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 0.48 -0.04 -7.25 132,033
MMM 3M Company 197.73 -0.78 -0.39 1,514,199 Trade
KTOS Kratos Defense & Security Solutions Inc. 10.28 -0.03 -0.29 1,247,949 Trade
EEFT Euronet Worldwide Inc. 83.83 -0.59 -0.70 97,615 Trade
NOW ServiceNow Inc. 101.70 0.00 0.00 2,325,651 Trade
TM Toyota Motor Corporation 108.08 0.58 0.54 176,787 Trade
PG Procter & Gamble Company (The) 86.08 -0.13 -0.15 4,042,266 Trade
GE General Electric Co 28.28 0.10 0.35 23,819,272 Trade
CVX Chevron Corporation 106.27 0.15 0.14 3,457,020 Trade
SO Southern Company (The) 50.08 0.07 0.14 5,408,142 Trade
PCG Pacific Gas & Electric Co. 66.16 0.23 0.35 2,990,364 Trade
AKS AK Steel Holding Corporation 6.03 0.48 8.65 24,938,151 Trade
BBVA Banco Bilbao Vizcaya Argentaria S.A. 8.41 0.17 2.06 2,831,854 Trade
TSLA Tesla Motors Inc. 303.86 -6.49 -2.09 4,307,956 Trade
IP International Paper Company 51.97 0.30 0.58 1,851,097 Trade
JNJ Johnson & Johnson 127.52 0.26 0.20 3,972,919 Trade
WMT Wal-Mart Stores Inc. 78.49 -0.06 -0.08 7,106,899 Trade
AA Alcoa Inc. 33.26 0.30 0.91 2,949,106 Trade
INTC Intel Corporation 35.86 0.09 0.25 16,850,315 Trade
IBM International Business Machines Corp 152.03 -0.61 -0.40 2,564,502 Trade
AHS AMN Healthcare Services Inc n/a n/a n/a n/a
VLO Valero Energy Corporation 64.12 0.28 0.44 2,932,719 Trade
D Dominion Resources Inc. 79.71 0.01 0.01 2,095,719 Trade
TRV The Travelers Companies Inc. 121.66 0.01 0.01 1,128,622 Trade
OSUR OraSure Technologies Inc. 14.59 0.00 0.00 526,009 Trade
THG Hanover Insurance Group Inc 82.33 0.20 0.24 125,460 Trade
AAPL Apple Inc. 153.80 -0.19 -0.12 19,893,419 Trade
HMC Honda Motor Company Ltd. 27.74 0.00 0.00 624,540 Trade
MPC Marathon Petroleum Corporation 53.08 0.10 0.19 2,199,071 Trade
IVR INVESCO MORTGAGE CAPITAL INC 16.07 0.14 0.88 591,500 Trade
T.AGI Alamos Gold Inc. 8.51 -0.47 -5.23 1,037,051
EIX Edison International 78.82 -0.09 -0.11 1,358,075 Trade
JAZZ Jazz Pharmaceuticals plc 150.61 -1.36 -0.89 246,631 Trade
UA Under Armour Inc. Class A 18.04 0.12 0.67 2,155,384 Trade
JPM JP Morgan Chase 85.76 1.06 1.25 11,671,676 Trade
AXP American Express Company 77.20 0.22 0.29 2,221,318 Trade
BECN Beacon Roofing Supply Inc. 48.78 -0.04 -0.08 184,672 Trade
AMG Affiliated Managers Group Inc. 152.66 -1.32 -0.86 419,230 Trade
UTX United Technologies Corporation 122.07 0.41 0.34 3,381,166 Trade
HTS Hatteras Financial Corp n/a n/a n/a 0 Trade
AMD Advanced Micro Devices Inc. 10.89 -0.15 -1.36 49,659,374 Trade
BLMN Bloomin\' Brands Inc. 19.97 -0.28 -1.38 1,007,596 Trade
PSX Phillips 66 78.14 -0.41 -0.52 2,973,022 Trade
DB Deutsche Bank AG 19.25 0.13 0.68 3,640,023 Trade
CSCO Cisco Systems Inc. 31.76 0.17 0.54 29,696,325 Trade
DIS Walt Disney Company (The) 107.02 -0.61 -0.57 7,514,318 Trade
LM Legg Mason Inc. 37.93 -0.20 -0.52 720,415 Trade
RS Reliance Steel & Aluminum Co. (DE) 74.23 2.97 4.17 823,194 Trade
UN Unilever NV 55.40 -0.31 -0.56 1,451,606 Trade
VZ Verizon Communications Inc. 45.48 0.00 0.00 8,050,821 Trade
NOC Northrop Grumman Corporation 250.65 1.20 0.48 801,378 Trade
GM General Motors Company 33.22 0.30 0.91 17,572,309 Trade
BAC Bank of America Corporation 23.39 0.35 1.52 78,757,222 Trade
MCD McDonald\'s Corporation 147.82 -0.37 -0.25 3,259,206 Trade
CMO Capstead Mortgage Corporation 10.48 0.05 0.48 334,773 Trade
BT BT Group plc American Depositary Shares 20.71 0.02 0.10 559,763 Trade
WERN Werner Enterprises Inc. 27.05 0.70 2.66 1,184,033 Trade
DD E.I. du Pont de Nemours and Co. 77.34 -0.04 -0.05 2,016,710 Trade
PEIX Pacific Ethanol Inc. 6.35 -0.10 -1.55 1,035,827 Trade
PLT Plantronics Inc. 52.63 -0.36 -0.68 94,771 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 11.11 0.08 0.73 615,289 Trade
X United States Steel Corp. 20.38 0.91 4.67 20,962,140 Trade
HD Home Depot Inc. (The) 154.83 -1.13 -0.72 4,517,875 Trade
XOM Exxon Mobil Corporation 82.58 0.29 0.35 6,666,514 Trade
PFE Pfizer Inc. 32.14 0.02 0.06 17,528,230 Trade
ALGN Align Technology Inc. 138.22 0.12 0.09 894,326 Trade
WFC Wells Fargo & Company 53.39 0.38 0.72 11,740,711 Trade
WETF WisdomTree Investments Inc. 9.54 0.03 0.32 1,479,111 Trade
NVS Novartis AG 81.06 -0.23 -0.28 2,479,805 Trade
HPQ HP Inc. 18.96 -0.15 -0.78 7,783,631 Trade
NFLX Netflix Inc. 157.95 0.79 0.50 3,346,249 Trade
BA Boeing Company (The) 183.49 -0.18 -0.10 2,105,057 Trade
MRK Merck & Company Inc. (new) 64.55 0.51 0.80 5,704,428 Trade
DFS Discover Financial Services 59.74 0.03 0.05 2,486,148 Trade
CR Crane Company 77.45 0.47 0.61 164,614 Trade
MUSA Murphy USA Inc. 67.69 -1.98 -2.84 421,757 Trade
MCO Moody\'s Corporation 114.89 -0.08 -0.07 386,744 Trade
CLF Cliffs Natural Resources Inc 6.75 0.27 4.17 12,385,349 Trade
FE FirstEnergy Corporation 28.50 0.06 0.21 3,220,564 Trade
HAS Hasbro Inc. 100.98 -0.28 -0.28 607,037 Trade
CAJ Canon Inc. American Depositary Shares 33.92 -0.07 -0.21 212,014 Trade
KO Coca-Cola Company (The) 44.39 0.21 0.48 11,974,339 Trade
T AT&T Inc. 38.31 0.06 0.16 13,452,832 Trade
CAT Caterpillar Inc. 103.63 1.34 1.31 3,327,197 Trade
MSFT Microsoft Corporation 68.68 0.23 0.34 15,413,996 Trade

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