Equities Sector Coverage: Wall Street Dips on Economic Numbers

Sector Recap |

Stocks Fade in Late Trading to End LowerInitial Jobless Claims came in at 386,000, higher than expected and still above the 350,000 recessionary threshold. Existing Home Sales declined 2.6% to an annual rate of 4.48 million, below expectations. Leading Indicators rose by 0.3% in March. The Philly Fed Index came in at 8.5, well below forecasts. The Dow Jones Industrial Average fell to 12,971.18, rebounded to 13,080.20 then declined to an afternoon low at 12,896.82 back below its 50-day simple moving average at 13,009. The NASDAQ’s declined to 3025.53, rebounded to 3058.72 then declined to an afternoon low at 2994.94 below its 50-day simple moving average at 3011.

Asian stocks were mixed on Thursday. The Nikkei 225 ended their session at 9,588 – down 0.82% on the day. The Hang Seng ended their session at 20,995 – up 1.03% on the day. European stocks opened higher on Thursday, but drifted lower as the day progressed. The FTSE 100 ended their session at 5,745 – down 0.01% on the day. The DAX ended their session at 6,671 – down 0.90% on the day. The CAC 40 ended their session at 3,174 – down 2.05% on the day. The yield on the 10-Year US Treasury declined from 2.000 percent to 1.947 below its 50-day and 200-day simple moving averages at 2.083 and 2.116.

Gold declined from $1647.9 the Troy ounce to $1631.3 then rebounded to $1654.9 and then consolidated below the “death cross” defined by the 50-day simple moving average at $1688.9 being below the 200-day simple moving average at $1694.7. Crude oil declined from $103.21 per barrel to $101.67, staying below its 50-day simple moving average at $104.67. The euro versus the dollar traded down from 1.3164 to 1.3073 below its 50-day simple moving average at 1.3203.

Energy

Iraq has excluded Exxon Mobil (XOM) from its final list of 47 pre-qualified bidders for the next tender for energy exploration rights as it seeks to stop Exxon from entering Kurdistan. Diamond Offshore Drilling (DO) beat Q1 EPS estimates by 33 cents with better than expected revenue. Kinder Morgan Energy Partners (KMP) missed Q1 EPS by two cents and was below consensus on the revenue line. Noble (NE) beat Q1 EPS estimates by five cents with a beat on the revenue line. Chesapeake Energy (CHK) has been downgraded to Neutral from Buy at Sterne Agee. Dow components - Chevron (CVX) was down by 0.2% with Exxon Mobil (XOM) down 0.1%.

Energy Select Sector SPDR (XLE) was trading at $69.09 at 3:30 PM on Thursday, down 0.17% on the day – down 0.06% year-to-date.

Materials

Insteel Industries (IIIN) reported Q2 EPS of two cents with a slight miss on the revenue line. DuPont (DD) beat Q1 EPS estimates by six cents with in-line revenue. Steel Dynamics (STLD) missed Q1 EPS estimates by two cents with a miss on the revenue line. Albemarle (ALB) beat Q1 EPS estimates by four cents, but missed on the revenue line. Celanese (CE) is initiated with a Buy rating at Lazard. Dow components - Alcoa (AA) continues to have problems trending above the $10 threshold slipping 1.0%. DuPont (DD) was down 1.4% in reaction to its in-line earnings report.

The Materials Select Sector SPDR (XLB) was trading at $36.44 at 3:30 PM on Thursday, down 0.52% on the day – up 8.78% year-to-date.

Industrials

Ford (F) unveiled plans to expand in China in an effort to catch up with GM and other rivals. Ford will invest $760 million to build a new plant in the eastern Zhejiang province in addition to the $600 million to build a third factory at its Chongqing complex in southwest China. Southwest Airlines (LUV) beat Q1 EPS estimates by three cents with in-line revenue with shares up 2.5% premarket. Layne Christensen Company (LAYN) missed Q4 EPS estimates by twenty cents with in-line revenue. Danaher (DHR) beat Q1 EPS estimates by two cents with in-line revenue. Crown Holdings (CCK) beat Q1 EPS by a penny with in-line revenues. Toll Brothers (TOL) has been upgraded to Buy from Hold at Deutsche Bank. Navistar (NAV) have been downgraded to Market Perform from Outperform with Wells Fargo. Dow components - Boeing Co (BA) lost 0.4%, Caterpillar (CAT) lost 0.9%, General Electric (GE) was flat, 3M Company (MMM) was lower by 0.2%, and United Technologies (UTX) slipped 0.5%.

The Industrial Select Sector SPDR (XLI) was trading at $36.41 at 3:30 PM on Thursday, down 1.25% on the day – up 7.88% year-to-date.

Consumer Discretionary

eBay (EBAY) handily beat Q1 earnings expectations and raised its full year guidance. PayPal participated with a stellar performance, where revenue jumped 32% and which is now a payment option for 2,000 bricks-and-mortar stores. eBay (EBAY) beat Q1 EPS estimates by four cents with a better than expected revenue line. eBay shares surged 10% before the bell on these impressive earnings and on multiple upgrades; to Overweight from Neutral at Piper Jaffray, to Outperform from Neutral at Macquarie, and to Buy from Hold with a $45 price target by The Benchmark Company. Penn National Gaming (PEEN) beat Q1 EPS estimates by fifteen cents with better than expected revenue. Pool Corporation (POOL) beat Q1 EPS estimates and beat on the revenue line. Monarch Casino & Resort (MCRI) missed Q1 EPS estimates by two cents. Marriott International (MAR) beat Q1 EPS estimates by a penny but missed on the revenue line. Zynga (ZNGA) has been upgraded to Hold from Underperform at Needham. Dow Components - Disney (DIS) lost 1.0%, and McDonalds (MCD) declined 2.2%.



The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.52 at 3:30 PM on Thursday, down 0.91% on the day – up 14.10% year-to-date.

Consumer Staples

Philip Morris (PM) beat Q1 EPS estimates by a nickel with revenue up 9% year over year. Stanley Works (SWK) missed Q1 EPS estimates by four cents with in-line revenue. Yum Brands (YUM) beat Q1 EPS estimates by three cents with in-line revenue. YUM Brands, the KFC, Pizza Hut, and Taco Bell owner has been downgraded to Outperform from Buy at Crédit Agricole. Safeway (SWY) has been upgraded to Hold from Sell at Deutsche Bank with a $22 price target. Dow components - Home Depot (HD) lost 0.4%, Kraft (KFT) was flat, Coca Cola (KO) lost 0.6%, Procter & Gamble (PG) was flat, and Wal-Mart (WMT) slipped by 0.3%.

The Consumer Staples Select Sector SPDR (XLP) was trading at $33.96 at 3:30 PM on Thursday, down 0.47% on the day – up 4.52% year-to-date.

Health Care

Human Genome Sciences (HGSI) turned down an unsolicited offer of $13 a share from GlaxoSmithKline (GCK) due to valuation of the company. Human Genome is exploring "strategic alternatives," and invited GSK to take part in the process. Human Genome's shares surged 99% to $14.30 premarket. The EU has approved Johnson & Johnson's (JNJ) $21.3 billion purchase of Swiss medical device maker Synthes as J&J will divest its trauma operations in the region. Boston Scientific (BSX) beat Q1 EPS estimates by two cents with in-line revenue. Baxter International (BAX) beat Q1 EPS estimates by three cents with in-line revenue. Laboratory Corp. beat Q1 EPS estimates by nineteen cents with in-line revenue. UnitedHealth beat Q1 EPS estimates by fourteen cents with a beat on the revenue line. Perrigo (PRGO) has been downgraded to Above Average from Buy at Caris citing that an upward revision of EPS estimates is unlikely due to the weak flu season vs. last year. Dow Components - Johnson & Johnson (JNJ) gained just 0.05%, Merck (MRK) slipped by just 0.2%, and Pfizer (PFE) lost 0.6%.

The Health Care Select Sector SPDR (XLV) was trading at $37.07 at 3:30 PM on Thursday, up 0.16% on the day – up 6.86% year-to-date.

Financials

Bank of America's (BAC) missed Q1 EPS estimates by eight cents, while revenue fell 10% to $22.5 billion, which was also short of consensus. First Tennessee National (FHN) missed Q1 EPS estimates by a penny. Morgan Stanley (MS) beat Q1 EPS estimates, but missed on the revenue line and shares were up 1.9% premarket. Travelers (TRV) beat Q1 EPS estimates by 49 cents with a strong beat on the revenue line. Fifth Third Bancorp (FITB) beat Q1 EPS estimates by nine cents. KeyCorp (KEY) beat Q1 EPS estimates by two cents. BB&T beat Q1 EPS by three cents with a beat on the revenue line. American Express (AXP) beat Q1 EPS estimates by seven cents with in-line revenue. Dow Components - American Express (AXP) lost 1.0%, Bank of America (BAC) lost 0.9%, JP Morgan (JPM) fell 0.2%, and Travelers (TRV) surged by 4.6%.

The Financial Select Sector SPDR (XLF) was trading at $15.25 at 3:30 PM on Thursday, down 0.59% on the day – up 17.31% year-to-date.

Information Technology

Microsoft (MSFT) is expected to say that Q3 EPS fell to 58 cents from 61 cents a year ago when it releases its results after the close today; revenues are expected to rise 4.6% to $17.18 billion. According to a company lawyer, Apple (AAPL) wants to take its e-book pricing dispute with the Department of Justice to trial. The EU is expected to OK the $2.2 billion acquisition of EMI's music publishing division by a Sony (SNE) led group that also includes Blackstone (BX). Fairchild Semiconductor Intl.(FCS) beat Q1 EPS by two cents with a slight revenue miss and shares were up 4.2% premarket. EMC (EMC) beat Q1 EPS estimates by a penny with in-line revenue. Polycom (PLCM) reported in-line Q1 EPS, but missed on the revenue line. Novellus Systems (NVLS) reported in-line Q1 EPS with a modest beat on the revenue line. Lam Research (LRCX) beat Q3 EPS estimates by five cents with a modest beat on the revenue line. F5 Networks (FFIV) beat Q2 EPS estimated by two cents with a modest beat on the revenue line. F5 Networks has been upgraded to Buy from Hold with Wunderlich with a price target at $145.

VMware (VMW) beat Q1 EPS estimates by seven cents with in-line revenue. Dow Components - Cisco Systems (CSCO) lost 0.6%, Hewlett-Packard (HPQ) lost 0.8%, IBM (IBM) declined 0.6%, Intel Corp (INTC) fell by 0.9%, and Microsoft (MSFT) was flat before its earnings report out after the close today.
The Technology Select Sector SPDR (XLK) was trading at $29.37 at 3:30 PM on Thursday, down 1.08% on the day – up 15.40% year-to-date.

Telecommunication Services

Nokia (NOK) missed Q1 EPS while revenue slumped 29% year over year. Nokia shipped 23.8% fewer devices during the period than a year ago. Verizon (VZ) beat Q1 EPS estimates by a penny with in-line revenue. Qualcomm (QCOM) beat Q2 EPS estimates by a nickel and beat on the revenue line but shares declined 5.5%. Qualcomm (QCOM) was removed from the Top Picks Live list at Citigroup. Dow components - AT&T (T) was flat while Verizon (VZ) gained 1.7%.
The NASDAQ Telecommunications Index (IXTC) was trading at $210.88 at 3:30 PM on Thursday, up 0.05% on the day – up 7.08% year-to-date.

Utilities

It was very quiet in the Utilities space on Thursday. Dominion Resources (D) was flat, Edison International (EIX) fell 0.4%, First Energy (FE) slipped by 0.9%, and PG&E Corp (PCG) slipped by 0.2%.

The Utilities Select Sector SPDR (XLU) was trading at $34.62 at 3:30 PM on Thursday, down 0.46% on the day – down 3.78% year-to-date.

STOCKS: CVX, XOM, DO, KMP, NE, CHK, AA, DD, IIIN, STLD, ALB, CE, BA, CAT, GE, MMM, UTX, F, LUC, LAYN, DHR, CCK, NAV, DIS, MCD, EBAY, PEEN, POOL, MCRI, MAR, ZNGA, HD, KFT, KO, PG, WMT, PM, SWK, YUM, SWY, JNJ, MRK, PFE, HGSI, GSK, BSX, BAX, PRGO, AXP, BAC, JPM, TRV, MS, KEY, CSCO, HPQ, IBM, INTC, MSFT, AAPL, SNE, FCS, EMC, PLCM, FFIV, LRCX, NVLS, NOK, QCOM, D, EIX, FE, PCG, PGN

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 197.49 -0.24 -0.12 1,291,463 Trade
GSK GlaxoSmithKline PLC 42.95 -0.01 -0.02 1,859,508 Trade
PGN Paragon Offshore plc n/a n/a n/a 0
PG Procter & Gamble Company (The) 86.50 0.42 0.49 4,902,470 Trade
GE General Electric Co 27.83 -0.45 -1.59 53,867,078 Trade
CVX Chevron Corporation 106.22 -0.05 -0.05 3,475,871 Trade
PCG Pacific Gas & Electric Co. 66.23 0.07 0.11 2,477,598 Trade
BAX Baxter International Inc. 58.34 0.42 0.73 2,402,214 Trade
JNJ Johnson & Johnson 127.51 -0.01 -0.01 3,968,185 Trade
WMT Wal-Mart Stores Inc. 78.15 -0.34 -0.43 7,503,976 Trade
AA Alcoa Inc. 33.51 0.25 0.75 3,348,172 Trade
INTC Intel Corporation 36.12 0.26 0.73 20,860,257 Trade
IBM International Business Machines Corp 152.51 0.48 0.32 3,732,399 Trade
D Dominion Resources Inc. 80.29 0.58 0.73 1,536,764 Trade
TRV The Travelers Companies Inc. 122.05 0.39 0.32 1,116,659 Trade
CCK Crown Holdings Inc. 56.81 0.28 0.50 604,812 Trade
KEY KeyCorp 18.07 0.02 0.11 10,661,183 Trade
TIF Tiffany & Co. 85.03 -8.11 -8.71 9,113,361 Trade
EBAY eBay Inc. 34.82 0.21 0.61 9,394,343 Trade
AAPL Apple Inc. 153.34 -0.46 -0.30 19,219,154 Trade
EIX Edison International 79.22 0.40 0.51 1,106,292 Trade
MS Morgan Stanley 42.63 0.21 0.50 6,583,898 Trade
JPM JP Morgan Chase 85.71 -0.05 -0.06 9,923,251 Trade
AXP American Express Company 77.12 -0.08 -0.10 2,180,625 Trade
ALB Albemarle Corporation 112.05 0.34 0.30 548,760 Trade
LRCX Lam Research Corporation 152.88 -0.55 -0.36 1,454,006 Trade
NVLS Nivalis Therapeutics Inc. 2.35 -0.03 -1.26 58,661 Trade
UTX United Technologies Corporation 122.08 0.01 0.01 2,419,665 Trade
SWK Stanley Works 136.18 0.80 0.59 977,826 Trade
CSCO Cisco Systems Inc. 31.49 -0.27 -0.85 23,517,633 Trade
DIS Walt Disney Company (The) 107.71 0.69 0.64 4,405,225 Trade
BSX Boston Scientific Corporation 27.05 0.38 1.42 5,641,192 Trade
MAR Marriott International 105.88 0.39 0.37 1,655,647 Trade
BAC Bank of America Corporation 23.36 -0.03 -0.13 59,213,074 Trade
YUM Yum! Brands Inc. 71.95 1.03 1.45 2,002,918 Trade
NAV Navistar International Corporation 26.98 0.25 0.94 335,448 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 6.39 0.03 0.50 31,002,248 Trade
MCD McDonald\'s Corporation 149.50 1.68 1.14 3,390,450 Trade
NE Noble Corporation (UK) 4.57 -0.01 -0.22 8,684,107 Trade
MCRI Monarch Casino & Resort Inc. 30.52 0.04 0.13 35,617 Trade
DD E.I. du Pont de Nemours and Co. 78.38 1.04 1.34 2,601,183 Trade
DO Diamond Offshore Drilling Inc. 13.25 -0.17 -1.27 2,769,441 Trade
DHR Danaher Corporation 83.96 0.01 0.01 2,209,885 Trade
PM Philip Morris International Inc 117.43 0.97 0.83 2,665,033 Trade
HD Home Depot Inc. (The) 155.00 0.17 0.11 4,593,198 Trade
F Ford Motor Company 10.96 -0.09 -0.81 46,732,734 Trade
XOM Exxon Mobil Corporation 82.29 -0.29 -0.35 8,263,795 Trade
PFE Pfizer Inc. 32.05 -0.09 -0.28 22,486,949 Trade
IIIN Insteel Industries Inc. 31.30 -0.78 -2.43 119,616 Trade
ZNGA Zynga Inc. 3.58 0.08 2.29 12,403,848 Trade
PRGO Perrigo Company plc 71.93 -0.98 -1.34 2,394,064 Trade
HPQ HP Inc. 19.01 0.05 0.26 13,476,226 Trade
BA Boeing Company (The) 185.25 1.76 0.96 2,425,330 Trade
MRK Merck & Company Inc. (new) 64.93 0.38 0.59 7,072,657 Trade
POOL Pool Corporation 119.12 -0.35 -0.29 81,651 Trade
PLCM Polycom Inc. n/a n/a n/a 0 Trade
FE FirstEnergy Corporation 28.67 0.17 0.60 2,679,970 Trade
KO Coca-Cola Company (The) 45.03 0.64 1.44 12,872,039 Trade
SNE Sony Corporation 36.02 0.47 1.32 1,047,145 Trade
CAT Caterpillar Inc. 103.95 0.32 0.31 5,174,710 Trade
LAYN Layne Christensen Company 7.82 0.01 0.13 146,296 Trade
QCOM QUALCOMM Incorporated 58.64 -0.58 -0.98 8,625,623 Trade
EMC EMC Corporation n/a n/a n/a 0 Trade
FCS Fairchild Semiconductor International Inc. n/a n/a n/a 0 Trade
MSFT Microsoft Corporation 68.77 0.09 0.13 14,666,865 Trade
CHK Chesapeake Energy Corporation 5.55 -0.12 -2.12 32,332,696 Trade
FFIV F5 Networks Inc. 126.85 0.86 0.68 717,142 Trade
STLD Steel Dynamics Inc. 34.99 -0.29 -0.82 3,353,305 Trade

Comments

Emerging Growth

Winston Gold Mining Corp.

Winston Gold Mining Corp is a mineral exploration and development company. The Company is engaged in acquiring, exploring, developing, and operating mining properties.

Private Markets

Quants Inc

Quants, Inc, a California Corporation, develops, markets and operates financial technology platforms and alternative investment products offering sophisticated risk management since 2010. The Company has primarily sharpened its focus with…

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.