The Zacks Analyst Blog Highlights: Avanir Pharmaceuticals, Cypress Semiconductor, Spansion and Automatic Data Processing

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Dec 08, 2014, 09:30 ET

CHICAGO, Dec. 8, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Avanir Pharmaceuticals, Inc. (Nasdaq:AVNR-Free Report), Cypress Semiconductor Corp. (Nasdaq:CY-Free Report), Spansion Inc. (NYSE:CODE-Free Report) and Automatic Data Processing, Inc. (Nasdaq:ADP-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Dow 30 Stock Roundup

The Dow had a mixed week, swinging between gains and losses. The blue-chip index moved lower on Monday as discouraging domestic as well as overseas economic data dented investor sentiment. However, the Dow rebounded on Tuesday as healthcare and energy shares rallied to post solid gains.

The blue-chip index gained again on Wednesday boosted by strong service sector numbers and modestly impressive job data. However, the Dow again took losses on Thursday after the European Central Bank failed to provide solid clues about further monetary stimulus. The Dow has gained 0.4% during the first four trading days.

Last Week's Performance

The Dow lost 0.3% on Monday, beginning December on a dismal note as discouraging domestic as well as overseas economic data dented investor sentiment. Moreover, decline in sales during Thanksgiving weekend also dragged down retail shares on Monday. However, rebound in oil prices boosted energy shares.

ISM Manufacturing Index declined slightly in November to 58.7, compared to 59 in October. Moreover, financial data company Markit reported that its U.S. Manufacturing Purchasing Managers Index (PMI) declined to 54.8 in November from 55.9 in October.

Separately, it was reported that official purchasing managers' index (PMI) in China declined 0.5 point to 50.3 in November from 50.8 in October. Also, the final HSBC/Markit manufacturing PMI decreased to 50 in November from 50.4 in October, reaching its lowest level in the last six months.

Moreover, final reading of Markit's November manufacturing PMI for the Eurozone was disappointing. Markit reported that the index declined to 50.1 in November, its lowest level since Jun 2013. Additionally, the National Retail Federation (NRF) reported on Monday that retail sales declined at an annual pace of 11% to $50.9 billion during the Thanksgiving weekend, registering its second consecutive annual decline.

Stocks ended in the green as healthcare and energy shares rallied on Tuesday to post solid gains. Moreover, merger and acquisition news involving Japan based Otsuka Pharmaceuticals and Avanir Pharmaceuticals, Inc. (Nasdaq:AVNR-Free Report), and Cypress Semiconductor Corp. (Nasdaq:CY-Free Report) and Spansion Inc. (NYSE:CODE-Free Report) also boosted investor confidence. The blue-chip index gained 0.6%.

Additionally, encouraging reports of domestic vehicle sales and construction spending had positive impact on benchmarks. Autodata Corp. reported on Tuesday that domestic sales increased at 4.6% rate in November from the year ago level to 1.3 million. It was also reported that annualized sales rate in November increased to around 17.2 million vehicles from October's sales figure of 16.5 million. This was also the strongest rate in this month since 2003.

Meanwhile, construction spending rose 1.1% in October to $971.0 billion from September's tally of $960.3 billion, significantly beating the consensus estimate of 0.6% gain. This was also the highest pace since May.

The Dow gained 0.2% on Wednesday, boosted by strong service sector numbers and modestly impressive job data. Moreover, rally in energy shares following rebound in oil prices and solid gains in materials stocks also boosted investor confidence. The blue-chip index reached its 33rd record high this year.

ISM Services Index increased to 59.3 in November from October's reading of 57.1, beating the consensus estimate of 57.5. Separately, Automatic Data Processing, Inc. (Nasdaq:ADP-Free Report) reported that private sector added 208,000 jobs in November, registering the eighth straight month of job gains in excess of 200,000. However, the tally came in below October's and September's numbers of 233,000 and 213,000, respectively.

Stocks ended slightly lower on Thursday after the European Central Bank failed to provide solid clues about further monetary stimulus. Investors were also cautious ahead of Friday's nonfarm employment report. However, encouraging jobless claims report limited some of the losses. The Dow declined nearly 0.1%.

ECB President Mario Draghi indicated that the ECB may consider additional monetary stimulus in the Eurozone to revive the economy. However, he also added that monetary expansion may be provided by early 2015.

However, positive initial claims data helped benchmarks avoid further losses on Thursday. Jobless claims for the week ending Nov 29 came in at 297,000, declining from earlier week's number of 314,000. But the tally remained above the consensus estimate of 288,000.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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