Equities Sector Coverage: Stocks Fall as Wall Street Braces for Potential Bad News

Sector Recap  |

Initial Jobless Claims fell to 365,000 still above the 350,000 recessionary threshold. Nonmanufacturing ISM fell to 53.5 in April. The Dow Jones Industrial Average traded up to 13284.09 then declined to 13,175.64 staying below its year-to-date high set at 13,338.66 on May 1st. The NASDAQ traded down from 3061.38 to 3016.20 staying below its March 27th high at 3134.17.

Asian stocks were lower on Thursday. The Nikkei 225 was closed at 9,380. The Hang Seng ended their session at 21,250 – down 0.28% on the day. European exchanges were mixed on Thursday. The FTSE 100 ended their session at 5,767 – up 0.15% on the day. The DAX ended their session at 6,694 – down 0.24% on the day. The CAC 40 ended their session at 3,223 – down 0.09% on the day.

The yield on the 10-Year US Treasury traded between 1.912 percent and 1.956 staying below its 50-day and 200-day simple moving averages at 2.076 and 2.067. Freddie Mac’s 30-Year fixed rate mortgage fell to a record low at 3.84. Gold declined from $1654.3 the Troy ounce to $1631.3 still below the 50-day and 200-day simple moving averages at $1671.0 and $1698.6. Crude oil traded down from $105.42 per barrel to $102.36 below its 50-day simple moving average at $105.19. The euro versus the dollar traded between 1.3103 and 1.3178 below its 50-day simple moving average at 1.3204.

Energy

BP (BP) won a preliminary court approval for a $7.8 billion settlement to resolve more than 100,000 claims connected to the Gulf oil spill. Alpha Natural Resources (ANR) missed Q1 EPS estimates by 21 cents with in-line revenue. Plains Exploration & Production (PXP) missed Q1 EPS estimates by three cents with a miss on the revenue line. Western Refining (WNR) beat Q1 EPS estimates by three cents with better than expected revenue. SM Energy (SM) missed Q1 EPS estimates by five cents with a miss on the revenue line. Tesoro (TSO) beat Q1 EPS estimates by ten cents. Murphy Oil (MUR) beat Q1 EPS estimates but they missed on the revenue line. Pioneer Natural Resources (PXD) reported Q1 EPS of $1.12 and beat on the revenue line. Dow components – Chevron (CVX) – down 1.3%, Exxon Mobil (XOM) down 0.6%.
Energy Select Sector SPDR (XLE) was trading at $69.94 at 3:30 PM on Thursday, down 1.60% on the day – up 1.17% year-to-date.

Materials

Olympic Steel (ZEUS) beat Q1 EPS estimates by three cents with better than expected revenue. RTI International Metals (RTI) beat Q1 EPS estimates by 13 cents with revenue up 34.7% year over year to $162.9 million. KapStone Paper and Packaging (KS) missed Q1 EPS estimates by three cents with in-line revenue. Intrepid Potash (IPI) missed Q1 EPS estimates by a penny. New Gold (NGD) reported in-line Q1 EPS of $0.10 in-line with in-line revenue. Dow components – Alcoa (AA) down 1.5%, DuPont (DD) down 0.7%.
The Materials Select Sector SPDR (XLB) was trading at $36.31 at 3:30 PM on Thursday, down 1.09% on the day – up 8.39% year-to-date.

Industrials

General Motors (GM) beat Q1 EPS estimates by eight cents with better than expected revenue. Georgia Gulf (GGG) beat Q1 EPS estimates by 45 cents with better than expected revenue. Expeditors International of Washington (EXPD) missed Q1 EPS estimates by two cents. Dow components – Boeing Co (BA) down 0.8%, Caterpillar (CAT) down 2.0%, General Electric (GE) down 0.9%, 3M Company (MMM) down 0.4%, United Technologies (UTX) down 1.0%.
The Industrial Select Sector SPDR (XLI) was trading at $36.84 at 3:30 PM on Thursday, down 0.78% on the day – up 9.16% year-to-date.

Consumer Discretionary

Green Mountain (GMCR) plunged 39% premarket after the company issued a profit warning. The company warned that it expects more moderate growth in sales for its Keurig brewers and K-Cup packs. Viacom (VIAB) beat FQ2 EPS estimates by eight cents with in-line revenue. Skullcandy (SKUL) beat Q1 EPS estimates by a penny with better than expected revenue. Glu Mobile (GLUU) beat Q1 EPS estimates by seven cents with better than expected revenue. Dow Components – Disney (DIS) up 0.4%, Home Depot down 0.7%, McDonalds (MCD) down 0.5%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $45.84 at 3:30 PM on Thursday, down 0.69% on the day – up 17.48% year-to-date.

Consumer Staples

BEAM (BEAM) missed Q1 EPS estimates by 28 cents but beats on the revenue line. Boston Beer (SAM) beat Q1 EPS estimates by fifteen cents with better than expected revenue. Hertz Global Holdings (HTZ) beat Q1 EPS estimates by a nickel but missed on the revenue line. Whole Foods Market (WFM) beat FQ2 EPS estimates by a nickel with better than revenue. Dow components – Kraft (KFT) down 0.2%, Coca Cola (KO) up 0.4%, Procter & Gamble (PG) up 0.6%, Wal-Mart (WMT) down 0.2%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.34 at 3:30 PM on Thursday, up 0.12% on the day – up 5.69% year-to-date.

Health Care

Novartis (NVS) will acquire privately-held Fougera Pharmaceuticals for $1.525 billion in cash. This move will make Novartis generic drug division the biggest globally and number one in the U.S for generic dermatology medicines. Cardinal Health (CAH) beat FQ3 EPS estimates by six cents with better than expected revenue. Mednax (MD) missed Q1 EPS estimates by two cents with in-line revenue. Nektar Therapeutics (NKTR) missed Q1 EPS estimates by three cents. MedAssets (MDAS) beat Q1 EPS estimates by six cents with better than expected revenue. ONYX Pharmaceuticals (ONXX) missed Q1 EPS estimates by eight cents with better than expected revenue. Dow Components – Johnson & Johnson (JNJ) up 0.1%, Merck (MRK) down 0.4%, Pfizer (PFE) down 0.4%.
The Health Care Select Sector SPDR (XLV) was trading at $37.45 at 3:30 PM on Thursday, down 0.35% on the day – up 7.96% year-to-date.

Financials

Cigna (CI) missed Q1 EPS estimates by two cents with a beat on the revenue line. Prudential (PRU) reported a loss of $988 million for the quarter on a $1.5 billion hit on what could be a yen currency hedge gone wrong. Hartford Financial (HIG) beat Q1 EPS estimates by twenty cents. Annaly Capital (NLY) reported Q1 EPS of 92 cents unchanged from a year ago. Lincoln National (LNC) beat Q1 EPS estimates by three cents with in-line revenue. Allstate (ALL) beat Q1 EPS estimates by 43 cents with better than expected revenue. Visa (V) beat FQ2 EPS estimates by nine cents with better than expected revenue. Dow Components – American Express (AXP) down 0.4%, Bank of America (BAC) down 2.9%, JP Morgan Chase (JPM) down 0.9%, Travelers (TRV) flat.
The Financial Select Sector SPDR (XLF) was trading at $15.33 at 3:30 PM on Thursday, down 0.84% on the day – up 17.92% year-to-date.

Information Technology

PC manufacturers are unhappy with the weak demand for high-end Android tablets. This makes PC manufacturers such as Dell (DELL) and Hewlett Packard (HPQ) to focus their R&D resources to develop Windows 8 products. A settlement between H-P (HPQ) and Oracle (ORCL) are in a dispute over H-P's itanium chip. H-P is seeks $4 billion in lost profits from Oracle. American Tower (AMT) beat Q1 EPS estimates by fifteen cents with a beat on the revenue line. Teradata (TDC) beat Q1 EPS estimates by four cents with better than expected revenue. Smith Micro Software (SMSI) beat Q1 EPS estimates by a penny with a miss on the revenue line. RealNetworks (RNWK) missed Q1 EPS estimates by twenty cents with a modest beat on the revenue line. Newport (NEWP) reported Q1 EPS of $0.17 and a miss on the revenue line. Extreme Networks (EXTR) reported in-line FQ3 EPS with in-line revenue. Symantec (SYMC) reported in-line FQ4 EPS and in-line revenue. Atmel (ATML) beat Q1 EPS estimates by a penny with better than expected revenue. ON Semiconductor (ONNN) beat Q1 EPS estimates by three cents with better than expected revenue. Dow Components – Cisco Systems (CSCO) down 0.6%, Hewlett-Packard (HPQ) down 2.8%, IBM (IBM) down 0.6%, Intel Corp (INTC) down 2.1%, Microsoft (MSFT) down 0.3%.
The Technology Select Sector SPDR (XLK) was trading at $29.71 at 3:30 PM on Thursday, down 0.77% on the day – up 16.74% year-to-date.

Telecommunication Services

Level 3 Communications (LVLT) reported a Q1 EPS loss of 37 cents with in-line revenue. France Telecom (FTE) projects that roaming agreements will bring in one billion euros in revenue over three years, down from an earlier prediction of six years. Novatel Wireless (NVTL) missed Q1 EPS estimates by six cents with a modest beat on the revenue line. United Online (UNTD) beat Q1 EPS estimates by four cents with better than expected revenue. Dow components – AT&T (T) down 0.2%, Verizon (VZ) flat.
The NASDAQ Telecommunications Index (IXTC) was trading at $207.50 at 3:30 PM on Thursday, down 0.88% on the day – up 5.37% year-to-date.

Utilities

BCE (BCE) missed Q1 EPS estimates by a penny with in-line revenue and the stock was 1.9% lower premarket. NRG Energy (NRG) reported a Q1 EPS loss of 91 cents with a miss on the revenue line. Portland General Electric (POR) missed Q1 EPS estimates by ten cents with a miss on the revenue line. Vectren (VVC) reported in-line Q1 EPS with a miss on the revenue line. Atmos Energy (ATO) reported FQ2 EPS of $1.28, which may not be comparable to consensus of $1.44. American Water Works (AWK) reported in-line Q1 EPS with a miss on the revenue line. Edison International (EIX) missed Q1 EPS estimates by fifteen cents with a miss on the revenue line. Dominion Resources (D) down 0.1%, Edison International (EIX) up 0.25%, First Energy (FE) down 1.4%, PG&E Corp (PCG) down 1.1%, Southern Company (SO) down 1.3%.
The Utilities Select Sector SPDR (XLU) was trading at $35.57 at 3:30 PM on Thursday, down 0.17% on the day – down 1.14% year-to-date.

STOCKS: CVX, XOM, BP, ANR, PXP, WNR, SM, TSO, MUR, PXD, AA, DD, ZEUS, RTI, KS, IPI, NGD, BA, CAT, GE, MMM, UTX, GM, GGG, EXPD, DIS, HD, MCD, GMCR, VIAB, SKUL, GLUU, KFT, KO, PG, WMT, BEAM, SAM, HTZ, WFM, JNJ, MRK, PFE, NVS, CAH, MD, NKTR, MDAS, ONXX, AXP, BAC, JPM, TRV, CI, PRU, HIG, NLY, LNC, ALL, V, CSCO, HPQ, IBM, INTC, MSFT, DELL, AMT, TDC, SMSI, RNWK, NEWP, EXTR, SYMC, ATML, ONNN, T, VZ, LVLT, FTE, NVTL, UNTD, D, EIX, FE, PCG, SO, BCE, NRG, POR, VVC, ATO, AWK

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Companies

Symbol Name Price Change % Volume
NGD New Gold Inc. 0.79 0.02 2.60 2,350,458
CI Cigna Corporation 210.00 -2.74 -1.29 2,055,314 Trade
MMM 3M Company 199.85 -0.53 -0.26 3,167,309 Trade
SAM Boston Beer Company Inc. (The) 265.94 4.24 1.62 132,829 Trade
BCE BCE Inc. 40.75 0.52 1.29 870,132 Trade
EXTR Extreme Networks Inc. 4.97 -0.20 -3.87 1,709,350 Trade
EXPD Expeditors International of Washington Inc. 66.26 -0.32 -0.48 1,651,877 Trade
PG Procter & Gamble Company (The) 87.30 7.06 8.80 30,276,433 Trade
GE General Electric Company 12.56 0.18 1.45 86,785,513 Trade
CVX Chevron Corporation 118.14 0.67 0.57 7,944,399 Trade
SO Southern Company (The) 45.07 0.77 1.74 6,466,534 Trade
PCG Pacific Gas & Electric Co. 48.85 0.61 1.26 5,754,636 Trade
GLUU Glu Mobile Inc. 5.84 -0.17 -2.83 1,083,389 Trade
LNC Lincoln National Corporation 64.00 0.20 0.31 1,752,554 Trade
JNJ Johnson & Johnson 139.05 -0.45 -0.32 5,924,814 Trade
IPI Intrepid Potash Inc 3.62 0.05 1.40 577,318 Trade
WMT Walmart Inc. 97.15 0.98 1.02 8,950,724 Trade
AA Alcoa Corporation 38.60 -0.25 -0.64 5,061,831 Trade
INTC Intel Corporation 44.00 -0.97 -2.16 28,368,505 Trade
IBM International Business Machines Corporation 129.10 -1.45 -1.11 7,791,636 Trade
D Dominion Energy Inc. 73.50 1.27 1.76 4,303,897 Trade
TRV The Travelers Companies Inc. 126.07 0.93 0.74 2,044,573 Trade
POR Portland General Electric Co 46.90 0.29 0.62 833,456 Trade
RNWK RealNetworks Inc. 2.24 -0.01 -0.44 4,616 Trade
PNC.A:CA Postmedia Network Canada Corp. Class C Voting Shares 1.10 -0.23 -17.29 200
ATO Atmos Energy Corporation 97.07 1.68 1.76 347,386 Trade
MDAS MedAssets Inc n/a n/a n/a 0 Trade
TSO ANDV Tesoro Corporation n/a n/a n/a 0
EIX Edison International 70.31 0.77 1.11 1,967,705 Trade
AWK American Water Works Company Inc. 91.94 1.49 1.65 818,588 Trade
NRG NRG Energy Inc. 36.82 -0.04 -0.11 2,918,196 Trade
JPM JP Morgan Chase & Co. 107.91 -0.18 -0.17 15,234,549 Trade
AXP American Express Company 106.73 3.89 3.78 5,726,327 Trade
UTX United Technologies Corporation 128.68 -0.26 -0.20 4,574,686 Trade
HTZ Hertz Global Holdings Inc 15.29 0.22 1.46 2,188,622 Trade
MUR Murphy Oil Corporation 34.85 0.23 0.66 1,786,603 Trade
V Visa Inc. 140.08 0.79 0.57 8,696,873 Trade
SYMC Symantec Corporation 19.67 -0.30 -1.50 6,400,366 Trade
MD Mednax Inc. 43.18 -2.12 -4.68 1,430,728 Trade
CSCO Cisco Systems Inc. 45.34 -0.12 -0.26 21,356,337 Trade
DIS The Walt Disney Company 118.90 2.72 2.34 10,430,994 Trade
VZ Verizon Communications Inc. 54.90 0.25 0.46 19,103,293 Trade
TDC Teradata Corporation 35.20 -0.25 -0.71 950,992 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
GM General Motors Company 31.20 0.12 0.39 12,754,609 Trade
VIAB Viacom Inc. 33.23 -0.50 -1.48 5,471,526 Trade
BAC Bank of America Corporation 28.32 0.07 0.25 64,305,353 Trade
SMSI Smith Micro Software Inc. 2.72 0.04 1.49 316,983 Trade
ATML Atmel Corp n/a n/a n/a 0 Trade
MCD McDonald's Corporation 167.49 0.68 0.41 3,509,973 Trade
VVC Vectren Corporation 71.58 0.00 0.00 476,331 Trade
HIG Hartford Financial Services Group Inc. (The) 46.64 0.11 0.24 2,450,272 Trade
ALL Allstate Corporation (The) 97.32 0.71 0.73 2,384,456 Trade
HD Home Depot Inc. (The) 179.85 -0.59 -0.33 7,004,297 Trade
XOM Exxon Mobil Corporation 81.97 0.12 0.15 12,098,692 Trade
PFE Pfizer Inc. 44.50 0.50 1.14 18,562,548 Trade
SKUL Skullcandy Inc. n/a n/a n/a 0 Trade
UNTD United Online Inc. n/a n/a n/a 0 Trade
NVS Novartis AG 87.19 0.95 1.10 3,400,344 Trade
HPQ HP Inc. 23.84 0.07 0.29 11,827,007 Trade
BA The Boeing Company 356.26 -3.09 -0.86 3,491,612 Trade
PRU Prudential Financial Inc. 97.60 0.07 0.07 1,823,974 Trade
MRK Merck & Company Inc. (new) 72.35 0.14 0.19 14,513,382 Trade
GGG Graco Inc. 39.00 -0.71 -1.78 1,134,239 Trade
KS KapStone Paper and Packaging Corporation 30.76 -0.14 -0.45 1,069,331 Trade
AMT American Tower Corporation (REIT) 150.15 3.36 2.29 2,450,653 Trade
BP BP p.l.c. 44.00 0.14 0.32 5,736,394 Trade
FE FirstEnergy Corp. 38.85 0.79 2.08 4,203,622 Trade
KO Coca-Cola Company (The) 46.33 0.72 1.58 13,989,247 Trade
NLY Annaly Capital Management Inc 9.96 0.01 0.10 7,101,651 Trade
PXD Pioneer Natural Resources Company 166.78 -1.12 -0.67 928,079 Trade
T AT&T Inc. 32.87 0.37 1.14 35,133,029 Trade
CAT Caterpillar Inc. 131.32 -3.62 -2.68 7,055,078 Trade
CAH Cardinal Health Inc. 53.19 -0.23 -0.43 3,004,379 Trade
SM SM Energy Company 29.01 0.02 0.07 1,869,258 Trade
MSFT Microsoft Corporation 108.66 0.16 0.15 32,785,475 Trade
NKTR Nektar Therapeutics 48.19 -1.37 -2.76 1,464,366 Trade
NEWP Newport Corp n/a n/a n/a 0 Trade

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Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.