Equities Sector Coverage: Stocks Edge Lower to Start Final Week of Summer

Sector Recap |

nyse, wall street, economy, stock marketThe Dow Jones Industrial Average opened higher, traded down to 13,121.65 then up to 13,176.17. The NASDAQ opened higher, traded down to 3069.05 then up to 3085.81. Asian stocks were mixed on Monday. The Nikkei 225 ended the day at 9,085 – up 0.16%. The Hang Seng ended the day at 19,799 – down 0.41%. European exchanges were higher on Monday. The FTSE 100 was closed at 5,777. The DAX ended the day at 7,047 – up 1.10%. The CAC 40 ended the day at 3,463 – up 0.86%.

The yield on the 10-Year US Treasury note traded down from 1.688% to 1.640% versus the five-week modified moving average at 1.649%. Gold traded up to $1679.3 the Troy ounce then fell to $1666.2, above the 200-day simple moving average at $1648.1. Crude oil traded up to $97.72 per barrel then faded to $94.41 with the 200-day simple moving average at $96.75. The euro versus the dollar rebounded from 1.2493 to 1.2534 above its 50-day simple moving average at 1.2371.


Bonanza Creek Energy (BCEI) is begun with a Sector Perform at RBC Capital. Key Energy (KEG) is taken to Buy from Neutral with at SunTrust. Dow components – Chevron (CVX) down 0.06%, Exxon Mobil (XOM) down 0.12%. Energy Select Sector SPDR (XLE) was trading at $71.96 at 3:30 PM on Monday, down 0.03% on the day – up 4.09% year-to-date.


Mosaic (MOS) is a fresh Hold at Topeka. Citing expectations for higher ethane prices, UBS lowers LyondellBasell (LYB) to Neutral from Buy and Westlake Chemical (WLK) to Sell from Neutral. Dow Components – Alcoa (AA) down 1.39%, DuPont (DD) down 0.70%. The Materials Select Sector SPDR (XLB) was trading at $35.60 at 3:30 PM on Monday, down 0.67% on the day – up 6.27% year-to-date.


After two years of trying, Hertz (HTZ) is set to acquire Dollar Thrifty (DTG) in a deal worth $2.3B ($87.50 per share – a premium of 8%, more than double the $41 that Hertz offered in 2010). To help get regulatory approval, Hertz has agreed to sell its Advantage Rent-A-Car unit to Franchise Services of North America and Macquarie Capital. Marten Transport (MRTN) is moved to Buy from Hold at Wunderlich. Dow components – Boeing Co (BA) up 0.58%, Caterpillar (CAT) down 0.55%, General Electric (GE) up 0.62%, 3M Company (MMM) down 0.22%, United Technologies (UTX) up 0.82%. The Industrial Select Sector SPDR (XLI) was trading at $36.64 at 3:30 PM on Monday, down 0.19% on the day – up 8.56% year-to-date.

Consumer Discretionary

Tiffany's (TIF) Q2 earnings were in line with its own expectations but came in just below those of analysts. Net profit rose 2% to $92M, or $0.72 a share, while revenue increased by the same amount to $887M. The jeweler lowered its FY EPS guidance to $3.70-$3.80 from a prior outlook of $3.95-$4.04. GM's (GM) European unit Opel has denied a report in Germany's Bild newspaper that it intends to slash a third of jobs in the country. The cuts would be part of a phased strategy that also includes reducing working hours, a move that Opel announced last week. Ford (F) has broken ground on a factory in Chongqing in southwest China, where it plans to start making its 2-liter EcoBoost turbocharged engine. rue21 (RUE) is raised to Buy from Hold at Jefferies. Ignite Restaurant Group (IRG) is downgraded to Hold from Buy at KeyBanc. Dow Components – Disney (DIS) up 0.54%, Home Depot (HD) down 0.25%, McDonalds (MCD) up 0.85%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.32 at 3:30 PM on Monday, down 0.13% on the day – up 16.12% year-to-date.

Consumer Staples

Annie’s Inc. (BNNY) is a new Outperform at Credit Suisse. TreeHouse Foods (THS) is now Buy from Neutral at Citigroup. Dow components – Kraft (KFT) down 0.38%, Coca Cola (KO) down 0.55%, Procter & Gamble (PG) up 0.40%, Wal-Mart (WMT) up 0.85%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.645 at 3:30 PM on Monday, up 0.13% on the day – up 9.71% year-to-date.

Health Care

Allergan (AGN) is begun with an Outperform at William Blair. Globus Medical (GMED) is a new Outperform at William Blair. Jazz Pharmaceuticals (JAZZ) is initiated with a Buy at brokerage boutique WallachBeth. Sarepta Therapeutics (SRPT) is begun with a Buy at ThinkEquity. BioMarin Pharmaceutical (BMRN) is downgraded to Hold from Buy at Deutsche Bank. Big Movers – Sarepta Therapeutics (SRPT) up 13.18%, Zalicus (ZLCS) up 10.32%, Peregrine Pharmaceuticals (PPHM) down 12.27%. Dow Components – Johnson & Johnson (JNJ) up 0.22%, Merck (MRK) down 0.09%, Pfizer (PFE) down 0.29%. The Health Care Select Sector SPDR (XLV) was trading at $38.78 at 3:30 PM on Monday, up 0.10% on the day – up 11.79% year-to-date.


The drought will probably cause insurers their biggest agricultural loss ever, with gross indemnities of $30B and an underwriting loss of $18B. However, the government will pay for $14B through reinsurance programs and private firms $4B-$5B. Companies with exposure include QBE (QBEIF), American Financial (AFG) and Wells Fargo's (WFC) Rural Community. State regulators are looking at changes that would force insurers such as AIG (AIG) and MetLife (MET) to increase by billions of dollars the amount that they would have to hold against the riskier mortgage bonds they've been acquiring lately. New York Mortgage Trust (NYMT) is a new Buy at Ladenburg. Weyerhaeuser (WY) is upgraded to Market Perform from Underperform by BMO Capital. Big Movers – Hudson City Bancorp (HCBK) up 15.68%. Dow Components – American Express (AXP) up 0.03%, Bank of America (BAC) down 0.92%, JP Morgan Chase (JPM) up 0.43%, Travelers (TRV) down 0.24%. The Financial Select Sector SPDR (XLF) was trading at $15.13 at 3:30 PM on Monday, unchanged on the day – up 16.42% year-to-date.

Information Technology

Samsung's (SSNLF) shares tumbled 7.45% in Seoul today following its $1.05B patent defeat to Apple (AAPL) on Friday, with the latter climbing 2.35% premarket, Nokia (NOK) jumping 11.4% and Microsoft (MSFT) edging up 0.8%. Apple has until today to outline which Samsung devices it wants to ban from being sold in the U.S. Read market currents for a summary of the latest reaction and analysis. Samsung (SSNLF) has followed Intel (INTC) and Taiwan Semiconductor (TSM) in investing in ASML, with the South Korean company agreeing to provide the Dutch chip-equipment maker with €276M for R&D. ASML has now raised €1.38B from the three chipmakers for research. Samsung is also buying a 3% stake in ASML for €503M, bringing the total customer equity investment in the company to €3.85B. Eloqua (ELOQ) is initiated with Buys at both Needham Deutsche Bank, Overweight at JPMorgan and an Outperform at JMP Securities. FactSet Research Systems (FDS) is a fresh Market Perform at William Blair. Autodesk (ADSK) is downgraded to Hold from Buy at Argus. Broadcom (BRCM) is now Neutral from Buy at Nomura. Ellie Mae Inc. (ELLI) gets cut to Equal Weight from Overweight at Stephens. Dow Components – Cisco Systems (CSCO) up 0.44%, Hewlett-Packard (HPQ) down 1.08%, IBM (IBM) down 0.86%, Intel Corp (INTC) down 0.16%, Microsoft (MSFT) up 0.69%. The Technology Select Sector SPDR (XLK) was trading at $30.56 at 3:30 PM on Monday, unchanged on the day – up 20.16% year-to-date.

Telecommunication Services

Dow Components – AT&T (T) down 0.15%, Verizon (VZ) down 1.38%. The NASDAQ Telecommunications Index (IXTC) was trading at $197.08 at 3:30 PM on Monday, up 0.37% on the day – up 0.07% year-to-date.


Public Service Enterprise Group (PEG) is downgraded to Underperform from Perform at FBR Capital. Dominion Resources (D) up 0.45%, Edison International (EIX) up 1.32%, First Energy (FE) up 0.24%, PG&E Corp (PCG) up 0.27%, Southern Company (SO) down 0.38%. The Utilities Select Sector SPDR (XLU) was trading at $36.67 at 3:30 PM on Monday, up 0.14% on the day – up 1.95% 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
AA Alcoa Inc. 27.78 0.49 1.80 6,624,655
AAPL Apple Inc. 115.50 -2.75 -2.33 58,651,120
ADSK Autodesk Inc. 70.70 -0.66 -0.92 822,846
AFG American Financial Group Inc. 75.12 0.29 0.39 244,558
AGN Allergan plc 222.50 -2.79 -1.24 1,799,784
AIG American International Group Inc. New 61.26 0.71 1.17 3,975,760
AXP American Express Company 66.78 0.04 0.06 2,987,034
BA Boeing Company (The) 145.80 6.78 4.88 12,002,429
BAC Bank of America Corporation 16.86 0.14 0.81 51,577,694
BCEI Bonanza Creek Energy Inc. 1.05 -0.05 -4.54 738,220
BMRN BioMarin Pharmaceutical Inc. 81.75 0.79 0.98 789,398
BRCM Broadcom Corp. n/a n/a n/a 0
CAT Caterpillar Inc. 84.25 -0.24 -0.28 5,662,591
CSCO Cisco Systems Inc. 30.61 0.27 0.87 14,123,421
CVX Chevron Corporation 101.13 0.36 0.36 5,292,660
D Dominion Resources Inc. 73.91 0.51 0.69 1,276,908
DD E.I. du Pont de Nemours and Co. 68.89 -0.73 -1.05 2,118,353
DIS Walt Disney Company (The) 93.48 0.73 0.79 5,321,314
EIX Edison International 71.92 0.30 0.42 777,312
ELLI Ellie Mae Inc. 101.98 -1.60 -1.54 217,702
F Ford Motor Company 11.92 0.07 0.55 31,343,123
FDS FactSet Research Systems Inc. 154.68 1.64 1.07 244,417
FE FirstEnergy Corporation 33.96 0.34 1.01 3,013,077
GE General Electric Co 28.90 0.25 0.88 19,935,266
GM General Motors Company 31.61 0.01 0.02 13,042,500
GMED Globus Medical Inc. Class A 21.86 -0.83 -3.64 700,877
HCBK Hudson City Bancorp Inc n/a n/a n/a 0
HD Home Depot Inc. (The) 122.90 -0.44 -0.36 4,471,981
HPQ HP Inc. 13.90 0.00 0.00 15,685,126
HTZ Hertz Global Holdings Inc 34.18 0.19 0.56 837,058
IBM International Business Machines Corp 151.83 0.95 0.63 2,264,349
INTC Intel Corporation 34.96 -0.15 -0.41 16,292,924
IRG Ignite Restaurant Group Inc. 0.45 -0.01 -2.37 11,581
JAZZ Jazz Pharmaceuticals plc 117.95 -1.01 -0.85 383,002
JNJ Johnson & Johnson 114.81 0.85 0.75 4,852,483
JPM JP Morgan Chase 69.18 0.38 0.55 8,315,855
KEG Key Energy Services Inc. n/a n/a n/a n/a
KO Coca-Cola Company (The) 42.51 -0.04 -0.08 14,239,969
LYB LyondellBasell Industries NV Class A (Netherlands) 80.32 0.36 0.45 1,891,328
MCD McDonald\'s Corporation 112.22 -0.51 -0.45 3,214,893
MET MetLife Inc. 46.92 0.63 1.36 3,981,828
MMM 3M Company 166.66 0.43 0.26 1,832,850
MOS Mosaic Company (The) 24.80 0.20 0.81 2,766,776
MRK Merck & Company Inc. (new) 60.89 -1.06 -1.71 8,117,324
MRTN Marten Transport Ltd. 20.30 0.15 0.74 67,916
MSFT Microsoft Corporation 60.73 -0.27 -0.43 23,587,661
NOK Nokia Corporation Sponsored American Depositary Sh 5.20 0.23 4.53 14,040,634
NYMT New York Mortgage Trust Inc. 5.99 -0.04 -0.66 483,908
PCG Pacific Gas & Electric Co. 60.94 0.15 0.25 1,244,751
PEG Public Service Enterprise Group 41.30 0.13 0.32 1,458,713
PFE Pfizer Inc. 32.47 0.19 0.58 13,846,277
PG Procter & Gamble Company (The) 87.46 0.49 0.56 7,170,284
PPHM Peregrine Pharmaceuticals Inc. 0.34 -0.01 -3.37 797,858
RWWD:CA First Asset MSCI World Low Risk Weighted ETF Com U n/a n/a n/a 0
SO Southern Company (The) 51.01 0.04 0.08 2,428,119
SRPT Sarepta Therapeutics Inc. 44.65 -1.68 -3.63 2,438,854
T AT&T Inc. 36.44 -0.26 -0.71 28,705,658
THS Treehouse Foods Inc. 87.48 0.26 0.30 504,534
TIF Tiffany & Co. 73.61 0.22 0.30 737,688
TRV The Travelers Companies Inc. 108.85 -0.18 -0.16 2,180,158
TSM Taiwan Semiconductor Manufacturing Company Ltd. 31.24 -0.32 -1.00 3,306,947
UTX United Technologies Corporation 101.11 -0.26 -0.25 3,237,551
VZ Verizon Communications Inc. 47.65 -0.19 -0.40 11,149,218
WFC Wells Fargo & Company 46.08 0.36 0.79 21,425,423
WLK Westlake Chemical Corporation 51.19 -0.31 -0.60 938,811
WMT Wal-Mart Stores Inc. 69.66 0.30 0.43 3,826,621
WY Weyerhaeuser Company 30.28 -0.56 -1.82 2,414,596
XOM Exxon Mobil Corporation 87.01 0.29 0.33 6,684,682


Emerging Growth

Lomiko Metals Inc.

Lomiko Metals Inc is an exploration stage company. It is engaged in the acquisition, exploration and development of resource properties. Its projects include Vines Lake project and Quatre - Milles…

Private Markets


Lyft matches drivers using their own personal vehicles with passengers who request rides through the smartphone app, and the passengers pay automatically through the app. When using Lyft, passengers have…

Dropbox, Inc.

Dropbox is a service that allows their users to bring all photos, docs, and videos anywhere, and share them easily. Any file saved to Dropbox will automatically save to all…