Equities Sector Coverage: Stocks Lose Gains Ahead of Fed Meeting

Sector Recap |

Stock Trader Wall StreetHousing 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.

Energy

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.

Materials

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.

Industrials

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.

Healthcare

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.

Financials

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.

Utilities

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.

STOCKS: APA, APC, NBL, NFX, PXD, XEC, OAS, CXO, SM, CHK, ECA, EOG, PER, LINE, STP, TSL, LDK, GMR, MHR, MCP, AVL, REE, SWC, CF, GSS, AUQ, AUY, NXG, NEM, PNCL, MTW, DLAKY, AONE, TEX, AFLYY, YRCW, GE, GLW, AMR, TPX, VC, MGM, RL, PHM, EXPR, CMLS, CWTR, WATG, IPG, CAG, RAH, FEED, DMND, CVS, MO, JAZZ, ABT, MDVN, ONXX, QCOR, EXEL, REGN, MNTA, HLS, TRH, VR, BRK.A, AWH, UBS, JPM, TRV, MCO, TRH, BNPQY, CARB, VMW, ARMH, SAP, AAPL, AIXG, PLXS, LOGI, MRVL, SINA, TZOO, FTR, S, T, LVLT, VZ, TEF, WIN, VOD, DUK, SO, EXC, AES, GEN, XEL, PPL, D

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
GSS Golden Star Resources Ltd 0.97 -0.04 -3.50 2,121,510
GLW Corning Incorporated 27.65 -0.06 -0.22 4,456,285
EXPR Express Inc. 11.38 0.21 1.88 918,711
GEN Genesis Healthcare Inc. 3.88 -0.05 -1.27 124,538
CF CF Industries Holdings Inc. 34.11 0.59 1.76 6,668,823
FTR Frontier Communications Corporation 3.29 0.00 0.00 26,123,818
XEL Xcel Energy Inc. 42.00 0.11 0.26 2,294,991
MTW Manitowoc Company Inc. (The) 6.54 -0.10 -1.51 2,838,935
GE General Electric Co 30.37 -0.08 -0.26 21,849,428
ABT Abbott Laboratories 44.69 0.49 1.11 9,632,008
SO Southern Company (The) 47.80 -0.44 -0.91 7,118,347
SQM Sociedad Quimica y Minera S.A. 32.00 -1.03 -3.12 893,050
ARMH ARM Holdings plc n/a n/a n/a 0
TEF Telefonica SA 9.87 -0.03 -0.30 808,241
SWC Stillwater Mining Company ($0.01 Par Value) 17.07 -0.03 -0.18 831,715
D Dominion Resources Inc. 73.77 0.49 0.67 3,426,440
TRV The Travelers Companies Inc. 121.95 0.16 0.13 1,334,680
MNTA Momenta Pharmaceuticals Inc. 19.00 0.00 0.00 416,716
MO Altria Group Inc. 72.97 0.26 0.36 5,568,728
AAPL Apple Inc. 135.72 0.38 0.28 22,198,197
SINA Sina Corporation 75.62 -0.76 -1.00 953,604
AWH Allied World Assurance Company Holdings AG (Switze 53.52 -0.17 -0.32 393,761
S Sprint Corporation 9.30 0.30 3.33 43,255,377
PPL PPL Corp 35.63 -0.09 -0.25 3,438,736
JAZZ Jazz Pharmaceuticals plc 137.19 0.78 0.57 460,285
ECA Encana Corporation 12.35 -0.08 -0.64 11,155,315
CARB Carbonite Inc. 19.60 -0.15 -0.76 227,398
EXEL Exelixis Inc. 23.12 0.47 2.08 5,007,928
JPM JP Morgan Chase 90.23 -0.30 -0.33 15,776,589
CMLS Cumulus Media Inc. 1.04 0.00 0.00 17,212
VOD Vodafone Group Plc 25.11 -0.11 -0.44 4,414,961
LOGI Logitech International S.A. 29.36 -0.23 -0.78 188,455
TSL Trina Solar Limited Sponsored ADR (Cayman Islands) 10.21 0.03 0.29 717,627
VMW Vmware Inc. Class A 91.22 0.27 0.30 1,300,742
XEC Cimarex Energy Co 132.02 -1.04 -0.78 1,061,346
LINE Linn Energy LLC Unit Repstg Ltd Liability Co Ints n/a n/a n/a 0
LVLT Level 3 Communications Inc. 57.30 -0.03 -0.05 2,366,556
AES The AES Corporation 11.46 -0.19 -1.63 6,336,825
MDVN Medivation Inc. n/a n/a n/a 0
TZOO Travelzoo Inc. 9.40 -0.05 -0.53 44,329
VZ Verizon Communications Inc. 49.19 0.73 1.51 23,190,659
YRCW YRC Worldwide Inc. 13.17 0.12 0.92 1,093,076
MRVL Marvell Technology Group Ltd. 15.81 0.02 0.13 2,536,916
APA Apache Corporation 55.44 0.19 0.34 2,524,390
APC Anadarko Petroleum Corporation 66.77 0.17 0.26 3,455,908
AUY Yamana Gold Inc. (Canada) 3.09 -0.35 -10.17 29,809,203
MGM MGM Resorts International 26.60 -0.26 -0.97 20,858,708
UBS UBS Group AG Registered 15.85 -0.13 -0.81 1,909,766
OAS Oasis Petroleum Inc. 13.93 -0.17 -1.21 5,932,378
EOG EOG Resources Inc. 99.03 -1.14 -1.14 3,023,215
WIN Windstream Holdings Inc. 7.05 0.03 0.43 1,845,235
TEX Terex Corporation 32.00 0.00 0.00 1,098,164
IPG Interpublic Group of Companies Inc. (The) 24.50 0.01 0.04 3,356,504
AIXG Aixtron SE n/a n/a n/a 0
VC Visteon Corporation 91.49 0.42 0.46 190,889
CXO Concho Resources Inc. 140.06 -0.13 -0.09 1,014,078
VR Validus Holdings Ltd. 58.33 -0.24 -0.41 281,534
PHM PulteGroup Inc. 21.40 0.06 0.28 3,307,660
NBL Noble Energy Inc. 37.05 -0.16 -0.43 2,770,058
PLXS Plexus Corp. 57.41 -0.07 -0.12 349,702
CVS CVS Health Corporation 79.69 0.24 0.30 6,215,697
SAP SAP SE ADR (Sponsored) 92.46 -0.29 -0.31 729,484
MCO Moody\'s Corporation 112.90 2.68 2.43 2,024,112
NFX Newfield Exploration Company 41.82 -0.32 -0.76 1,966,959
REGN Regeneron Pharmaceuticals Inc. 371.18 -1.84 -0.49 775,547
EXC Exelon Corporation 35.58 0.16 0.45 4,962,991
PXD Pioneer Natural Resources Company 192.00 -1.21 -0.63 1,569,393
T AT&T Inc. 41.48 0.23 0.56 24,156,415
MHR Magnum Hunter Resources Corp n/a n/a n/a 0
NEM Newmont Mining Corporation 37.01 -0.56 -1.49 5,687,859
HLS HealthSouth Corporation 42.00 0.33 0.79 763,917
DUK Duke Energy Corporation (Holding Company) 78.36 -0.54 -0.68 4,104,558
CAG ConAgra Foods Inc. 39.61 -0.32 -0.80 4,081,471
DMND Diamond Foods Inc. n/a n/a n/a 0
TPX Tempur Sealy International Inc. 48.34 0.40 0.83 2,356,026
SM SM Energy Company 26.99 -0.12 -0.44 1,962,275
CHK Chesapeake Energy Corporation 6.10 0.02 0.33 21,037,853
RL Ralph Lauren Corporation 78.39 -0.08 -0.10 1,802,185

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