Equities Sector Coverage: Stocks End Flat Due to Late Sell-Off

Sector Recap |

Wall StreetExisting home sales rose by 3.4% in April to an annual rate 4.62 million units, the highest level since May 2010. The Dow Jones Industrial Average traded down to 12,483.21 then up to 12,575.96. The Dow went into the red with a trade at 12,575.96 into the last half hour of trading. The NASDAQ traded down to 2843.61 then up to 2867.34. The NASDAQ also went into the red with a trade at 2831.66 into the last half hour of trading. Facebook (FB) shares dropped to $30.98 per share, 18.47% below the $38 IPO.

Asian stocks were higher on Tuesday. The Nikkei 225 ended Tuesday at 8,729 – up 1.10%. The Hang Seng ended Tuesday at 19,039 – up 0.62%. European exchanges traded higher again on Tuesday. The FTSE 100 ended Tuesday at 5,403 – up 1.86%. The DAX ended Tuesday at 6,436 – up 1.65%. The CAC 40 ended Tuesday at 3,084 – up 1.88%. The yield on the 10-Year US Treasury traded up from 1.747 percent to 1.803, well below its 50-day and 200-day simple moving averages at 2.024 and 2.015, as the decline in yields remains overdone.

Gold traded down from $1594.4 the Troy ounce to $1767.1 with the “Death Cross” 50-day and 200-day simple moving averages are at $1636.8 and $1695.6. Crude oil traded down from $93.01 per barrel to $91.40 below its 200-day simple moving average at $96.29. The euro versus the dollar traded down from 1.2818 to 1.2681 below its 50-day simple moving average at 1.3104.

Energy

Moody's raised its outlook on SM Energy (SM) to positive from stable, citing increased production scale and low borrowing levels. Baker Hughes (BHI) have been downgraded to Underperform from Outperform at Crédit Agricole. Devon Energy (DVN) has been downgraded to Market Perform from Outperform with Wells Fargo. Newfield Exploration (NFX) has been downgraded to Market Perform from Outperform at BMO Capital. Dow components – Chevron (CVX) down 0.27%, Exxon Mobil (XOM) up 0.20%.

Energy Select Sector SPDR (XLE) was trading at $65.32 at 3:30 PM on Tuesday, down 0.14% on the day – down 5.51% year-to-date.

Materials

Martin Marietta (MLM) and Vulcan (VMC) have been upgraded to Buy from Hold at KeyBanc. Newmont Mining (NEM) tacked on another 1.27% on Tuesday. Dow components – Alcoa (AA) down 0.58%, DuPont (DD) flat.

The Materials Select Sector SPDR (XLB) was trading at $33.56 at 3:30 PM on Tuesday, down 0.50% on the day – up 0.18% year-to-date.

Industrials

Shaw Group (SHAW) will sell its energy and chemicals business to Technip for $300 million to allow them to pursue opportunities in its primary industries: engineering and facilities management services to oil companies and electric utilities. Nordson (NDSN) missed FQ2 EPS estimates by three cents and on the revenue line, but shares rise 4.1% in after hours trading on Monday. Manitowoc (MTW) has been upgraded to Buy from Neutral at Goldman. Dow components – Boeing Co (BA) down 0.10%, Caterpillar (CAT) down 0.11%, General Electric (GE) up 0.13%, 3M Company (MMM) down 0.07%, United Technologies (UTX) up 0.81%.

The Industrial Select Sector SPDR (XLI) was trading at $35.01 at 3:30 PM on Tuesday, up 0.37%% on the day – up 3.73% year-to-date.

Consumer Discretionary

Urban Outfitters (URBN) beat Q1 earnings on a per share basis but missed slightly on revenue. Weaker margins and higher overhead costs were still better than Street expectations as same-store sales improved, and shares climbed 7.0% in after hours trading on Monday. Best Buy (BBY) plans to expand in China using a store-within-a-store model that avoids the overhead inherent in its US operations. Best Buy (BBY) beat Q1 EPS estimated by thirteen cents with better than expected revenue and shares rose 7.9% pre-market. Polo Ralph Lauren (RL) beat FQ4 EPS by fourteen cents with in-line revenue, which was good enough for a 5.2% pre-market gain. Dow Components – Disney (DIS) up 0.38%, Home Depot up 1.26%, McDonalds (MCD) flat%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $42.91 at 3:30 PM on Tuesday, up 0.37% on the day – up 9.97% year-to-date.

Consumer Staples

Urban Outfitters (URBN) beat Q1 earnings on a per share basis but missed slightly on revenue. Weaker margins and higher overhead costs were still better than Street expectations as same-store sales improved, and shares climbed 7.0% in after hours trading on Monday. Best Buy (BBY) plans to expand in China using a store-within-a-store model that avoids the overhead inherent in its US operations. Best Buy (BBY) beat Q1 EPS estimated by thirteen cents with better than expected revenue and shares rose 7.9% pre-market. Williams-Sonoma (WSM) beat Q1 EPS estimates by two cents on better than expected revenue. Dow components – Kraft (KFT) up 0.35%, Coca Cola (KO) down 0.44%, Procter & Gamble (PG) down 0.39%, Wal-Mart (WMT) up 0.65%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.69 at 3:30 PM on Tuesday, up 0.12% on the day – up 3.69% year-to-date.

Health Care

Syntha Pharmaceuticals (SNTA) got a 7.9% pop on Monday today after Jefferies initiated the stocks with a Buy rating and a price target of $7. Merck (MRK) announced that its follow-up study on an AIDS vaccine was stopped early confirmed the worst fears of researchers that the vaccine made it more likely, not less, that some men would become infected with H.I.V. Medtronic on (MDT)reported that their positive earnings report as the company is benefiting from growth across MDT's businesses and geographies - particularly in emerging markets - and strong product launches. Dow Components – Johnson & Johnson (JNJ) up 0.22%, Merck (MRK) flat, Pfizer (PFE) flat.

The Health Care Select Sector SPDR (XLV) was trading at $36.36 at 3:30 PM on Tuesday, down 0.16% on the day – up 4.81% year-to-date.

Financial

Hampton Roads Bankshares (HMPR) will raise up to $95 million in a common stock private placement and a public rights offering at 70 cents per share, and the stock plunged 15.9% in after hours trading Monday evening. Dow Components – American Express (AXP) up 1.02%, Bank of America (BAC) up 3.22%, JP Morgan Chase (JPM) up 5.01%, Travelers (TRV) up 0.11%.

The Financial Select Sector SPDR (XLF) was trading at $14.04 at 3:30 PM on Tuesday, up 1.01% on the day – up 8.00% year-to-date.

Information Technology

AOL (AOL) announced that they plan to continue to partner with Yahoo (YHOO), but a merger is unlikely. Smartphone sales to emerging markets are soaring, particularly for Google’s (GOOG) Android devices, which creates an opening for broader Internet adoption. Sony (SNE) recently began mass production of "in-cell" touch panels for use in Apple's (AAPL) next iPhone. Zebra Technologies (ZBRA) declined 2.9% on Monday after a downgrade to Neutral on Monday at JPMorgan. Dow Components – Cisco Systems (CSCO) up 0.45%, Hewlett-Packard (HPQ) down 0.69%, IBM (IBM) down 0.12%, Intel Corp (INTC) down 0.12%, Microsoft (MSFT) flat.

The Technology Select Sector SPDR (XLK) was trading at $28.05 at 3:30 PM on Tuesday, down 0.36% on the day – up 10.22% year-to-date.

Telecommunication Services

Smartphone sales to emerging markets are soaring, particularly for Google’s (GOOG) Android devices, which creates an opening for broader Internet adoption. Sony (SNE) recently began mass production of "in-cell" touch panels for use in Apple's (AAPL) next iPhone, Vodafone's (VOD) missed FY EBITDA by even though revenues rose 1.2%, with both figures more in line with consensus. Vodafone took a hefty impairment charge related to its Southern Europe operations, but raised its dividend 7%, excluding the Verizon Wireless payout. Dow components – AT&T (T) flat, Verizon (VZ) up 0.68%.

The NASDAQ Telecommunications Index (IXTC) was trading at $183.0 at 3:30 PM on Tuesday, up 0.27% on the day – down 7.07% year-to-date.

Utilities

NV Energy (NVE) trades up on Monday after Moody's Upgrade from a junk level rating to just below investment-grade, saying the Nevada utility operator's steady improvement in its finances should continue for several years. Dominion Resources (D) up 0.63%, Edison International (EIX) up 0.97%, First Energy (FE) up 0.65%, PG&E Corp (PCG) up 0.65%, Southern Company (SO) up 0.13%.

The Utilities Select Sector SPDR (XLU) was trading at $35.72 at 3:30 PM on Tuesday, up 0.73% on the day – down 0.72% year-to-date.

STOCKS: CVX, XOM, SM, BHI, DVN, NFX, AA, DD, MLM, VMC, NEM, BA, CAT, GE, MMM, UTX, SHAW, NDSN, MTW, DIS, HD, MCD, URBN, BBY, RL, KFT, KO, PG, WMT, WSM, JNJ, MRK, PFE, SNTA, MDT, AXP, BAC, JPM, TRV, HMPR, CSCO, HPQ, IBM, INTC, MSFT, AOL, YHOO, GOOG, AAPL, ZBRA, T, VZ, VOD, D, EIX, FE, PCG, SO, NVE

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
AA Alcoa Inc. 9.96 0.08 0.81 26,881,953
AAPL Apple Inc. 112.18 -1.77 -1.55 35,890,497
AXP American Express Company 63.37 -0.85 -1.32 4,132,452
BA Boeing Company (The) 131.03 -1.20 -0.91 2,199,395
BAC Bank of America Corporation 15.16 -0.22 -1.43 78,997,682
BBY Best Buy Co. Inc. 37.41 -0.27 -0.72 3,202,199
BHI Baker Hughes Incorporated 50.21 0.39 0.78 5,242,391
CAT Caterpillar Inc. 87.47 0.88 1.02 10,616,376
CSCO Cisco Systems Inc. 31.39 -0.11 -0.35 15,417,082
CVX Chevron Corporation 101.27 -0.88 -0.86 8,148,407
D Dominion Resources Inc. 74.75 -1.09 -1.44 2,446,539
DD E.I. du Pont de Nemours and Co. 66.37 -0.82 -1.22 1,884,993
DIS Walt Disney Company (The) 91.80 -0.40 -0.43 7,476,594
DVN Devon Energy Corporation 43.04 1.46 3.51 9,428,461
EIX Edison International 72.68 -1.02 -1.38 1,311,465
FE FirstEnergy Corporation 33.17 -0.37 -1.10 2,556,258
GE General Electric Co 29.53 -0.37 -1.24 38,873,664
GOOG Alphabet Inc. 775.01 -6.55 -0.84 1,314,789
HD Home Depot Inc. (The) 127.93 -0.34 -0.27 5,987,472
HMPR Hampton Roads Bankshares Inc n/a n/a n/a 0
HPQ HP Inc. 15.39 -0.10 -0.65 9,794,741
IBM International Business Machines Corp 158.11 -0.18 -0.11 3,374,838
INTC Intel Corporation 37.32 -0.12 -0.32 17,674,969
JNJ Johnson & Johnson 117.27 -2.12 -1.78 6,190,185
JPM JP Morgan Chase 65.65 -1.06 -1.59 18,727,192
KO Coca-Cola Company (The) 42.03 -0.12 -0.28 12,671,673
MCD McDonald\'s Corporation 114.79 -0.39 -0.34 4,924,462
MDT Medtronic plc. 85.40 -1.34 -1.54 4,126,019
MLM Martin Marietta Materials Inc. 182.50 -2.60 -1.40 996,289
MMM 3M Company 175.37 -2.22 -1.25 1,853,613
MRK Merck & Company Inc. (new) 61.91 -1.39 -2.20 10,930,029
MSFT Microsoft Corporation 57.40 -0.63 -1.09 25,463,536
MTW Manitowoc Company Inc. (The) 4.60 0.03 0.66 979,842
NDSN Nordson Corporation 99.39 -0.89 -0.89 179,307
NEM Newmont Mining Corporation 39.05 -0.16 -0.41 4,168,431
NFX Newfield Exploration Company 42.78 0.75 1.78 4,039,484
PCG Pacific Gas & Electric Co. 61.76 -0.62 -0.99 2,439,995
PFE Pfizer Inc. 33.32 -0.67 -1.97 25,043,991
PG Procter & Gamble Company (The) 88.23 -1.23 -1.37 74,587,460
RL Ralph Lauren Corporation 99.65 1.71 1.75 1,306,621
SM SM Energy Company 39.49 2.98 8.16 4,887,192
SNTA Synta Pharmaceuticals Corp. n/a n/a n/a n/a
SO Southern Company (The) 52.05 -0.65 -1.23 5,877,940
T AT&T Inc. 40.73 -0.12 -0.29 17,046,784
TRV The Travelers Companies Inc. 113.87 -1.14 -0.99 1,212,640
URBN Urban Outfitters Inc. 34.43 -0.15 -0.43 1,398,713
UTX United Technologies Corporation 101.06 -1.29 -1.26 3,720,014
VMC Vulcan Materials Company (Holding Company) 114.89 -0.67 -0.58 2,406,347
VOD Vodafone Group Plc 29.12 -0.37 -1.25 4,990,949
VZ Verizon Communications Inc. 52.12 0.06 0.12 10,804,738
WMT Wal-Mart Stores Inc. 70.73 -1.06 -1.48 7,996,767
WSM Williams-Sonoma Inc. (DE) 50.42 0.02 0.04 1,524,635
WYNN Wynn Resorts Limited 100.59 -1.07 -1.05 2,858,128
XOM Exxon Mobil Corporation 86.46 -0.44 -0.51 19,082,873
YHOO Yahoo! Inc. 42.57 -1.12 -2.56 13,720,746
ZBRA Zebra Technologies Corporation 69.04 -0.80 -1.15 233,874

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