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

Sector Recap |

nyse, wall street, economy, stock marketInitial 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. 2.07 0.05 2.48 1,492,423
CI Cigna Corporation 174.08 -0.92 -0.53 2,526,428 Trade
MMM 3M Company 196.50 0.98 0.50 2,838,172 Trade
SAM Boston Beer Company Inc. (The) 300.90 7.15 2.43 216,401 Trade
BCE BCE Inc. 40.96 0.39 0.96 885,822 Trade
EXTR Extreme Networks Inc. 8.59 -0.05 -0.58 2,488,038 Trade
EXPD Expeditors International of Washington Inc. 74.02 -1.15 -1.53 2,059,356 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
PCG Pacific Gas & Electric Co. 42.92 2.39 5.90 16,575,649 Trade
GLUU Glu Mobile Inc. 6.56 -0.11 -1.65 4,636,748 Trade
LNC Lincoln National Corporation 65.37 0.40 0.62 1,684,076 Trade
JNJ Johnson & Johnson 122.84 1.39 1.14 10,305,307 Trade
IPI Intrepid Potash Inc 4.55 0.12 2.71 1,356,009 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
POR Portland General Electric Co 42.41 0.42 1.01 1,056,721 Trade
RNWK RealNetworks Inc. 3.46 -0.04 -1.14 2,849,860 Trade
PNC.A:CA Postmedia Network Canada Corp. Class C Voting Shares 0.98 0.00 0.00 0
ATO Atmos Energy Corporation 89.11 0.26 0.29 621,153 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 61.70 1.03 1.70 3,996,598 Trade
AWK American Water Works Company Inc. 83.42 1.06 1.29 952,984 Trade
NRG NRG Energy Inc. 31.02 -0.86 -2.70 7,349,225 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
HTZ Hertz Global Holdings Inc 20.08 0.63 3.24 3,070,884 Trade
MUR Murphy Oil Corporation 34.20 0.04 0.12 4,746,845 Trade
V Visa Inc. 135.33 0.80 0.59 6,173,350 Trade
SYMC Symantec Corporation 20.72 -0.08 -0.38 14,688,689 Trade
MD Mednax Inc. 44.97 -0.14 -0.31 1,501,398 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
VZ Verizon Communications Inc. 49.76 1.13 2.32 40,979,879 Trade
TDC Teradata Corporation 41.08 -1.60 -3.75 2,855,532 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
GM General Motors Company 41.25 0.13 0.32 9,565,924 Trade
VIAB Viacom Inc. 30.28 -0.12 -0.39 3,507,604 Trade
BAC Bank of America Corporation 28.99 -0.30 -1.02 77,348,906 Trade
SMSI Smith Micro Software Inc. 2.41 0.13 5.70 177,366 Trade
ATML Atmel Corp n/a n/a n/a 0 Trade
MCD McDonald's Corporation 164.55 4.02 2.50 10,927,291 Trade
VVC Vectren Corporation 71.44 0.08 0.11 1,215,778 Trade
HIG Hartford Financial Services Group Inc. (The) 51.78 0.31 0.60 2,279,959 Trade
ALL Allstate Corporation (The) 92.24 0.01 0.01 2,587,195 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
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 75.06 1.08 1.46 1,744,719 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
PRU Prudential Financial Inc. 96.50 0.08 0.08 1,749,547 Trade
MRK Merck & Company Inc. (new) 61.47 0.29 0.47 12,913,091 Trade
GGG Graco Inc. 45.32 0.09 0.20 731,456 Trade
KS KapStone Paper and Packaging Corporation 34.72 0.00 0.00 979,218 Trade
AMT American Tower Corporation (REIT) 142.82 1.14 0.80 2,564,092 Trade
BP BP p.l.c. 45.78 1.62 3.67 8,881,639 Trade
FE FirstEnergy Corp. 35.09 -0.06 -0.17 3,998,693 Trade
KO Coca-Cola Company (The) 43.25 0.16 0.37 16,031,146 Trade
NLY Annaly Capital Management Inc 10.62 0.03 0.28 9,319,898 Trade
PXD Pioneer Natural Resources Company 185.65 7.63 4.29 3,507,773 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
CAH Cardinal Health Inc. 53.98 0.44 0.82 2,998,333 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
NKTR Nektar Therapeutics 52.85 -3.01 -5.39 21,720,164 Trade
NEWP Newport Corp n/a n/a n/a 0 Trade

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