Equities Sector Coverage: Stocks Close Out Week in Green

Sector Recap |

Wall Street NYSEThe Dow Industrial Average traded down to 13,094.96 in early trading than traded up to 13,180.97 into the final half hour of trading. The NASDAQ traded down to 3003.38 in early trading then rebounded to 3016.70.

Asian stocks were lower on Friday. The Nikkei 225 ended the day at 8,891 – down 0.97%. The Hang Seng ended the day at 20,136 – down 0.66%. European exchanges were lower on Friday. The FTSE 100 ended the day at 5,847 – down 0.08%. The DAX ended the day at 6,945 – down 0.29%. The CAC 40 ended the day at 3,436 – down 0.61%.

The yield on the 10-Year US Treasury note declined from 1.681% to 1.628% versus the five-week modified moving average at 1.588%. Gold declined to $1604.4 the Troy ounce then rose to $1627.3. The 50-day simple moving average rose to $1599.1 with the 200-day simple moving average at $1654.7. Crude oil declined from $93.87 per barrel to $91.71. The euro versus the dollar declined from 1.2307 to 1.2244 then rose to 1.2315 versus the five-week modified moving average at 1.2422.

Energy

Chesapeake Energy (CHK) is under a US antitrust investigation over the purchase and lease of oil and gas rights. Chesapeake reportedly plotted with Encana (ECA) to suppress land prices in a promising oil and gas play in Michigan. Abraxas Petroleum (AXAS) has been downgraded to Hold from Buy with Wunderlich, which takes its target down by $4 to $3 from $7, as the hoped-form turnaround theme is not materializing. Dow components – Chevron (CVX) up 0.04%, Exxon Mobil (XOM) down 0.23%.

Energy Select Sector SPDR (XLE) was trading at $72.19 at 3:30 PM on Friday, down 0.07% on the day – up 4.43% year-to-date.

Materials

Mechel Steel (MTL) has been downgraded to Underperform from Neutral at Credit Suisse. Silver Wheaton (SLW) beat Q2 EPS estimates by a penny with better than expected revenue. Denison Mines (DNN) beat Q2 EPS estimates by two cents with revenue down 79.4% year over year. Dow Components – Alcoa (AA) up 0.90%, DuPont (DD) up 0.38%.

The Materials Select Sector SPDR (XLB) was trading at $36.00 at 3:30 PM on Friday, down 0.25% on the day – up 7.46% year-to-date.

Industrials

Circor (CIR) has been initiated with a Buy rating and $41 price target at Capstone Investments, which says it should benefit from secular trends across energy, power generation, and aerospace. CF Industries (CF) has been downgraded to Neutral from Overweight at Atlantic Equities. Dow components – Boeing Co (BA) down 0.16%, Caterpillar (CAT) down 0.38%, General Electric (GE) down 0.32%, 3M Company (MMM) up 0.15%, United Technologies (UTX) up 0.38%.

The Industrial Select Sector SPDR (XLI) was trading at $36.59 at 3:30 PM on Friday, up 0.22% on the day – up 8.41% year-to-date.

Consumer Discretionary

Lions Gate (LGF) unexpectedly swung to a FQ1 net loss of $44.2 million from a profit of $10.3 million year over year, due to a $90 million increase in film-marketing costs. Revenue however surged 81% and beat forecasts, helped by the success of "The Hunger Games" and the takeover of Summit Entertainment. There could be another investigation into Las Vegas Sands (LVS) concerning a breach of US anti-bribery laws in mainland China involving a real-estate payment, sponsorship of a basketball team, and a ferry deal. This probe adds to those of possible money laundering and one concerning LVS's Macau casinos. Glu Mobile (GLUU) has been initiated with an Overweight rating at Piper Jaffray. Cablevision (CVC) has been downgraded to Equal Weight from Overweight by Barclays. Ralph Lauren (RL) has been downgraded to Hold from Buy at Argus based on a weaker outlook and valuation. Dow Components – Disney (DIS) down 0.97%, Home Depot down 0.28%, McDonalds (MCD) up 0.91%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.53 at 3:30 PM on Friday, down 0.29% on the day – up 14.12% year-to-date.

Consumer Staples



JC Penney (JCP) slumped by 5% premarket after its Q2 earnings missed expectations, with the retailer reporting an adjusted EPS loss of $0.37 vs a profit of $0.19 a year ago. Revenue plunged 23% to $3.02 billion with Internet sales down 33%. JC Penney also lowered FY guidance. Aeropostale (ARO) - Lazard Capital initiated ARO with a Neutral rating. Tim Hortons (THI) has been upgraded to Outperform from Market Perform at BMO Capital. Advance Auto Parts (AAP) has been downgraded to Neutral from Outperform at Credit Suisse. Big Lots (BIG) has been downgraded to Underweight from Neutral at JP Morgan. Brinker International (EAT) has been downgraded to Market Perform from Outperform at Raymond James. Dow components – Kraft (KFT) down 0.71%, Coca Cola (KO) down 0.50%, Procter & Gamble (PG) down 0.03%, Wal-Mart (WMT) down 0.30%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $35.59 at 3:30 PM on Friday, down 0.14% on the day – up 9.54% year-to-date.

Health Care

OraSure (OSUR) has been initiated with a Buy rating at Jefferies. Sanofi (SNY) has been upgraded to Outperform from Neutral at Cowen. GlaxoSmithKline (GSK) - The giant pharmaceutical company has been downgraded to Neutral from Outperform at Cowen & Company amid concerns over it’s slower than expected earnings and margin recovery. Novo Nordisk (NVO) has been downgraded to Sell from Hold at Société Générale. Sagent Pharmaceuticals (SGNT) has been downgraded to Sector Perform from Outperform at RBC Capital. Dow Components – Johnson & Johnson (JNJ) up 0.25%, Merck (MRK) up 0.20%, Pfizer (PFE) down 0.13%.

The Health Care Select Sector SPDR (XLV) was trading at $38.67 at 3:30 PM on Friday, up 0.36% on the day – up 11.47% year-to-date.

Financial

New York's case against Standard Chartered (SCBFF) is more about whether the bank violated the "books and records" law by covering up dealings with Iran using falsified records rather than whether those dealings broke the law. Breaches of records law are easier to prove than violations of regulations that restrict dollar transactions with sanctioned countries. Barclays (BCS) has appointed former Bank of England Executive Director David Walker as Chairman replacing Marcus Agius, who is leaving in the wake of the Libor scandal. Walker's first job is to find a CEO to replace Bob Diamond, who resigned because of Libor. The Fed and the Office of the Comptroller of the Currency have directed five leading banks to formulate recovery plans for preventing their collapse if there’s another severe period of financial stress. The plans are different the wills, and requests were first sent two years ago to Citigroup (C), Morgan Stanley (MS), JPMorgan (JPM), BofA (BAC) and Goldman Sachs (GS). Dow Components – American Express (AXP) down 1.68%, Bank of America (BAC) flat, JP Morgan Chase (JPM) down 0.43%, Travelers (TRV) down 0.30%.

The Financial Select Sector SPDR (XLF) was trading at $14.90 at 3:30 PM on Friday, down 0.20% on the day – up 14.62% year-to-date.

Information Technology

Yahoo (YHOO) CEO Marissa Mayer is reviewing the company's capital allocation strategy, which may result in cancelling a $5.5 billion stock buyback program tied to Alibaba's $7.1 billion repurchase of half of Yahoo's 40% stake in the Chinese company. Cisco Systems (CSCO) has been initiated with a Hold at Needham, saying that sustaining the current margin structure is increasingly challenging. Ciena (CIEN) and Finisar (FNSR) have been initiated with Neutral ratings at Goldman, which begins Buy ratings on JDS Uniphase (JDSU) and Level 3 Communications (LVLT). Broadcom (BRCM) - Sanford Bernstein upgrades BRCM to Outperform from Market Perform. Jive Software (JIVE) has been upgraded to Buy from Hold, with a $20 price target, at Needham. VeriSign (VRSN) has been downgraded to Neutral from Outperform at Robert W. Baird. Yahoo (YHOO) has been downgraded to Neutral from Buy at Bank of America-Merrill.

Dow Components – Cisco Systems (CSCO) down 1.19%, Hewlett-Packard (HPQ) up 0.77%, IBM (IBM) down 0.39%, Intel Corp (INTC) up 0.42%, Microsoft (MSFT) down 0.56%.

The Technology Select Sector SPDR (XLK) was trading at $30.10 at 3:30 PM on Friday, up 0.13% on the day – up 18.27% year-to-date.

Telecommunication Services

IBM (IBM) has informally approached RIM (RIMM) about acquiring RIM’s network operations centers, which secure and compress content delivered to BlackBerries. RIM has considered turning these centers into a standalone business that service multiple platforms. Palo Alto Networks (PANW) has been initiated with a Buy rating at Stifel Nicolaus. Ciena (CIEN) and Finisar (FNSR) have been initiated with Neutral ratings at Goldman, which begins Buy ratings on JDS Uniphase (JDSU) and Level 3 Communications (LVLT). Ubiquiti Networks (UBNT) has been downgraded to Neutral from Buy at UBS. Dow Components – AT&T (T) up 0.42%, Verizon (VZ) down 0.14%.

The NASDAQ Telecommunications Index (IXTC) was trading at $189.21 at 3:30 PM on Friday, down 0.60% on the day – down 3.92% year-to-date.

Utilities

Dominion Resources (D) up 0.09%, Edison International (EIX) up 0.09%, First Energy (FE) down 0.33%, PG&E Corp (PCG) down 0.32%, Southern Company (SO) down 0.06%.

The Utilities Select Sector SPDR (XLU) was trading at $37.52 at 3:30 PM on Friday, up 0.24% on the day – up 4.28% year-to-date.

STOCKS: CVX, XOM, CHK, ECA, AXAS, AA, DD, MTL, SLW, DNN, BA, CAT, GE, MMM, UTX, CIR, CF, DIS, HD, MCD, LGF, LVS, GLUU, CVC, RL, KFT, KO, PG, WMT, JCP, ARO, THI, AAP, BIG, EAT, JNJ, MRK, PFE, OSUR, GSK, NVO, SGNT, AXP, BAC, JPM, TRV, SCBFF, BCS, C, MS, GS, CSCO, HPQ, IBM, INTC, MSFT, RIMM, YHOO, CIEN, FNSR, JDSU, LVLT, BRCM, JIVE, VRSN, T, VZ, UBNT, D, EIX, FE, PCG, SO

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

Companies

Symbol Name Price Change % Volume
DNN Denison Mines Corp (Canada) 0.70 -0.02 -2.81 631,863
MMM 3M Company 187.19 1.15 0.62 2,401,641
GSK GlaxoSmithKline PLC 41.49 0.46 1.12 2,855,500
CF CF Industries Holdings Inc. 31.82 -1.40 -4.21 7,986,243
AXAS Abraxas Petroleum Corporation 2.21 -0.03 -1.34 3,393,351
ARO Aeropostale Inc. n/a n/a n/a n/a
PG Procter & Gamble Company (The) 91.13 -0.31 -0.34 7,611,638
GE General Electric Co 30.02 -0.07 -0.23 28,947,909
CVX Chevron Corporation 111.02 0.64 0.58 8,659,712
SO Southern Company (The) 49.67 0.68 1.39 8,940,869
PCG Pacific Gas & Electric Co. 65.41 0.65 1.00 2,069,229
GLUU Glu Mobile Inc. 2.00 -0.07 -3.38 7,405,251
LGF Lions Gate Entertainment Corporation n/a n/a n/a 0
JNJ Johnson & Johnson 121.70 2.18 1.82 9,980,945
WMT Wal-Mart Stores Inc. 71.31 -0.40 -0.56 12,799,700
AA Alcoa Inc. 34.32 -2.28 -6.23 7,139,960
INTC Intel Corporation 36.18 0.11 0.30 22,774,979
IBM International Business Machines Corp 181.65 0.50 0.28 2,282,526
D Dominion Resources Inc. 76.16 0.81 1.08 2,513,319
TRV The Travelers Companies Inc. 122.36 0.46 0.38 1,134,121
JIVE Jive Software Inc. 4.25 0.00 0.00 198,985
OSUR OraSure Technologies Inc. 11.08 0.00 0.00 469,403
BIG Big Lots Inc. 51.35 -1.31 -2.49 991,992
CVC Cablevision Systems Corp. n/a n/a n/a 0
P:CA Primero Mining Corp. 0.89 -0.02 -2.20 962,082
BCS Barclays PLC 11.48 -0.22 -1.88 6,291,609
C Citigroup Inc. 60.62 0.00 0.00 14,624,376
LVS Las Vegas Sands Corp. 51.77 -0.20 -0.38 2,412,701
EIX Edison International 77.90 0.71 0.92 1,750,856
ECA Encana Corporation 11.39 -0.08 -0.70 18,901,744
MS Morgan Stanley 46.58 0.06 0.13 11,877,616
JPM JP Morgan Chase 91.13 0.07 0.08 11,066,952
AXP American Express Company 80.05 0.19 0.24 3,339,493
FNSR Finisar Corporation 34.15 0.04 0.12 3,627,357
UTX United Technologies Corporation 112.09 -0.57 -0.51 3,471,711
MTL Mechel PAO American Depositary Shares (Each rep. 1 5.38 -0.16 -2.89 337,612
JDSU Viavi Solutions Inc n/a n/a n/a 0
CSCO Cisco Systems Inc. 34.04 -0.05 -0.15 17,450,074
LVLT Level 3 Communications Inc. 57.78 -0.21 -0.36 2,630,769
DIS Walt Disney Company (The) 109.73 -0.39 -0.35 5,470,661
GS The Goldman Sachs Group Inc. 251.19 -0.54 -0.21 2,594,747
VZ Verizon Communications Inc. 50.31 0.64 1.29 16,211,994
VRSN VeriSign Inc. 82.40 0.21 0.26 588,436
BAC Bank of America Corporation 24.58 -0.21 -0.85 85,845,982
MCD McDonald\'s Corporation 128.27 0.42 0.33 3,177,951
CIEN Ciena Corporation 25.69 -0.12 -0.46 2,295,651
DD E.I. du Pont de Nemours and Co. 79.59 -0.21 -0.26 4,412,314
HD Home Depot Inc. (The) 144.71 -0.54 -0.37 4,184,046
XOM Exxon Mobil Corporation 81.78 0.85 1.05 13,847,038
PFE Pfizer Inc. 34.06 0.47 1.40 30,477,129
NVO Novo Nordisk A/S 35.78 0.53 1.50 2,787,589
HPQ HP Inc. 17.60 1.40 8.64 37,118,842
BA Boeing Company (The) 176.86 1.50 0.86 3,502,645
YHOO Yahoo! Inc. 45.41 -0.57 -1.24 7,812,053
MRK Merck & Company Inc. (new) 65.85 0.56 0.86 6,855,571
FE FirstEnergy Corporation 31.39 0.60 1.95 5,776,154
BRCM Broadcom Corp. n/a n/a n/a 0
SLW Silver Wheaton Corp (Canada) 21.51 0.19 0.89 3,517,571
KO Coca-Cola Company (The) 41.66 0.06 0.14 12,856,844
T AT&T Inc. 41.95 0.36 0.87 19,218,542
CAT Caterpillar Inc. 95.55 -2.65 -2.70 6,024,786
JCP J.C. Penney Company Inc. Holding Company 6.86 -0.19 -2.70 26,320,191
MSFT Microsoft Corporation 64.62 0.26 0.40 20,273,128
AAP Advance Auto Parts Inc W/I 157.72 -1.96 -1.23 1,396,171
CHK Chesapeake Energy Corporation 5.75 -0.17 -2.87 98,640,096
CIR CIRCOR International Inc. 60.81 -0.74 -1.20 247,097
RL Ralph Lauren Corporation 78.65 0.54 0.69 1,476,645
SGNT Sagent Pharmaceuticals Inc. n/a n/a n/a 0
UBNT Ubiquiti Networks Inc. 48.92 -0.45 -0.91 948,544

Comments

Emerging Growth

Relevium Technologies Inc.

Relevium Technologies Inc is engaged in the acquisition of products, technologies and businesses relating to musculoskeletal function, specifically Pain Relief, Injury Recovery and Active Performance.

Private Markets

Cross Campus

With over 500 members and operating 80,000 square feet by summer 2016, Cross Campus is one of the country’s top ten shared, collaborative office or "coworking" operators in the US.…

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…