Equities Sector Coverage: Stocks Close Out Week in Green

Sector Recap  |

The 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.


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Companies

Symbol Name Price Change % Volume
DNN Denison Mines Corp (Canada) 0.38 -0.01 -1.73 515,989
MMM 3M Company 156.93 -1.63 -1.03 3,535,642 Trade
GSK GlaxoSmithKline PLC 43.08 0.32 0.75 3,832,924 Trade
CF CF Industries Holdings Inc. 39.35 -0.13 -0.33 2,065,724 Trade
AXAS Abraxas Petroleum Corporation 0.22 -0.01 -2.36 1,139,667 Trade
ARO Manulife Financial Corporation n/a n/a n/a n/a
PG Procter & Gamble Company (The) 126.70 0.12 0.09 8,724,117 Trade
GE General Electric Company 12.25 -0.28 -2.23 42,921,245 Trade
CVX Chevron Corporation 109.01 -0.80 -0.73 6,443,864 Trade
SO Southern Company (The) 68.99 -0.82 -1.17 5,386,374 Trade
PCG Pacific Gas & Electric Co. 17.92 0.07 0.39 6,228,276 Trade
GLUU Glu Mobile Inc. 7.85 0.44 5.87 9,014,880 Trade
LGF Lions Gate Entertainment Corporation n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 149.93 1.56 1.05 7,776,835 Trade
AA Alcoa Corporation 16.10 0.00 0.00 5,528,628 Trade
INTC Intel Corporation 64.34 -1.11 -1.70 20,780,465 Trade
D Dominion Energy Inc. 89.38 0.13 0.15 3,126,384 Trade
TRV The Travelers Companies Inc. 135.16 1.18 0.88 1,469,657 Trade
OSUR OraSure Technologies Inc. 6.09 -0.04 -0.65 448,482 Trade
BIG Big Lots Inc. 25.41 -0.51 -1.97 1,336,038 Trade
CVC Cablevision Systems Corporation Class A n/a n/a n/a 0 Trade
BCS Barclays PLC 9.27 -0.05 -0.54 4,965,777 Trade
C Citigroup Inc. 76.44 -1.78 -2.28 14,020,006 Trade
LVS Las Vegas Sands Corp. 65.60 -1.84 -2.73 5,224,069 Trade
EIX Edison International 77.57 0.25 0.32 1,441,484 Trade
ECA OVV Encana Corporation n/a n/a n/a 0 Trade
MS Morgan Stanley 52.42 -1.33 -2.47 29,541,326 Trade
AXP American Express Company 134.90 -1.68 -1.23 3,106,406 Trade
UTX United Technologies Corporation 151.52 1.62 1.08 4,277,576 Trade
MTL Mechel PAO American Depositary Shares (Each rep. 1) 3.17 0.02 0.63 23,723 Trade
JDSU Viavi Solutions Inc n/a n/a n/a 0 Trade
CSCO Cisco Systems Inc. 46.30 -0.56 -1.18 20,031,423 Trade
GS Goldman Sachs Group Inc. (The) 230.62 -2.11 -0.91 3,082,273 Trade
VZ Verizon Communications Inc. 58.20 0.11 0.19 15,704,333 Trade
VRSN VeriSign Inc. 206.12 -2.94 -1.41 623,533 Trade
BAC Bank of America Corporation 34.36 -0.49 -1.41 46,675,464 Trade
MCD McDonald's Corporation 215.87 0.79 0.37 2,791,392 Trade
CIEN Ciena Corporation 43.89 -0.58 -1.30 2,082,178 Trade
PFE Pfizer Inc. 35.72 -0.13 -0.36 30,763,978 Trade
NVO Novo Nordisk A/S 63.85 0.34 0.54 873,502 Trade
HPQ HP Inc. 22.70 0.06 0.27 16,987,215 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
MRK Merck & Company Inc. (new) 82.34 -0.15 -0.18 8,870,220 Trade
FE FirstEnergy Corp. 51.57 -0.22 -0.42 5,933,281 Trade
BRCM Broadcom Corp. n/a n/a n/a 0 Trade
SLW WPM Silver Wheaton Corp (Canada) n/a n/a n/a n/a
KO Coca-Cola Company (The) 60.13 0.41 0.69 10,842,358 Trade
T AT&T Inc. 38.55 -0.06 -0.16 28,468,242 Trade
CAT Caterpillar Inc. 137.21 0.28 0.20 2,855,843 Trade
JCP J.C. Penney Company Inc. 0.72 -0.05 -7.06 8,532,679 Trade
MSFT Microsoft Corporation 178.59 -5.83 -3.16 48,600,385 Trade
AAP Advance Auto Parts Inc W/I 140.61 -1.87 -1.31 791,801 Trade
CHK Chesapeake Energy Corporation 0.45 -0.03 -6.39 43,117,647 Trade
CIR CIRCOR International Inc. 43.86 0.90 2.09 139,839 Trade
RL Ralph Lauren Corporation 117.46 -4.40 -3.61 914,570 Trade
SGNT Sagent Pharmaceuticals Inc. n/a n/a n/a 0 Trade
UBNT UI Ubiquiti Networks Inc. n/a n/a n/a 0
WMT Walmart Inc. 118.58 0.89 0.76 6,242,526 Trade
IBM International Business Machines Corporation 149.84 -1.38 -0.91 3,537,258 Trade
JPM JP Morgan Chase & Co. 135.81 -1.68 -1.22 9,772,770 Trade
DIS The Walt Disney Company 138.97 -1.40 -1.00 7,725,829 Trade
HD Home Depot Inc. (The) 245.34 -1.68 -0.68 3,881,083 Trade
XOM Exxon Mobil Corporation 59.13 -0.73 -1.22 20,315,705 Trade
BA The Boeing Company 330.38 -5.90 -1.75 3,709,888 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

Blockchain in Fintech - Discussion at the EU Parliament

From the recent Blockchain For Europe Summit in Brussels: Panel on Financial Market Infrastructure