Equities Sector Coverage: Stocks Close Out Worst Week of Year

Sector Recap  |

Nonfarm Payrolls increased by a less than expected 115,000 in April, but with upward revisions for February and March the net was a gain close to the 175,000 consensus. The labor force shrunk by 522,000 bringing the Unemployment Rate down to 8.1%. This forced the labor force participation rate down to just 63.6 from 63.8 in March. The Dow Industrial Average traded down to 13,022.34 trending below its year-to-date high set at 13,338.66 on May 1st. The NASDAQ traded down to 2957.21 staying well below its March 27th high at 3134.17.

Asian stocks were lower on Friday. The Nikkei 225 was closed again at 9,380. The Hang Seng ended their session at 21,086 – down 0.77% on the day. European exchanges traded lower on Friday. The FTSE 100 ended their session at 5,655 – down 1.93% on the day. The DAX ended their session at 6,561 – down 1.99% on the day. The CAC 40 ended their session at 3,162 – down 1.90% on the day. The yield on the 10-Year US Treasury traded between 1.922 percent and 1.940 pre-employment data then rose slightly to 1.956 before declining to 1.872, well below its 50-day and 200-day simple moving averages at 2.075 and 2.061.

Gold declined from $1637.9 the Troy ounce to $1626.8 then rebounded to $1648.0 well below the 50-day and 200-day simple moving averages at $1667.9 and $1698.7. Crude oil traded down from $102.72 per barrel to $97.51 well below its 50-day simple moving average at $105.01 and approaching its 200-day at $96.34. The euro versus the dollar traded up to 1.3176 then down to 1.3088 below its 50-day simple moving average at 1.3198.

Energy

TransCanada (TRP) will reapply for Presidential approval of the section of the Keystone pipeline that crossed the Canadian border. The route through has been altered for environmental issues. Spectra Energy (SE) missed Q1 EPS estimates by a penny with weaker than expected revenue. Dow components – Chevron (CVX) – down 2.1%, Exxon Mobil (XOM) down 1.1%.
Energy Select Sector SPDR (XLE) was trading at $68.36 at 3:30 PM on Friday, down 2.20% on the day – down 1.11% year-to-date.

Materials

Haynes International (HAYN) beat FQ2 EPS estimates by nineteen cents with a miss on the revenue line. Eldorado Gold (EGO) reported Q1 EPS of eleven cents with a miss on the revenue line. CF Industries (CF) beat Q1 EPS estimates by 67 cents with better than expected revenue. The company forecasts higher expected corn planting, tight nitrogen supply and favorable natural gas prices to provide a positive 2012. Dow components – Alcoa (AA) down 2.1%, DuPont (DD) down 0.7%.
The Materials Select Sector SPDR (XLB) was trading at $35.66 at 3:30 PM on Friday, down 1.74% on the day – up 6.45% year-to-date.

Industrials

United Airlines (UAL) appears ready to order 100 Boeing (BA) 737 planes worth as much as $10 billion and could potentially increase to 200 planes. ITT Industries (ITT) beat Q1 EPS estimates by eight cents with better than expected revenue. Manitowoc (MTW) missed Q1 EPS estimates by eight cents with a miss on the revenue line. Dow components – Boeing Co (BA) down 1.2%, Caterpillar (CAT) down 2.3%, General Electric (GE) down 1.0%, 3M Company (MMM) down 0.9%, United Technologies (UTX) down 1.4%.
The Industrial Select Sector SPDR (XLI) was trading at $36.28 at 3:30 PM on Friday, down 1.49% on the day – up 7.50% year-to-date.

Consumer Discretionary

Warnaco Group (WRC) missed Q1 EPS estimates by six cents on revenue of $615.5 million, down 7.1% year over year. MGM Resorts (MGM) plans to build a $2.5 casino in Cotai give approval from the Macau government. Whole Foods Market (WFM) gets upgraded to Overweight by JP Morgan after beating firm's FQ2 earnings. Dunkin' Brands (DNKN) will add 80 Baskin-Robbins in the U.K. over the next 3 years. LeapFrog Enterprises (LF) beat Q1 EPS estimates by twelve cents with better than expected revenue. Dow Components – Disney (DIS) down 1.9%, Home Depot down 1.1%, McDonalds (MCD) down 0.9%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.91 at 3:30 PM on Friday, down 1.94% on the day – up 15.09% year-to-date.

Consumer Staples

A California pension fund sues the Wal-Mart (WMT) board for mishandling the allegations about the bribery scandal in Mexico and its cover up. Speculation that Coca-Cola (KO) will buy Monster Beverage (MNST) continues Stifel Nicolaus saying a KO-MNST deal still makes sense due to distribution savings. Estee Lauder (EL) beat FQ3 EPS estimates by a nickel with in-line revenue. PepsiCo (PEP) is working on an alliance Tingy Holdings in China to help sales in the nation. Dole Foods (DOLE) quarterly results were below expectations on a slump in core earnings because of hedging losses. Kraft (KFT) beat Q1 EPS estimates by a penny with better than expected revenue. Dow components – Kraft (KFT) down 0.5%, Coca Cola (KO) down 0.2%, Procter & Gamble (PG) flat, Wal-Mart (WMT) down 0.2%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.12 at 3:30 PM on Friday, down 0.67% on the day – up 5.02% year-to-date.

Health Care

Targacept (TRGT) beats Q1 EPS estimates by 32 cents on revenue of $22.9 million down 41% year over year. Alexza (ALXA) was down 34.4% premarket after announcing that its new drug application for Adasuve, a schizophrenic and bipolar disorder treatment, cannot be approved by the FDA until a deficiency at a manufacturing facility is resolved. Synergy Pharmaceuticals (SGYP) was down 22.7% premarket after announcing that the company witll offer ten million shares of common stock at $4.50 / share to fund research and development activities, including clinical trials of its plecanatide and SP-333 for treatment of gastrointestinal disorders. Warner Chilcott (WCRX) beat Q1 EPS estimates by seventeen cents but missed on the revenue line. Dow Components – Johnson & Johnson (JNJ) down 0.5%, Merck (MRK) down 1.2%, Pfizer (PFE) down 1.0%.
The Health Care Select Sector SPDR (XLV) was trading at $36.98 at 3:30 PM on Friday, down 1.23% on the day – up 6.60% year-to-date.

Financials

Fed supervisors are pressuring bank such as BNY Mellon (BK) and JPMorgan (JPM) to reduce exposures to the risky $1.7 trillion market for tri-party repos. Goldman (GS) is said to be planning to develop a new bond trading platform to lower fees on typical bond trades. Bank of America (BAC) is reportedly preparing to discuss with lawyers who represent above 1,000 former Merrill Lynch brokers over the claim that the bank owes the brokers deferred compensation that could run into the millions. St. Joe Company (JOE) missed Q1 EPS estimates by four cents with revenue of $30.5 million, down -58% year over year. JP Morgan (JPM) has been downgraded to Underperform from Outperform by CLSA, as influential banking analyst Mike Mayo cites increased US macro uncertainty and political issues in Europe. Dow Components – American Express (AXP) down 1.0%, Bank of America (BAC) down 3.2%, JP Morgan Chase (JPM) down 2.6%, Travelers (TRV) down 0.9%.
The Financial Select Sector SPDR (XLF) was trading at $15.09 at 3:30 PM on Friday, down 1.63% on the day – up 16.08% year-to-date.

Information Technology

Sapient (SAPE) missed Q1 EPS estimates by two cents with in-line revenue. Power-One (PWER) reported Q1 EPS of three cents with a beat on the revenue line. Pegasystems (PEGA) missed Q1 EPS estimates by a nickel with in-line revenue. ManTech International (MANT) missed Q1 EPS estimates by nine cents with a miss on the revenue line. Limelight Networks (LLNW) missed Q1 EPS estimates by a penny with in-line revenue. j2 Global Communications (JCOM) beat Q1 EPS estimates by two cents with in-line revenue. International Rectifier (IRF) beat FQ3 EPS estimates by fourteen cents. Dow Components – Cisco Systems (CSCO) down 3.1%, Hewlett-Packard (HPQ) down 0.9%, IBM (IBM) down 0.9%, Intel Corp (INTC) down 2.0%, Microsoft (MSFT) down 2.0%.
The Technology Select Sector SPDR (XLK) was trading at $29.10 at 3:30 PM on Friday, down 1.99% on the day – up 14.34% year-to-date.

Telecommunication Services

United States Cellular (USM) beat Q1 EPS estimates by 29 cents with in-line revenue. Telephone and Data Systems (TDS) reported Q1 EPS of 48 cents with in-line revenue. Cincinnati Bell (CBB) missed Q1 EPS estimates by a penny on improved revenue. Dow components – AT&T (T) down 0.6%, Verizon (VZ) down 0.7%.
The NASDAQ Telecommunications Index (IXTC) was trading at $202.33 at 3:30 PM on Friday, down 2.35% on the day – up 2.74% year-to-date.

Utilities

Ameren (AEE) beat Q1 EPS estimates by a penny with in-line revenue. Pepco Holdings (POM) beat Q1 EPS estimates by six cents but missed on the revenue line. Exelon (EXC) beat Q1 EPS estimates by a nickel. Duke Energy (DUK) beat Q1 EPS estimates by a penny with in-line revenue. Northwest Natural Gas (NWN) missed Q1 EPS estimates by a penny with a miss on the revenue line. Alliant Energy (LNT) missed Q1 EPS estimates by fourteen cents with a miss on the revenue line. AES Corp beat Q1 EPS estimates by ten cents with a beat on the revenue line. National Fuel Gas Company (NFG) reported in-line Q1 EPS but missed on the revenue line. Consolidated Edison (ED) missed EPS estimates by a dime. Dominion Resources (D) up 0.5%, Edison International (EIX) up 0.4%, First Energy (FE) up 0.15%, PG&E Corp (PCG) up 0.3%, Southern Company (SO) up 0.7%.
The Utilities Select Sector SPDR (XLU) was trading at $35.58 at 3:30 PM on Friday, up 0.17% on the day – down 1.11% year-to-date.

STOCKS: CVX, XOM, TRP, SE, AA, DD, HAYN, EGO, CF, BA, CAT, GE, MMM, UTX, UAL, ITT, MTW, DIS, HD, MCD, WRC, MGM, WFM, DNKN, KFT, KO, PG, WMT, MNST, EL, PEP, DOLE, JNJ, MRK, PFE, TRGT, ALXA, SGYP, WCRX, AXP, BAC, JPM, TRV, BK, GS, JOE, CSCO, HPQ, IBM, INTC, MSFT, SAPE, PEGA, PWER, MANT, LLNW, JCOM, T, VZ, USM, TDS, CBB, D, EIX, FE, PCG, AEE, POM, DUK, NWN, LNT, AES, NFG, ED

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Companies

Symbol Name Price Change % Volume
MMM 3M Company 196.10 -6.03 -2.98 2,473,515 Trade
CF CF Industries Holdings Inc. 42.06 0.42 1.01 4,800,574 Trade
MTW Manitowoc Company Inc. (The) 15.27 -0.23 -1.48 389,277 Trade
UAL United Continental Holdings Inc. 87.74 0.26 0.30 2,800,657 Trade
PG Procter & Gamble Company (The) 96.64 0.15 0.16 12,657,340 Trade
GE General Electric Company 7.10 -0.10 -1.39 128,800,697 Trade
CVX Chevron Corporation 113.83 -2.11 -1.82 6,195,492 Trade
PCG Pacific Gas & Electric Co. 26.01 -0.50 -1.89 12,100,220 Trade
JOE St. Joe Company (The) 14.16 -0.12 -0.84 135,120 Trade
TDS Telephone and Data Systems Inc. 34.32 -0.03 -0.09 879,774 Trade
AEE Ameren Corporation 69.81 -0.63 -0.89 1,432,846 Trade
JNJ Johnson & Johnson 133.00 -14.84 -10.04 58,140,194 Trade
AA Alcoa Corporation 28.61 -0.49 -1.68 3,358,975 Trade
INTC Intel Corporation 47.86 -0.43 -0.89 26,372,077 Trade
D Dominion Energy Inc. 76.92 0.87 1.14 9,081,638 Trade
TRV The Travelers Companies Inc. 120.55 -0.95 -0.78 2,097,783 Trade
USM United States Cellular Corporation 53.92 -0.47 -0.86 158,276 Trade
CBB Cincinnati Bell Inc. 9.34 -0.19 -1.99 480,201 Trade
EL Estee Lauder Companies Inc. (The) 135.18 -4.95 -3.53 2,376,283 Trade
TRGT TRGT n/a n/a n/a 0 Trade
PEGA Pegasystems Inc. 49.09 -1.06 -2.11 346,271 Trade
EIX Edison International 59.64 0.11 0.18 2,377,271 Trade
SE Sea Limited American Depositary Shares each representing one Class A 11.87 -0.29 -2.38 650,851 Trade
AXP American Express Company 105.70 -1.00 -0.94 5,245,408 Trade
ITT ITT Inc. 49.48 -0.52 -1.04 602,410 Trade
UTX United Technologies Corporation 118.80 -0.45 -0.38 4,011,638 Trade
ALXA Alexza Pharmaceuticals Inc n/a n/a n/a 0
MNST Monster Beverage Corporation 52.69 -0.74 -1.39 3,614,636 Trade
CSCO Cisco Systems Inc. 45.82 -1.65 -3.48 27,364,513 Trade
MANT ManTech International Corporation 55.22 0.03 0.05 90,241 Trade
AES The AES Corporation 15.95 0.17 1.08 6,789,798 Trade
GS Goldman Sachs Group Inc. (The) 172.77 -3.15 -1.79 5,078,341 Trade
VZ Verizon Communications Inc. 57.08 -0.01 -0.02 13,960,870 Trade
DNKN Dunkin' Brands Group Inc. 69.44 -1.36 -1.92 972,757 Trade
BAC Bank of America Corporation 24.48 0.08 0.33 92,762,595 Trade
MCD McDonald's Corporation 183.29 -3.14 -1.68 4,450,192 Trade
EGO Eldorado Gold Corporation 0.58 -0.01 -1.28 4,215,218 Trade
BK Bank of New York Mellon Corporation (The) 48.67 0.58 1.21 9,624,204 Trade
MGM MGM Resorts International 26.46 -0.18 -0.68 4,657,915 Trade
LLNW Limelight Networks Inc. 2.46 -0.13 -5.02 2,944,191 Trade
LNT Alliant Energy Corporation 45.32 -0.80 -1.73 7,159,108 Trade
ED Consolidated Edison Inc. 83.83 -0.10 -0.12 3,049,009 Trade
PFE Pfizer Inc. 43.80 -0.77 -1.73 31,333,031 Trade
POM Pepco Holdings Inc. n/a n/a n/a 0 Trade
HPQ HP Inc. 22.01 -0.28 -1.26 11,959,572 Trade
TRP TransCanada Corporation 40.04 -0.13 -0.32 1,691,139 Trade
MRK Merck & Company Inc. (new) 76.48 -1.98 -2.52 13,259,931 Trade
HAYN Haynes International Inc. 28.33 -0.71 -2.44 47,300 Trade
NFG National Fuel Gas Company 55.87 -0.11 -0.20 532,786 Trade
JCOM j2 Global Inc. 70.78 -0.81 -1.13 714,669 Trade
FE FirstEnergy Corp. 39.12 -0.32 -0.81 11,758,644 Trade
KO Coca-Cola Company (The) 49.34 -0.13 -0.26 13,836,073 Trade
T AT&T Inc. 30.22 0.31 1.04 42,741,389 Trade
CAT Caterpillar Inc. 126.77 0.87 0.69 4,483,281 Trade
DUK Duke Energy Corporation (Holding Company) 90.75 -0.15 -0.17 3,651,850 Trade
MSFT Microsoft Corporation 106.03 -3.42 -3.12 47,043,136 Trade
SGYP Synergy Pharmaceuticals Inc. 0.08 -0.05 -38.56 47,440,218 Trade
WMT Walmart Inc. 91.85 -1.11 -1.19 11,493,836 Trade
IBM International Business Machines Corporation 119.90 -0.83 -0.69 4,554,204 Trade
JPM JP Morgan Chase & Co. 100.29 -0.83 -0.82 19,879,525 Trade
DIS The Walt Disney Company 112.20 -1.19 -1.05 7,602,301 Trade
HD Home Depot Inc. (The) 172.29 -1.58 -0.91 4,265,183 Trade
XOM Exxon Mobil Corporation 75.58 -1.40 -1.82 12,669,300 Trade
BA The Boeing Company 318.75 -6.72 -2.06 3,298,436 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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