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

Sector Recap  |

The 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 178.15 0.41 0.23 2,643,095 Trade
PG Procter & Gamble Company (The) 125.14 0.15 0.12 9,508,631 Trade
GE General Electric Company 11.71 -0.06 -0.51 59,375,767 Trade
CVX Chevron Corporation 111.85 -1.25 -1.11 6,920,000 Trade
SO Southern Company (The) 69.44 0.48 0.70 5,049,065 Trade
PCG Pacific Gas & Electric Co. 14.27 0.54 3.93 16,386,956 Trade
RIG Transocean Ltd (Switzerland) 5.10 -0.14 -2.67 20,599,013 Trade
DOX Amdocs Limited 74.13 -0.72 -0.96 655,316 Trade
PKG Packaging Corporation of America 105.65 -1.41 -1.32 756,377 Trade
IP International Paper Company 43.53 -1.13 -2.53 2,824,074 Trade
JNJ Johnson & Johnson 148.32 -0.21 -0.14 9,051,933 Trade
AA Alcoa Corporation 15.51 -0.78 -4.79 7,815,114 Trade
INTC Intel Corporation 68.47 5.15 8.13 84,711,037 Trade
D Dominion Energy Inc. 84.00 -0.07 -0.08 2,640,830 Trade
TRV The Travelers Companies Inc. 134.78 0.59 0.44 1,755,111 Trade
ARIA ARIAD Pharmaceuticals Inc. n/a n/a n/a 0 Trade
S Sprint Corporation 4.83 -0.21 -4.17 18,846,661 Trade
FITB Fifth Third Bancorp 28.84 -0.52 -1.77 4,796,367 Trade
CRS Carpenter Technology Corporation 43.00 -0.69 -1.58 402,934 Trade
EIX Edison International 76.92 -0.77 -0.99 1,535,097 Trade
NRG NRG Energy Inc. 37.96 -0.91 -2.34 2,912,605 Trade
STX Seagate Technology PLC 63.23 0.47 0.75 2,902,585 Trade
AXP American Express Company 135.11 3.74 2.85 8,612,529 Trade
UTX United Technologies Corporation 153.19 -0.61 -0.40 3,699,957 Trade
AMD Advanced Micro Devices Inc. 50.35 -1.36 -2.63 80,004,909 Trade
MLM Martin Marietta Materials Inc. 263.89 -3.98 -1.49 305,793 Trade
CSCO Cisco Systems Inc. 48.85 -0.15 -0.31 14,066,913 Trade
ERIC Ericsson 8.32 -0.66 -7.35 29,565,787 Trade
VZ Verizon Communications Inc. 60.28 -0.23 -0.38 10,183,006 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 50.08 0.18 0.36 695,985 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
GERN Geron Corporation 1.36 -0.04 -2.86 1,265,833 Trade
BAC Bank of America Corporation 33.54 -0.58 -1.70 47,797,206 Trade
DK Delek US Holdings Inc. 30.53 0.41 1.36 1,220,574 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 5.81 0.02 0.35 1,697,832 Trade
MCD McDonald's Corporation 211.24 -2.18 -1.02 3,106,346 Trade
BK Bank of New York Mellon Corporation (The) 45.95 -0.76 -1.63 6,416,428 Trade
SNN Smith & Nephew SNATS Inc. 50.57 1.17 2.37 876,546 Trade
RF Regions Financial Corporation 15.72 -0.45 -2.78 6,501,886 Trade
EOG EOG Resources Inc. 79.85 -1.98 -2.42 3,129,028 Trade
AMGN Amgen Inc. 225.59 -9.45 -4.02 5,020,236 Trade
NEE NextEra Energy Inc. 263.72 3.64 1.40 2,577,714 Trade
AINV Apollo Investment Corporation 17.57 -0.08 -0.45 267,346 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR representing 2 Pfd Shares 18.03 -0.65 -3.48 759,361 Trade
TYC Tyco International plc (Ireland) n/a n/a n/a 0
TWO Two Harbors Investment Corp 15.19 -0.10 -0.65 2,046,816 Trade
PFE Pfizer Inc. 39.82 -0.89 -2.19 32,394,393 Trade
BIIB Biogen Inc. 278.14 -6.07 -2.14 1,260,633 Trade
WFC Wells Fargo & Company 47.57 -0.65 -1.35 21,239,603 Trade
AIG American International Group Inc. 51.06 -0.55 -1.07 3,227,062 Trade
MT Arcelor Mittal NY Registry Shares NEW 15.40 -0.22 -1.41 3,669,990 Trade
HPQ HP Inc. 21.98 -0.12 -0.54 10,299,926 Trade
AZN Astrazeneca PLC 49.28 -0.92 -1.83 4,466,531 Trade
MRK Merck & Company Inc. (new) 85.98 -2.58 -2.91 14,270,276 Trade
MUSA Murphy USA Inc. 111.53 0.15 0.13 359,992 Trade
SEE Sealed Air Corporation 37.03 -1.07 -2.81 1,263,032 Trade
CFX Colfax Corporation 37.12 -0.28 -0.75 884,961 Trade
MCO Moody's Corporation 255.62 -1.47 -0.57 495,581 Trade
CLF Cleveland-Cliffs Inc. 7.38 -0.07 -0.94 13,184,116 Trade
BP BP p.l.c. 38.13 -0.07 -0.18 6,441,196 Trade
FE FirstEnergy Corp. 50.47 0.12 0.24 2,428,705 Trade
KO Coca-Cola Company (The) 57.68 -0.15 -0.26 8,594,325 Trade
T AT&T Inc. 38.50 -0.13 -0.34 34,465,331 Trade
CAT Caterpillar Inc. 140.38 -2.37 -1.66 2,526,156 Trade
AEO American Eagle Outfitters Inc. 14.52 -0.17 -1.16 2,355,075 Trade
DOV Dover Corporation 117.11 -1.54 -1.30 626,763 Trade
FULT Fulton Financial Corporation 17.12 -0.19 -1.07 665,154 Trade
SSH CHFS Sunshine Heart Inc 390.80 0.00 0.00 0
MSFT Microsoft Corporation 165.04 -1.68 -1.01 24,918,117 Trade
WMT Walmart Inc. 114.37 -1.44 -1.24 4,383,428 Trade
IBM International Business Machines Corporation 140.56 -2.31 -1.62 5,580,189 Trade
AAPL Apple Inc. 318.31 -0.92 -0.29 36,634,380 Trade
JPM JP Morgan Chase & Co. 133.15 -3.39 -2.48 15,166,392 Trade
DIS The Walt Disney Company 140.08 -2.12 -1.49 13,076,325 Trade
HD Home Depot Inc. (The) 232.00 -1.65 -0.71 4,467,501 Trade
XOM Exxon Mobil Corporation 66.32 -0.45 -0.67 18,238,553 Trade
BA The Boeing Company 323.05 5.26 1.66 17,798,203 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

World Economic Forum at Davos 2019 - Ben Yablon Executive VP Salt Lending

Matt Bird sits down with Ben Yablon - Executive VP of Salt Lending - at the World Economic Forum in Davos January 2019