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

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
NGD New Gold Inc. 1.00 0.02 1.62 3,459,942
CI Cigna Corporation 166.88 2.11 1.28 2,030,322 Trade
MMM 3M Company 163.10 -0.44 -0.27 2,693,736 Trade
SAM Boston Beer Company Inc. (The) 393.56 -8.78 -2.18 168,315 Trade
BCE BCE Inc. 48.87 0.00 0.00 608,300 Trade
EXTR Extreme Networks Inc. 7.35 -0.03 -0.41 736,898 Trade
EXPD Expeditors International of Washington Inc. 73.94 -0.45 -0.60 1,000,950 Trade
PG Procter & Gamble Company (The) 117.47 0.84 0.72 9,016,947 Trade
GE General Electric Company 8.96 -0.08 -0.88 39,015,782 Trade
CVX Chevron Corporation 114.74 -0.61 -0.53 5,679,872 Trade
SO Southern Company (The) 61.14 0.08 0.13 4,178,706 Trade
PCG Pacific Gas & Electric Co. 7.76 -0.07 -0.89 14,027,337 Trade
GLUU Glu Mobile Inc. 5.83 -0.05 -0.85 4,964,427 Trade
LNC Lincoln National Corporation 59.53 0.53 0.90 1,446,701 Trade
JNJ Johnson & Johnson 127.70 -8.47 -6.22 25,879,463 Trade
IPI Intrepid Potash Inc 3.12 -0.06 -1.89 413,463 Trade
AA Alcoa Corporation 21.54 1.24 6.11 6,209,493 Trade
INTC Intel Corporation 51.36 -0.50 -0.96 16,975,159 Trade
D Dominion Energy Inc. 82.16 -0.22 -0.27 3,210,344 Trade
TRV The Travelers Companies Inc. 141.36 0.88 0.63 1,505,011 Trade
POR Portland General Electric Co 57.03 0.54 0.96 703,963 Trade
RNWK RealNetworks Inc. 1.69 0.06 3.68 10,393 Trade
PNC.A:CA Postmedia Network Canada Corp. Class C Voting Shares 1.83 0.00 0.00 0
ATO Atmos Energy Corporation 111.60 -0.24 -0.21 741,600 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 70.52 -0.04 -0.06 1,334,409 Trade
AWK American Water Works Company Inc. 122.41 -0.01 -0.01 1,099,119 Trade
NRG NRG Energy Inc. 40.15 0.40 1.01 3,082,431 Trade
AXP American Express Company 116.76 -2.34 -1.96 6,195,550 Trade
UTX United Technologies Corporation 136.80 -1.37 -0.99 3,407,761 Trade
HTZ Hertz Global Holdings Inc 13.72 -0.26 -1.86 2,442,214 Trade
MUR Murphy Oil Corporation 18.66 -0.26 -1.37 2,513,270 Trade
V Visa Inc. 175.71 -2.23 -1.25 6,312,056 Trade
SYMC Symantec Corporation 23.01 -0.47 -2.00 3,493,328 Trade
MD Mednax Inc. 22.95 -0.77 -3.25 1,217,278 Trade
CSCO Cisco Systems Inc. 46.71 -0.32 -0.68 17,227,396 Trade
VZ Verizon Communications Inc. 61.05 0.64 1.06 12,346,320 Trade
TDC Teradata Corporation 28.57 -0.52 -1.79 693,372 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
GM General Motors Company 36.17 -0.02 -0.06 6,859,606 Trade
VIAB Viacom Inc. 22.05 -0.57 -2.52 9,511,928 Trade
BAC Bank of America Corporation 30.35 0.09 0.30 48,875,805 Trade
SMSI Smith Micro Software Inc. 6.30 0.01 0.16 496,490 Trade
ATML Atmel Corp n/a n/a n/a 0 Trade
MCD McDonald's Corporation 208.50 1.65 0.80 3,521,237 Trade
HIG Hartford Financial Services Group Inc. (The) 59.00 0.37 0.63 2,292,161 Trade
ALL Allstate Corporation (The) 108.41 0.67 0.62 1,671,790 Trade
PFE Pfizer Inc. 36.46 0.00 0.00 13,491,206 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 86.88 -0.35 -0.40 1,015,141 Trade
HPQ HP Inc. 16.85 -0.11 -0.65 12,184,419 Trade
PRU Prudential Financial Inc. 89.69 0.31 0.35 2,070,690 Trade
MRK Merck & Company Inc. (new) 84.68 0.88 1.05 7,522,217 Trade
GGG Graco Inc. 46.24 0.24 0.52 318,579 Trade
AMT American Tower Corporation (REIT) 229.09 3.18 1.41 1,544,377 Trade
BP BP p.l.c. 37.48 -0.28 -0.74 4,003,321 Trade
FE FirstEnergy Corp. 48.38 0.27 0.56 3,488,163 Trade
KO Coca-Cola Company (The) 54.78 0.99 1.84 18,122,505 Trade
NLY Annaly Capital Management Inc 8.78 0.12 1.39 23,075,427 Trade
PXD Pioneer Natural Resources Company 123.36 -4.34 -3.40 1,700,914 Trade
T AT&T Inc. 38.47 0.66 1.75 37,673,766 Trade
CAT Caterpillar Inc. 130.71 -0.33 -0.25 4,330,724 Trade
CAH Cardinal Health Inc. 51.54 0.33 0.64 3,665,478 Trade
SM SM Energy Company 7.21 -0.43 -5.63 3,209,366 Trade
MSFT Microsoft Corporation 137.41 -2.28 -1.63 32,284,428 Trade
NKTR Nektar Therapeutics 17.27 -0.50 -2.81 4,904,111 Trade
NEWP Newport Corp n/a n/a n/a 0 Trade
WMT Walmart Inc. 119.14 -0.70 -0.58 5,592,889 Trade
IBM International Business Machines Corporation 134.09 -0.17 -0.13 7,178,379 Trade
JPM JP Morgan Chase & Co. 120.56 0.21 0.17 10,418,383 Trade
DIS The Walt Disney Company 130.89 -1.48 -1.12 8,695,515 Trade
HD Home Depot Inc. (The) 237.93 1.16 0.49 3,663,925 Trade
XOM Exxon Mobil Corporation 67.61 -0.53 -0.78 13,473,727 Trade
BA The Boeing Company 344.00 -25.06 -6.79 13,568,415 Trade

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Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     

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