Equities Sector Coverage: Stocks Sink As Central Bank Excitement Wears Off

Sector Recap |

Stocks Sink As Central Bank Excitement Wears OffThe NY Fed Empire State Survey declined to a weaker than expected reading of -10.41 in September.  The Dow Jones Industrial Average traded down to 13,526.83 going into the final half hour of trading on Monday with the NASDAQ down to 3168.63.

Asian stocks closed higher on Monday. The Nikkei 225 was closed at 9,159. The Hang Seng ended the day at 20,658 – up 0.14%. European exchanges traded lower on Monday. The FTSE 100 ended the day at 5,834 – down 0.37%. The DAX ended the day at 7,404 – down 0.11%. The CAC 40 ended the day at 3,554 – down 0.78%. The yield on the 10-Year US Treasury declined from 1.887% to 1.819% versus the 200-day simple moving average at 1.830%.

Comex gold traded down from $1778.9 the Troy ounce to $1756.2. Nymex crude oil rebounded from $98.56 per barrel to $99.52 then declined to $94.65 versus the 200-day simple moving average at $96.61. The euro versus the dollar rebounded from 1.3086 to 1.3170 then consolidated.

Energy

Royal Dutch Shell (RDS.A, RDS.B) says it will delay its hunt for oil off the Alaskan Arctic until next year after a dome which could be used to contain oil in the event of a spill was damaged in a test. Citigroup gives Neutral-from-Buy ratings reductions to Marathon Petroleum (MPC), Phillips 66 (PSX), and Valero Energy (VLO). Big Movers – Pacific Ethanol (PEIX) is up about 24%. Dow components – Chevron (CVX) down 0.07%, Exxon Mobil (XOM) down 0.67%. Energy Select Sector SPDR (XLE) was trading at $75.79 at 3:30 PM on Monday, down 1.02% on the day – up 9.63% year-to-date.

Materials

Randgold Resources (GOLD) gets upgraded to Neutral from Sell at Citigroup. Sutor Technology (SUTR) is raised to Buy from Neutral at Roth Capital. AK Steel (AKS), Reliance Steel (RS), US Steel (X), Metals USA (MUSA), and Cliffs Natural Resources (CLF) are all cut to Neutral from Overweight at JPMorgan. Golden Minerals (AUMN) is taken to Reduce from Hold at TD Securities. International Paper (IP) is lowered to Neutral from Buy at Longbow. Dow Components – Alcoa (AA) up 2.54%, DuPont (DD) down 1.03%. The Materials Select Sector SPDR (XLB) was trading at $37.67 at 3:30 PM on Monday, down 1.77% on the day – up 12.45% year-to-date.

Industrials

Senior members of the U.K. government say the proposed merger of EADS and BAE Systems could be challenged in Parliament. Boeing (BA), Northrop Grumman (NOC) and other major U.S. aerospace and defense contractors are weighing their responses to the proposed tie-up. A couple of Wall Street firms react to Werner's (WERN) disappointing Q3 guidance: Wells Fargo cut its rating to Market Perform, saying cost headwinds will be more problematic, while Citigroup cites rising operating expenses amid a weak freight environment as justification for downgrading the trucker to Neutral. GOL Linhas Aéreas Inteligentes (GOL) is now Neutral from Sell at Citigroup. Beacon Roofing Supply (BECN) is cut to Hold from Buy at Keybanc. G&K Services (GKSR) gets reduced to Neutral from Buy at Robert W. Baird. Big Movers – Kratos Defense (KTOS) is up about 14%. Dow components – Boeing Co (BA) down 1.81%, Caterpillar (CAT) down 1.25%, General Electric (GE) down 0.52%, 3M Company (MMM) down 0.40%, United Technologies (UTX) down 0.41%. The Industrial Select Sector SPDR (XLI) was trading at $37.505 at 3:30 PM on Monday, down 0.68% on the day – up 11.13% year-to-date.



Consumer Discretionary

Japan-related stocks fall sharply in both Shanghai and Hong Kong, as anti-Japanese protests erupted in China over the weekend amid a territorial dispute that threatens to hurt trade ties between Asia's two largest economies. Toyota (TM) and Honda (HMC) said arsonists had badly damaged their stores in the eastern port city of Qingdao, and Canon (CAJ) and Panasonic (PC) plan to halt some of their China-based production due to safety concerns. The U.S. Treasury Department reportedly is unwilling to sell the government's stake in General Motors (GM) because a sale now would mean huge investment losses. Lakeland Industries (LAKE) slips after reporting a Q2 that beat on a per share basis, but came up short on revenue due declining sales and settlement charges. Bloomin’ Brands (BLMN) is assigned an Outperform with Wells Fargo and Raymond James, an Overweight at JPMorgan, and a Buy at both Bank of America-Merrill Lynch and Goldman Sachs. Netflix (NFLX) is initiated with an Underperform at Macquarie. Tesla Motors (TSLA) is moved 180 degrees, to Overweight from Underweight. Hasbro (HAS) is taken to Hold from Buy at Stifel Nicolaus. Under Armour (UA) is downgraded to Hold at Argus from Buy. Dow Components – Disney (DIS) down 0.40%, Home Depot (HD) down 0.86%, McDonalds (MCD) up 0.51%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.42 at 3:30 PM on Monday, down 0.61% on the day – up 21.53% year-to-date.

Consumer Staples

Unilever (UN) gets upgraded at UBS to Buy from Neutral. Dow components – Coca Cola (KO) up 0.47%, Procter & Gamble (PG) up 0.07%, Wal-Mart (WMT) down 0.75%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.845 at 3:30 PM on Monday, up 0.18% on the day – up 10.33% year-to-date.

Health Care

OraSure (OSUR) is begun with a Buy at Citigroup. Novartis (NVS) is now Outperform from Neutral at BNP Paribas. Align Technology (ALGN) is cut to Hold from Buy at Cantor Fitzgerald. AMN Healthcare Services (AHS) is now Sell from Neutral at UBS. Big Movers – Biosante Pharmaceuticals (BPAX) is up about 20.25%, Complete Genomics (GNOM) is up about 14.5%, Jazz Pharmaceuticals (JAZZ) is up about 14.25% and Savient Pharmaceuticals (SVNT) is up about 11.5%. Dow Components – Johnson & Johnson (JNJ) down 0.55%, Merck (MRK) up 0.53%, Pfizer (PFE) up 0.63, United Health Group up 0.44%. The Health Care Select Sector SPDR (XLV) was trading at $39.825 at 3:30 PM on Monday, up 0.39% on the day – up 14.80% year-to-date.

Financial

U.S. regulators reportedly are investigating whether JP Morgan Chase (JPM) failed to monitor transactions properly, allowing criminals to launder money. Invesco Mortgage Capital (IVR) is begun with a Buy at Wunderlich. Hanover Insurance (THG) is upgraded to Outperform from Market Perform at FBR Capital. Moody’s (MCO) is moved to Buy from Hold at The Benchmark Company. WisdomTree (WETF) is added to the Top Picks Live list at Citigroup. Affiliated Managers (AMG) is pulled from Citigroup’s Top Picks Live list. Banco Bilbao Vizcaya (BBVA) is now Underperform from Neutral at BNP Paribas. Capstead Mortgage (CMO) is cut to Market Perform from Outperform at FBR Capital. Deutsche Bank (DB) is downgraded to Underperform from Neutral at Credit Suisse. Discover Financial Services (DFS) and Wells Fargo (WFC) are each downgraded to Hold from Buy at Stifel Nicolaus. Hatteras Financial (HTS) is cut to Hold from Buy with at Wunderlich. Legg Mason (LM) is lowered to Hold from Buy at Jefferies. Dow Components – American Express (AXP) down 0.39%, Bank of America (BAC) down 2.77%, JP Morgan Chase (JPM) down 1.27%, Travelers (TRV) down 0.12%. The Financial Select Sector SPDR (XLF) was trading at $16.095 at 3:30 PM on Monday, down 1.14% on the day – up 23.81% year-to-date.

Information Technology

AT&T (T) says it set a sales record with iPhone 5 (AAPL) over the weekend, making the new device the fastest-selling iPhone the company has ever offered. LDK Solar (LDK) missed estimates by 57 cents and revenue by $2M. ServiceNow (NOW) is a new Neutral at Mizuho. Euronet (EEFT) is now Buy from Neutral at Sterne Agee. OpenTable (OPEN) is now Neutral from Overweight at Piper Jaffray. Plantronics (PLT) is moved to Neutral from Buy at Mizuho. Advanced Micro Devices (AMD) and Dow member Intel (INTC) are each lowered to Neutral from Buy at Longbow. Dow Components – Cisco Systems (CSCO) down 2.15%, Hewlett-Packard (HPQ) unchanged, IBM (IBM) up 0.23%, Intel Corp (INTC) down 0.56%, Microsoft (MSFT) down 0.31%. The Technology Select Sector SPDR (XLK) was trading at $31.509 at 3:30 PM on Monday, down 0.22% on the day – up 23.81% year-to-date.

Telecommunication Services

AT&T (T) says it set a sales record with iPhone 5 (AAPL) over the weekend, making the new device the fastest-selling iPhone the company has ever offered. BT Group (BT) is cut to Neutral from Outperform at BNP Paribas. Vivendi (VIVHY) is cut to Sell from Neutral at UBS. Dow Components – AT&T (T) up 0.75%, Verizon (VZ) up 0.04%. The NASDAQ Telecommunications Index (IXTC) was trading at $199.23 at 3:30 PM on Monday, down 1.38% on the day – up 1.17% year-to-date.

Utilities

Crane (CR) is upgraded to Buy from Neutral at Citigroup. The Big Names – Dominion Resources (D) down 0.49%, Edison International (EIX) down 1.06%, First Energy (FE) down 0.09%, PG&E Corp (PCG) down 1.49%, Southern Company (SO) down 0.42%. The Utilities Select Sector SPDR (XLU) was trading at $36.27 at 3:30 PM on Monday, down 0.74% on the day – up 0.81% 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, RDS.A, RDS.B, MPC, PSX, VLO, PEIX, GOLD, SUTR, AKS, RS, X, MUSA, CLF, AUMN, IP, BA, NOC, WERN, GOL, BECN, GKSR, KTOS, TM, HMC, CAJ, PC, GM, LAKE, BLMN, NFLX, TSLA, HAS, UA, UN, OSUR, NVS, ALGN, AHS, BPAX, GNOM, JAZZ, SVNT, JPM, IVR, THG, MCO, WETF, AMG, BBVA, CMO, DB, DFS, WFC, HTS, LM, T, AAPL, LDK, NOW, EEFT, OPEN, PLT, AMD, INTC, T, AAPL, BT, VIVHY, CR

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Companies

Symbol Name Price Change % Volume
AUMN Golden Minerals Company 0.53 -0.00 -0.75 23,607
MMM 3M Company 204.42 0.89 0.44 498,734 Trade
KTOS Kratos Defense & Security Solutions Inc. 12.05 -0.24 -1.95 669,026 Trade
EEFT Euronet Worldwide Inc. 95.92 0.73 0.76 90,325 Trade
NOW ServiceNow Inc. 108.43 1.20 1.12 534,845 Trade
TM Toyota Motor Corporation 112.57 0.84 0.75 89,952 Trade
PG Procter & Gamble Company (The) 92.83 0.36 0.39 2,388,735 Trade
GE General Electric Co 24.47 -0.08 -0.33 15,776,138 Trade
CVX Chevron Corporation 105.60 -0.88 -0.83 1,437,454 Trade
SO Southern Company (The) 48.17 -0.13 -0.27 1,719,495 Trade
PCG Pacific Gas & Electric Co. 69.26 0.12 0.17 355,136 Trade
AKS AK Steel Holding Corporation 5.20 -0.05 -0.95 4,570,333 Trade
BBVA Banco Bilbao Vizcaya Argentaria S.A. 8.77 -0.01 -0.11 1,032,004 Trade
TSLA Tesla Motors Inc. 333.80 -13.66 -3.93 4,877,290 Trade
IP International Paper Company 53.04 -1.26 -2.31 1,229,924 Trade
JNJ Johnson & Johnson 133.44 0.81 0.61 1,724,632 Trade
WMT Wal-Mart Stores Inc. 79.93 0.62 0.78 3,799,457 Trade
AA Alcoa Inc. 38.40 0.64 1.69 1,292,747 Trade
INTC Intel Corporation 34.83 -0.18 -0.51 10,846,076 Trade
IBM International Business Machines Corp 140.13 0.43 0.31 1,634,422 Trade
AHS AMN Healthcare Services Inc n/a n/a n/a n/a
VLO Valero Energy Corporation 64.67 -0.08 -0.12 943,385 Trade
D Dominion Resources Inc. 78.49 -0.20 -0.25 654,502 Trade
TRV The Travelers Companies Inc. 127.37 -0.52 -0.41 543,606 Trade
OSUR OraSure Technologies Inc. 20.31 0.05 0.25 267,054 Trade
THG Hanover Insurance Group Inc 98.36 -0.10 -0.10 44,912 Trade
AAPL Apple Inc. 156.81 -0.69 -0.44 17,086,922 Trade
HMC Honda Motor Company Ltd. 27.52 -0.03 -0.09 174,686 Trade
MPC Marathon Petroleum Corporation 49.55 -0.56 -1.12 1,183,870 Trade
IVR INVESCO MORTGAGE CAPITAL INC 17.09 0.05 0.26 193,985 Trade
T.AGI Alamos Gold Inc. 9.82 0.16 1.66 85,989
EIX Edison International 79.68 0.74 0.93 1,112,494 Trade
JAZZ Jazz Pharmaceuticals plc 143.06 -1.34 -0.93 270,486 Trade
UA Under Armour Inc. Class A 15.17 -0.47 -3.01 3,545,517 Trade
JPM JP Morgan Chase 90.48 -0.27 -0.29 5,350,789 Trade
AXP American Express Company 85.06 -0.32 -0.38 1,135,002 Trade
BECN Beacon Roofing Supply Inc. 39.98 -0.33 -0.82 180,712 Trade
AMG Affiliated Managers Group Inc. 172.13 -0.71 -0.41 100,872 Trade
UTX United Technologies Corporation 115.00 -0.48 -0.42 872,291 Trade
HTS Hatteras Financial Corp n/a n/a n/a 0 Trade
AMD Advanced Micro Devices Inc. 11.92 -0.45 -3.64 44,537,017 Trade
BLMN Bloomin\' Brands Inc. 17.27 -0.47 -2.65 374,104 Trade
PSX Phillips 66 81.81 0.25 0.31 890,390 Trade
DB Deutsche Bank AG 16.26 -0.27 -1.60 2,377,860 Trade
CSCO Cisco Systems Inc. 30.66 0.29 0.95 13,977,418 Trade
DIS Walt Disney Company (The) 101.24 0.54 0.54 3,118,783 Trade
LM Legg Mason Inc. 37.23 -0.04 -0.11 194,344 Trade
RS Reliance Steel & Aluminum Co. (DE) 69.65 0.34 0.49 133,384 Trade
UN Unilever NV 58.85 0.32 0.54 578,778 Trade
VZ Verizon Communications Inc. 48.15 0.46 0.96 5,661,087 Trade
NOC Northrop Grumman Corporation 267.10 -0.51 -0.19 277,574 Trade
GM General Motors Company 34.95 0.12 0.33 2,735,233 Trade
BAC Bank of America Corporation 23.25 -0.37 -1.59 42,652,816 Trade
MCD McDonald\'s Corporation 158.56 0.80 0.51 967,568 Trade
CMO Capstead Mortgage Corporation 9.67 -0.06 -0.62 188,039 Trade
BT BT Group plc American Depositary Shares 19.09 0.02 0.10 224,583 Trade
WERN Werner Enterprises Inc. 31.53 0.73 2.35 390,436 Trade
DD E.I. du Pont de Nemours and Co. 81.60 0.42 0.52 731,235 Trade
PEIX Pacific Ethanol Inc. 4.35 -0.15 -3.33 315,565 Trade
PLT Plantronics Inc. 41.65 0.05 0.12 50,215 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 16.23 0.81 5.22 249,913 Trade
X United States Steel Corp. 23.46 -0.24 -1.03 6,315,335 Trade
HD Home Depot Inc. (The) 149.64 2.15 1.46 2,357,786 Trade
XOM Exxon Mobil Corporation 76.20 -0.45 -0.58 3,936,945 Trade
PFE Pfizer Inc. 32.78 0.11 0.34 6,570,096 Trade
ALGN Align Technology Inc. 166.83 -1.78 -1.06 499,464 Trade
WFC Wells Fargo & Company 51.66 -0.03 -0.05 5,928,640 Trade
WETF WisdomTree Investments Inc. 8.90 -0.01 -0.11 447,890 Trade
NVS Novartis AG 83.11 0.35 0.42 755,202 Trade
HPQ HP Inc. 18.57 0.06 0.32 3,694,120 Trade
NFLX Netflix Inc. 164.85 -1.69 -1.01 4,258,376 Trade
BA Boeing Company (The) 234.99 -0.79 -0.33 1,394,024 Trade
MRK Merck & Company Inc. (new) 61.97 0.48 0.78 3,237,486 Trade
DFS Discover Financial Services 59.25 -0.18 -0.30 704,135 Trade
CR Crane Company 72.89 -0.60 -0.82 99,613 Trade
MUSA Murphy USA Inc. 66.25 0.36 0.55 189,739 Trade
MCO Moody\'s Corporation 130.72 0.23 0.18 215,782 Trade
CLF Cliffs Natural Resources Inc 7.39 -0.02 -0.20 6,347,118 Trade
FE FirstEnergy Corporation 32.92 0.09 0.27 946,668 Trade
HAS Hasbro Inc. 94.77 -0.74 -0.77 661,380 Trade
CAJ Canon Inc. American Depositary Shares 34.82 -0.19 -0.54 24,044 Trade
KO Coca-Cola Company (The) 45.74 0.07 0.15 4,670,072 Trade
T AT&T Inc. 37.61 0.24 0.63 8,919,166 Trade
CAT Caterpillar Inc. 113.59 -0.33 -0.29 1,425,657 Trade
MSFT Microsoft Corporation 71.97 -0.52 -0.72 8,862,590 Trade

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