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 185.90 2.53 1.38 1,837,417
MTW Manitowoc Company Inc. (The) 6.49 -0.15 -2.19 1,409,250
PG Procter & Gamble Company (The) 91.38 -0.29 -0.32 4,663,572
GE General Electric Co 30.33 -0.19 -0.62 21,802,993
CVX Chevron Corporation 110.64 -1.09 -0.97 3,663,716
SO Southern Company (The) 48.83 0.55 1.14 4,537,801
NDSN Nordson Corporation 120.34 0.30 0.25 150,436
PCG Pacific Gas & Electric Co. 64.75 0.11 0.17 1,081,184
SNTA Synta Pharmaceuticals Corp. n/a n/a n/a n/a
JNJ Johnson & Johnson 119.53 -0.14 -0.11 3,099,880
WMT Wal-Mart Stores Inc. 71.89 0.44 0.62 10,693,394
AA Alcoa Inc. 36.54 -0.17 -0.46 1,487,252
INTC Intel Corporation 35.91 -0.61 -1.68 21,520,606
IBM International Business Machines Corp 180.88 0.62 0.34 1,921,455
D Dominion Resources Inc. 75.17 0.41 0.55 1,892,177
TRV The Travelers Companies Inc. 121.87 0.32 0.26 784,020
WYNN Wynn Resorts Limited 95.07 -0.90 -0.94 1,494,308
AAPL Apple Inc. 136.64 -0.06 -0.04 14,236,066
EIX Edison International 77.23 0.01 0.01 1,732,103
JPM JP Morgan Chase 90.90 -0.11 -0.12 7,511,928
AXP American Express Company 79.92 -0.06 -0.07 2,038,396
UTX United Technologies Corporation 112.54 0.04 0.04 1,525,063
VOD Vodafone Group Plc 25.48 -0.02 -0.08 3,269,844
WSM Williams-Sonoma Inc. (DE) 47.97 -0.59 -1.22 631,103
MLM Martin Marietta Materials Inc. 219.11 -0.87 -0.40 576,910
CSCO Cisco Systems Inc. 34.06 -0.08 -0.22 18,794,607
DIS Walt Disney Company (The) 110.10 0.09 0.08 3,680,173
HMPR Hampton Roads Bankshares Inc n/a n/a n/a 0
VZ Verizon Communications Inc. 49.57 0.14 0.27 9,292,324
MDT Medtronic plc. 79.88 -0.69 -0.85 4,177,345
BAC Bank of America Corporation 24.78 -0.01 -0.02 68,534,606
ZBRA Zebra Technologies Corporation 85.26 -1.42 -1.64 197,341
GOOG Alphabet Inc. 831.30 -0.36 -0.04 657,991
MCD McDonald\'s Corporation 127.76 -0.28 -0.22 2,616,298
DD E.I. du Pont de Nemours and Co. 79.97 2.79 3.61 7,005,386
BHI Baker Hughes Incorporated 60.26 -0.29 -0.48 1,382,162
URBN Urban Outfitters Inc. 27.64 -0.02 -0.05 1,403,471
VMC Vulcan Materials Company (Holding Company) 120.50 -0.57 -0.47 754,203
BBY Best Buy Co. Inc. 45.57 -0.41 -0.89 1,326,927
HD Home Depot Inc. (The) 145.22 0.20 0.14 3,577,402
XOM Exxon Mobil Corporation 80.96 -0.93 -1.14 8,719,336
PFE Pfizer Inc. 33.54 -0.09 -0.25 16,700,080
HPQ HP Inc. 16.15 0.02 0.09 9,130,996
BA Boeing Company (The) 175.04 -0.52 -0.30 1,968,508
YHOO Yahoo! Inc. 46.08 0.58 1.27 4,548,096
MRK Merck & Company Inc. (new) 65.17 -0.31 -0.47 6,018,280
DVN Devon Energy Corporation 43.88 -1.19 -2.63 3,355,435
FE FirstEnergy Corporation 30.72 -0.61 -1.95 5,204,020
NFX Newfield Exploration Company 38.72 -3.77 -8.87 9,684,176
KO Coca-Cola Company (The) 41.61 0.15 0.36 7,657,802
T AT&T Inc. 41.54 -0.20 -0.47 11,576,324
CAT Caterpillar Inc. 98.01 -0.09 -0.09 2,215,917
NEM Newmont Mining Corporation 35.82 -1.62 -4.34 7,788,526
SM SM Energy Company 27.44 -0.92 -3.24 3,919,347
MSFT Microsoft Corporation 64.17 -0.33 -0.50 11,878,273
RL Ralph Lauren Corporation 77.59 -0.60 -0.77 1,550,494

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