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 0.82 0.07 8.91 636,165
MMM 3M Company 176.05 4.25 2.47 3,164,316
KTOS Kratos Defense & Security Solutions Inc. 7.40 -0.29 -3.77 1,658,860
EEFT Euronet Worldwide Inc. 73.84 1.72 2.38 296,715
NOW ServiceNow Inc. 79.98 0.37 0.46 1,414,132
TM Toyota Motor Corporation 121.46 3.58 3.04 304,641
PG Procter & Gamble Company (The) 84.18 1.27 1.53 8,567,706
GE General Electric Co 31.60 0.43 1.38 32,896,981
CVX Chevron Corporation 114.44 1.68 1.49 6,434,127
SO Southern Company (The) 47.15 0.22 0.47 5,727,187
PCG Pacific Gas & Electric Co. 58.80 0.42 0.72 2,023,869
AKS AK Steel Holding Corporation 10.79 0.24 2.27 28,872,434
BBVA Banco Bilbao Vizcaya Argentaria S.A. 6.75 0.11 1.66 5,188,906
TSLA Tesla Motors Inc. 193.15 7.30 3.93 5,461,851
IP International Paper Company 53.30 1.53 2.96 3,504,747
JNJ Johnson & Johnson 111.10 -0.96 -0.86 11,761,134
WMT Wal-Mart Stores Inc. 70.60 0.74 1.06 6,966,249
AA Alcoa Inc. 30.90 -0.25 -0.80 5,778,259
INTC Intel Corporation 35.50 0.78 2.25 21,710,273
IBM International Business Machines Corp 164.79 4.44 2.77 4,435,050
AHS AMN Healthcare Services Inc n/a n/a n/a n/a
VLO Valero Energy Corporation 67.54 2.82 4.36 6,397,994
D Dominion Resources Inc. 73.50 0.79 1.09 3,935,360
TRV The Travelers Companies Inc. 117.99 1.83 1.58 2,316,808
OSUR OraSure Technologies Inc. 8.79 0.08 0.92 368,255
THG Hanover Insurance Group Inc 89.81 0.58 0.65 136,736
AAPL Apple Inc. 111.03 1.08 0.98 29,998,719
HMC Honda Motor Company Ltd. 30.02 0.51 1.73 922,248
MPC Marathon Petroleum Corporation 49.65 2.42 5.12 9,689,706
IVR INVESCO MORTGAGE CAPITAL INC 15.62 0.39 2.56 1,383,412
T.AGI Alamos Gold Inc. 8.11 0.08 1.00 1,221,652
EIX Edison International 69.61 0.76 1.10 2,236,522
JAZZ Jazz Pharmaceuticals plc 100.60 -3.28 -3.16 694,201
UA Under Armour Inc. Class A 27.03 1.62 6.38 6,525,630
JPM JP Morgan Chase 84.07 0.38 0.45 18,996,905
AXP American Express Company 74.29 1.98 2.74 5,801,483
BECN Beacon Roofing Supply Inc. 46.57 0.65 1.42 606,324
AMG Affiliated Managers Group Inc. 157.81 4.21 2.74 588,729
UTX United Technologies Corporation 109.68 2.25 2.09 4,261,795
HTS Hatteras Financial Corp n/a n/a n/a 0
AMD Advanced Micro Devices Inc. 9.56 0.11 1.16 54,897,332
BLMN Bloomin\' Brands Inc. 19.56 0.49 2.57 1,127,519
PSX Phillips 66 87.01 2.10 2.47 2,686,951
DB Deutsche Bank AG 18.67 0.38 2.08 19,456,496
CSCO Cisco Systems Inc. 29.95 0.62 2.11 30,180,093
DIS Walt Disney Company (The) 101.99 1.33 1.32 12,255,742
LM Legg Mason Inc. 32.74 0.98 3.09 1,907,479
RS Reliance Steel & Aluminum Co. (DE) 86.34 1.49 1.76 851,050
UN Unilever NV 40.12 0.36 0.91 4,385,736
VZ Verizon Communications Inc. 51.38 1.02 2.03 16,280,568
NOC Northrop Grumman Corporation 247.14 -0.70 -0.28 1,349,063
GM General Motors Company 36.30 1.23 3.51 26,622,378
BAC Bank of America Corporation 22.57 0.41 1.85 168,005,152
MCD McDonald\'s Corporation 119.92 0.67 0.56 4,059,907
CMO Capstead Mortgage Corporation 10.24 0.02 0.20 673,536
BT BT Group plc American Depositary Shares 23.03 0.33 1.45 532,967
WERN Werner Enterprises Inc. 28.30 0.45 1.62 945,637
DD E.I. du Pont de Nemours and Co. 73.82 1.09 1.50 3,136,881
PEIX Pacific Ethanol Inc. 8.95 0.15 1.70 448,740
PLT Plantronics Inc. 53.71 1.09 2.07 134,253
GOL Gol Linhas Aereas Inteligentes S.A. Sponsored ADR 14.41 0.11 0.77 172,192
X United States Steel Corp. 37.49 1.54 4.28 23,864,381
HD Home Depot Inc. (The) 132.46 3.72 2.89 6,987,286
XOM Exxon Mobil Corporation 88.07 0.51 0.58 11,182,628
PFE Pfizer Inc. 31.19 -0.37 -1.17 44,053,675
ALGN Align Technology Inc. 98.14 1.90 1.97 1,484,649
WFC Wells Fargo & Company 57.28 1.73 3.11 46,616,968
WETF WisdomTree Investments Inc. 12.41 0.71 6.07 3,429,113
NVS Novartis AG 68.62 -0.34 -0.49 3,187,894
HPQ HP Inc. 16.15 0.55 3.53 11,679,164
NFLX Netflix Inc. 125.39 0.82 0.66 8,204,687
BA Boeing Company (The) 154.14 1.90 1.25 2,955,753
MRK Merck & Company Inc. (new) 60.06 -0.22 -0.36 14,049,574
DFS Discover Financial Services 71.62 3.24 4.74 5,768,138
CR Crane Company 77.36 1.07 1.40 315,944
MUSA Murphy USA Inc. 69.02 -0.44 -0.63 361,019
MCO Moody\'s Corporation 97.90 0.99 1.02 2,022,207
CLF Cliffs Natural Resources Inc 10.39 0.12 1.17 15,663,662
FE FirstEnergy Corporation 30.06 -0.31 -1.02 7,314,272
HAS Hasbro Inc. 86.52 2.08 2.46 1,189,572
CAJ Canon Inc. American Depositary Shares 29.83 0.73 2.51 282,227
KO Coca-Cola Company (The) 41.29 0.72 1.77 13,726,520
T AT&T Inc. 40.45 1.10 2.80 32,963,365
CAT Caterpillar Inc. 97.33 2.11 2.22 4,901,054
MSFT Microsoft Corporation 61.37 1.42 2.37 30,808,969

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