Equities Sector Coverage: Stocks Sag Lower as Wall Street Waits for Fed

Sector Recap |

Stocks Sag Lower as Wall Street Waits for FedThe Dow Jones Industrial Average traded down to 13,270.94 then up to 13,324.10 on Monday morning, and then consolidated this range in the afternoon. The NASDAQ traded down from 3133.89 to 3108.05.on Monday.

Asian stocks were little changed on Monday. The Nikkei 225 ended the day at 8,869 – down 0.03%. The Hang Seng ended the day at 19,827 – up 0.13%. European exchanges opened around the flat lines and closed fractionally lower. The FTSE 100 ended the day at 5,793 – down 0.03%. The DAX ended the day at 7,214 – down 0.01%. The CAC 40 ended the day at 3,506 – down 0.37%. The yield on the 10-Year US Treasury rose from 1.635% to 1.690% staying above its 50-day simple moving average at 1.593% with the 200-day at 1.837.

Comex gold traded down from $1742.3 the Troy ounce to $1729.2 well above the 50-day and 200-day simple moving averages at $1623.9 and $1645.2. Nymex crude oil declined from $96.60 per barrel to $95.34 then rebounded to $96.63 versus the 200-day simple moving average at $96.61. The euro versus the dollar traded down from 1.2807 to 1.2761 staying between its 50-day and 200-day simple moving averages at 1.2381 and 1.2836.

Energy

BP (BP) is reportedly in negotiations to sell assets in Gulf of Mexico oil fields to Plains Exploration & Production (PXP) for $7B, which is above the latter's market cap of $5.2B. Transocean (RIG) agreed to sell 38 shallow-water drilling rigs to P-E backed Shelf Drilling International for $1.05B, with the amount comprising $855M in cash and $195M of seller financing in the form of preference shares. Complying with tighter fracking regulations on federal lands will cost $253,839 per well, said EOG Resources (EOG) and officials from Wyoming and Utah, citing a study from John Dunham & Associates. The consortium that develops the Leviathan natural gas field off Israel's coast, in which Noble Energy (NBL) and Delek (DK) own large holdings, is considering offers from "leading international companies" to sell up to 30% rights to the field. Venoco (VQ) is upgraded to Overweight from Underweight at JPMorgan. Repsol (REPYY) is downgraded to Underperform from Neutral at Macquarie. Seadrill (SDRL) is now Neutral from Overweight at HSBC Securities.

Big Movers – Plains Exploration & Production (PXP) down 9.84%.
Dow components – Chevron (CVX) up 0.02%, Exxon Mobil (XOM) down 0.15%.

Energy Select Sector SPDR (XLE) was trading at $73.30 at 3:30 PM on Monday, down 0.20% on the day – up 6.03% year-to-date.

Materials

ArcelorMittal (MT) reached a new 3-year labor agreement with the United Steelworkers union following the expiry of the old contract on September 1. Bemis (BMS) is a new Neutral at JPMorgan. PetroLogistics (PDH) is launched with a Buy at Dahlman Rose. Hi-Crush Partners (HCLP) is an Outperform at Robert W. Baird, an Outperform at RBC Capital, an Overweight at Barclays, an Outperform at Credit Suisse, and a Buy at UBS. Sealed Air (SEE) is begun with an Overweight at JPMorgan. Carpenter Technology (CRS) is upgraded to Overweight from Neutral at JPMorgan. Metals USA (MUSA) gets moved to Buy from Neutral at Goldman Sachs. Martin Marietta (MLM) gets moved to Overweight from Equal Weight at Stephens. Cliffs Natural Resources (CLF) is downgraded to Neutral from Buy at Goldman Sachs. Deutsche Bank gives Hold-from-Buy downgrades to International Paper (IP), Packaging Corp. (PKG), and Rock-Tenn (RKT).

Big Movers – Jaguar Mining (JAG) up 12.72%.
Dow Components – Alcoa (AA) up 0.33%, DuPont (DD) up 0.51%.

The Materials Select Sector SPDR (XLB) was trading at $36.99 at 3:30 PM on Monday, up 0.11% on the day – up 10.42% year-to-date.

Industrials

Titan Machinery (TITN) missed estimated by 18 cents, while beating revenue by $9M. Dover Corp (DOV) is moved the stock to Neutral from Underweight. Gol Linhas Aéreas Inteligentes (GOL) is boosted to Buy from Neutral at Citigroup. Colfax (CFX) is cut to Hold from Buy at BB&T Capital. Gol Linhas Aéreas Inteligentes (GOL) is downgraded to Market Perform from Outperform at Raymond James. Hubbell (HUB-B) is now Neutral from Overweight at JPMorgan. Philips Electronics (PHG) is now Neutral from Buy at Goldman Sachs. Tyco International (TYC) gets taken to Neutral from Overweight at JPMorgan.

Big Movers – A123 Systems (AONE) up 19.38%.
Dow components – Boeing Co (BA) down 2.04%, Caterpillar (CAT) down 0.44%, General Electric (GE) up 0.07%, 3M Company (MMM) down 1.82%, United Technologies (UTX) down 0.44%.

The Industrial Select Sector SPDR (XLI) was trading at $36.86 at 3:30 PM on Monday, down 0.38% on the day – up 9.21% year-to-date.



Consumer Discretionary

John Wiley & Sons (JW.A) reported FQ1 EPS of $0.52 and revenue of $411M. American Eagle Outfitters (AEO) IS now Buy from Neutral at Sterne Agee. Dow Components – Disney (DIS) down 0.27%, Home Depot (HD) up 0.93%, McDonalds (MCD) up 0.40%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.82 at 3:30 PM on Monday, up 0.09% on the day – up 19.99% year-to-date.

Consumer Staples

Kraft Foods (KFT) is upgraded to Outperform from Sector Perform at RBC Capital. Big Movers – Green Mountain Coffee Roasters (GMCR) up 12.24%. Dow components – Kraft (KFT) up 1.03%, Coca Cola (KO) down 0.31%, Procter & Gamble (PG) down 0.26%, Wal-Mart (WMT) up 0.12%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.765 at 3:30 PM on Monday, up 0.01% on the day – up 10.08% year-to-date.

Health Care

Sunshine Heart (SSH) is an Outperform at Cowen. Amgen (AMGN) is boosted to Buy from Neutral at UBS. Ariad Pharmaceuticals (ARIA) is lifted to Buy from Neutral at Bank of America-Merrill Lynch. Sanofi-Aventis (SNY) is now Buy from Neutral at Bank of America-Merrill Lynch. Santarus (SNTS) is upgraded to Overweight from Neutral at Piper Jaffray. Smith & Nephew (SNN) is boosted all the way to Buy from Sell at Citigroup. AstraZeneca (AZN) is cut to Underperform from Neutral at Bank of America-Merrill Lynch. Biogen Idec (BIIB) and Celgene (CELG) are both now Neutral from Buy at UBS.

Big Movers – Geron (GERN) down 55.17%, Zalcius (ZLCS) down 40.51%.
Dow Components – Johnson & Johnson (JNJ) up 0.74%, Merck (MRK) up 0.54%, Pfizer (PFE) down 0.21%.

The Health Care Select Sector SPDR (XLV) was trading at $39.48 at 3:30 PM on Monday, down 0.13% on the day – up 13.81% year-to-date.

Financial

The Treasury confirmed it's putting another $18B worth of AIG (AIG) stock on the block. AIG plans to buy up to $5B worth of the shares at the IPO price. RBS (RBS) is in talks with the U.K.'s Financial Services Authority to settle allegations about its involvement in the Libor scandal. Two Harbors Investment (TWO) is a new Buy at Bank of America-Merrill Lynch. Fulton Financial (FULT) is upgraded to Buy from Neutral at Sterne Agee. Moody’s (MCO) is now Buy from Neutral at Lazard Capital. Regions Financial (RF) is raised to Conviction Buy from Buy at Goldman Sachs. Apollo Investment (AINV) is downgraded to Equal Weight from Overweight by Barclays. Wells Fargo (WFC) is cut to Buy from Conviction Buy at Goldman Sachs. Fifth Third Bancorp (FITB) is downgraded to Perform from Outperform at Oppenheimer. Bank of New York Mellon (BK) is downgraded to Outperform from Strong Buy at Raymond James, which reduces State Street (STT) to Market Perform from Outperform.

Dow Components – American Express (AXP) up 0.14%, Bank of America (BAC) down 1.25%, JP Morgan Chase (JPM) down 0.46%, Travelers (TRV) up 0.35%.

The Financial Select Sector SPDR (XLF) was trading at $15.58 at 3:30 PM on Monday, down 0.64% on the day – up 19.85% year-to-date.

Information Technology

Acme Packet (APKT) is initiated with a Sector Perform at RBC Capital. Finisar (FNSR) is a fresh Sector Perform at RBC Capital. Apple (AAPL) and Dell Inc. (DELL) are each initiated with Buys at Monness Crespi. Advanced Micro Devices (AMD) is upgraded to Neutral from Sell at Goldman. Amdocs (DOX) gets downgraded to Hold from Buy at Jefferies. Ericsson (ERIC) is downgraded to Neutral from Buy at UBS. Infineon (IFNNY) is downgraded to Neutral from Buy at Natixis Bleichroeder. Seagate (STX) gets taken to Hold from Buy at Argus.

Big Movers – GT Advanced Technologies (GTAT) up 11.61%. Dow Components – Cisco Systems (CSCO) down 1.74%, Hewlett-Packard (HPQ) up 0.49%, IBM (IBM) up 1.03%, Intel Corp (INTC) down 3.52%, Microsoft (MSFT) down 0.55%. The Technology Select Sector SPDR (XLK) was trading at $30.866 at 3:30 PM on Monday, down 0.72% on the day – up 21.28% year-to-date.

Telecommunication Services

Sprint Nextel (S) is now Buy from Neutral at Nomura. Dow Components – AT&T (T) up 0.48%, Verizon (VZ) up 0.74%. The NASDAQ Telecommunications Index (IXTC) was trading at $197.18 at 3:30 PM on Monday, down 1.30% on the day – up 0.13% year-to-date.

Utilities

NextEra Energy (NEE) is now Outperform from Market Perform with Wells Fargo. NRG Energy (NRG) is upgraded to Buy from Neutral at Goldman. Exelon (EXC) is slashed to Sell from Neutral at Citigroup. The Big Names – Dominion Resources (D) up 0.55%, Edison International (EIX) up 0.11%, First Energy (FE) down 0.36%, PG&E Corp (PCG) up 0.15%, Southern Company (SO) down 0.26%.

The Utilities Select Sector SPDR (XLU) was trading at $36.67 at 3:30 PM on Monday, up 0.14% on the day – up 1.92% 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, PXP, RIG, EOG, NBL, DK, VQ, REPYY, SDRL, PXP, MT, BMS, PDH, HCLP, SEE, CRS, MUSA, MLM, CLF, IP, PKG, RKT, JAG, TTN, DOV, GOL, CFX, GOL, HUB-B, PHG, TYC, AONE, JW.A, AEO, KFT, GMCR, SSH, AMGN, ARIA, SNY, SNTS, SNN, AZN, BIIB, CELG, GERN, ZLCS, AIG, RBS, TWO, FULT, MCO, RF, AINV, WFC, FITB, BK, STT, APKT, FNSR, AAPL, DELL, AMD, DOX, ERIC, IFNNY, STX, GTAT, S, NEE, NRG, EXC

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Companies

Symbol Name Price Change % Volume
MMM 3M Company 192.22 0.09 0.05 1,627,326 Trade
SDRL Seadrill Limited (Bermuda) 1.43 0.05 3.62 9,196,255 Trade
PG Procter & Gamble Company (The) 90.99 -0.20 -0.22 7,798,024 Trade
GE General Electric Co 29.53 0.14 0.48 26,000,688 Trade
CVX Chevron Corporation 108.39 0.35 0.32 8,106,844 Trade
SO Southern Company (The) 50.73 -0.28 -0.55 6,175,472 Trade
PCG Pacific Gas & Electric Co. 67.46 0.15 0.22 2,218,955 Trade
RIG Transocean Ltd (Switzerland) 12.28 0.07 0.57 10,062,332 Trade
DOX Amdocs Limited 62.14 -0.10 -0.16 725,263 Trade
PKG Packaging Corporation of America 92.12 0.58 0.63 1,077,648 Trade
IP International Paper Company 51.17 0.25 0.49 1,567,317 Trade
JNJ Johnson & Johnson 126.26 -0.99 -0.78 10,272,668 Trade
WMT Wal-Mart Stores Inc. 70.25 0.35 0.50 6,455,594 Trade
AA Alcoa Inc. 33.69 0.47 1.41 2,878,415 Trade
INTC Intel Corporation 35.37 0.33 0.94 19,144,498 Trade
IBM International Business Machines Corp 174.78 0.90 0.52 3,450,512 Trade
D Dominion Resources Inc. 78.65 0.44 0.56 3,122,745 Trade
TRV The Travelers Companies Inc. 122.03 0.34 0.28 996,369 Trade
ARIA ARIAD Pharmaceuticals Inc. n/a n/a n/a 0 Trade
AAPL Apple Inc. 141.42 1.58 1.13 25,860,165 Trade
CXN:CA Chalice Gold Mines Limited Ordinary Shares 0.18 0.00 0.00 5,000
S Sprint Corporation 8.27 -0.01 -0.12 22,257,242 Trade
FITB Fifth Third Bancorp 24.84 -0.07 -0.28 7,864,793 Trade
CRS Carpenter Technology Corporation 36.85 0.08 0.22 223,817 Trade
EIX Edison International 79.86 0.30 0.38 1,867,947 Trade
NRG NRG Energy Inc. 18.01 -0.23 -1.26 4,262,265 Trade
JPM JP Morgan Chase 87.53 0.14 0.16 21,741,025 Trade
STX Seagate Technology 45.01 0.50 1.12 4,311,053 Trade
AXP American Express Company 77.67 0.14 0.18 4,877,322 Trade
FNSR Finisar Corporation 27.59 0.54 2.00 2,280,313 Trade
UTX United Technologies Corporation 111.93 -0.23 -0.21 2,127,037 Trade
AMD Advanced Micro Devices Inc. 14.10 0.28 2.03 61,239,502 Trade
MLM Martin Marietta Materials Inc. 212.54 3.45 1.65 715,596 Trade
CSCO Cisco Systems Inc. 34.10 0.22 0.65 16,646,087 Trade
ERIC Ericsson 6.49 0.01 0.15 2,617,747 Trade
DIS Walt Disney Company (The) 112.08 0.33 0.30 5,044,710 Trade
VZ Verizon Communications Inc. 49.71 -0.45 -0.90 14,950,443 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 31.69 0.34 1.08 1,201,932 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
HCLP Hi-Crush Partners LP representing limited partner 14.30 0.20 1.42 1,938,028 Trade
GERN Geron Corporation 2.10 0.05 2.44 1,500,767 Trade
BAC Bank of America Corporation 22.94 -0.08 -0.35 167,984,438 Trade
DK Delek US Holdings Inc. 25.54 0.39 1.55 1,049,853 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.88 -0.02 -0.34 1,125,918 Trade
MCD McDonald\'s Corporation 129.10 0.58 0.45 3,174,246 Trade
BMS Bemis Company Inc. 48.93 0.22 0.45 281,966 Trade
BK Bank of New York Mellon Corporation (The) 46.16 -0.26 -0.56 6,039,835 Trade
SNN Smith & Nephew SNATS Inc. 31.28 0.01 0.03 609,840 Trade
RF Regions Financial Corporation 14.18 0.08 0.57 23,672,549 Trade
DD E.I. du Pont de Nemours and Co. 79.18 -0.58 -0.73 3,170,349 Trade
EOG EOG Resources Inc. 94.65 0.12 0.13 2,040,694 Trade
AMGN Amgen Inc. 167.45 0.60 0.36 5,070,374 Trade
NEE NextEra Energy Inc. 132.41 0.56 0.42 1,383,759 Trade
AINV Apollo Investment Corporation 6.16 -0.05 -0.81 1,196,542 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 26.52 1.08 4.25 204,545 Trade
TYC Tyco International plc (Ireland) n/a n/a n/a 0
HD Home Depot Inc. (The) 147.36 0.75 0.51 3,169,038 Trade
XOM Exxon Mobil Corporation 81.76 -0.07 -0.09 11,168,417 Trade
TWO Two Harbors Investment Corp 9.72 0.00 0.00 2,497,284 Trade
PFE Pfizer Inc. 34.47 0.22 0.64 26,117,870 Trade
BIIB Biogen Inc. 277.87 2.08 0.75 1,333,588 Trade
WFC Wells Fargo & Company 55.33 -0.52 -0.93 27,740,860 Trade
AIG American International Group Inc. New 61.24 -0.52 -0.84 7,417,700 Trade
MT ArcelorMittal 8.81 0.24 2.80 15,953,041 Trade
HPQ HP Inc. 17.23 0.08 0.47 10,654,578 Trade
AZN Astrazeneca PLC 30.98 0.61 2.01 6,134,387 Trade
BA Boeing Company (The) 176.98 1.02 0.58 2,505,738 Trade
CELG Celgene Corporation 123.37 -0.45 -0.36 3,991,773 Trade
MRK Merck & Company Inc. (new) 63.50 -0.41 -0.64 9,549,029 Trade
NBL Noble Energy Inc. 33.51 0.18 0.54 3,548,139 Trade
MUSA Murphy USA Inc. 71.12 0.02 0.03 432,884 Trade
SEE Sealed Air Corporation 45.41 0.05 0.11 1,177,510 Trade
SNY Sanofi American Depositary Shares (Each repstg one 44.67 0.31 0.70 1,039,038 Trade
CFX Colfax Corporation 38.15 0.10 0.26 343,310 Trade
MCO Moody\'s Corporation 111.13 0.25 0.23 1,058,991 Trade
CLF Cliffs Natural Resources Inc 8.52 0.18 2.16 13,423,730 Trade
BP BP p.l.c. 33.99 -0.25 -0.73 4,983,389 Trade
FE FirstEnergy Corporation 31.41 0.05 0.16 4,159,376 Trade
KO Coca-Cola Company (The) 42.38 -0.12 -0.28 11,605,453 Trade
EXC Exelon Corporation 36.30 0.34 0.95 5,441,651 Trade
T AT&T Inc. 41.65 -0.43 -1.02 18,547,120 Trade
CAT Caterpillar Inc. 92.43 0.00 0.00 5,035,553 Trade
AEO American Eagle Outfitters Inc. 13.87 0.23 1.69 4,771,543 Trade
DOV Dover Corporation 77.97 -0.32 -0.41 1,151,745 Trade
FULT Fulton Financial Corporation 17.35 -0.10 -0.57 1,415,478 Trade
SSH Sunshine Heart Inc 2.23 0.18 8.78 485,780 Trade
MSFT Microsoft Corporation 65.03 0.82 1.28 20,680,015 Trade

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