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 0.24 -0.01 -2.08 148,183
MMM 3M Company 216.33 1.06 0.49 5,563,733 Trade
KTOS Kratos Defense & Security Solutions Inc. 14.09 0.27 1.95 4,334,254 Trade
EEFT Manulife Financial Corporation 102.10 -1.12 -1.09 332,103 Trade
NOW ServiceNow Inc. 189.69 2.34 1.25 2,880,737 Trade
TM Toyota Motor Corporation 124.72 -0.23 -0.18 113,991 Trade
PG Procter & Gamble Company (The) 85.82 0.46 0.54 17,402,589 Trade
GE General Electric Company 12.17 -0.29 -2.33 95,419,064 Trade
CVX Chevron Corporation 121.13 1.71 1.43 13,703,596 Trade
SO Southern Company (The) 44.01 0.72 1.66 13,119,077 Trade
PCG Pacific Gas & Electric Co. 46.79 -0.13 -0.28 8,661,732 Trade
AKS AK Steel Holding Corporation 4.74 -0.11 -2.27 9,819,875 Trade
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.61 -0.14 -2.07 2,589,178 Trade
TSLA Tesla Motors Inc. 299.10 0.77 0.26 5,050,478 Trade
IP International Paper Company 54.12 -0.46 -0.84 4,923,476 Trade
JNJ Johnson & Johnson 142.88 0.90 0.63 13,283,427 Trade
WMT Walmart Inc. 95.90 0.15 0.16 9,530,133 Trade
AA Alcoa Corporation 43.79 0.86 2.00 4,939,859 Trade
INTC Intel Corporation 46.66 -0.54 -1.14 52,650,601 Trade
IBM International Business Machines Corporation 151.35 0.20 0.13 19,947,878 Trade
AHS AMN Healthcare Services Inc n/a n/a n/a n/a
VLO Valero Energy Corporation 112.24 1.76 1.59 4,044,503 Trade
D Dominion Energy Inc. 70.85 0.53 0.75 5,587,162 Trade
TRV The Travelers Companies Inc. 134.44 0.29 0.22 2,738,460 Trade
OSUR OraSure Technologies Inc. 15.33 -0.13 -0.84 910,017 Trade
THG Hanover Insurance Group Inc 118.21 1.54 1.32 449,678 Trade
AAPL Apple Inc. 217.66 -2.37 -1.08 96,246,748 Trade
HMC Honda Motor Company Ltd. 30.87 0.27 0.88 436,306 Trade
MPC Marathon Petroleum Corporation 83.37 1.44 1.76 8,531,589 Trade
IVR INVESCO MORTGAGE CAPITAL INC 16.32 0.11 0.68 1,887,443 Trade
T.AGI Alamos Gold Inc. 5.97 -0.08 -1.32 2,527,229
EIX Edison International 68.36 0.54 0.80 4,222,840 Trade
JAZZ Jazz Pharmaceuticals plc 163.78 -0.58 -0.35 548,623 Trade
UA Under Armour Inc. Class C 18.70 0.55 3.03 5,679,500 Trade
JPM JP Morgan Chase & Co. 117.85 -0.78 -0.66 24,788,247 Trade
AXP American Express Company 110.90 -0.21 -0.19 5,662,932 Trade
BECN Beacon Roofing Supply Inc. 39.36 -0.54 -1.35 704,644 Trade
AMG Affiliated Managers Group Inc. 147.63 1.62 1.11 675,714 Trade
UTX United Technologies Corporation 142.08 0.23 0.16 7,330,895 Trade
HTS Hatteras Financial Corp n/a n/a n/a 0 Trade
AMD Advanced Micro Devices Inc. 31.02 -0.16 -0.51 129,792,949 Trade
BLMN Bloomin' Brands Inc. 20.13 -0.21 -1.03 1,894,799 Trade
PSX Phillips 66 111.66 1.33 1.21 5,963,288 Trade
DB Deutsche Bank AG 12.34 0.09 0.73 7,139,522 Trade
CSCO Cisco Systems Inc. 48.56 0.83 1.74 59,664,599 Trade
DIS The Walt Disney Company 110.40 -1.22 -1.09 25,753,718 Trade
LM Legg Mason Inc. 32.25 0.02 0.06 1,307,095 Trade
RS Reliance Steel & Aluminum Co. (DE) 86.29 -1.49 -1.70 757,804 Trade
UN Unilever NV 56.51 -0.01 -0.02 621,134 Trade
VZ Verizon Communications Inc. 54.42 0.47 0.87 48,954,080 Trade
NOC Northrop Grumman Corporation 306.69 5.28 1.75 1,692,776 Trade
GM General Motors Company 35.32 -0.76 -2.11 27,172,393 Trade
BAC Bank of America Corporation 31.03 -0.16 -0.51 85,992,133 Trade
MCD McDonald's Corporation 165.30 4.51 2.80 8,805,474 Trade
CMO Capstead Mortgage Corporation 8.10 0.03 0.37 1,382,519 Trade
BT BT Group plc American Depositary Shares 15.10 -0.03 -0.20 1,227,783 Trade
WERN Werner Enterprises Inc. 35.60 -1.00 -2.73 1,574,933 Trade
PEIX Pacific Ethanol Inc. 1.80 -0.15 -7.69 497,789 Trade
PLT Plantronics Inc. 58.93 -0.95 -1.59 476,380 Trade
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR representing 2 Pfd Shares 5.66 0.22 4.04 1,209,250 Trade
X United States Steel Corporation 29.13 -0.72 -2.41 10,670,060 Trade
HD Home Depot Inc. (The) 212.39 1.33 0.63 9,749,205 Trade
XOM Exxon Mobil Corporation 85.17 0.35 0.41 26,639,437 Trade
PFE Pfizer Inc. 44.06 0.31 0.71 35,192,233 Trade
ALGN Align Technology Inc. 380.84 1.00 0.26 786,072 Trade
WFC Wells Fargo & Company 54.99 -0.56 -1.01 36,158,566 Trade
WETF WisdomTree Investments Inc. 8.19 0.02 0.24 1,724,851 Trade
NVS Novartis AG 85.46 -0.51 -0.59 2,938,397 Trade
HPQ HP Inc. 25.83 0.14 0.54 21,915,838 Trade
NFLX Netflix Inc. 361.19 -4.17 -1.14 11,930,568 Trade
BA The Boeing Company 372.23 4.77 1.30 7,144,087 Trade
MRK Merck & Company Inc. (new) 71.10 0.32 0.45 17,033,118 Trade
DFS Discover Financial Services 79.99 0.64 0.81 3,394,124 Trade
CR Crane Co. 98.71 1.32 1.36 521,696 Trade
MUSA Murphy USA Inc. 85.91 0.03 0.03 732,147 Trade
MCO Moody's Corporation 174.59 -4.16 -2.33 2,384,506 Trade
CLF Cleveland-Cliffs Inc. 12.16 -0.06 -0.49 10,598,960 Trade
FE FirstEnergy Corp. 36.90 0.04 0.11 11,661,930 Trade
HAS Hasbro Inc. 107.46 0.45 0.42 1,875,887 Trade
CAJ Canon Inc. American Depositary Shares 31.68 0.01 0.03 156,099 Trade
KO Coca-Cola Company (The) 46.58 -0.06 -0.13 19,240,577 Trade
T AT&T Inc. 33.78 0.34 1.02 130,157,081 Trade
CAT Caterpillar Inc. 156.38 0.38 0.24 5,932,137 Trade
MSFT Microsoft Corporation 114.26 0.69 0.61 71,229,698 Trade

Comments

Emerging Growth

IMV Inc.

Immunovaccine Inc is clinical stage biopharmaceutical company. The Company develops products based on its proprietary vaccine enhancement platform in T cell activating therapies for cancer.