Equities Sector Coverage: Stocks Lose Gains Ahead of Fed Meeting

Sector Recap  |

Housing Starts fell more than expected down 5.0% in August to an annual pace of 571,000 units and now stand at 50% below what economists would call a healthy housing market. Tomorrow we get Existing Home Sales for August. The FOMC meeting ends Wednesday afternoon with expectations of Operation Twist where the Fed sells short maturity U.S. Treasuries and buys long maturity notes and bonds. The Dow Jones Industrial Average traded up to 11,459.82 then dipped to 11,373.92 just in the first half hour of trading. The afternoon rebound reached 11,550.22 well below its 50-day simple moving average at 11,636. The Dow faded well below 11,500 in the final half hour of trading. The NASDAQ traded between 2607.54 and 2643.37 in morning trading staying above its 50-day simple moving average at 2599. Then in the final half hour the NASDAQ slipped below 2600 trading around its 50-day into the close.

Asian stocks were mixed on Tuesday. The Nikkei 225 which was closed on Monday fell 1.61% to 8,721. The Hang Seng gained 0.51% to 19,015. European stocks were higher on hopes of a deal on Greek debt and despite a downgrade of Italian debt. The FTSE 100 gained 1.98% to 5,364 with the DAX surging 2.88% to 5,572 and the CAC 40 up by 1.50% to 2,984. The yield on the 10-Year US Treasury traded between 1.990 and 1.932 as a flight to quality continues. Gold traded up from $1772.0 the Troy ounce to $1814.3 as the double-top continues to form on the daily chart. Crude oil traded up from $85.11 and $87.46 per barrel continuing to trade between its 200-week simple moving average at $83.71 and its 50- day at $89.95. The euro versus the US dollar traded between 1.3597 and 1.3742.


Deutsche Bank initiates the following with Buy: Apache (APA) - $126 target price, Anadarko Petroleum (APC) - $91 target price, Noble Energy (NBL) - $120 target price, Newfield Exploration (NFX) - $72 target price, Pioneer Natural Resources (PXD) - $97 target price, Cimarex Energy (XEC) - $96 target price, Oasis Petroleum (OAS) - $38 target price, Concho Resources (CXO) - $115 target price, and SM Energy (SM) - $105 target price. It assigns Holds on: Chesapeake Energy (CHK), Encana (ECA), and EOG Resources (EOG). SandRidge Permanian Trust (PER) is picked up with an Outperform rating and $22 target by brokers Robert W. Baird. Linn Energy (LINE) is a new Neutral at Credit Suisse. In afternoon trading: Shares of Suntech Power (STP) are down about 14.3%. Shares of Trina Solar (TSL) are down about 12%. Shares of LDK Solar (LDK) are down about 11.6%. Shares of General Maritime (GMR) are down about 11.3%. Shares of Magnum Hunter Resources (MHR) are UP about 11%.

Energy Select Sector SPDR (XLE) was trading at $65.62 at 4:00 PM on Tuesday, down 0.62% on the day – down 3.85% year-to-date.


Molycorp (MCP) is moved to Neutral from Overweight at JP Morgan. In afternoon trading: Shares of Molycorp are down about 20.6%. Shares of Avalon Rare Metals (AVL) are down about 11.3%. Shares of Rare Element Resources (REE) are down about 10.2%. Shares of Stillwater Mining (SWC) are down about 8.8%. Shares of CF Industries (CF) are down about 5.7%. Shares of Golden Star Resources (GSS) are up about 6.7%. Shares of AuRico Gold (AUQ) are up about 6.2%. Shares of Yamana Gold (AUY) are up about 5.8%. Shares of Northgate Minerals (NXG) are up about 5.7%. Shares of Newmont Mining (NEM) are up about 5.6%.

The Materials Select Sector SPDR (XLB) was trading at $33.61 at 4:00 PM on Tuesday, down 1.18% on the day – down 12.50% year-to-date.


In afternoon trading: Shares of Pinnacle Airlines (PNCL) are down about 8.9%. Shares of The Manitowoc Company (MTW) are down about 6.5%. Shares of Deutsche Lufthansa (DLAKY) are down about 6.2%. Shares of A123 Systems (AONE) are down about 5.7%. Shares of Terex (TEX) are down about 5.2%. Shares of Air France (AFLYY) are down about 5%. Actives: Shares of YRC Worldwide (YRCW) are up about 2%. Shares of General Electric (GE) are down about 0.6%. Shares of Corning (GLW) are up about 0.7%. Shares of AMR (AMR) are up about 4.2%.

The Industrial Select Sector SPDR (XLI) was trading at $31.44 at 4:00 PM on Tuesday, down 0.73% on the day – down 9.84% year-to-date.

Consumer Discretionary

Tempur-Pedic (TPX) is a new Neutral at Goldman Sachs. Visteon (VC) is a new Buy at Bank of America-Merrill Lynch. MGM Resorts (MGM) is moved to Overweight from Equal Weight at Morgan Stanley. Polo Ralph Lauren (RL) is raised to Outperform from Neutral at Cowen & Company. Pulte Group (PHM) is boosted to Buy from Neutral at UBS. Express (EXPR) is resumed with an Outperform by brokers Raymond James. In afternoon trading: Shares of Cumulus Media (CMLS) are up about 20%. Shares of Coldwater Creek (CWTR) are up about 14.6%. Shares of Wonder Auto Tech (WATG) are up about 11.6%. Shares of Interpublic Group of Companies (IPG) are up about 9.7%.

The Consumer Discretionary Select Sector SPDR (XLY) was trading at $37.50 at 4:00 PM on Tuesday, down 0.53% on the day – up 0.24% year-to-date.

Consumer Staples

ConAgra (CAG) formally withdrew its $5.2B all-cash offer for Ralcorp (RAH) after repeated rejections. The $94/share offer is a higher price than Ralcorp has ever traded, but the company decided the bid would generate less value than current plans to spin off Post Foods. In afternoon trading: Shares of AgFeed Industries (FEED) are down about 9%. Shares of Diamond Foods (DMND) are up about 6.1%. Actives: Shares of ConAgra Foods are down about 1.2%. Shares of CVS Caremark (CVS) are up about 0.9%. Shares of Altria Group (MO) are up about 0.7%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $30.64 at 4:00 PM on Tuesday, up 0.20% on the day – up 4.54% year-to-date.


Jazz Pharmaceuticals (JAZZ) announced it will merge with Ireland's Azur Pharma in an all-stock deal. The combined company will have $475M+ in revenue and $200M+ in cash flow in its first 12 months. Jefferies begins Buys on Abbott Labs (ABT) - $60 price objective, Medivation (MDVN) - $24 price objective, Onyx Pharmaceuticals (ONXX) - $44 price objective, and Questcor (QCOR) - $36 price objective. It has Holds on Exelixis (EXEL) - $6 price objective and Regeneron Pharmaceuticals (REGN) - $66 price objective. Momenta Pharmaceuticals (MNTA) is moved to Neutral from Underperform by Bank of America-Merrill Lynch. In afternoon trading: Shares of HealthSouth (HLS) are down about 12.9%. Shares of Jazz Pharmaceuticals are up about 9.2%.

The Health Care Select Sector SPDR (XLV) was trading at $33.01 at 4:00 PM on Tuesday, up 0.92% on the day – up 4.79% year-to-date.


Reinsurer Transatlantic Holdings (TRH) is reportedly exploring a "limited standstill" agreement with Validus Holdings (VR), after rejecting a reinstated $3.25B all-cash offer from Buffett's National Indemnity (BRK.A) and calling off a planned merger with Allied World Assurance (AWH). Following UBS's (UBS) $2.3B loss from rogue trading, some Swiss legislators are pushing for a ban on risky investment banking and increased capital requirements. JPMorgan Chase (JPM) is a new Overweight at Evercore Partners. The Travelers (TRV) is upgraded 180 degrees, to Buy from Sell at Goldman Sachs with a new target of $63. Moody’s (MCO) is downgraded to Hold from Buy at The Benchmark Company with a new target of $29. Transatlantic Holdings (TRH) is taken to Hold from Buy at Deutsche Bank.  In afternoon trading: Shares of BNP Paribus (BNPQY) are down about 9%.

The Financial Select Sector SPDR (XLF) was trading at $12.52 at 4:00 PM on Tuesday, down 0.32% on the day – down 21.50% year-to-date.

Information Technology

Carbonite (CARB) is covered with an Outperform and $17 target price at Oppenheimer. VMware (VMW) is a new Buy at Merriman. ARM Holdings (ARMH) is upgraded to Buy from Hold at The Benchmark Company. SAP AG (SAP) gets upgraded to Outperform from Market Perform at Wells Fargo. Apple Inc (AAPL) is added to the Best Ideas List at Wedbush with a new target of $530. Aixtron (AIXG) is now Neutral from Buy at UBS. Plexus (PLXS) is now Sell from Neutral at Ticonderoga. Logitech Intl SA (LOGI) is lowered to Sell from Neutral at Goldman sachs. Marvell (MRVL) is moved to Market Perform from Outpeform at JMP Securities. In afternoon trading: Shares of Sina (SINA) are down about 15%. Shares of Travelzoo (TZOO) are down about 9.5%. Shares of Carbonite are up about 9.8%.

The Technology Select Sector SPDR (XLK) was trading at $24.86 at 4:00 PM on Tuesday, down 0.24% on the day – down 1.31% year-to-date.

Telecommunications Services

In afternoon trading: Actives: Shares of Frontier Communications (FTR) are down about 2.6%. Shares of Sprint Nextel (S) are down about a half of a percent. Shares of AT&T (T) are up about 1.6%. Shares of Level 3 Communications (LVLT) are up about 1.3%. Shares of Verizon (VZ) are up about 0.9%. Shares of Telefonica (TEF) are up about 0.8%. Shares of Windstream (WIN) are up about a half of a percent. Shares of Vodafone (VOD) are up about 1.2%.

The NASDAQ Telecommunications Index (IXTC) was trading at $192.26 at 4:00 PM on Tuesday, down 0.88% on the day – down 14.69% year-to-date.


In afternoon trading: Actives: Shares of Duke Energy (DUK) are up about 1.5%. Shares of Southern (SO) are up about 1.2%. Shares of Exelon (EXC) are up about 2.3%. Shares of AES Corp (AES) are down about 1.5%. Shares of Genon Energy (GEN) are down about 2.9%. Shares of Xcel Energy (XEL) are up about 0.6%. Shares of PPL Corp (PPL) are up about 2.7%. Shares of Dominion Resources (D) are up about 2.2%.

The Utilities Select Sector SPDR (XLU) was trading at $34.28 at 4:00 PM on Tuesday, up 1.45% on the day – up 9.38% year-to-date.


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Symbol Name Price Change % Volume
REE Rare Element Resources n/a n/a n/a n/a
GSS Golden Star Resources Ltd 0.71 -0.03 -4.59 775,512
GLW Corning Incorporated 30.94 0.16 0.52 4,686,240 Trade
EXPR Express Inc. 8.56 0.14 1.60 1,604,177 Trade
GEN Genesis Healthcare Inc. 1.53 0.10 7.00 106,645 Trade
CF CF Industries Holdings Inc. 49.35 -1.29 -2.55 2,422,991 Trade
FTR Frontier Communications Corporation 5.30 -0.18 -3.28 1,230,324 Trade
MTW Manitowoc Company Inc. (The) 19.04 -0.39 -2.01 291,065 Trade
GE General Electric Company 12.40 -0.17 -1.31 31,498,111 Trade
ABT Abbott Laboratories 68.41 0.82 1.21 4,420,144 Trade
SO Southern Company (The) 44.91 -0.17 -0.37 2,135,337 Trade
SQM Sociedad Quimica y Minera S.A. 41.26 -0.28 -0.67 563,690 Trade
ARMH ARM Holdings plc n/a n/a n/a 0 Trade
TEF Telefonica SA 7.99 -0.06 -0.68 964,311 Trade
SWC Stillwater Mining Company ($0.01 Par Value) n/a n/a n/a 0 Trade
D Dominion Energy Inc. 73.29 -0.21 -0.29 1,864,037 Trade
TRV The Travelers Companies Inc. 124.20 -1.88 -1.49 746,127 Trade
MNTA Momenta Pharmaceuticals Inc. 13.49 -0.16 -1.17 435,001 Trade
MO Altria Group Inc. 61.43 -0.53 -0.85 3,155,664 Trade
AAPL Apple Inc. 220.86 1.55 0.71 20,682,042 Trade
SINA Sina Corporation 62.16 2.31 3.86 549,364 Trade
S Sprint Corporation 6.44 -0.03 -0.39 3,141,650 Trade
PPL PPL Corporation 30.60 -0.62 -1.99 2,447,691 Trade
JAZZ Jazz Pharmaceuticals plc 157.24 1.25 0.80 188,656 Trade
ECA Encana Corporation 11.15 -0.04 -0.36 5,337,842 Trade
CARB Carbonite Inc. 35.00 -0.03 -0.09 129,438 Trade
EXEL Exelixis Inc. 15.49 -0.78 -4.77 1,838,658 Trade
JPM JP Morgan Chase & Co. 106.23 -1.68 -1.56 11,209,972 Trade
CMLS Cumulus Media Inc. 16.40 0.65 4.13 17,267 Trade
VOD Vodafone Group Plc 19.63 -0.57 -2.82 5,599,056 Trade
LOGI Logitech International S.A. 39.97 0.92 2.36 315,128 Trade
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) n/a n/a n/a 0 Trade
VMW Vmware Inc. Class A 145.11 4.65 3.31 544,328 Trade
XEC Cimarex Energy Co 90.00 -1.65 -1.80 529,953 Trade
LINE Linn Energy LLC Unit Repstg Ltd Liability Co Ints n/a n/a n/a 0
AES The AES Corporation 15.04 0.06 0.37 2,653,793 Trade
MDVN Medivation Inc. n/a n/a n/a 0 Trade
TZOO Travelzoo 11.28 0.48 4.44 44,125 Trade
VZ Verizon Communications Inc. 55.08 0.18 0.33 12,909,696 Trade
YRCW YRC Worldwide Inc. 8.45 0.03 0.36 204,949 Trade
MRVL Marvell Technology Group Ltd. 18.00 0.24 1.35 7,796,935 Trade
APA Apache Corporation 41.12 -0.98 -2.33 1,994,417 Trade
APC Anadarko Petroleum Corporation 64.08 -1.92 -2.91 2,335,204 Trade
AUY Yamana Gold Inc. (Canada) 2.62 -0.05 -1.69 6,203,369 Trade
MGM MGM Resorts International 26.29 -0.36 -1.35 3,126,993 Trade
UBS UBS Group AG Registered 13.76 -0.08 -0.58 1,286,224 Trade
OAS Oasis Petroleum Inc. 11.92 -0.31 -2.53 3,508,274 Trade
EOG EOG Resources Inc. 116.20 -1.47 -1.25 1,014,128 Trade
WIN Windstream Holdings Inc. 4.49 -0.04 -0.88 264,023 Trade
TEX Terex Corporation 32.87 -0.31 -0.93 738,987 Trade
IPG Interpublic Group of Companies Inc. (The) 24.44 -0.21 -0.85 5,988,455 Trade
CXO Concho Resources Inc. 146.21 -1.34 -0.90 574,857 Trade
PHM PulteGroup Inc. 21.07 -0.51 -2.36 5,013,276 Trade
NBL Noble Energy Inc. 29.06 -0.16 -0.55 3,774,964 Trade
PLXS Plexus Corp. 55.66 0.36 0.65 57,197 Trade
CVS CVS Health Corporation 73.05 -1.14 -1.53 3,662,634 Trade
SAP SAP SE ADS 108.53 -0.49 -0.45 725,297 Trade
MCO Moody's Corporation 159.79 0.02 0.01 520,181 Trade
NFX Newfield Exploration Company 22.77 -0.85 -3.60 2,124,761 Trade
REGN Regeneron Pharmaceuticals Inc. 387.25 -2.58 -0.66 449,878 Trade
EXC Exelon Corporation 43.52 -0.61 -1.38 3,169,532 Trade
PXD Pioneer Natural Resources Company 162.90 -3.88 -2.33 729,542 Trade
T AT&T Inc. 32.73 -0.14 -0.43 14,559,172 Trade
MHR Magnum Hunter Resources Corp n/a n/a n/a 0
NEM Newmont Mining Corporation 32.06 -0.13 -0.40 4,818,095 Trade
HLS EHC HealthSouth Corporation n/a n/a n/a n/a
DUK Duke Energy Corporation (Holding Company) 82.63 -0.12 -0.15 2,349,819 Trade
CAG ConAgra Brands Inc. 36.16 0.32 0.89 4,237,513 Trade
DMND Diamond Foods Inc n/a n/a n/a 0 Trade
TPX Tempur Sealy International Inc. 48.37 0.49 1.02 302,033 Trade
SM SM Energy Company 28.71 -0.30 -1.03 834,299 Trade
CHK Chesapeake Energy Corporation 4.48 -0.22 -4.58 22,769,695 Trade
RL Ralph Lauren Corporation 127.80 4.32 3.50 609,582 Trade


Emerging Growth

Goldrea Resources Corp.

Goldrea Resources Corp is engaged in the acquisition, exploration and development of mineral properties located in North America.