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 209.35 1.58 0.76 1,534,158 Trade
PG Procter & Gamble Company (The) 100.25 0.47 0.47 7,925,568 Trade
GE General Electric Company 10.17 0.14 1.40 50,741,310 Trade
CVX Chevron Corporation 119.39 0.25 0.21 4,517,629 Trade
SO Southern Company (The) 50.37 0.15 0.30 7,245,519 Trade
PCG Pacific Gas & Electric Co. 18.77 -0.63 -3.25 16,304,350 Trade
RIG Transocean Ltd (Switzerland) 8.25 -0.25 -2.94 17,345,225 Trade
DOX Amdocs Limited 56.83 0.43 0.76 773,019 Trade
PKG Packaging Corporation of America 98.29 0.04 0.04 523,759 Trade
IP International Paper Company 46.74 -0.01 -0.02 3,156,918 Trade
JNJ Johnson & Johnson 136.60 1.18 0.87 5,223,858 Trade
AA Alcoa Corporation 30.17 0.59 1.99 3,197,583 Trade
INTC Intel Corporation 52.49 1.08 2.10 31,934,146 Trade
D Dominion Energy Inc. 75.05 0.71 0.96 3,219,113 Trade
TRV The Travelers Companies Inc. 131.02 1.20 0.92 1,422,860 Trade
ARIA ARIAD Pharmaceuticals Inc. n/a n/a n/a 0 Trade
CXN:CA Chalice Gold Mines Limited Ordinary Shares 0.15 0.00 0.00 8,500
S Sprint Corporation 6.44 -0.04 -0.62 13,318,703 Trade
FITB Fifth Third Bancorp 27.83 0.09 0.32 4,745,188 Trade
CRS Carpenter Technology Corporation 47.37 0.26 0.55 176,771 Trade
EIX Edison International 61.41 0.15 0.24 3,909,806 Trade
NRG NRG Energy Inc. 42.22 -0.24 -0.57 2,192,035 Trade
STX Seagate Technology PLC 47.01 1.90 4.21 3,043,843 Trade
AXP American Express Company 107.44 0.83 0.78 2,256,445 Trade
FNSR Finisar Corporation 24.19 0.26 1.09 1,871,429 Trade
UTX United Technologies Corporation 127.77 1.45 1.15 3,158,097 Trade
AMD Advanced Micro Devices Inc. 24.36 0.44 1.84 52,650,728 Trade
MLM Martin Marietta Materials Inc. 190.00 -0.38 -0.20 422,094 Trade
CSCO Cisco Systems Inc. 50.11 0.70 1.42 22,008,055 Trade
ERIC Ericsson 9.50 0.29 3.15 6,169,444 Trade
VZ Verizon Communications Inc. 56.92 0.77 1.37 12,534,431 Trade
PHG Koninklijke Philips N.V. NY Registry Shares 39.41 0.12 0.31 346,454 Trade
GMCR Keurig Green Mountain Inc n/a n/a n/a 0 Trade
HCLP Hi-Crush Partners LP representing limited partner interests 4.15 0.02 0.48 689,238 Trade
GERN Geron Corporation 1.46 -0.01 -0.68 4,366,820 Trade
BAC Bank of America Corporation 29.08 -0.21 -0.72 47,887,776 Trade
DK Delek US Holdings Inc. 36.92 0.74 2.05 1,492,696 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 6.72 0.00 0.00 591,690 Trade
MCD McDonald's Corporation 183.17 0.36 0.20 3,073,495 Trade
BMS Bemis Company Inc. 53.27 -0.12 -0.22 431,898 Trade
BK Bank of New York Mellon Corporation (The) 53.22 0.27 0.51 2,950,389 Trade
SNN Smith & Nephew SNATS Inc. 38.17 0.25 0.66 473,619 Trade
RF Regions Financial Corporation 16.24 -0.01 -0.06 10,314,235 Trade
EOG EOG Resources Inc. 95.53 0.18 0.19 4,163,755 Trade
AMGN Amgen Inc. 187.50 2.00 1.08 2,774,101 Trade
NEE NextEra Energy Inc. 188.13 1.57 0.84 1,683,780 Trade
AINV Apollo Investment Corporation 15.76 0.24 1.55 349,510 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR representing 2 Pfd Shares 14.76 0.18 1.23 384,828 Trade
TYC Tyco International plc (Ireland) n/a n/a n/a 0
TWO Two Harbors Investment Corp 13.91 0.12 0.87 2,106,483 Trade
PFE Pfizer Inc. 42.96 0.82 1.95 23,510,009 Trade
BIIB Biogen Inc. 325.33 4.16 1.30 1,029,961 Trade
WFC Wells Fargo & Company 49.02 -0.54 -1.09 15,848,242 Trade
AIG American International Group Inc. 42.87 -0.14 -0.33 4,929,464 Trade
MT Arcelor Mittal NY Registry Shares NEW 23.28 0.20 0.87 1,617,123 Trade
HPQ HP Inc. 23.74 0.35 1.50 6,729,697 Trade
AZN Astrazeneca PLC 40.94 0.51 1.26 5,956,298 Trade
CELG Celgene Corporation 89.14 0.49 0.55 6,923,924 Trade
MRK Merck & Company Inc. (new) 80.77 0.94 1.18 7,955,621 Trade
NBL Noble Energy Inc. 23.16 -0.70 -2.93 7,021,161 Trade
MUSA Murphy USA Inc. 79.80 0.93 1.18 445,432 Trade
SEE Sealed Air Corporation 43.45 0.36 0.84 1,168,697 Trade
CFX Colfax Corporation 26.84 0.15 0.56 640,106 Trade
MCO Moody's Corporation 172.70 2.60 1.53 862,309 Trade
CLF Cleveland-Cliffs Inc. 11.58 0.07 0.61 5,614,827 Trade
BP BP p.l.c. 42.46 0.17 0.40 5,143,911 Trade
FE FirstEnergy Corp. 40.72 0.67 1.67 3,804,366 Trade
KO Coca-Cola Company (The) 45.28 -0.58 -1.26 24,728,388 Trade
EXC Exelon Corporation 48.74 0.25 0.52 4,250,747 Trade
T AT&T Inc. 31.15 0.32 1.04 23,357,232 Trade
CAT Caterpillar Inc. 138.68 -0.20 -0.14 3,485,007 Trade
AEO American Eagle Outfitters Inc. 19.96 0.30 1.53 2,338,020 Trade
DOV Dover Corporation 92.33 0.76 0.83 814,800 Trade
FULT Fulton Financial Corporation 17.18 0.06 0.35 814,918 Trade
SSH CHFS Sunshine Heart Inc 390.80 0.00 0.00 0
MSFT Microsoft Corporation 110.97 1.56 1.43 27,763,218 Trade
WMT Walmart Inc. 99.55 0.16 0.16 8,086,946 Trade
IBM International Business Machines Corporation 139.25 1.41 1.02 3,113,698 Trade
AAPL Apple Inc. 172.97 1.91 1.12 18,913,154 Trade
JPM JP Morgan Chase & Co. 105.00 -0.47 -0.45 10,647,258 Trade
DIS The Walt Disney Company 115.25 0.96 0.84 8,735,066 Trade
HD Home Depot Inc. (The) 192.39 0.57 0.30 3,321,635 Trade
XOM Exxon Mobil Corporation 78.42 0.60 0.77 9,519,281 Trade
BA The Boeing Company 424.05 6.47 1.55 3,132,298 Trade

Comments


Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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