Equities Sector Coverage: Stocks Pare Gains In Late Fade

Sector Recap  |

Jobless Claims fell more than expected, down 30,000 to 339,000, but one large State did not file. Import Prices rose 1.1% in September. Trade Deficit widened to $44.22B in August versus $42.47 Billion in July. The Dow Jones Industrial Average opened higher trading up to 13,428.49 then dipped into the red with an afternoon low at 13,334.01 staying above its 50-day simple moving average at 13,310.83. The NASDAQ opened higher trading up to 3078.08 then dipped into the red with a day’s low at 3047.14 staying below its 50-day simple moving average at 3087.69.

In Asia, the Nikkei 225 closed at 8,547 – down 0.58%. The Hang Seng closed at 20,999 – up 0.38%. European exchanges ended higher on Thursday. The FTSE 100 ended the day at 5,830 – up 0.92%. The DAX ended the day at 7,282 – up 1.06%. The CAC 40 ended the day at 3,414 – up 1.42%. The yield on the 10-Year US Treasury rose from 1.668% to 1.731% then consolidated versus the 50-day and 200-day simple moving averages at 1.690% and 1.808%.

Comex gold rebounded from $1760.2 the Troy ounce to $1776.6 well below the 2012 high at $1798.1 on Friday, October 5. Nymex crude oil rebounded from $91.09 per barrel to $92.94 staying below its 50-day and 200-day simple moving averages at $93.85 and $95.97. The euro versus the dollar rebounded from 1.2829 to 1.2951 staying above its 200-day simple moving average at 1.2821.

Energy

The oil industry has filed a lawsuit to overturn an SEC rule forcing companies to disclose payments to foreign governments, arguing the information hurts their competitiveness. BP (BP) and the Justice Department are close to a deal to resolve the company's civil and criminal liabilities arising from 2010's Deepwater Horizon spill. However, the sides are still about $6B apart on a final figure. Exxon Mobil (XOM) [Buy] and Chevron (CVX) [Hold] are resumed at Dahlman Rose. Big Movers – GMX Resources (GMXR) is down about 21%. Alpha Natural Resources (ANR) is up about 13.5%. Arch Coal (ARI) is up about 12.5%. James River Coal (JRCC) is up about 11%. Dow components – Chevron (CVX) is up about 0.7%. Exxon Mobil (XOM) is up about 0.3%. Energy Select Sector SPDR (XLE) was trading at $73.13 at 3:30 PM on Thursday, up 0.98% on the day – up 5.79% year-to-date.

Materials

Big Mover – Stillwater Mining (SWC) is down about 10.5%. Dow Components – Alcoa (AA) is up about 0.9%. DuPont (DD) is down about 0.5%. The Materials Select Sector SPDR (XLB) was trading at $36.59 at 3:30 PM on Thursday, up 0.58% on the day – up 9.22% year-to-date.

Industrials

Alaska Air (ALK) is ordering 50 Boeing (BA) 737 jets, with the airline set to announce the deal today. There's no word on price, but the deal is likely to be worth billions of dollars. American Airlines parent company AMR (AAMRQ) has asked a bankruptcy court in a court filing for permission to borrow up to $1.5B in order to refinance current debt. BAE Systems (BAESY) is boosted to Neutral from Underperform by BNP Paribas. European Aeronautic Defence & Space Co. (EADSY) is lifted to Buy from Hold at Deutsche Bank. FedEx (FDX) is boosted to Buy from Hold this morning at Standpoint Research. Caterpillar (CAT) is cut to Sector Perform from Outperform at RBC Capital. Siemens (SI) is cut to Hold from Buy at Deutsche Bank. Big Mover – Oshkosh (OSK) is up about 11.5%. Dow components – Boeing Co (BA) is up about 0.7%. Caterpillar (CAT) is down about 0.6%. General Electric (GE) is up about 0.4%. 3M Company (MMM) is down about 0.5%. United Technologies (UTX) is up about 0.3%.

The Industrial Select Sector SPDR (XLI) was trading at $36.51 at 3:30 PM on Thursday, up 0.58% on the day – up 8.18% year-to-date.

Consumer Discretionary

McGraw-Hill's (MHP) education unit is expected to draw final bids later this month from P-E firms Bain Capital and Apollo Global (APO), as well as rival college textbook publisher Cengage Learning, in a deal that could fetch $3B. General Motors (GM) plans to introduce 13 new models for its Chevrolet brand in 2013, including refreshed versions of the Silverado pickup, Tahoe SUV, and Spark electric vehicle. Eastman Kodak (EKDKQ) has reached a deal to resolve the bankrupt company's retiree health care and survivor benefits liabilities, which surpass $1.2B and cost Kodak $10M a month. Kodak will provide the retirees committee with a $7.5M cash payment, a $635M unsecured claim, and a $15M administrative claim to make payments to the former employees. Winnebago Industries (WGO) beat estimates by 7 cents with revenue in-line with estimates. Emmis Communications (EMMS) missed estimates by 3 cents on revenue of $55M. Ruby Tuesday (RT) missed estimates by a penny with revenue in-line with estimates. VOXX International (VOXX) missed estimates by 3 cents and revenue by $13M. Life Time Fitness (LTM) is launched at Outperform at Wedbush. Marriott International (MAR) gets moved to Neutral from Buy at Goldman Sachs. Dow Components – Disney (DIS) is down about 1.5%. Home Depot (HD) is down about 0.8%. McDonalds (MCD) is up about 0.3%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.38 at 3:30 PM on Thursday, down 0.19% on the day – up 18.86% year-to-date.

Consumer Staples

Brown-Forman (BFB) is assigned a Neutral at SunTrust. Rite Aid (RAD) is begun with a Buy at BTIG. Dow components – Coca Cola (KO) is up about 0.2%. Procter & Gamble (PG) is up about 0.2%. Wal-Mart (WMT) is down about 0.2%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.92 at 3:30 PM on Thursday, up 0.06% on the day – up 10.56% year-to-date.

Health Care

St. Jude Medical (STJ) only sent a warning to doctors in December 2010 about insulation problems with the wires used with its Riata defibrillators, at least five years after the company first encountered the flaws and two years after an internal audit had specifically identified the issue. Genomic Health (GHDX) is picked up with a Neutral rating at Goldman Sachs. Celgene (CELG) is now Neutral from Overweight at Piper Jaffray. Fresenius Medical (FMS) is now Neutral from Overweight at HSBC Securities. Qiagen (QGEN) is cut to Underweight from Neutral at HSBC Securities. Dow Components – Johnson & Johnson (JNJ) is down about 0.5%. Merck (MRK) is down about 0.5%. Pfizer (PFE) is down about 0.6%. United Health Group (UNH) is up about 1%. The Health Care Select Sector SPDR (XLV) was trading at $40.45 at 3:30 PM on Thursday, up 0.27% on the day – up 16.60% year-to-date.

Financials

McGraw-Hill's (MHP) education unit is expected to draw final bids later this month from P-E firms Bain Capital and Apollo Global (APO), as well as rival college textbook publisher Cengage Learning, in a deal that could fetch $3B. Expect continued substantial headcount reductions at Bank of America (BAC), CEO Brian Moynihan has reiterated to Bloomberg, saying, "It's really based on demand." Noting the bank's flat revenues amidst the flat yield curve and flat economy, he said, "When I talk to our clients...they don't expect to hire a lot more people." Mission West Properties (MSW) beat estimates by 7 cents and revenue by $4M. Privatebancorp (PVTB) beat estimates by 5 cents and revenue by $1M. American Tower (AMT) is a new Neutral at Nomura. First Financial Holdings (FFCH) is assigned a Market Perform at Raymond James. Popular Inc. (BPOP) is an Outperform at RBC Capital. American Campus Communities (ACC) is raised to Buy from Neutral at Janney Capital. Banner Corp. (BANR) is boosted to Outperform from Market Perform at Keefe Bruyette. Big Mover – MF Global (MFGLQ) is up about 64%. Dow Components – American Express (AXP) is up about 0.5%. Bank of America (BAC) is up about 1.2%. JP Morgan Chase (JPM) is up about 0.3%. Travelers (TRV) is down about 0.4%. The Financial Select Sector SPDR (XLF) was trading at $16.045 at 3:30 PM on Thursday, up 0.27% on the day – up 23.42% year-to-date.

Information Technology

PC shipments fell a stunning 8.3% on year in Q3 vs. just -0.1% in Q2, Gartner estimates, as weak back-to-school sales and cautious retailer orders add to the damage wreaked by tablet sales. Gartner also says that Lenovo (LNVGY) has passed H-P (HPQ) to become the world's top PC OEM. DragonWave (DRWI) beat estimates by 26 cents and revenue by $3.2M. DragonWave expects FQ3 revenue of $43M-$50M (in-line with a $48.7M consensus). Richardson Electronics (RELL) missed estimates by 6 cents and revenue by $6M. Sycamore Networks (SCMR) beat estimates by 10 cents and revenue by $4M. Heartland Payment Systems (HPY) is hoisted to Outperform from Market Perform at Raymond James. Check Point Software (CHKP) is now Hold from Buy at Needham. Texas Instruments (TXN) is cut to Neutral from Outperform at Credit Suisse. Big Movers – Dragonwave (DRWI) is up about 15%. KIT Digital (KITD) is down about 12.5%. Dow Components – Cisco Systems (CSCO) is down about 0.5%. Hewlett-Packard (HPQ) is up about 0.9%. IBM (IBM) is up about 0.1%. Intel Corp (INTC) is down about 0.4%. Microsoft (MSFT) is down about 0.3%. The Technology Select Sector SPDR (XLK) was trading at $30.06 at 3:30 PM on Thursday, unchanged on the day – up 18.11% year-to-date.

Telecommunication Services

Sprint (S) soared 23% premarket following a report that Japan's Softbank is mulling taking more than a two-thirds stake in the company for about $13B. Big Movers – Clearwire (CLWR) is up about 52%. Sprint Nextel (S) is up about 13%. TerreStar (TSTRQ) is down about 38%. Dow Components – AT&T (T) is down about 1.7%. Verizon (VZ) is down about 1.1%. The NASDAQ Telecommunications Index (IXTC) was trading at $194.05 at 3:30 PM on Thursday, up 0.36% on the day – down 1.46% year-to-date.

Utilities

The Big Names – Dominion Resources (D) is down about 0.3%. Edison International (EIX) is relatively unchanged. First Energy (FE) is up about 1.3%. PG&E Corp (PCG) is relatively unchanged. Southern Company (SO) is down about 0.5%. The Utilities Select Sector SPDR (XLU) was trading at $36.75 at 3:30 PM on Thursday, up 0.22% on the day – up 2.14% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KFT, KO, PG, WMT, JNJ, MRK, PFE, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, BP, XOM, CVX, GMXR, ANR, ARI, JRCC, SWC, ALK, BA, AAMRQ, BAESY, EADSY, FDX, CAT, SI, OSK, MHP, APO, GM, EKDKQ, WGO, EMMS, RT, VOXX, LTM, MAR, BFB, RAD, STJ, GHDX, CELG, FMS, QGEN, MHP, APO, BAC, MSW, PVTB, AMT, FFCH, BPOP, ACC, BANR, MFGLQ, LNVGY, HPQ, DRWI, RELL, SCMR, HPY, CHKP, TXN, KITD, S, CLWR, TSTRQ

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
MMM 3M Company 204.66 -4.95 -2.36 2,716,057 Trade
FMS Fresenius Medical Care AG 38.56 -1.35 -3.38 99,268 Trade
ARI Apollo Commercial Real Estate Finance Inc 18.36 -0.07 -0.38 977,416 Trade
PG Procter & Gamble Company (The) 101.66 -0.83 -0.81 11,036,296 Trade
GE General Electric Company 9.98 -0.29 -2.82 81,563,530 Trade
CVX Chevron Corporation 123.09 -2.77 -2.20 5,786,776 Trade
SO Southern Company (The) 51.88 0.31 0.60 6,068,084 Trade
ACC American Campus Communities Inc 46.80 -0.07 -0.15 540,482 Trade
PCG Pacific Gas & Electric Co. 19.42 0.37 1.94 9,601,653 Trade
SWC Stillwater Mining Company ($0.01 Par Value) n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 136.91 -1.19 -0.86 6,528,782 Trade
AA Alcoa Corporation 28.12 -1.29 -4.39 3,356,052 Trade
INTC Intel Corporation 53.26 -1.38 -2.53 21,438,435 Trade
D Dominion Energy Inc. 75.52 0.41 0.55 5,324,247 Trade
TRV The Travelers Companies Inc. 134.90 0.53 0.39 2,352,795 Trade
RAD Rite Aid Corporation 0.67 -0.02 -2.99 10,133,193 Trade
BPOP Popular Inc. 49.92 -1.63 -3.16 844,253 Trade
S Sprint Corporation 6.25 -0.04 -0.64 6,830,591 Trade
AUDC AudioCodes Ltd. 13.04 -0.84 -6.05 276,157 Trade
GHDX Genomic Health Inc. 69.37 -5.26 -7.05 495,745 Trade
EIX Edison International 64.69 -0.29 -0.45 3,340,005 Trade
HPY Heartland Payment Systems Inc n/a n/a n/a 0 Trade
ALK Alaska Air Group Inc. 54.25 -0.97 -1.76 1,550,477 Trade
AXP American Express Company 109.46 -2.36 -2.11 3,737,581 Trade
UTX United Technologies Corporation 125.15 -1.73 -1.36 3,872,155 Trade
TXN Texas Instruments Incorporated 109.68 -2.54 -2.26 3,773,458 Trade
CSCO Cisco Systems Inc. 52.74 -1.20 -2.22 23,938,450 Trade
MAR Marriott International 124.50 -0.56 -0.45 3,400,967 Trade
VZ Verizon Communications Inc. 59.76 1.47 2.52 25,125,385 Trade
GM General Motors Company 36.44 -0.91 -2.44 10,049,514 Trade
BAC Bank of America Corporation 27.01 -1.17 -4.15 118,851,628 Trade
APO Apollo Global Management LLC Class A Representing Class A Limitied Liability Company Interests 28.00 -1.59 -5.37 805,015 Trade
PVTB PrivateBancorp Inc. n/a n/a n/a 0 Trade
VOXX VOXX International Corporation 4.63 0.01 0.22 23,363 Trade
MCD McDonald's Corporation 186.81 0.44 0.24 3,319,613 Trade
DRWI DragonWave Inc n/a n/a n/a n/a
WGO Winnebago Industries Inc. 29.11 -1.24 -4.09 692,003 Trade
STJ St. Jude Medical Inc. n/a n/a n/a 0 Trade
RELL Richardson Electronics Ltd. 7.00 0.04 0.57 29,576 Trade
EMMS Emmis Communications Corporation 3.73 0.00 0.00 743 Trade
OSK Oshkosh Corporation (Holding Company)Common Stock 72.38 -3.00 -3.98 465,918 Trade
BANR Banner Corporation 51.97 -1.63 -3.04 239,119 Trade
PFE Pfizer Inc. 41.85 -0.50 -1.18 18,614,890 Trade
FDX FedEx Corporation 173.99 -5.00 -2.79 2,439,459 Trade
HPQ HP Inc. 19.34 -0.88 -4.35 15,765,553 Trade
CELG Celgene Corporation 88.15 -1.48 -1.65 7,324,230 Trade
MRK Merck & Company Inc. (new) 82.29 -0.66 -0.80 10,152,269 Trade
AMT American Tower Corporation (REIT) 193.65 -1.06 -0.54 2,050,293 Trade
BP BP p.l.c. 43.95 -0.58 -1.30 6,333,524 Trade
FE FirstEnergy Corp. 41.77 0.53 1.29 3,805,192 Trade
CHKP Check Point Software Technologies Ltd. 125.43 -0.73 -0.58 758,487 Trade
KO Coca-Cola Company (The) 45.93 0.42 0.92 19,055,939 Trade
T AT&T Inc. 31.07 0.01 0.03 33,171,404 Trade
CAT Caterpillar Inc. 129.77 -4.29 -3.20 5,745,823 Trade
MSFT Microsoft Corporation 117.05 -3.17 -2.64 33,624,528 Trade
WMT Walmart Inc. 98.28 -0.78 -0.79 6,708,131 Trade
IBM International Business Machines Corporation 139.45 -1.99 -1.41 3,877,616 Trade
JPM JP Morgan Chase & Co. 99.76 -3.11 -3.02 31,115,189 Trade
DIS The Walt Disney Company 108.23 -0.43 -0.40 24,133,840 Trade
HD Home Depot Inc. (The) 188.75 -1.22 -0.64 5,173,899 Trade
XOM Exxon Mobil Corporation 80.48 -1.31 -1.60 12,497,707 Trade
BA The Boeing Company 362.17 -10.53 -2.83 10,143,922 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

World Economic Forum at Davos 2019 - Dominic Briggs General Partner Blockwall Management

Matt Bird sits down with Dominic Briggs, General Partner Blockwall Management at the World Economic Forum at Davos 2019