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
MMM 3M Company 196.50 0.98 0.50 2,838,172 Trade
MTW Manitowoc Company Inc. (The) 27.18 1.01 3.86 944,608 Trade
PG Procter & Gamble Company (The) 77.43 0.99 1.30 11,815,468 Trade
GE General Electric Company 13.05 0.29 2.27 74,119,111 Trade
CVX Chevron Corporation 125.10 2.51 2.05 8,911,771 Trade
SO Southern Company (The) 45.81 0.52 1.15 6,603,954 Trade
NDSN Nordson Corporation 130.49 0.07 0.05 611,571 Trade
PCG Pacific Gas & Electric Co. 42.92 2.39 5.90 16,575,649 Trade
SNTA Synta Pharmaceuticals Corp. n/a n/a n/a n/a
JNJ Johnson & Johnson 122.84 1.39 1.14 10,305,307 Trade
WMT Walmart Inc. 84.82 0.61 0.72 11,005,783 Trade
AA Alcoa Corporation 45.56 0.75 1.67 3,383,121 Trade
INTC Intel Corporation 52.50 0.31 0.59 34,682,074 Trade
IBM International Business Machines Corporation 141.28 0.03 0.02 6,013,678 Trade
D Dominion Energy Inc. 66.94 0.34 0.51 3,525,081 Trade
TRV The Travelers Companies Inc. 124.41 0.96 0.78 1,817,208 Trade
WYNN Wynn Resorts Limited 170.14 -1.86 -1.08 3,024,311 Trade
AAPL Apple Inc. 184.92 -0.54 -0.29 27,200,447 Trade
EIX Edison International 61.70 1.03 1.70 3,996,598 Trade
JPM JP Morgan Chase & Co. 105.75 -1.76 -1.64 19,938,788 Trade
AXP American Express Company 97.23 0.60 0.62 9,083,001 Trade
UTX United Technologies Corporation 124.87 1.39 1.13 3,965,347 Trade
VOD Vodafone Group Plc 24.87 0.40 1.63 3,069,706 Trade
WSM Williams-Sonoma Inc. (DE) 63.43 -0.78 -1.21 2,323,683 Trade
MLM Martin Marietta Materials Inc. 227.43 2.79 1.24 512,956 Trade
CSCO Cisco Systems Inc. 43.20 0.04 0.09 27,459,976 Trade
DIS The Walt Disney Company 106.34 0.45 0.42 9,285,729 Trade
HMPR Hampton Roads Bankshares Inc n/a n/a n/a 0 Trade
VZ Verizon Communications Inc. 49.76 1.13 2.32 40,979,879 Trade
MDT Medtronic plc. 86.81 0.51 0.59 5,573,760 Trade
BAC Bank of America Corporation 28.99 -0.30 -1.02 77,348,906 Trade
ZBRA Zebra Technologies Corporation 147.88 -2.81 -1.86 481,953 Trade
GOOG Alphabet Inc. 1,155.48 -2.18 -0.19 1,310,967 Trade
MCD McDonald's Corporation 164.55 4.02 2.50 10,927,291 Trade
URBN Urban Outfitters Inc. 46.05 -0.60 -1.29 4,864,180 Trade
VMC Vulcan Materials Company (Holding Company) 131.57 1.71 1.32 1,148,438 Trade
BBY Best Buy Co. Inc. 76.26 -0.97 -1.26 4,128,479 Trade
HD Home Depot Inc. (The) 197.41 -2.90 -1.45 7,067,329 Trade
XOM Exxon Mobil Corporation 81.38 1.69 2.12 16,707,364 Trade
PFE Pfizer Inc. 36.51 0.21 0.58 26,613,610 Trade
HPQ HP Inc. 23.80 0.30 1.28 15,110,929 Trade
BA The Boeing Company 338.91 1.25 0.37 3,298,084 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
MRK Merck & Company Inc. (new) 61.47 0.29 0.47 12,913,091 Trade
DVN Devon Energy Corporation 43.28 2.13 5.18 8,104,612 Trade
FE FirstEnergy Corp. 35.09 -0.06 -0.17 3,998,693 Trade
NFX Newfield Exploration Company 30.75 1.52 5.20 4,518,410 Trade
KO Coca-Cola Company (The) 43.25 0.16 0.37 16,031,146 Trade
T AT&T Inc. 31.69 0.09 0.28 63,900,036 Trade
CAT Caterpillar Inc. 139.94 0.41 0.29 5,223,430 Trade
NEM Newmont Mining Corporation 37.46 0.44 1.19 5,881,472 Trade
SM SM Energy Company 25.52 1.60 6.69 3,942,793 Trade
MSFT Microsoft Corporation 100.41 -0.73 -0.72 38,923,105 Trade
RL Ralph Lauren Corporation 130.26 -4.83 -3.58 1,844,358 Trade

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