Equities Sector Coverage: Financials Lead Decliners As Market Plunges

Sector Recap |

Bank of America BACNonfarm Payrolls were flat in August and the levels for June and July were revised lower by 58,000. The unemployment rate remained at 9.1%. The private sector only added 17,000 jobs. The average workweek declined 0.1 hours to 34.2 hours. The Dow Jones Industrial Average traded down to 11,244.76 in reaction to the weaker than expected payrolls data. After a rebound to 11,340 the Dow traded to an afternoon low at 11,211.35. The NASDAQ traded down to 2489.07 in reaction to the jobs data. After a rebound to 2512.78 the downside accelerated to an afternoon low at 2469.65.

Asian stocks traded lower on Friday following the losses on Wall Street. The Nikkei 225 declined by 1.21% to 8,951. The Hang Seng fell by 1.81% to 20,213. In Europe the markets traded lower with losses accelerating following the weak jobs data in the US.  The FTSE 100 declined 2.34% to 5,292. The DAX slumped 3.36% to 5,538. The CAC 40 tumbled by 3.59% to 3,149. The yield on the 10-Year US Treasury declined to 1.987 percent stretching towards the low end of the post-FOMC range of 2.360 to 1.973. Gold rebounded from $1826.9 the Troy ounce to $1887.4 on the weaker than expected payrolls data. Crude oil traded down from $88.99 per barrel to $85.42 as the rally remains below its 50-day and 200-day simple moving averages at $91.47 and $95.27. The euro versus the US dollar declined from 1.4286 to 1.4187 on Friday.


In afternoon trading: Shares of Trina Solar (TSL) are down about 10.2%. Shares of First Solar (FSLR) are down about 8.1%. Shares of W&T Offshore (WTI) are down about 8%. Shares of Solazyme (SZYM) are down about 8%. Shares of Canadian Solar (CSIQ) are down about 7.9%. Shares of Carrizo Oil & Gas (CRZO) are down about 7.9%. Shares of BPZ Resources (BPZ) are down about 7.8%. Shares of Precision Drilling (PDS) are down about 7.4%. Shares of ATP Oil & Gas (ATPG) are down about 7%. Shares of Suntech Power Holdings (STP) are down about 7%.

Energy Select Sector SPDR (XLE) was trading at $66.22 at 4:00 PM on Friday, down 2.79% on the day – down 2.97% year-to-date.


Cargill and other major U.S. agribusinesses have increased restrictions on accepting Syngenta's (SYT) popular Agrisure Viptera corn as part of curbs against genetically modified grain not yet approved in major foreign markets such as China and the EU. Koppers Holdings (KOP) is a new Hold at KeyBanc. A.M. Castle (CAS) is assumed with a Buy and $17 target price at Jefferies. Globe Specialty Metals (GSM) is begun with a Buy and $25 target at Jefferies. In afternoon trading: Shares of Silvercorp Metals (SVM) are down about 13.1%. Shares of Mechel OAO (MTL) are down about 8.5%. Shares of AcelorMittal (MT) are down about 6.7%. Shares of LyondellBassell Industries (LYB) are down about 6.1%. Shares of Golden Star Resources (GSS) are up about 9.2%. Shares of Silver Standard Resources (SSRI) are up about 6.8%.

The Materials Select Sector SPDR (XLB) was trading at $33.97 at 4:00 PM on Friday, down 2.55% on the day – down 11.56% year-to-date.


Esterline Technologies’ (ESL) FQ3 earnings missed estimates across-the-board. Net income came in at $37.7M, -4.5% Y/Y on weakness in its defense contracting business due to cuts in government spending. The company reiterates at the lower-end of guidance consensus. Boeing (BA) is begun with a Buy at CRT Capital, which assigns identical ratings on Precision Castparts (PCP), HEICO (HEI), TransDigm (TDG), Hexcel (HXL), Goodrich (GR), and BE Aerospace (BEAV). It resumes Rockwell Collins (COL) and Spirit AeroSystems (SPR) ratings of Fair Value. Carlisle Cos (CSL) is initiated with a Hold at KeyBanc Capital, which establishes a price objective of $55. United Parcel Service (UPS) is upgraded to Outperform from Neutral at Credit Suisse. Old Dominion (ODFL) is upgraded to Outperform from Neutral at Credit Suisse. Credit Suisse cuts FedEx (FDX) and Canadian Pacific (CP) to Neutral from Outperform. In afternoon trading: Shares of Esterline Technologies (ESL) are down about 13.3%.

The Industrial Select Sector SPDR (XLI) was trading at $30.85 at 4:00 PM on Friday, down 3.20% on the day – down 11.53% year-to-date.

Consumer Discretionary

Liberty Media's (LSTZA) Starz has broken off contract-renewal talks with Netflix (NFLX) over differences in pricing and packaging, saying it will end programming as of March 2012. H&R Block (HRB) beat estimates by 3 cents, but missed revenue by $268M. Quiksilver (ZQK) posted a mixed FQ3, missing on EPS due to tighter margins but beating overall revenue projections. Profits grew 26% Y/Y on an 11% jump in U.S. demand, and a favorable currency helped boost gains in Europe by over 16%. Quiksilver (ZQK) is raised to Outperform from Perform with a $6 target at brokers Robert W. Baird. Education Management (EDMC) is moved to Equal Weight from Underweight at Morgan Stanley. In afternoon trading: Shares of H&R Block are down about 12.7%. Shares of Talbots (TLB) are down about 10.4%. Shares of Netflix are down about 9.5%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $36.06 at 4:00 PM on Friday, down 2.83% on the day – down 3.61% year-to-date.

Consumer Staples

Campbell Soup (CPB) beat estimates by 5 cents and revenue by $40M. Heineken (HINKY) is downgraded to Hold from Buy at Citigroup. In afternoon trading: Shares of China-Biotics (CHBT) are down about 12.5%. Shares of Synutra International (SYUT) are down about 7.9%. Shares of Seneca Foods (SENEA) are down about 7%. Shares of Pilgrim’s Pride (PPC) are down about 6.1%. Shares of Revlon (REV) are down about 5.9%. Shares of Elizabeth Arden (RDEN) are down about 5.9%. Shares of Central European Distribution (CEDC) are up about 8.3%. Shares of Yuhe International (YUII) are up about 7.1%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.34 at 4:00 PM on Friday, down 1.43% on the day – up 3.51% year-to-date.


AstraZeneca's (AZN) blockbuster cholesterol drug Crestor has failed to significantly beat Pfizer's (PFE) Lipitor in a head-to-head study. In afternoon trading: Shares of Geron Corp (GERN) are down about 10.6%. Shares of Biostar Pharmaceuticals (BSPM) are down about 10.3%. Shares of Dendreon (DNDN) are down about 9.5%. Shares of Inhibitex (INHX) are down about 8.8%. Shares of Peregrine Pharmaceuticals (PPHM) are down about 8.8%. Shares of Achillion Pharmaceuticals (ACHN) are down about 8.7%. Shares of Pacific Biosciences (PACB) are down about 8.2%. Shares of Complete Genetics (GNOM) are down about 8.1%. Shares of Regeneron Pharmaceuticals (REGN) are up about 8%.

The Health Care Select Sector SPDR (XLV) was trading at $32.45 at 4:00 PM on Friday, down 2.20% on the day – up 3.02% year-to-date.


The Federal Housing Finance Agency could file lawsuits seeking billions of dollars in compensation from a dozen large banks for misrepresenting the quality of mortgage bonds they sold during the housing bubble. These suits will argue that the banks, which include Bank of America (BAC), JPMorgan (JPM), Goldman Sachs (GS) and Deutsche Bank (DB), didn't undertake the due diligence required by law. With its potential legal liabilities piling up, Bank of America (BAC) has received a request from the Fed about what it could do if its financial situation worsens. The London Stock Exchange (LDNXF) said it is in early talks to buy LCH Clearnet in a deal that the FT says could value the clearing house at €1B ($1.43B). Allianz SE (AZSEY) gets a Buy-from-Hold boost at brokerage Collins Stewart. Toronto-Dominion Bank (TD) is taken to Outperform from Neutral at Credit Suisse. Eaton Vance (EV) is now Sell from Neutral with a $20 price target at Ticonderoga. In afternoon trading: Shares of MGIC Investment (MTG) are down about 10.8%. Shares of FelCor Lodging Trust (FCH) are down about 9.1%. Shares of Bank of America (BAC) are down about 8.6%.

The Financial Select Sector SPDR (XLF) was trading at $12.54 at 4:00 PM on Friday, down 4.13% on the day – down 21.38% year-to-date.

Information Technology

A U.S. judge has overturned Oracle's (ORCL) $1.3B verdict against SAP for theft of intellectual property, saying that the amount was "grossly excessive" and that the maximum value of the damages proved is just $272M. Amazon (AMZN) has offered to invest in Californian distribution centers and create 7,000 full-time jobs by 2015 in exchange for a reprieve from the state's new Internet sales tax law until 2014. Mitel Networks’ (MITL) FQ1 swung to a loss on restructuring costs, but beats overall estimates on a 14% jump in revenues from its DataNet segment. The company reiterates guidance at the high-end of analysts' forecasts. Finisar (FNSR) beat estimates by 3 cents with revenue in-line with estimates, and expects FQ2 Revenue at $235M-$250M, GAAP OM at 5.5%-7.0%, Non-GAAP OM at 8.5%-10.0% and Non-GAAP EPS at $0.20-$0.24. Liquidity Services (LQDT) is upgraded to Outperform from Perform at Oppenheimer with a new target of $38. Blue Coat (BCSI) is lifted to Neutral from Sell at Lazard. Motorola Mobility (MMI) is moved to Equal Weight from Overweight at Morgan Stanley. In afternoon trading: Shares of Oclaro Inc. (OCLR) are up about 11.5%. Shares of Finisar are up about 9.7%. Shares of JinkoSolar (JKS) are down about 11%.

The Technology Select Sector SPDR (XLK) was trading at $23.62 at 4:00 PM on Friday, down 2.28% on the day – down 6.23% year-to-date.

Telecommunications Services

AT&T (T) could have to sell up to 25% of T-Mobile's (DTEGY) business, including airwaves and customers, to overcome government antitrust fears about the carriers' tie-up. In afternoon trading: Shares of Leap Wireless (LEAP) are down about 8.5%. Shares of Radcom (PDCM) are down about 7.4%. Shares of Neutral Tandem (TNDM) are down about 7.2%. Shares of Towerstream (TWER) are down about 6.8%. Shares of Shenandoah Telecommun (SHEN) are down about 6.8%. Shares of MetroPCS (PCS) are down about 6.2%. Shares of Cincinnati Bell (CBB) are down about 5.5%. Shares of Sprint Nextel (S) are down about 5%.

The NASDAQ Telecommunications Index (IXTC) was trading at $187.28 at 4:00 PM on Friday, down 2.80% on the day – down 16.90% year-to-date.


In afternoon trading: Shares of Dynegy (DYN) are up about 7.3%. Shares of Tri-Tech Holding (TRIT) are down about 6.6%. Actives: Shares of Duke Energy (DUK) are relatively unchanged. Shares of Southern (SO) are relatively unchanged. Shares of Genon Energy (GEN) are down about 1.6%. Shares of AES Corp (AES) are down about 3%. Shares of Exelon (EXC) are down about 0.7%. Shares of Dominion Resources (D) are down about 0.8%.

The Utilities Select Sector SPDR (XLU) was trading at $33.29 at 4:00 PM on Friday, down 1.13% on the day – up 6.22% year-to-date.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
GSS Golden Star Resources Ltd 0.75 -0.01 -1.41 682,180
HRB H&R Block Inc. 25.72 0.17 0.67 1,817,983 Trade
ORCL Oracle Corporation 49.25 -0.10 -0.20 15,501,538 Trade
UPS United Parcel Service Inc. 119.76 0.34 0.28 2,427,577 Trade
EV Eaton Vance Corporation 51.90 0.39 0.76 378,767 Trade
GEN Genesis Healthcare Inc. 1.04 0.02 1.96 254,872 Trade
FCH FelCor Lodging Trust Incorporated n/a n/a n/a 0 Trade
BEAV B/E Aerospace Inc. n/a n/a n/a 0 Trade
GSM Ferroglobe PLC 15.20 0.08 0.53 416,113 Trade
IO Ion Geophysical Corporation 8.50 -0.40 -4.49 59,040 Trade
SO Southern Company (The) 52.21 0.21 0.40 4,122,806 Trade
TD Toronto-Dominion Bank 56.82 -0.81 -1.41 1,527,149 Trade
ODFL Old Dominion Freight Line Inc. 112.50 1.87 1.69 394,976 Trade
CRZO Carrizo Oil & Gas Inc. 15.94 0.42 2.71 2,688,247 Trade
D Dominion Resources Inc. 80.00 0.05 0.06 2,198,168 Trade
ESL Esterline Technologies Corporation 96.35 2.55 2.72 144,963 Trade
HEI Heico Corporation 92.29 2.03 2.25 226,952 Trade
SYT Syngenta AG 92.07 0.03 0.03 7,913 Trade
CBB Cincinnati Bell Inc. 19.75 -0.05 -0.25 137,873 Trade
S Sprint Corporation 6.93 -0.14 -1.98 15,423,862 Trade
MITL Mitel Networks Corporation 8.77 0.18 2.10 2,315,166 Trade
CSL Carlisle Companies Incorporated 103.80 1.53 1.50 402,215 Trade
OCLR Oclaro Inc. 8.41 0.00 0.00 2,254,609 Trade
JPM JP Morgan Chase 99.51 1.40 1.43 15,326,608 Trade
FNSR Finisar Corporation 23.03 -0.17 -0.73 3,718,980 Trade
RDEN Elizabeth Arden Inc. n/a n/a n/a 0 Trade
CAS Castle (A.M.) & Co. n/a n/a n/a n/a
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
PDS Precision Drilling Corporation 2.44 -0.04 -1.61 2,591,609 Trade
AMZN Amazon.com Inc. 982.91 -3.70 -0.38 2,365,122 Trade
CPB Campbell Soup Company 45.97 0.60 1.32 2,164,821 Trade
MTL Mechel PAO American Depositary Shares (Each rep. 1 5.26 0.00 0.00 44,963 Trade
DB Deutsche Bank AG 16.98 0.11 0.65 2,948,364 Trade
AES The AES Corporation 11.13 -0.16 -1.42 3,792,626 Trade
LYB LyondellBasell Industries NV Class A (Netherlands) 98.94 -0.45 -0.45 2,142,249 Trade
GS The Goldman Sachs Group Inc. 244.73 4.74 1.98 3,022,769 Trade
SZYM Solazyme Inc. n/a n/a n/a 0
SHEN Shenandoah Telecommunications Co 39.30 -0.25 -0.63 89,654 Trade
GERN Geron Corporation 2.05 -0.01 -0.49 692,182 Trade
BAC Bank of America Corporation 27.17 0.59 2.22 83,764,655 Trade
KOP Koppers Holdings Inc. 48.75 0.35 0.72 164,700 Trade
REV Revlon Inc. New 22.25 0.35 1.60 180,924 Trade
BSPM Biostar Pharmaceuticals Inc. 1.74 0.00 0.00 33,480 Trade
SSRI Silver Standard Resources Inc. n/a n/a n/a 0 Trade
PPC Pilgrim\'s Pride Corporation 31.04 0.55 1.80 1,080,406 Trade
ACHN Achillion Pharmaceuticals Inc. 4.15 -0.01 -0.24 1,960,745 Trade
JKS JinkoSolar Holding Company Limited American Deposi 24.31 0.56 2.36 383,994 Trade
PPHM Peregrine Pharmaceuticals Inc. 4.08 -0.05 -1.21 108,722 Trade
PFE Pfizer Inc. 36.42 0.18 0.50 17,502,245 Trade
FSLR First Solar Inc. 47.73 0.09 0.19 1,396,640 Trade
SYUT Synutra International Inc. n/a n/a n/a 0 Trade
TDG Transdigm Group Incorporated Inc. 268.60 4.10 1.55 329,392 Trade
MT ArcelorMittal 29.84 0.50 1.70 3,147,272 Trade
CSIQ Canadian Solar Inc. 15.94 0.19 1.21 486,609 Trade
FDX FedEx Corporation 225.07 1.10 0.49 1,297,895 Trade
AZN Astrazeneca PLC 34.62 -0.09 -0.26 2,302,108 Trade
WTI W&T Offshore Inc. 3.14 -0.06 -1.88 2,066,380 Trade
NFLX Netflix Inc. 194.16 -0.97 -0.50 5,995,568 Trade
BA Boeing Company (The) 264.75 5.71 2.20 3,955,922 Trade
PACB Pacific Biosciences of California Inc. 4.40 0.07 1.62 702,275 Trade
LQDT Liquidity Services Inc. 5.70 -0.05 -0.87 73,897 Trade
REGN Regeneron Pharmaceuticals Inc. 432.98 -7.96 -1.81 990,334 Trade
EXC Exelon Corporation 39.58 -0.19 -0.48 4,235,605 Trade
CP Canadian Pacific Railway Limited 177.61 0.61 0.34 385,423 Trade
T AT&T Inc. 35.54 -0.15 -0.42 37,835,452 Trade
DUK Duke Energy Corporation (Holding Company) 87.93 0.08 0.09 2,033,616 Trade
PCP Precision Castparts n/a n/a n/a 0 Trade
MMI Marcus & Millichap Inc. 27.41 0.20 0.74 78,984 Trade
MTG MGIC Investment Corporation 13.77 -0.05 -0.36 2,203,966 Trade
TWER Towerstream Corporation n/a n/a n/a n/a
HXL Hexcel Corporation 63.76 2.37 3.86 1,270,794 Trade
SENEA Seneca Foods Corp. Class A Common Stock 35.25 -0.20 -0.56 15,861 Trade


Emerging Growth

Cavitation Techs Inc

Cavitation Technologies Inc engineers and designs Nano technology based systems that have potential applications in industrial liquid processing.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.


Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…