Equities Sector Coverage: Stocks Hit New Lows To Start Q4

Sector Recap  |

Construction Spending increased by 1.4% in August and the National Manufacturing ISM reading was 51.6 in September. Tomorrow we get Factory Orders and listen to Fed Chief Ben Bernanke testify before the Joint Economic Committee. On Wednesday it’s the non-manufacturing ISM. Initial Jobless Claims is on Thursday and the Employment Data is on Friday. The Dow Jones Industrial Average traded down to 10,820.07 then rallied to 10,979.19, and then tumbled to 10,671.31 in afternoon trading staying above its 200-week and 120-month simple moving averages at 10,649 and 10,607. The NASDAQ traded down to 2386.78, rebounded to 2430.88 and then fell to 2341.69 in afternoon trading staying above its August 9th low at 2331.65.

Asian stocks slumped on Monday after Greece announced that it will miss its deficit targets. The Nikkei 225 fell be 1.78% to 8,545.48 with the Hang Seng plunging 4.38% to 16,822. European stocks also traded lower on Monday. The FTSE 100 declined by 1.03% to 5,076 with the DAX plunging 2.28% to 5,377 and the CAC 40 slumping 1.85% to 2,927. The yield on the 10-Year US Treasury declined from 1.928 percent to 1.775, still above its September 23rd all time low at 1.671 percent. Gold, which traded as low as $1535.0 the Troy ounce on September 26th and as high as $1679.2 on September 27th, traded up $1620.0 to $1667.0 on Monday. Crude oil traded down from $78.93 per barrel to $76.85 then up to $79.64 on Monday staying well below its 200-week simple moving average at $83.58. Oil declined back below $77 in the final half hour of trading. The euro versus the dollar traded down from 1.3380 to 1.3196 on Monday.

Energy

Ultra Petroleum (UPL) is launched at a Hold by Brean Murray. Patterson-UTI (PTEN) is moved to Market Perform from Outperform at Bernstein. In afternoon trading: Shares of DHT Holdings (DHT) are down about 22%. Shares of InterOil (IOC) are down about 17.25%. Shares of LDK Solar (LDK) are down about 14.5%. Shares of Uranium Energy (UEC) are down about 13.25%. Shares of Kodiak Oil & Gas (KOG) are down about 13.25%. Shares of Magnum Hunter Resources (MHR) are down about 12.4%. Shares of Teekay Tankers (TNK) are down about 12.2%. Shares of Patriot Coal (PCX) are down about 12.1%.

Energy Select Sector SPDR (XLE) was trading at $56.52 at 4:00 PM on Monday, down 3.40% on the day – down 17.19% year-to-date.

Materials

Freeport-McMoRan (FCX) and Goldcorp (GG) each get Buy-from-Hold boosts at Deutsche Bank. Alcoa (AA) is moved to Hold from Buy at Deutsche Bank. Century Aluminum (CENX) is moved to Underweight from Equal Weight at Morgan Stanley, which reduces its Noranda Aluminum (NOR) rating to Equal Weight from Overweight. In afternoon trading: Shares of Cemex (CX) are down about 13.5%. Shares of China Shen Zhou (SHZ) are down about 13.3%. Shares of Noranda Aluminum (NOR) are down about 12.5%. Shares of Avalon Rare Metals (AVL) are down about 11.2%. Shares of Rare Element Res (REE) are down about 10.8%.

The Materials Select Sector SPDR (XLB) was trading at $28.53 at 4:00 PM on Monday, down 2.81% on the day – down 25.72% year-to-date.

Industrials

Ingersoll-Rand (IR) is hoisted to Hold from Sell at Citigroup. W.W. Grainger (GWW) gets downgraded to Sell from Hold at Citigroup. Canadian Pacific (CP) is cut to Market Perform from Strong Buy at Raymond James. US Airways (LCC) is cut to Sell from Hold at Citigroup. In afternoon trading: Shares of AMR Corp (AMR) are down about 25%. Shares of YRC Worldwide (YRCW) are down about 13.25%.

The Industrial Select Sector SPDR (XLI) was trading at $28.40 at 4:00 PM on Monday, down 2.81% on the day – down 18.55% year-to-date.

Consumer Discretionary

Eastman Kodak (EK) issued a statement that despite a recent draw-down from its credit line and rumors about restructuring, it has no intention of filing for bankruptcy. Priceline.com (PCLN) is upgraded to Overweight from Equal Weight at Morgan Stanley.  Amazon.com (AMZN) is upgraded to Buy from Hold with a $280 price target at Stifel Nicolaus. Time Warner (TWX) is upgraded to Buy from Neutral at Goldman. Starwood Hotels (HOT) and Diamondrock Hospitality (DRH) are each moved to Outperform from Market Perform with Wells Fargo. News Corp (NWS) is now Neutral from Buy at Goldman Sachs, which also pulls Viacom (VIA) from its Conviction Buy List. The Gap (GPS) and Chico’s FAS (CHS) are each cut to Hold from Buy at Keybanc. Gaylord Entertainment (GET) is reduced to Market Perform from Outperform with Wells Fargo. In afternoon trading: Shares of Eastman Kodak are up about 77% as the company said it had no intention of filing for bankruptcy protection. Shares of OfficeMax (OMX) are down about 13.2%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $33.84 at 4:00 PM on Monday, down 2.93% on the day – down 9.54% year-to-date.

Consumer Staples

Procter & Gamble (PG) gets upgraded to Overweight from Neutral at JP Morgan. Coca-Cola (KO) is now Neutral from Overweight at JP Morgan. SABMiller plc (SBMRY) is downgraded to Market Perform from Outperform at Bernstein. In afternoon trading: Shares of AgFeed Industries (FEED) are down about 21.2%. Shares of Feihe International (ADY) are down about 14.8%. Shares of Star Scientific (CIGX) are down about 12.1%. Shares of Central European Distribution (CEDC) are down about 12.1%. Shares of Diamond Foods (DMND) are down about 9.7%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $29.23 at 4:00 PM on Monday, down 1.45% on the day – down 0.27% year-to-date.

Healthcare

Seattle Genetics (SGEN) is a new Neutral at Goldman Sachs. Perrigo (PRGO) is a new Hold at Deutsche Bank. In afternoon trading: Shares of Gentiva Health Services (GTIV) are down about 36%. Shares of Biostar Pharmaceuticals (BSPM) are down about 11.8%. Shares of Sun Healthcare Group (SUNH) are down about 11.5%. Shares of XOMA (XOMA) are down about 10.9%. Shares of Achillion Pharmaceuticals (ACHN) are down about 10.9%. Shares of Amedisys (AMED) are down about 10.3%. Shares of Pharmaceutical Product Development (PPDI) are up about 26%. Shares of Medicines (MDCO) are up about 9.6%.

The Health Care Select Sector SPDR (XLV) was trading at $30.72 at 4:00 PM on Monday, down 3.18% on the day – down 2.48% year-to-date.

Financials

Shares of embattled Franco-Belgian lender Dexia (DXBGF) plunged as much as 12% following a Moody's report questioning its liquidity. Other French bank stocks aren't faring much better on worries about Greece missing its deficit targets. Japanese regulators are reportedly investigating Citigroup (C) for possible violations in connection to the marketing of financial products. Barclays (BCS) and Bank of America (BAC) are reportedly considering selling their stakes in apartment company Archstone. SL Green Realty (SLG) gets upgraded to Buy from Hold at Jefferies with a new target of $75. Zions Bancorp (ZION) is moved to Overweight from Neutral at JP Morgan. Franklin Resources (BEN) is now Underweight from Neutral at JP Morgan. State Street (STT) is downgraded to Hold from Buy at Jefferies. In afternoon trading: Shares of MGIC Investment (MTG) are down about 10.25%. Shares of FelCor Lodging Trust (FCH) are down about 11%.

The Financial Select Sector SPDR (XLF) was trading at $11.28 at 4:00 PM on Monday, down 4.49% on the day – down 29.28% year-to-date.

Information Technology

ACI Worldwide (ACIW) will acquire online banking software developer S1 (SONE) for a blended value consisting of $6.62 per share in cash and a cash payment of $360M. Speaking to a U.S. audience late Friday, Alibaba (ALBCF) CEO Jack Ma said "we are very interested" in pursuing Yahoo (YHOO) - the "whole" company - adding that Alibaba has held talks with other potential buyers about deal options. Analog Devices (ADI) is now Neutral from Reduce at Nomura. NetApp (NTAP) is upgraded to Buy from Hold at Citigroup. Global Payment (GPN) is lifted to Buy from Hold at Jefferies. Hanwha SolarOne (HSOL) is now Hold from Buy at Needham due to weak industry dynamics. Advanced Energy (AEIS) is cut to Hold from Buy at Needham. In afternoon trading: Shares of AudioCodes (AUDC) are down about 22.75%. Shares of Sequans Communications (SQNS) are down about 17.75%. Shares of Powerwave Tech (PWAV) are down about 13.4%. Shares of Alcatel-Lucent (ALU) are down about 13%. Shares of Micron Technology (MU) are down about 11.5%. Shares of JA Solar (JASO) are down about 10.1%.

The Technology Select Sector SPDR (XLK) was trading at $23.07 at 4:00 PM on Monday, down 2.25% on the day – down 8.42% year-to-date.

Telecommunications Services

Vodafone PLC (VOD) gets begun with a Buy at ING Group. MetroPCS (PCS) is a new Buy and $12 price objective, while Leap Wireless (LEAP) is a new Sell and $4 target price at BTIG Research. In afternoon trading: Shares of TerreStar (TSTRQ) are down about 19%. Shares of Leap Wireless are down about 11.6%. Shares of Towerstream (TWER) are down about 10.6%. Shares of Premiere Global Services (PGI) are down about 9.2%. Shares of Cellcom Israel (CEL) are down about 8.2%. Actives: Shares of Sprint Nextel (S) are down about 4.1%, while shares of AT&T (T) are down about 0.7%, shares of Verizon (VZ) are down about 0.8% and shares of MetroPCS are down about 5.3%.

The NASDAQ Telecommunications Index (IXTC) was trading at $173.57 at 4:00 PM on Monday, down 2.52% on the day – down 22.98% year-to-date.

Utilities

In afternoon trading: Shares of Dynegy (DYN) are down about 8.25%. Shares of NRG Energy (NRG) are down about 5%. Shares of NSTAR (NST) are down about 4.8%. Shares of Brookfield Infrastructure Partners (BIP) are down about 4.9%. Shares of American States Water (AWR) are down about 4.4%. Shares of Genon Energy (GEN) are down about 4.3%. Shares of Veolia Environment (VE) are down about 4.3%.

The Utilities Select Sector SPDR (XLU) was trading at $32.82 at 4:00 PM on Monday, down 2.38% on the day – up 4.72% year-to-date.

STOCKS: UPL, PTEN, DHT, IOC, LDK, UEC, KOG, MHR, TNK, PCX, FCX, GG, AA, CENX, NOR, CX, SHZ, NOR, AVL, REE, IR, GWW, CP, LCC, AMR, YRCW, EK, PCLN, AMZN, TWX, HOT, DRH, NWS, VIA, GPS, CHS, GET, OMX, PG, KO, SBMRY, FEED, ADY, CIGX, CEDC, DMND, SGEN, PRGO, GTIV, BSPM, SUNH, XOMA, ACHN, AMED, PPDI, MDCO, DXBGF, C, BCS, BAC, SLG, ZION, BEN, STT, MTG, FCH, ACIW, SONE, ALBCF, YHOO, ADI, NTAP, GPN, HSOL, AEIS, AUDC, SQNS, PWAV, ALU, MU, JASO, VOD, PCS, LEAP, TSTRQ, TWER, PGI, CEL, S, T, VZ, DYN, NRG, NST, BIP, AWR, GEN, VE

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
REE Rare Element Resources n/a n/a n/a n/a
UEC Uranium Energy Corp. 1.38 0.02 1.47 1,113,981
AWR American States Water Company 69.06 0.74 1.08 156,139 Trade
GEN Genesis Healthcare Inc. 1.32 0.05 3.94 113,325 Trade
PG Procter & Gamble Company (The) 106.05 0.20 0.19 7,249,033 Trade
DRH Diamondrock Hospitality Company 10.78 0.05 0.47 1,286,697 Trade
TI Telecom Italia S.P.A. New 5.81 -0.09 -1.53 134,993 Trade
GPN Global Payments Inc. 139.67 1.03 0.74 796,481 Trade
AMED Amedisys Inc 117.22 1.58 1.37 507,085 Trade
CEL Cellcom Israel Ltd. 4.34 0.10 2.36 18,217 Trade
AA Alcoa Corporation 26.66 -1.06 -3.82 9,476,158 Trade
CHS Chico's FAS Inc. 3.69 -0.10 -2.64 2,062,144 Trade
IOC InterOil Corporation n/a n/a n/a 0 Trade
NOR Canadian Western Bank n/a n/a n/a 0
SQNS Sequans Communications S.A. American Depositary Shares each representing one 1.08 -0.02 -1.48 41,459 Trade
ADI Analog Devices Inc. 114.79 0.39 0.34 2,052,786 Trade
BCS Barclays PLC 8.75 -0.11 -1.24 2,159,620 Trade
C Citigroup Inc. 69.67 -0.68 -0.97 13,513,780 Trade
S Sprint Corporation 5.77 0.13 2.31 12,245,036 Trade
AUDC AudioCodes Ltd. 16.02 0.48 3.09 185,166 Trade
GG Goldcorp Inc. 11.19 0.00 0.00 0 Trade
NRG NRG Energy Inc. 41.00 -0.18 -0.44 3,146,408 Trade
IR Ingersoll-Rand plc (Ireland) 112.79 -0.04 -0.04 2,007,299 Trade
BEN Franklin Resources Inc. 35.30 -0.25 -0.70 1,848,244 Trade
PCLN BKNG Calfrac Well Services Ltd. n/a n/a n/a n/a
AEIS Advanced Energy Industries Inc. 57.52 0.64 1.13 364,234 Trade
ACIW ACI Worldwide Inc. 33.97 0.26 0.77 517,891 Trade
VOD Vodafone Group Plc 18.52 -0.20 -1.04 2,492,351 Trade
MDCO The Medicines Company 28.02 0.49 1.78 738,708 Trade
BIP Brookfield Infrastructure Partners LP Limited Partnership Units 41.35 -0.24 -0.58 310,175 Trade
CENX Century Aluminum Company 8.61 -1.09 -11.24 3,152,482 Trade
SLG SL Green Realty Corp 87.05 0.40 0.46 773,094 Trade
VZ Verizon Communications Inc. 58.04 0.26 0.45 13,189,013 Trade
SGEN Seattle Genetics Inc. 69.18 -1.62 -2.29 1,810,644 Trade
YRCW YRC Worldwide Inc. 8.04 0.18 2.29 524,896 Trade
BAC Bank of America Corporation 30.03 0.00 0.00 61,796,624 Trade
FCX Freeport-McMoRan Inc. 14.00 -0.20 -1.41 27,426,666 Trade
TNK Teekay Tankers Ltd. 1.04 -0.01 -0.95 1,157,009 Trade
GPS Gap Inc. (The) 25.97 -0.19 -0.73 4,402,693 Trade
ACHN Achillion Pharmaceuticals Inc. 2.93 -0.01 -0.34 1,077,767 Trade
PGI Premiere Global Services Inc n/a n/a n/a 0 Trade
ALU Alcatel-Lucent ADR (Sponsored) n/a n/a n/a 0 Trade
PRGO Perrigo Company plc 48.82 -1.04 -2.09 1,372,716 Trade
HSOL HSOL n/a n/a n/a 0 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
UPL Ultra Petroleum Corp. 0.47 -0.07 -13.62 4,044,418 Trade
DHT DHT Holdings Inc. 4.91 -0.03 -0.61 754,866 Trade
MU Micron Technology Inc. 43.40 0.25 0.58 16,193,579 Trade
KO Coca-Cola Company (The) 47.48 0.20 0.42 12,167,116 Trade
CP Canadian Pacific Railway Limited 216.25 1.10 0.51 317,961 Trade
T AT&T Inc. 32.03 0.08 0.25 23,317,482 Trade
MHR Magnum Hunter Resources Corp n/a n/a n/a 0
HOT Starwood Hotels & Resorts Worldwide Inc. n/a n/a n/a 0 Trade
DMND Diamond Foods Inc n/a n/a n/a 0 Trade
NTAP NetApp Inc. 77.69 0.02 0.03 1,557,410 Trade
GWW W.W. Grainger Inc. 308.18 -0.14 -0.05 520,743 Trade
VIA Viacom Inc. 36.34 -0.39 -1.06 26,221 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 4.88 -0.03 -0.61 4,181,602 Trade
MTG MGIC Investment Corporation 13.75 0.01 0.07 1,649,900 Trade
TWER Towerstream Corp 0.85 0.00 0.00 1
NWS News Corporation 12.63 -0.08 -0.63 370,214 Trade
PTEN Patterson-UTI Energy Inc. 15.38 -0.11 -0.71 2,415,717 Trade
XOMA XOMA Corporation 12.29 -0.34 -2.69 63,885 Trade
AMZN Amazon.com Inc. 1,861.69 -3.13 -0.17 2,749,882 Trade

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