Equities Sector Coverage: Wall Street Dips as Washington Continues Discussions

Sector Recap |

NYSE Wall StreetThe national ISM manufacturing index came in a weaker than expected 49.5 in November. Construction Spending rose by a better than expected 1.4% in October. The Dow Jones Industrial Average traded up to 13,087.32 then dipped to 12,959.42 trading back and forth around the 200-day simple moving average at 12,996.50. The Nasdaq traded up to 3030.28 then dipped to 2999.57 staying above its 200-day SMA at to 2987.50.

Asian stocks were mixed on Monday. The Nikkei 225 closed at 9458 – up 0.13%. The Hang Seng closed at 21,768 – down 1.19%. European exchanges closed higher on Monday. The FTSE 100 ended the day at 5,871 – up 0.08%. The DAX ended the day at 7,435 – up 0.40%. The CAC 40 ended the day at 3,567 – up 0.26%. The yield on the 10-Year US Treasury rose from 1.610% to 1.656% staying below the 50-day and 200-day simple moving averages at 1.680% and 1.760%.

Comex gold rallied from $1714.2 the Troy ounce to $1724.9 below the 50-day simple moving average at $1737.5 with the 200-day SMA at $1665.4. Nymex crude oil rebounded from $88.66 per barrel to $90.33 and is now between the 50-day and 200-day simple moving averages at $88.56 and $93.75. The euro versus the dollar rallied from 1.2992 to 1.3074 above its 50-day and 200-day simple moving averages at 1.2905 and 1.2791.

Energy

Australia's Woodside Petroleum (WOPEF) has agreed to acquire a 30% stake in Israel's huge Leviathan offshore gas field from the operators of the reserve, which include Noble Energy (NBL) and Delek Drilling (DKDRF). Total S.A. (TOT) is moved to Buy from Hold at Deutsche Bank. Occidental Petroleum (OXY) and Royal Dutch Shell (RDS.A) each get Hold-from-Buy downgrades at Deutsche Bank. Big Movers – Longwei Petroleum Investment (LPH) is up about 14%. James River Coal (JRCC) is down about 10%. Dow components – Chevron (CVX) is down about 1%. Exxon Mobil (XOM) is down about 0.5%. Energy Select Sector SPDR (XLE) was trading at $70.69 at 3:30 PM on Monday, down 0.52% on the day – up 2.26% year-to-date.

Materials

After trying the friendly tack and then the hostile one, Martin Marietta Materials (MLM) will reportedly again try the friendly approach in its long-running attempt to acquire larger building-materials rival Vulcan Materials (VMC). Amid a fall in iron ore prices this year, Vale (VALE) is expected to unveil a 2013 investment budget of $15.1B at its annual Vale Day meeting with shareholders today. Agrium (AGU) is raised to Overweight from Neutral at Piper Jaffray. CF Industries (CF) is now Neutral from Overweight at Piper Jaffray. Dow Components – Alcoa (AA) is up about 0.5%. DuPont (DD) is down about 1.4%. The Materials Select Sector SPDR (XLB) was trading at $36.02 at 3:30 PM on Monday, down 1.85% on the day – up 7.52% year-to-date.

Industrials

Singapore Airlines (SINGY) has confirmed widespread reports that it's in talks to sell its 49% holding in Richard Branson's Virgin Atlantic, with those reports saying that a potential suitor is Delta Air Lines (DAL). The Speea union has circulated a letter "asking members to ignore the call for a (one-day) wildcat strike" at Boeing (BA), which has been planned for Wednesday. Dow components – Boeing Co (BA) is down about 0.4%. Caterpillar (CAT) is down about 0.5%. General Electric (GE) is down about 1%. 3M Company (MMM) is down about 0.7%. United Technologies (UTX) is down about 0.2%. The Industrial Select Sector SPDR (XLI) was trading at $36.77 at 3:30 PM on Monday, down 0.97% on the day – up 8.95% year-to-date.

Consumer Discretionary

News Corp (NWS) has reportedly advanced its break-up into two companies to the end of this month in order to limit the damage from the U.K. phone-hacking scandal to the firm's publishing arm and protect the film and TV business. Automakers from Japan continue to struggle in China amid the territorial dispute between the countries. In November, Toyota's (TM) sales fell 22% in China, while Mazda's (MZDAF) dropped 29%. Honda is due to release its Chinese sales later. Lululemon Athletica (LULU) is launched with a Buy at Canaccord Genuity. Deckers Outdoor (DECK) is boosted to Buy from Neutral at Sterne Agee. International Game Technology (IGT) gets upgraded to Buy from Hold at Deutsche Bank. Volkswagen (VLKAY) gets upgraded to Overweight from Neutral at HSBC Securities. Williams-Sonoma (WSM) is moved to Overweight from Equal Weight at Morgan Stanley. JPMorgan cuts both Cinemark Holdings (CNK) and Regal Entertainment (RGC) to Neutral from Overweight. DreamWorks Animation (DWA) is slashed Sell from Hold at Stifel Nicolaus. Dow Components – Disney (DIS) is down about 0.7%. Home Depot (HD) is relatively unchanged. McDonalds (MCD) is up about 0.25%. The Consumer Discretionary Select Sector SPDR (XLY) was trading at $47.31 at 3:30 PM on Monday, down 0.46% on the day – up 21.25% year-to-date.

Consumer Staples

Cerberus is reportedly considering purchasing all of Supervalu (SVU) or just a portion of the retailer's assets, such as the Albertsons chain. WhiteWave Foods (WWAV) is boosted to Buy from Hold at Stifel Nicolaus. J.M. Smucker (SJM) gets downgraded to Equal Weight from Overweight at Stephens. Big Mover – Supervalu (SVU) id up about 10.5%. Dow components – Coca Cola (KO) is down about 1.1%. Procter & Gamble (PG) is down about 0.25%. Wal-Mart (WMT) is down about 0.4%. The Consumer Staples Select Sector SPDR (XLP) was trading at $35.905 at 3:30 PM on Monday, down 0.37% on the day – up 10.51% year-to-date.

Health Care

Boston Scientific (BSX) is moved to Outperform from Market Perform at JMP Securities. Teva Pharmaceuticals (TEVA) is taken to Neutral from Buy at UBS. Dow Components – Johnson & Johnson (JNJ) is down about 0.3%. Merck (MRK) is up about 0.5%. Pfizer (PFE) is up slightly. United Health Group (UNH) is down about 0.9%. The Health Care Select Sector SPDR (XLV) was trading at $40.15 at 3:30 PM on Monday, down 0.22% on the day – up 15.74% year-to-date.

Financials

UBS (UBS) is reportedly nearing an agreement with U.K. and U.S. authorities to pay over $450M to settle allegations that it manipulated global inter-bank interest rates, including Libor. RBS (RBS) reportedly plans to restart paying dividends in late 2014, but predicts it will take ten years for it to become fully re-privatized. Banco Santander Mexico (BSMX) is begun with an Equal Weight at Barclays. Stellus Capital (SCM) is a new Outperform at Robert W. Baird. CubeSmart (CUBE) is now Outperform from Neutral at Robert W. Baird. Eaton Vance (EV) is moved to Neutral from Sell at Goldman Sachs. Banco Santander Brasil (BSBR) is cut to Underperform from Perform at Credit Suisse. Janus Capital (JNS) is slashed to Sell from Neutral at Goldman Sachs. Dow Components – American Express (AXP) is up about 0.3%. Bank of America (BAC) is down about 0.3%. JP Morgan Chase (JPM) is down about 0.2%. The Travelers Companies (TRV) is up about 0.5%. The Financial Select Sector SPDR (XLF) was trading at $15.72 at 3:30 PM on Monday, down 0.25% on the day – up 20.92% year-to-date.

Information Technology

ARM Holdings (ARMH) is boosted to Outperform from Neutral at BNP Paribas. Canon (CAJ) gets upgraded to Buy from Hold by BNP Paribas. Computer Sciences (CSC) is upgraded to Outperform from Neutral at Cowen. Dell Inc. (DELL) gets an unusual 180 degree (Buy-from-Sell) upgrade at Goldman Sachs. Ericsson (ERIC) is raised to Outperform from Sector Perform at RBC Capital. Finisar (FNSR) is now Buy from Hold at Needham. Bankrate (RATE) is reduced to Hold from Buy at Canaccord Genuity. Emulex (ELX) is now Sell from Neutral at Goldman Sachs. Research In Motion (RIMM) is slashed to Sell from Hold at Canaccord Genuity. Big Movers – AOL Inc. (AOL) is down about 14%. Qihoo 360 Technology (QIHU) is up about 10%. Dow Components – Cisco Systems (CSCO) is up about 0.8%. Hewlett-Packard (HPQ) is down about 0.5%. IBM (IBM) is down about 0.25%. Intel Corp (INTC) is relatively unchanged. Microsoft (MSFT) is down about 0.5%. The Technology Select Sector SPDR (XLK) was trading at $29.10 at 3:30 PM on Monday, down 0.10% the day – up 14.34% year-to-date.

Telecommunication Services

AT&T, Inc. (T) is a new Equal Weight at Evercore. Verizon (VZ) is now Buy from Hold at Nomura. Dow Components – AT&T (T) is relatively unchanged. Verizon (VZ) is down slightly. The NASDAQ Telecommunications Index (IXTC) was trading at $195.50 at 3:30 PM on Monday, up 0.17% on the day – down 0.73% year-to-date.

Utilities

Hawaiian Electric (HE) is hoisted to Neutral from Underperform at Macquarie. Duke Energy (DUK) and NiSource (NI) are both upgraded to Overweight from Equal Weight by Barclays. Edison International (EIX) is moved to Market Perform from Outperform by Sanford Bernstein. The Big Names – Dominion Resources (D) is down about 0.8%. Edison International (EIX) is down about 1.2%. First Energy (FE) is down about 0.4%. PG&E Corp (PCG) is down about 0.9%. Southern Company (SO) is down about 0.8%. The Utilities Select Sector SPDR (XLU) was trading at $35.13 at 3:30 PM on Monday, down 0.54% on the day – down 2.36% year-to-date.

STOCKS: CVX, XOM, AA, DD, BA, CAT, GE, MMM, UTX, DIS, HD, MCD, KO, PG, WMT, JNJ, MRK, PFE, UNH, AXP, BAC, JPM, TRV, CSCO, HPQ, IBM, INTC, MSFT, T, VZ, D, EIX, FE, PCG, SO, WOPEF, NBL, DKDRF, TOT, OXY, RDS.A, LPH, JRCC, MLM, VMC, VALE, AGU, CF, SINGY, DAL, BA, NWS, TM, MZDAF, LULU, DECK, IGT, VLKAY, WSM, CNK, RGC, DWA, SVU, WWAV, SJM, BSX, TEVA, UBS, RBS, BSMX, SCM, CUBE, EV, BSBR, JNS, ARMH, CAJ, CSC, DELL, ERIC, FNSR, RATE, ELX, RIMM, AOL, QIHU, T, VZ, HE, DUK, NI, EIX

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AA Alcoa Inc. 9.75 -0.02 -0.15 5,696,350
AGU Agrium Inc. 90.56 -1.10 -1.20 563,254
ARMH ARM Holdings plc n/a n/a n/a 0
AXP American Express Company 63.18 -0.67 -1.05 1,673,463
BA Boeing Company (The) 131.25 -0.54 -0.41 834,781
BAC Bank of America Corporation 15.16 -0.36 -2.32 43,976,982
BSBR Banco Santander Brasil SA American Depositary Shar 6.65 -0.03 -0.37 348,352
BSMX Grupo Financiero Santander Mexico S.A. B. de C.V. 8.45 0.03 0.36 1,654,452
BSX Boston Scientific Corporation 23.78 0.07 0.27 3,702,915
CAJ Canon Inc. American Depositary Shares 29.02 0.12 0.42 77,769
CAT Caterpillar Inc. 82.50 0.06 0.07 1,629,208
CF CF Industries Holdings Inc. 22.37 -0.26 -1.15 2,336,037
CNK Cinemark Holdings Inc Inc. 38.31 -0.23 -0.60 123,808
CSCO Cisco Systems Inc. 31.11 -0.24 -0.75 10,068,964
CUBE CubeSmart 28.04 0.27 0.97 611,554
CVX Chevron Corporation 99.10 -0.13 -0.13 2,558,155
D Dominion Resources Inc. 76.74 -0.27 -0.35 882,682
DAL Delta Air Lines Inc. 37.98 -0.81 -2.08 3,655,759
DD E.I. du Pont de Nemours and Co. 66.96 0.19 0.28 1,241,882
DECK Deckers Outdoor Corporation 60.97 -1.28 -2.06 93,649
DIS Walt Disney Company (The) 92.14 -1.13 -1.21 3,376,779
DUK Duke Energy Corporation (Holding Company) 82.30 -0.22 -0.27 942,054
DWA Dreamworks Animation SKG Inc. n/a n/a n/a 0
EIX Edison International 75.77 0.15 0.19 667,630
ERIC Ericsson 6.92 -0.01 -0.14 1,075,092
EV Eaton Vance Corporation 39.17 -0.08 -0.20 326,561
FE FirstEnergy Corporation 34.71 0.22 0.64 1,166,401
FNSR Finisar Corporation 29.21 -0.01 -0.03 555,832
GE General Electric Co 29.68 -0.22 -0.72 10,153,805
HD Home Depot Inc. (The) 125.90 -1.89 -1.48 2,346,618
HE Hawaiian Electric Industries Inc. 31.37 0.18 0.58 108,935
HPQ HP Inc. 15.09 -0.01 -0.03 2,842,156
IBM International Business Machines Corp 154.14 -0.84 -0.54 1,071,030
IGT International Game Technology 24.58 -0.17 -0.69 351,851
INTC Intel Corporation 36.72 -0.48 -1.28 12,177,668
JNJ Johnson & Johnson 117.82 -0.99 -0.83 2,415,641
JNS Janus Capital Group Inc 13.90 -0.18 -1.30 383,501
JPM JP Morgan Chase 66.08 -1.18 -1.75 7,378,365
KO Coca-Cola Company (The) 42.23 -0.51 -1.19 6,006,905
LULU lululemon athletica inc. 64.71 -0.48 -0.74 675,110
MCD McDonald\'s Corporation 116.56 -0.62 -0.52 1,435,323
MLM Martin Marietta Materials Inc. 183.90 2.61 1.44 459,114
MMM 3M Company 176.67 -0.72 -0.41 691,079
MRK Merck & Company Inc. (new) 62.07 -0.89 -1.41 3,018,111
MSFT Microsoft Corporation 57.02 -0.42 -0.72 9,940,120
NBL Noble Energy Inc. 33.78 0.76 2.29 1,802,863
NI NiSource Inc 25.23 0.12 0.48 1,011,965
NMPRH Navios Maritime Holdings Inc n/a n/a n/a 0
NWS News Corporation 14.22 -0.25 -1.76 369,744
OXY Occidental Petroleum Corporation 69.69 0.09 0.13 1,878,778
PCG Pacific Gas & Electric Co. 64.20 0.00 0.00 730,556
PFE Pfizer Inc. 33.71 -0.55 -1.61 14,324,189
PG Procter & Gamble Company (The) 88.18 0.42 0.48 25,408,426
QIHU Qihoo 360 Technology Co. Ltd. American Depositary n/a n/a n/a 0
RBS Royal Bank of Scotland Group Plc New (The) ADS 4.64 -0.12 -2.42 1,010,539
RGC Regal Entertainment Group Class A 21.38 -0.18 -0.84 192,061
SCM Stellus Capital Investment Corporation 11.25 -0.09 -0.79 49,357
SJM J.M. Smucker Company (The) New 137.99 0.81 0.59 290,495
SO Southern Company (The) 53.48 -0.05 -0.09 1,931,460
SVU SuperValu Inc. 4.63 -0.06 -1.18 574,913
T AT&T Inc. 41.31 0.03 0.07 8,149,640
TEVA Teva Pharmaceutical Industries Limited American De 50.38 -1.09 -2.12 2,391,053
TM Toyota Motor Corporation 117.24 -0.42 -0.36 93,332
TOT Total S.A. 46.28 -0.25 -0.55 834,870
TRV The Travelers Companies Inc. 114.13 -1.18 -1.02 532,304
UBS UBS Group AG Registered 13.46 -0.35 -2.56 1,374,431
UNH UnitedHealth Group Incorporated (DE) 139.93 -0.58 -0.41 1,201,249
UTX United Technologies Corporation 102.64 0.08 0.08 1,638,544
VALE VALE S.A. American Depositary Shares Each Represen 5.45 0.03 0.55 7,760,769
VMC Vulcan Materials Company (Holding Company) 113.65 1.60 1.43 776,120
VZ Verizon Communications Inc. 52.37 -0.19 -0.36 4,675,068
WMT Wal-Mart Stores Inc. 71.92 -0.44 -0.60 2,354,643
WSM Williams-Sonoma Inc. (DE) 49.57 -0.72 -1.43 470,187
WWAV Whitewave Foods Company (The) 54.84 0.24 0.44 3,161,808
XOM Exxon Mobil Corporation 83.37 -0.08 -0.10 3,876,998

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