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

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 198.10 -17.78 -8.23 6,981,016 Trade
SDRL Seadrill Limited (Bermuda) 0.29 0.02 8.26 3,694,785 Trade
PG Procter & Gamble Company (The) 72.80 -0.20 -0.27 8,906,105 Trade
GE General Electric Co 14.67 0.15 1.00 31,111,679 Trade
CVX Chevron Corporation 124.05 0.47 0.38 3,397,744 Trade
SO Southern Company (The) 45.81 0.57 1.25 1,953,951 Trade
PCG Pacific Gas & Electric Co. 46.22 0.65 1.43 1,119,798 Trade
RIG Transocean Ltd (Switzerland) 12.56 0.08 0.64 7,562,811 Trade
DOX Amdocs Limited 67.22 0.08 0.12 95,055 Trade
PKG Packaging Corporation of America 114.35 -2.96 -2.52 354,575 Trade
IP International Paper Company 53.33 -0.38 -0.71 993,657 Trade
JNJ Johnson & Johnson 127.13 0.30 0.24 2,517,270 Trade
WMT Wal-Mart Stores Inc. 86.42 0.32 0.37 2,464,929 Trade
AA Alcoa Inc. 50.33 -1.57 -3.03 4,606,024 Trade
INTC Intel Corporation 51.63 0.53 1.03 23,669,332 Trade
IBM International Business Machines Corp 145.97 0.11 0.07 2,201,665 Trade
D Dominion Resources Inc. 65.04 0.15 0.23 2,070,286 Trade
TRV The Travelers Companies Inc. 132.55 -4.68 -3.41 1,411,896 Trade
ARIA ARIAD Pharmaceuticals Inc. n/a n/a n/a 0 Trade
AAPL Apple Inc. 163.07 -2.17 -1.31 17,080,785 Trade
CXN:CA Chalice Gold Mines Limited Ordinary Shares 0.16 0.00 0.00 25,000
S Sprint Corporation 5.92 0.04 0.68 2,820,423 Trade
FITB Fifth Third Bancorp 33.24 1.31 4.10 6,040,070 Trade
CRS Carpenter Technology Corporation 50.12 -0.86 -1.69 142,409 Trade
EIX Edison International 64.74 0.74 1.16 607,692 Trade
NRG NRG Energy Inc. 31.42 0.21 0.67 1,519,155 Trade
JPM JP Morgan Chase 111.28 0.35 0.32 5,784,807 Trade
STX Seagate Technology 58.20 -0.02 -0.03 1,537,194 Trade
AXP American Express Company 100.47 -0.14 -0.14 1,806,219 Trade
FNSR Finisar Corporation 15.72 0.13 0.83 1,039,107 Trade
UTX United Technologies Corporation 122.30 -1.16 -0.94 4,044,481 Trade
AMD Advanced Micro Devices Inc. 10.01 -0.03 -0.30 24,734,533 Trade
MLM Martin Marietta Materials Inc. 194.97 -1.96 -1.00 123,094 Trade
CSCO Cisco Systems Inc. 44.01 -0.25 -0.55 8,350,103 Trade
ERIC Ericsson 7.78 0.13 1.70 19,550,829 Trade
DIS Walt Disney Company (The) 99.60 -0.55 -0.55 2,360,052 Trade
VZ Verizon Communications Inc. 49.69 1.03 2.12 10,852,628 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 42.36 0.02 0.05 689,803 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
HCLP Hi-Crush Partners LP representing limited partner 12.08 0.08 0.63 588,457 Trade
GERN Geron Corporation 4.04 0.03 0.66 3,533,149 Trade
BAC Bank of America Corporation 30.52 0.20 0.66 38,298,324 Trade
DK Delek US Holdings Inc. 47.93 0.68 1.44 1,108,814 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.79 -0.02 -0.19 290,926 Trade
MCD McDonald\'s Corporation 158.69 -0.31 -0.19 1,150,528 Trade
BMS Bemis Company Inc. 44.06 -0.34 -0.77 227,658 Trade
BK Bank of New York Mellon Corporation (The) 55.78 0.05 0.09 1,865,959 Trade
SNN Smith & Nephew SNATS Inc. 39.03 -0.42 -1.05 390,113 Trade
RF Regions Financial Corporation 19.01 0.15 0.77 7,128,301 Trade
DD E.I. du Pont de Nemours and Co. n/a n/a n/a 0 Trade
EOG EOG Resources Inc. 114.76 -0.08 -0.07 1,449,097 Trade
AMGN Amgen Inc. 173.14 -1.52 -0.87 1,608,426 Trade
NEE NextEra Energy Inc. 162.23 1.10 0.68 1,319,359 Trade
AINV Apollo Investment Corporation 5.36 -0.04 -0.65 247,444 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 11.93 -0.09 -0.75 202,230 Trade
TYC Tyco International plc (Ireland) n/a n/a n/a 0
HD Home Depot Inc. (The) 178.03 0.37 0.21 1,852,235 Trade
XOM Exxon Mobil Corporation 79.48 -0.09 -0.11 5,293,739 Trade
TWO Two Harbors Investment Corp 15.74 -0.01 -0.03 635,747 Trade
PFE Pfizer Inc. 37.09 0.29 0.79 10,199,126 Trade
BIIB Biogen Inc. 262.65 3.35 1.29 1,750,215 Trade
WFC Wells Fargo & Company 53.22 0.61 1.16 9,050,103 Trade
AIG American International Group Inc. New 55.25 0.07 0.13 1,821,275 Trade
MT ArcelorMittal 34.61 0.12 0.35 1,080,790 Trade
HPQ HP Inc. 21.30 -0.08 -0.37 2,282,620 Trade
AZN Astrazeneca PLC 35.36 -0.16 -0.44 2,134,006 Trade
BA Boeing Company (The) 330.48 -8.36 -2.47 3,198,512 Trade
CELG Celgene Corporation 90.05 0.57 0.63 1,740,307 Trade
MRK Merck & Company Inc. (new) 60.59 0.34 0.56 6,441,814 Trade
NBL Noble Energy Inc. 33.69 -0.13 -0.38 1,983,209 Trade
MUSA Murphy USA Inc. 63.38 0.40 0.64 195,077 Trade
SEE Sealed Air Corporation 43.96 -0.15 -0.34 589,654 Trade
SNY Sanofi American Depositary Shares (Each repstg one 39.90 -0.06 -0.14 612,415 Trade
CFX Colfax Corporation 31.63 -0.49 -1.53 129,131 Trade
MCO Moody\'s Corporation 161.60 -0.88 -0.54 342,339 Trade
CLF Cliffs Natural Resources Inc 7.12 -0.14 -1.93 5,741,679 Trade
BP BP p.l.c. 44.61 0.70 1.58 6,510,131 Trade
FE FirstEnergy Corporation 34.51 0.01 0.03 2,792,886 Trade
KO Coca-Cola Company (The) 43.12 -0.86 -1.96 8,904,131 Trade
EXC Exelon Corporation 39.46 0.80 2.07 2,461,916 Trade
T AT&T Inc. 35.27 0.38 1.09 9,937,966 Trade
CAT Caterpillar Inc. 147.16 -6.83 -4.44 14,341,764 Trade
AEO American Eagle Outfitters Inc. 20.95 0.27 1.31 1,471,305 Trade
DOV Dover Corporation 93.55 -1.57 -1.65 875,566 Trade
FULT Fulton Financial Corporation 17.35 0.10 0.58 261,592 Trade
SSH Sunshine Heart Inc 390.80 0.00 0.00 0
MSFT Microsoft Corporation 93.61 -1.74 -1.82 12,387,959 Trade

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