv/Vol/Dec 1303/2.40 bln/1403 NYSE Adv/Vol/Dec 1254/1.44 bln/1820

4:10PM Agilent beats by $0.02, beats on revs; guides Q3 EPS above consensus, revs above consensus; guides FY10 EPS in-line, revs above consensus (A) 34.19 +0.33 : Reports Q2 (Apr) earnings of $0.43 per share, $0.02 better than the Thomson Reuters consensus of $0.41; revenues rose 16.5% year/year to $1.27 bln vs the $1.24 bln consensus. Co issues upside guidance for Q3, sees EPS of $0.43-0.45 vs. $0.42 Thomson Reuters consensus; sees Q3 revs up 16-19% y/y to ~$1.23-1.26 bln vs. $1.2 bln Thomson Reuters consensus. Co issues mixed guidance for FY10, sees EPS of $1.70-1.75 vs. $1.70 Thomson Reuters consensus; sees FY10 revs up 12% y/y to ~$5.02 vs. $4.93 bln Thomson Reuters consensus.

3:13PM Semiconductor Hldrs ETF works back near morning high at 27.84 (SMH) 27.80 +0.36 : Sector has displayed relative strength today with the afternoon recovery recently reaching its morning peak -- XLNX +3.1%, ALTR +2.3%, LLTC +1.4%, KLAC +1.2%, LRCX +1%.

12:01PM Ascent solar modules installed at ProLogis (PLD) rooftop Photovoltaic test site in Denver (ASTI) 3.35 -0.23 : Co announced that its BIPV class of laminates have been installed at the ProLogis (PLD) Rooftop Photovoltaic Test Site located in Denver, Colorado. The Test Site totals 11 kWp DC of power generation capacity from 99 modules and eight different module manufacturers: Ascent Solar (ASTI), First Solar (FSLR), GS-Solar, MiaSole, Solyndra, Suniva, United Solar Ovonic (ENER) and Xunlight. Already generating power, the initial configuration provides side-by-side comparisons of several module technologies, including monocrystalline, glass-on-glass thin film and membrane-applied thin film modules.

7:42AM Vitesse Semi will complete a 1 for 20 reverse stock split of its common stock, to take effect on June 30, 2010 (VTSS) 0.37 :

6:08AM Netlist settles lawsuit with Texas Instruments (NLST) 2.74 : Co announces that it has reached a settlement in the misappropriation of trade secrets and breach of contract lawsuit against Texas Instruments (TXN). The settlement resolves a dispute between the two companies concerning the use of proprietary memory modules and other related technology.