Posts Tagged ‘Avery Dennison’

U.S. Equity Market Cheat Sheet (July 25, 2011)

Sunday, July 24th, 2011

U.S. Equity Market Cheat Sheet (July 25, 2011)

The figure below shows the performance of each sector in the S&P 500 Index for the week. Nine sectors increased and one sector declined. The best-performing sector for the week was technology which increased 3.66 percent. Other top-three sectors were energy and financials. Telecom was the worst performer, down 0.08 percent. Other bottom-three performers were industrials & materials.

Within the technology sector, the best-performing stock was Motorola Mobility Holdings which rose 16.52 percent. Other top-five performers were Sandisk, Apple, Cisco Systems, and Tellabs.

S&P 500 Economic Sectors

Strengths

  • The human resources & employment services group was the best-performing group for the week, up 16 percent, led by its single member, Robert Half International. The firm reported second quarter earnings and revenue greater than the analysts’ consensus estimates.
  • The motorcycle manufacturers group was the second-best performer, rising 10 percent. The group’s single member Harley-Davidson reported quarterly earnings and revenue above the consensus estimates.
  • The healthcare services group outperformed, gaining 9 percent. Express Scripts made an offer to acquire Medco Health Solutions. Both pharmacy benefit management firms are members of the healthcare services group, and both stocks rose following the offer.

Weaknesses

  • The office services & supplies group was the worst-performing group, down 5 percent. Group member Avery Dennison provided revenue and earnings guidance for the second quarter and full year, all of which were below the analysts’ consensus estimates.
  • The household appliances group was the second-worst-performing group, losing 4 percent on weakness in the stock of its single member, Whirlpool. The large appliance maker reported quarterly earnings and revenue below the consensus estimates.
  • The airlines group underperformed, falling by 3 percent on weakness in the stock of its single member, Southwest Airlines. The weakness in the airline group appeared to be related to investor concern over higher fuel prices.

Opportunities

  • There may be an opportunity for gain in merger & acquisition (M&A) transactions in 2011. Corporate liquidity is high, thereby providing the means to pursue acquisitions.

Threats

  • Failure to resolve the federal budget issue creates uncertainty, which is not helpful for markets.

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U.S. Equity Market Cheat Sheet (February 7, 2011)

Saturday, February 5th, 2011

U.S. Equity Market Cheat Sheet (February 7, 2011)

The figure shows the performance of each sector in the S&P 500 Index for the week. All ten sectors increased. The best-performing sector for the week was materials which rose 4.58 percent. Other top-three sectors were energy and technology. The utilities sector was the worst performer, up only 0.32 percent. Other bottom-performers were consumer staples and telecom services.

Within the materials sector the best-performing stock was Cliff’s Natural Resources, up 8.64 percent. The other top-five performers were FMC Corp, Freeport-McMoRan Copper & Gold, CF Industries Holdings and Nucor Corp.

S&P 500 Economic Sectors

Strengths

  • The home entertainment software group was the best-performing group for the week, up 22 percent, led by its single member, Electronic Arts. The company reported a fiscal third-quarter profit that exceeded the analyst consensus estimate and announced a $600 million share repurchase program.
  • The consumer electronics group was the second-best performer, rising 15 percent. Harman International Industries, maker of audio products and electronic systems, reported fiscal second quarter earnings above the analyst consensus.
  • The agricultural products group outperformed, up 10 percent. Archer-Daniels-Midland reported fiscal second quarter earnings greater than the consensus estimate.

Weaknesses

  • The homebuilding group was the worst performer, down 4 percent. A major brokerage firm downgraded D.R. Horton, Inc. to “Neutral” and The Ryland Group to “Sell,” citing that homebuilder stocks have outperformed the broader market by roughly 15 percent over the past three months despite lackluster housing data.
  • The office services & supplies group underperformed, down 3 percent. Avery Dennison Corp. sold off after reporting earnings ahead of the analyst consensus. A major brokerage firm remained cautious on the stock, citing the potential for higher-than-expected raw material cost inflation, specifically within paper and adhesives.
  • The automobile manufacturer group, represented by Ford Motor Co., lost 3 percent. New car registrations in the United Kingdom were down 11.5 percent compared to a year ago during January.

Opportunities

  • There may be an opportunity for gain in merger & acquisition (M&A) transactions in 2011. Corporate liquidity is high, thereby providing the means to pursue acquisitions.

Threats

  • Should investors’ expectations for an improving economy not come to fruition on a reasonable time frame, it could be a threat to stock prices.
  • Quantitative easing currently being implemented by the Federal Reserve might result in unintended consequences.

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U.S. Equity Market Diary (November 22, 2010)

Sunday, November 21st, 2010

U.S. Equity Market Diary (November 22, 2010)

The figure below shows the performance of each sector in the S&P 500 index for the week. Five sectors increased and five sectors decreased. The best-performing sector for the week was industrials which rose 0.82 percent. Other outperforming sectors were energy and consumer discretion. Financials were the worst performer, followed by utilities and materials.

Within the industrials sector, the best-performing stock was Fluor Corp., up 5 percent. Other top performers were Honeywell International Inc., Caterpillar Inc., Avery Dennison Corp. and Pall Corp.

S&P 500 Economic Sectors

Strengths

  • The specialty stores group gained 5 percent, led by its largest member, Staples Inc., which reported third quarter results that appeared to be favorably received by analysts and investors.
  • The apparel and accessory group outperformed, rising 5 percent. The stocks of all three members of the index (Coach Inc., Polo Ralph Lauren Corp., V.F. Corp) rose for the week.
  • The leisure products group outperformed, up 4 percent, led by Mattel Inc. The toy maker increased its dividend by 10.7 percent and increased its stock repurchase program by $500 million. In addition, an SEC filing showed that Icahn Capital LP bought 2.4 million shares of Mattel in the third quarter.

Weaknesses

  • The homebuilding group was the worst performer in the S&P 500 this week falling by 8 percent. October housing starts fell to 519,000 from a revised 588,000 in September, below the 598,000 expected by economists. Also, building permits, a sign of future activity, rose by 0.5 percent to 550,000, but were less than the 568,000 forecast.
  • The healthcare facilities group underperformed, losing 6 percent, led down by its single member, Tenet Healthcare Corp.
  • The real estate services group lost 6 percent on the weakness of its single member, CB Richard Ellis Group Inc. The company held its annual business review day for analysts and investors this week.

Opportunities

  • There may still be opportunity for gains in merger and aquistion (M&A) transactions in 2010. Corporate liquidity remains high, thereby providing the means to pursue acquisitions.

Threats

  • As investors’ expectations for an improving economy not materialize on a reasonable time frame, stock prices could be threatened.
  • As governments around the world begin to wind down the monetary and fiscal stimulus programs put in place during the economic crisis, it will likely present a headwind for stocks.

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