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 0.64 -0.02 -2.47 416,725
MMM 3M Company 186.04 2.67 1.46 2,850,946
KTOS Kratos Defense & Security Solutions Inc. 8.76 0.13 1.51 1,132,304
EEFT Euronet Worldwide Inc. 82.99 -0.21 -0.25 247,648
NOW ServiceNow Inc. 92.98 -0.20 -0.21 547,666
TM Toyota Motor Corporation 114.40 0.10 0.09 187,051
PG Procter & Gamble Company (The) 91.44 -0.23 -0.25 6,749,919
GE General Electric Co 30.33 -0.19 -0.62 30,124,503
CVX Chevron Corporation 110.38 -1.34 -1.20 5,732,048
SO Southern Company (The) 48.99 0.71 1.47 7,522,593
PCG Pacific Gas & Electric Co. 64.76 0.12 0.19 1,805,367
AKS AK Steel Holding Corporation 8.79 -0.27 -2.98 15,488,219
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.57 -0.05 -0.76 3,700,379
TSLA Tesla Motors Inc. 273.51 -3.88 -1.40 8,754,975
IP International Paper Company 52.03 -0.73 -1.38 2,966,888
JNJ Johnson & Johnson 119.52 -0.14 -0.12 5,103,903
WMT Wal-Mart Stores Inc. 71.71 0.26 0.36 15,242,674
AA Alcoa Inc. 36.60 -0.11 -0.30 2,587,865
INTC Intel Corporation 36.07 -0.45 -1.23 29,904,370
IBM International Business Machines Corp 181.15 0.89 0.49 3,020,540
AHS AMN Healthcare Services Inc n/a n/a n/a n/a
VLO Valero Energy Corporation 66.01 -0.26 -0.39 4,240,404
D Dominion Resources Inc. 75.35 0.59 0.79 3,105,743
TRV The Travelers Companies Inc. 121.90 0.35 0.29 1,184,887
OSUR OraSure Technologies Inc. 11.08 0.08 0.73 769,928
THG Hanover Insurance Group Inc 91.08 0.43 0.47 164,871
AAPL Apple Inc. 137.11 0.41 0.30 20,836,932
HMC Honda Motor Company Ltd. 31.86 0.08 0.25 1,725,728
MPC Marathon Petroleum Corporation 49.81 -0.57 -1.13 3,157,880
IVR INVESCO MORTGAGE CAPITAL INC 15.49 -0.16 -1.02 937,655
T.AGI Alamos Gold Inc. 10.56 0.03 0.28 622,371
EIX Edison International 77.19 -0.03 -0.04 3,380,025
JAZZ Jazz Pharmaceuticals plc 134.95 -0.98 -0.72 321,790
UA Under Armour Inc. Class A 19.78 0.09 0.46 3,964,541
JPM JP Morgan Chase 91.06 0.05 0.05 11,838,980
AXP American Express Company 79.86 -0.11 -0.14 2,942,964
BECN Beacon Roofing Supply Inc. 45.88 0.14 0.31 614,601
AMG Affiliated Managers Group Inc. 169.42 -1.49 -0.87 436,943
UTX United Technologies Corporation 112.66 0.16 0.14 2,205,614
HTS Hatteras Financial Corp n/a n/a n/a 0
AMD Advanced Micro Devices Inc. 14.28 0.28 2.00 71,505,039
BLMN Bloomin\' Brands Inc. 17.88 -0.94 -4.99 2,429,546
PSX Phillips 66 78.38 -0.65 -0.82 2,017,469
DB Deutsche Bank AG 19.65 0.07 0.36 3,389,781
CSCO Cisco Systems Inc. 34.09 -0.04 -0.12 26,632,725
DIS Walt Disney Company (The) 110.12 0.11 0.10 5,478,398
LM Legg Mason Inc. 37.36 -0.14 -0.37 1,570,264
RS Reliance Steel & Aluminum Co. (DE) 86.63 -0.99 -1.13 625,308
UN Unilever NV 46.75 1.66 3.68 12,116,416
VZ Verizon Communications Inc. 49.67 0.24 0.49 13,653,423
NOC Northrop Grumman Corporation 242.98 -1.14 -0.47 950,109
GM General Motors Company 37.84 0.03 0.08 9,102,733
BAC Bank of America Corporation 24.79 0.01 0.04 81,531,895
MCD McDonald\'s Corporation 127.85 -0.19 -0.15 3,670,720
CMO Capstead Mortgage Corporation 10.46 0.06 0.58 739,127
BT BT Group plc American Depositary Shares 20.47 0.32 1.59 978,709
WERN Werner Enterprises Inc. 27.50 0.00 0.00 412,796
DD E.I. du Pont de Nemours and Co. 79.80 2.62 3.39 9,193,073
PEIX Pacific Ethanol Inc. 7.50 -0.15 -1.96 354,767
PLT Plantronics Inc. 54.31 -0.92 -1.67 81,465
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 29.31 1.63 5.89 482,408
X United States Steel Corp. 40.49 -1.08 -2.60 12,204,445
HD Home Depot Inc. (The) 145.25 0.23 0.16 5,037,762
XOM Exxon Mobil Corporation 80.93 -0.96 -1.17 12,917,374
PFE Pfizer Inc. 33.59 -0.03 -0.09 27,207,299
ALGN Align Technology Inc. 101.09 -0.77 -0.76 870,874
WFC Wells Fargo & Company 58.36 0.11 0.19 12,344,234
WETF WisdomTree Investments Inc. 9.18 0.01 0.11 3,393,407
NVS Novartis AG 76.85 -0.19 -0.25 3,981,486
HPQ HP Inc. 16.20 0.07 0.43 16,654,221
NFLX Netflix Inc. 143.86 1.26 0.88 3,481,968
BA Boeing Company (The) 175.36 -0.20 -0.11 2,832,136
MRK Merck & Company Inc. (new) 65.29 -0.19 -0.29 8,679,633
DFS Discover Financial Services 71.17 -0.12 -0.17 1,721,365
CR Crane Company 74.02 -0.52 -0.70 307,523
MUSA Murphy USA Inc. 66.39 0.33 0.50 340,845
MCO Moody\'s Corporation 113.56 0.69 0.61 1,476,985
CLF Cliffs Natural Resources Inc 11.76 0.09 0.77 16,140,371
FE FirstEnergy Corporation 30.79 -0.54 -1.72 6,792,905
HAS Hasbro Inc. 98.82 -0.06 -0.06 1,134,534
CAJ Canon Inc. American Depositary Shares 29.32 0.24 0.83 1,295,888
KO Coca-Cola Company (The) 41.60 0.14 0.34 11,186,823
T AT&T Inc. 41.59 -0.14 -0.34 15,656,507
CAT Caterpillar Inc. 98.20 0.10 0.10 3,031,129
MSFT Microsoft Corporation 64.36 -0.13 -0.20 19,292,651

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