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
MMM 3M Company 235.64 3.46 1.49 1,130,186 Trade
UNH UnitedHealth Group Incorporated (DE) 227.94 2.81 1.25 1,497,988 Trade
CSC Computer Sciences Corporation n/a n/a n/a 0 Trade
EV Eaton Vance Corporation 55.34 -0.21 -0.37 339,676 Trade
CF CF Industries Holdings Inc. 43.19 0.56 1.31 1,588,907 Trade
DECK Deckers Outdoor Corporation 95.52 -0.50 -0.52 349,259 Trade
TM Toyota Motor Corporation 135.30 0.50 0.37 87,783 Trade
PG Procter & Gamble Company (The) 80.86 0.62 0.78 5,176,653 Trade
GE General Electric Co 14.73 0.24 1.69 48,279,899 Trade
NI NiSource Inc 23.15 0.35 1.54 1,258,805 Trade
CVX Chevron Corporation 110.39 1.33 1.22 4,503,510 Trade
SO Southern Company (The) 43.26 0.34 0.79 3,812,642 Trade
PCG Pacific Gas & Electric Co. 40.16 0.37 0.93 2,090,272 Trade
VALE VALE S.A. American Depositary Shares Each Represen 13.93 0.27 1.98 9,472,588 Trade
AGU Agrium Inc. n/a n/a n/a 0 Trade
ARMH ARM Holdings plc n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 130.01 0.10 0.07 2,455,375 Trade
WMT Wal-Mart Stores Inc. 92.94 1.42 1.55 13,425,879 Trade
AA Alcoa Inc. 47.81 0.26 0.55 2,391,367 Trade
DWA Dreamworks Animation SKG Inc. n/a n/a n/a 0 Trade
INTC Intel Corporation 45.81 -0.13 -0.29 9,692,441 Trade
IBM International Business Machines Corp 153.87 -0.09 -0.06 2,356,336 Trade
RGC Regal Entertainment Group Class A 22.97 0.01 0.04 813,978 Trade
D Dominion Resources Inc. 74.02 0.48 0.65 1,256,199 Trade
TRV The Travelers Companies Inc. 138.96 0.42 0.30 771,410 Trade
BSBR Banco Santander Brasil SA American Depositary Shar 11.32 0.13 1.16 367,089 Trade
BSMX Grupo Financiero Santander Mexico S.A. B. de C.V. 7.31 0.00 0.00 601,083 Trade
DAL Delta Air Lines Inc. 52.83 -0.03 -0.05 2,595,686 Trade
EIX Edison International 59.93 0.84 1.41 1,006,812 Trade
NMPRH Navios Maritime Holdings Inc n/a n/a n/a 0 Trade
JPM JP Morgan Chase 115.92 0.73 0.63 8,815,301 Trade
AXP American Express Company 97.40 -0.10 -0.10 1,763,043 Trade
FNSR Finisar Corporation 17.90 -0.43 -2.32 2,288,268 Trade
TOT Total S.A. 57.69 1.05 1.85 1,202,153 Trade
UTX United Technologies Corporation 133.53 4.27 3.30 4,793,986 Trade
WSM Williams-Sonoma Inc. (DE) 52.50 -0.11 -0.21 789,564 Trade
MLM Martin Marietta Materials Inc. 212.98 0.67 0.31 215,104 Trade
CSCO Cisco Systems Inc. 42.99 -0.33 -0.75 14,385,092 Trade
ERIC Ericsson 6.65 -0.02 -0.23 1,210,881 Trade
DIS Walt Disney Company (The) 105.33 0.28 0.27 2,272,341 Trade
WWAV Whitewave Foods Company (The) n/a n/a n/a 0 Trade
BSX Boston Scientific Corporation 26.64 -0.13 -0.49 3,202,945 Trade
VZ Verizon Communications Inc. 48.06 0.10 0.21 11,368,203 Trade
SVU SuperValu Inc. 13.88 -0.34 -2.36 569,244 Trade
BAC Bank of America Corporation 31.93 0.06 0.18 34,403,836 Trade
RBS Royal Bank of Scotland Group Plc New (The) ADS 7.97 0.13 1.66 662,792 Trade
QIHU Qihoo 360 Technology Co. Ltd. American Depositary n/a n/a n/a 0 Trade
MCD McDonald\'s Corporation 160.02 1.38 0.87 2,384,253 Trade
DD E.I. du Pont de Nemours and Co. 83.93 0.00 0.00 0 Trade
UBS UBS Group AG Registered 19.24 0.00 0.00 1,165,654 Trade
SCM Stellus Capital Investment Corporation 11.77 0.00 0.00 26,221 Trade
JNS Janus Capital Group Inc n/a n/a n/a 0 Trade
VMC Vulcan Materials Company (Holding Company) 122.01 0.25 0.21 810,337 Trade
OXY Occidental Petroleum Corporation 68.53 1.32 1.96 2,353,679 Trade
LULU lululemon athletica inc. 81.23 0.07 0.09 1,172,550 Trade
HD Home Depot Inc. (The) 185.07 2.01 1.10 2,790,223 Trade
XOM Exxon Mobil Corporation 76.31 1.42 1.90 7,304,528 Trade
PFE Pfizer Inc. 35.66 -0.10 -0.28 11,328,038 Trade
TEVA Teva Pharmaceutical Industries Limited American De 19.71 -0.38 -1.89 5,685,268 Trade
HPQ HP Inc. 21.41 0.24 1.13 5,159,348 Trade
BA Boeing Company (The) 354.79 2.42 0.69 2,097,870 Trade
MRK Merck & Company Inc. (new) 54.58 0.03 0.05 5,388,555 Trade
IGT International Game Technology 26.77 -0.21 -0.78 295,733 Trade
NBL Noble Energy Inc. 29.71 0.58 1.99 4,950,429 Trade
HE Hawaiian Electric Industries Inc. 33.31 0.11 0.33 111,034 Trade
CNK Cinemark Holdings Inc Inc. 39.94 0.32 0.81 830,729 Trade
SJM J.M. Smucker Company (The) New 122.67 1.85 1.53 548,073 Trade
FE FirstEnergy Corporation 33.15 0.39 1.19 2,695,679 Trade
CAJ Canon Inc. American Depositary Shares 36.97 -0.12 -0.32 231,104 Trade
KO Coca-Cola Company (The) 43.60 0.26 0.60 7,705,859 Trade
T AT&T Inc. 36.68 0.37 1.02 10,536,528 Trade
CAT Caterpillar Inc. 158.53 3.30 2.13 2,897,783 Trade
DUK Duke Energy Corporation (Holding Company) 75.90 0.57 0.75 1,524,800 Trade
CUBE CubeSmart 26.44 0.49 1.89 836,947 Trade
MSFT Microsoft Corporation 91.64 0.15 0.16 11,859,587 Trade
NWS News Corporation 16.55 0.40 2.48 299,481 Trade

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