Stocks Set to Finish 2010 Strong After Some Profit-Taking (PCLN, TYC, CHD, ATLS, CVX, AHD, EPIX)

Stocks tumbled on the day as the dollar continued to creep higher on a generally quiet day. Given the strong run equities have had this fall, it’s no surprise investors are taking a bit of a rest and taking some profits. While we expected some post-election and Fed profit-taking, we still expect a strong end to the year after a brief pause to the rally.

The Radiology Stocks Index was the top performing tickerspy Index on the day, led by EPIX Pharmaceuticals (EPIX) with a 29% gain.

Stocks fell on the day, with the Dow losing -60 points to 11,347. The S&P fell -10 points to 1,213, while the Nasdaq gave back -17 points to close at 2,563. Oil slipped -34 cents to $86.72 a barrel, while gold rose $6.90 to $1,410.10 an ounce.

On the economic front, the Commerce Department reported that wholesale inventories rose by 1.5% in September, after a 1.2% rise in August. Economists had been expecting inventories to rise by 0.6%. The September numbers mark the ninth straight month of inventory gains. Sales at the wholesale leve rose by 0.4% in September after a 0.5% rise in August.

In earnings news, shares of online travel booking firm Priceline.com (PCLN) jumped by 8.3% after beating third-quarter earnings expectations. The company earned $223 million, or $4.41 per share, compared to $319 million, or $5.33 per share, in the same period last year. Excluding certain items, adjusted EPS came to $5.33, topping Wall Street’s expectations by 36 cents. Revenue rose by 37% to $1 billion — easily ahead of the $973.6 million consensus. Priceline is expecting fourth-quarter EPS in the range of $2.91 and $3.06. Analysts were looking for $2.68 in Q4 EPS.

Tyco International (TYC) shares inched up by 0.5% after posting fiscal fourth-quarter results and announcing the sale of a 51% stake in its electrical and metal products business to private equity firm Clayton Dubilier & Rice for about $720 million. The company posted net income of $266 million, or 53 cents per share, in the three months ended September 24th, compared to $205 million, or 43 cents per share, in the year-ago period. Excluding certain items, adjusted EPS came to 74 cents, easily topping the 66-cent consensus. Revenue rose by 4% to $4.49 billion, which was also ahead of the Street’s $4.4 billion expectations. Forty-two asset managers counted Tyco in their top-15 U.S.-listed equity holding at the end of Q2, and 165 tickerspy members hold the stock in their portfolios.

Church & Dwight (CHD) saw its stock fall by -1.5% after the consumer products firm reported a decline in third-quarter profit. The company earned $69.5 million, or 96 cents per share, compared to $70.0 million, or 98 cents per share, in the same period last year. Revenue rose by about 2% to $656.9 million. Analysts had been looking for 93 cents in EPS on $660.2 million in revenue. Church & Dwight expects full-year EPS in the range of $3.93 to $4.00. Analysts were looking for $3.98 in 2010 EPS.

Shares of natural gas producerAtlas Energy (ATLS) soared by 34.0% on Tuesday after energy giant Chevron (CVX) agreed to buy the firm for $3.2 billion, or $38.25 per share in cash and a pro-rata share of Atlas Pipeline Holdings’s (AHD) more than 41 million units. Chevron vice chairman George Kirkland said, “We are acquiring a company that has one of the premier acreage positions in the prolific Marcellus [Shale],” adding, “The Atlas Energy assets further advance Chevron’s global shale gas position.” At the end of the second quarter, nine asset managers counted Atlas shares among their top-15 U.S.-listed equity positions, and 77 tickerspy members hold the stock in their portfolios.

Tags: AHD, ATLS, CHD, CVX, EPIX, PCLN, TYC