Equities Sector Coverage: Stocks Break Lower on Increased Fear and Disappointment

Sector Recap |

Stocks Break Lower on Increased Fear and DisappointmentInitial Jobless Claims came in at 370,000 still above the 350,000 recessionary threshold. The Philly Fed Index came in well below estimates at -5.8 in May when a +7.0 reading was expected. Leading Indicators came in at -0.1 in April, below estimates and the first decline in seven months. Freddie Mac reported that their 30-Year fixed rate mortgage is now at a record low of 3.79%. The Dow Jones Industrial Average rebounded to 12,611.42 then declined to 12,462.62 going into the final half hour of trading. The NASDAQ traded between up to 2879.22 then down to 2821.02 going into the final half hour of trading.

Asian stocks were lower on Thursday. The Nikkei 225 ended their session at 8,877 – up 0.86% on the day. The Hang Seng ended their session at 19,201 – down 0.31% on the day. European exchanges opened lower on Thursday and closed lower. The FTSE 100 ended their session at 5,338 – down 1.24% on the day. The DAX ended their session at 6,309 – down 1.18% on the day. The CAC 40 ended their session at 3,012 – down 1.20% on the day. The yield on the 10-Year US Treasury declined from 1.795 to a new year to date low at 1.692, well below its 50-day and 200-day simple moving averages at 2.045 and 2.023.

Gold traded up from $1538.4 the Troy ounce to $1579.8 well below the “Death Cross” 50-day and 200-day simple moving averages at $1643.1 and $1696.7. Crude oil traded up from $92.65 per barrel to $93.88 then down to $92.09 below its 200-day simple moving average at $96.24. The euro versus the dollar traded between 1.2670 and 1.2750 well below its 50-day simple moving average at 1.3124.

Energy

HollyFrontier (HFC) announced a special dividend of $0.50 per share and a 50% increase in its quarterly dividend to $0.15 from $0.10 per share. Atmos Energy (ATO) - Bank of America-Merrill Lynch upgraded the stock to Buy from Neutral with a price target at $37. WPX Energy (WPX) - Susquehanna downgraded the stock to Negative from Neutral. Dow components – Chevron (CVX) up 0.64%, Exxon Mobil (XOM) up 0.41%.
Energy Select Sector SPDR (XLE) was trading at $64.69 at 3:30 PM on Thursday, down 0.09% on the day – down 6.42% year-to-date.

Materials

Gold and gold shares have become extremely oversold and several gold minors had a strong rebound on Thursday. Barrick Gold (ABX) up 5.02%, Goldcorp (GG) up 5.96%, IAMGold (IAG) up 5.08%, NovaGold (NG) gained 7.05%, New Gold (NGD) up 5.91% and Newmont Mining (NEM) up 4.64%. Dow components – Alcoa (AA) up 0.77%, DuPont (DD) down 0.97%.
The Materials Select Sector SPDR (XLB) was trading at $33.13 at 3:30 PM on Thursday, down 1.52% on the day – down 1.10% year-to-date.

Industrials

Seaspan (SSW) beat Q1 EPS estimates by 26 cents with in-line revenue. Southwest Airlines (LUV) is deferring deliveries of 30 Boeing (BA) 737-800 jets by four years, saving more than $1 billion as the carrier works to curb rising costs until it hits financial targets. LSB Industries (LXU) shares fell another 7.9% on Wednesday a day after an explosion at one of its facilities shut down the plant indefinitely. Precision Castparts (PCP) beat FQ4 EPS estimates by four cents with in-line revenue. Harsco (HSC) has been upgraded to Strong Buy from Market Perform at Raymond James. Dow components – Boeing Co (BA) down 2.03%, Caterpillar (CAT) down 3.44%, General Electric (GE) up 0.21%, 3M Company (MMM) down 0.56%, United Technologies (UTX) down 1.05%.
The Industrial Select Sector SPDR (XLI) was trading at $34.34 at 3:30 PM on Thursday, down 2.00% on the day – up 1.75% year-to-date.

Consumer Discretionary

Red Robin Gourmet Burgers (RRGB) reported mixed Q1 results beating on a per share basis but missing the revenue estimates. Revenues were weak on declining guest counts, but the bottom line was helped by a boost in the average guest check, better operating profit margins and tighter expense management. Boyd Gaming (BYD) will acquire Peninsula Gaming for $1.45 billion which will add five new casino properties in Iowa, Kansas, and Louisiana. Jack in the Box (JACK) missed FQ2 EPS estimates by four cents with a beat on the revenue line. Buckle (BKE) beat Q1 EPS estimates by three cents with in-line revenue. Dow Components – Disney (DIS) down 0.78%, Home Depot down 2.30%, McDonalds (MCD) down 1.02%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.56 at 3:30 PM on Thursday, down 2.12% on the day – up 9.07% year-to-date.



Consumer Staples

Limited Brands (LTD) reported in-line Q1 EPS estimates and in-line revenue, but shares dropped 3% in after hours trading Thursday. Spartan Stores (SPTN) beat FQ4 EPS estimates by a penny with a miss on the revenue line. Cost Plus (CPWM) beat Q1 EPS estimates by a nickel with a beat on the revenue line. Hot Topic (HOTT) beat Q1 EPS estimates by two cents with in-line revenue and shares slumped 5.7% after hours Wednesday. Wal-Mart's (WMT) beat Q1 EPS estimates by a nickel with a beat on the revenue line and shares were up 1.5% pre-market. Dollar Tree Stores (DLTR) beat Q1 EPS estimates by three cents with in-line revenue and shares traded lower by 4.8% in the premarket. Sears (SHLD) report a less than expected Q1 EPS loss and had better than expected revenue.Dow components – Kraft (KFT) down 0.24%, Coca Cola (KO) down 0.88%, Procter & Gamble (PG) down 0.28%, Wal-Mart (WMT) up 5.04%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.87 at 3:30 PM on Thursday, down 0.27% on the day – up 4.25% year-to-date.

Health Care

Dendreon (DNDN) confirmed that the SEC has opened an investigation connected to lawsuits accusing the company over misleading investors over Provenge. While Dendreon had been bullish about the prostate-cancer treatment, the company shocked the market in August 2011 when they cut its revenue forecast. Alkermes (ALKS) beat FQ4 EPS estimates by two cents with better than expected revenue. Quality Systems (QSII) missed FQ4 EPS estimates by two cents with a miss on the revenue line. Dow Components – Johnson & Johnson (JNJ) flat, Merck (MRK) flat, Pfizer (PFE) up 0.44%.
The Health Care Select Sector SPDR (XLV) was trading at $36.55 at 3:30 PM on Thursday, down 0.49% on the day – up 5.36% year-to-date.

Financials

JP Morgan (JPM) remains in focus as its massive trading losses grow, as sources say the loss has increased by $3 billion and counting. Meanwhile the White House intensified talks with the Treasury about ensuring a tough interpretation of the Volcker Rule. Royal Bank of Canada (RY) and Credit Suisse (CS) are suitors who made initial offers for Bank of America's (BAC) non-US wealth-management business. HSBC (HBC) said it's on track to meet its goal of slashing up to $3.5 billion in costs by the end of next year. According to Fitch, the world's 29 largest banks will have to raise $566 billion in additional capital by 2018 to meet tougher Basel III standards. The amount is a 23% increase on what banks held at the end of 2011. US banks will be hit particularly hard by the capital requirements for risky activities. Dow Components – American Express (AXP) down 1.62%, Bank of America (BAC) up 0.21%, JP Morgan Chase (JPM) down 2.66%, Travelers (TRV) down 1.04%.
The Financial Select Sector SPDR (XLF) was trading at $14.00 at 3:30 PM on Thursday, down 1.55% on the day – up 7.69% year-to-date.

Information Technology

Ctrip.com International (CTRP) reported in-line Q1 EPS with a beat on the revenue line. 8x8 Inc (EGHT) beat FQ4 earnings on a 33% year over year jump in total revenue, and the stock was up 7.5% in after hours trading. GT Advanced Technologies (GTAT) missed FQ4 EPS estimates by two cents and missed on the revenue line. Tower Semiconductor (TSEM) missed Q1 EPS estimates by three cents with a miss on the revenue line. Dow Components – Cisco Systems (CSCO) up 0.23%, Hewlett-Packard (HPQ) up 0.26%, IBM (IBM) down 0.17%, Intel Corp (INTC) down 0.10%, Microsoft (MSFT) up 0.45%.
The Technology Select Sector SPDR (XLK) was trading at $27.87 at 3:30 PM on Thursday, down 0.92% on the day – up 9.51% year-to-date.

Telecommunication Services

Verizon Wireless' (VZ, VOD) will be offering shared data plans min-summer that the company says will be very innovative something that hasn’t been tried before in the industry. Dow components – AT&T (T) up 0.51%, Verizon (VZ) up 0.97%.
The NASDAQ Telecommunications Index (IXTC) was trading at $181.88 at 3:30 PM on Thursday, down 0.96% on the day – down 7.64% year-to-date.

Utilities

Duke Energy (DUK) has been upgraded to Outperform from Neutral at Macquarie. Dominion Resources (D) down 0.97%, Edison International (EIX) down 0.63%, First Energy (FE) down 0.23%, PG&E Corp (PCG) down 0.63%, Southern Company (SO) down 0.26%.
The Utilities Select Sector SPDR (XLU) was trading at $35.54 at 3:30 PM on Thursday, down 0.42% on the day – down 1.22% year-to-date.

STOCKS: CVX, XOM, HFC, ATO, WPX, AA, DD, ABX, GG, IAG, NG, NGD, NEM, BA, CAT, GE, MMM, UTX, SSW, LUV, LXU, PCP, HSC, DIS, HD, MCD, RRGB, BYD, JACK, BKE, KFT, KO, PG, WMT, LTD, SPTN, CPWM, HOTT, DLTR, SHLD, JNJ, MRK, PFE, DNDN, ALKS, QSII, AXP, BAC, JPM, TRV, RY, CS, HBC, CSCO, HPQ, IBM, INTC, MSFT, CTRP, EGHT, GTAT, TSEM, T, VZ, VOD, D, EIX, FE, PCG, SO, DUK

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Companies

Symbol Name Price Change % Volume
NGD New Gold Inc. 2.08 -0.06 -2.80 2,151,488
NG Novagold Resources Inc. 4.62 -0.13 -2.74 859,850
WPX WPX Energy Inc. 17.59 0.52 3.05 8,385,120 Trade
MMM 3M Company 204.17 -0.80 -0.39 2,842,825 Trade
PG Procter & Gamble Company (The) 75.84 -1.54 -1.99 7,385,062 Trade
GE General Electric Company 13.20 -0.10 -0.75 68,348,832 Trade
CVX Chevron Corporation 125.97 1.93 1.56 7,705,775 Trade
SO Southern Company (The) 44.57 0.14 0.32 4,594,025 Trade
PCG Pacific Gas & Electric Co. 39.79 -0.41 -1.02 6,823,811 Trade
JNJ Johnson & Johnson 121.32 -1.29 -1.05 6,787,518 Trade
WMT Walmart Inc. 83.00 -0.70 -0.84 8,502,368 Trade
AA Alcoa Corporation 45.78 0.44 0.97 2,835,721 Trade
INTC Intel Corporation 53.22 -1.89 -3.43 40,766,694 Trade
IBM International Business Machines Corporation 144.48 -0.91 -0.63 4,286,689 Trade
D Dominion Energy Inc. 66.00 -0.31 -0.47 5,133,334 Trade
TRV The Travelers Companies Inc. 127.59 -1.78 -1.38 1,689,827 Trade
ALKS Alkermes plc 50.77 0.47 0.93 647,685 Trade
LXU LSB Industries Inc. 5.36 0.21 4.08 218,512 Trade
BYD Boyd Gaming Corporation 36.85 0.28 0.77 441,973 Trade
BKE Buckle Inc. (The) 26.90 0.70 2.67 378,297 Trade
ATO Atmos Energy Corporation 87.11 0.32 0.37 285,730 Trade
IAG Iamgold Corporation 5.87 0.02 0.34 1,441,743 Trade
CSWC Capital Southwest Corporation 19.01 0.03 0.13 36,205 Trade
EIX Edison International 60.49 0.05 0.08 1,497,400 Trade
SSW Seaspan Corporation 8.75 0.07 0.81 830,650 Trade
GG Goldcorp Inc. 14.01 0.04 0.29 3,370,111 Trade
JPM JP Morgan Chase & Co. 108.18 0.28 0.26 9,786,889 Trade
AXP American Express Company 98.47 -0.05 -0.05 3,621,328 Trade
UTX United Technologies Corporation 127.49 0.58 0.46 3,892,410 Trade
VOD Vodafone Group Plc 24.49 -0.25 -1.01 4,347,897 Trade
RY Royal Bank of Canada 76.11 0.10 0.13 841,237 Trade
JACK Jack In The Box Inc. 87.32 1.06 1.23 504,154 Trade
CSCO Cisco Systems Inc. 44.21 -0.04 -0.09 17,625,621 Trade
LUV Southwest Airlines Company 52.37 0.19 0.36 5,543,440 Trade
DIS The Walt Disney Company 107.06 -1.79 -1.64 9,288,844 Trade
HSC Harsco Corporation 25.15 0.30 1.21 262,468 Trade
QSII Quality Systems Inc. 19.92 0.32 1.63 498,837 Trade
VZ Verizon Communications Inc. 47.46 -0.60 -1.25 15,333,429 Trade
ABX Barrick Gold Corporation 12.84 0.03 0.23 9,461,689 Trade
SHLD Sears Holdings Corporation 2.58 0.00 0.00 1,325,565 Trade
DLTR Dollar Tree Inc. 88.40 0.38 0.43 3,134,050 Trade
BAC Bank of America Corporation 29.40 0.12 0.41 52,644,966 Trade
HFC HollyFrontier Corporation 74.20 1.90 2.63 4,256,781 Trade
MCD McDonald's Corporation 166.28 -0.18 -0.11 4,297,727 Trade
RRGB Red Robin Gourmet Burgers Inc. 52.95 -1.05 -1.94 285,074 Trade
HD Home Depot Inc. (The) 200.69 0.15 0.07 3,405,347 Trade
XOM Exxon Mobil Corporation 80.82 0.16 0.20 9,192,577 Trade
PFE Pfizer Inc. 36.16 -0.20 -0.55 22,906,682 Trade
HPQ HP Inc. 23.65 0.06 0.25 5,554,302 Trade
BA The Boeing Company 354.74 -3.14 -0.88 3,363,509 Trade
MRK Merck & Company Inc. (new) 60.99 -1.04 -1.68 9,542,463 Trade
SPTN SpartanNash Company 25.86 -0.34 -1.30 184,735 Trade
FE FirstEnergy Corporation 34.74 0.04 0.12 4,119,239 Trade
KO Coca-Cola Company (The) 43.55 -0.57 -1.29 12,162,961 Trade
T AT&T Inc. 32.19 -0.96 -2.90 78,667,001 Trade
CAT Caterpillar Inc. 148.68 -1.34 -0.89 3,653,318 Trade
NEM Newmont Mining Corporation 38.43 0.03 0.08 3,530,515 Trade
DUK Duke Energy Corporation (Holding Company) 74.41 0.11 0.15 3,233,011 Trade
PCP Precision Castparts n/a n/a n/a 0 Trade
CTRP Ctrip.com International Ltd. 51.22 -0.50 -0.97 3,793,913 Trade
MSFT Microsoft Corporation 100.86 0.73 0.73 23,597,520 Trade
TSEM Tower Semiconductor Ltd. 22.89 -0.96 -4.03 896,894 Trade

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