Equities Sector Coverage: Wall Street Ends Flat as Jobs Numbers Show Weakness

Automatic Data Processing (ADP) projects that private-sector jobs increased by 119,000 in April, the lowest change since September 2011, and well below estimates calling for gain of 175,000. US Factory Orders fell 1.5% in March, the biggest decline since March 2009. The Dow Jones Industrial Average traded down to 13,192.21 followed by a rebound that could not turn the Dow green, and was below the new year-to-date high at 13,338.66 set on May 1st. The NASDAQ’s traded down to 3028.94, then rebounded to 3061.47 staying below its March 27th high at 3134.17.

Asian stocks were higher on Wednesday. The Nikkei 225 ended their session at 9,380 – up 0.31% on the day. The Hang Seng ended their session at 21,309 – up 0.93% on the day. European exchanges were mixed on Wednesday. The FTSE 100 ended their session at 5,758 – down 0.93% on the day. The DAX ended their session at 6,711 – down 0.75% on the day. The CAC 40 ended their session at 3,226 – up 0.42% on the day. The yield on the 10-Year US Treasury traded declined from 1.966 percent to 1.898 staying below its 50-day and 200-day simple moving averages at 2.077 and 2.072.

Gold declined from $1663.9 the Troy ounce to $1646.0 still below the 50-day and 200-day simple moving averages at $1673.8 and $1698.3. Crude oil declined from $106.05 per barrel to $104.91 versus its 50-day simple moving average at $105.23. The euro versus the dollar traded down from 1.3240 to 1.3126 versus its 50-day simple moving average at 1.3209.

Energy

Chesapeake Energy (CHK) was down 5.4% premarket after the company reported a Q1 net loss of $71 million due to a $167 million non-cash loss on its hedging program. Parker Drilling (PKD) beat Q1 EPS estimates by a nickel with a miss on the revenue line. Endeavor International (END) reported in-line revenue. Devon Energy (DVN) missed Q1 EPS estimates by 37 cents with in-line revenue. Vanguard Natural Resources (VNR) missed Q1 EPS estimates by eight cents with a miss on the revenue line. Enterprise Products Partners (EPD) reported Q1 EPS of 73 cents with a beat on the revenue line. World Fuel Services (INT) reported in-line Q1 EPS with a miss on the revenue line. Exco Resources (XCO) beat Q1 EPS estimates by four cents with a miss on the revenue line. Dow components – Chevron (CVX) – down 1.5%, Exxon Mobil (XOM) down 1.1%.
Energy Select Sector SPDR (XLE) was trading at $70.97 at 3:30 PM on Wednesday, down 1.79% on the day – up 2.66% year-to-date.

Materials

Barrick Gold (ABX) missed Q1 EPS estimates by a penny with a miss on the revenue line. Cabot (CBT) beat Q2 EPS estimates by seventeen cents with better than expected revenue. Yamana Gold (AUY) missed Q1 EPS estimates by a penny with a miss on the revenue line. Innophos Holdings (IPHS) reported in-line Q1 EPS with a beat on the revenue line. Chemtura (CHMT) beat Q1 EPS estimates by two cents with a beat on the revenue line. Dow components – Alcoa (AA) down 2.7%, DuPont (DD) down 0.4%.
The Materials Select Sector SPDR (XLB) was trading at $36.62 at 3:30 PM on Wednesday, down 0.73% on the day – up 9.31% year-to-date.

Industrials

Harsco (HSC) beat Q1 EPS estimate by three cents with a beat on the revenue line. Meritor (MTOR) beat Q2 EPS estimates by seven cents and missed on the revenue line. Cooper Tire & Rubber (CTB) beat Q1 EPS estimates by a nickel with a miss on the revenue line. Beazer Homes (BZH) reported a Q2 EPS loss of 48 cents with in-line revenue. Regal-Beloit (RBC) beat Q1 EPS estimates by a nickel with a miss on the revenue line. Mueller Water Products (MWA) beat Q1 EPS estimates by three cents with a beat on the revenue line. Dow components – Boeing Co (BA) flat, Caterpillar (CAT) down 0.8%, General Electric (GE) down 0.9%, 3M Company (MMM) down 0.3%, United Technologies (UTX) down 0.4%.
The Industrial Select Sector SPDR (XLI) was trading at $37.07 at 3:30 PM on Wednesday, down 0.13% on the day – up 9.84% year-to-date.

Consumer Discretionary

Time Warner (TWX) reported an 11% decline in net income, even though many of the Turner networks enjoyed viewership gains. TWX affirmed its Fiscal Year outlook. Sinclair Broadcast Group (SBGI) beat Q1 EPS estimates by four cents, but missed on the revenue line. AC / InterActive (IACI) beat Q1 EPS estimates by a nickel with better than expected revenue. Comcast (CMCSA) beat Q1 EPS estimates by three cents with a beat on the revenue line. Gray Television (GTN) beat Q1 EPS estimates by four cents. True Religion Apparel (TRLG) beat Q1 EPS estimates by four cents with a beat on the revenue line. Nutrisystem (NTRI) missed Q1 EPS estimates by eight cents with a miss on the revenue line. Dow Components – Disney (DIS) down 1.0%, Home Depot up 0.7%, McDonalds (MCD) up 0.2%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $46.06 at 3:30 PM on Wednesday, up 0.33% on the day – up 18.04% year-to-date.

Consumer Staples

Clorox (CLX) missed Q3 EPS estimates by two cents but beat on the revenue line. Cott (COT) beat Q1 EPS estimates by three cents but missed on the revenue line. Energizer (ENR) beat Q2 EPS estimates by thirteen cents with better than expected revenue. CVS Caremark’s (CVS) reported better than expected earnings with retail Pharmacy same stores sales up8.4% with revenue up +32.3% Y/Y to $18.3 billion. CVS increased full year EPS guidance to $3.23-$3.33, from $3.18-$3.28. Dow components – Kraft (KFT) up 0.2%, Coca Cola (KO) flat, Procter & Gamble (PG) up 0.4%, Wal-Mart (WMT) up 0.3%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.34 at 3:30 PM on Wednesday, up 0.20% on the day – up 5.69% year-to-date.

Health Care

Pfizer (PFE) is on the hunt for mid-size acquisitions in the $4 billion range for companies with promising treatments for diabetes, cancer and neurological conditions. Wellcare Group (WCG) beat Q1 EPS estimates by 78 cents with in-line revenue. Vical (VICL) beat Q1 EPS estimates by seven cents with a beat on the revenue line. Amerigroup (AGP) beat Q1 EPS estimates by seven cents but missed on the revenue line. Dow Components – Johnson & Johnson (JNJ) flat, Merck (MRK) down 0.5%, Pfizer (PFE) down 0.5%.
The Health Care Select Sector SPDR (XLV) was trading at $37.54 at 3:30 PM on Wednesday, down 0.29% on the day – up 8.22% year-to-date.

Financials

Franklin Resources (BEN) beat Q1 EPS estimates by nine cents with a beat on the revenue line. MasterCard (MA) reported that their net income rose 21% to $682 million as processed transactions rise 29% to $7.7 billion the best quarterly growth rate since MasterCard’s IPO in 2006. SEI Investments (SEIC) missed Q1 EPS estimates by a penny with in-line revenue. MasterCard (MA) beat Q1 EPS estimates by nine cents with better than expected revenue. Och-Ziff Capital Management (OZM) reported in-line Q1 EPS with a beat on the revenue line. Dow Components – American Express (AXP) up 0.6%, Bank of America (BAC) down 1.9%, JP Morgan Chase (JPM) down 1.5%, Travelers (TRV) down 0.3%.
The Financial Select Sector SPDR (XLF) was trading at $15.46 at 3:30 PM on Wednesday, down 0.83% on the day – up 18.92% year-to-date.

Information Technology

Cooper Industries (CBE) beat Q1 EPS estimates by six cents with better than expected revenue. Vishay Intertechnology (VSH) beat Q1 EPS estimates by four cents with a miss on the revenue line. Garmin (GRMN) beat Q1 EPS estimates by four cents with a beat on the revenue line. Bankrate (RATE) missed Q1 EPS estimates by three cents. Silicon Image (SIMG) reported in-line Q1 EPS of -$0.01 in-line with a slight beat on the revenue line, and they announce a $50 million share repurchase program. Flextronics International (FLEX) beat Q1 EPS estimates by sic cents with a miss on the revenue line. Broadcom (BRCM) beat Q1 EPS estimates by eleven cents with a beat on the revenue line. Dow Components – Cisco Systems (CSCO) down 1.1%, Hewlett-Packard (HPQ) down 0.4%, IBM (IBM) down 0.1%, Intel Corp (INTC) up 0.4%, Microsoft (MSFT) down0.8%.
The Technology Select Sector SPDR (XLK) was trading at $29.88 at 3:30 PM on Wednesday, down 0.13% on the day – up 17.41% year-to-date.

Telecommunication Services

Vonage (VG) beat Q1 EPS estimates by two cents on better than expected revenue. Ubiquiti Networks (UBNT) beat Q3 EPS estimates by three cents with in-line revenue. Time Warner Telecom (TWTC) beat Q1 EPS estimates by two cents with a modest beat on the revenue line. Dow components – AT&T (T) flat, Verizon (VZ) flat.
The NASDAQ Telecommunications Index (IXTC) was trading at $209.20 at 3:30 PM on Wednesday, down 0.69% on the day – up 6.23% year-to-date.

Utilities

Allete (ALE) missed Q1 EPS estimates by fourteen cents with a miss on the revenue line. Public Service Enterprise Group (PEG) reported flat operating income, and stated that lower costs helped PEG in dealing with a warmer winter, lower demand and a collapse in gas prices. Public Service Enterprise Group (PEG) beat Q1 EPS estimates by thirty cents. Dominion Resources (D) down 0.9%, Edison International (EIX) down 1.1%, First Energy (FE) down 0.4%, PG&E Corp (PCG) up 0.4%, Southern Company (SO) down 0.4%.
The Utilities Select Sector SPDR (XLU) was trading at $35.60 at 3:30 PM on Wednesday, down 0.69% on the day – down 1.06% year-to-date.

STOCKS: CVX, XOM, CHK, PKD, END, DVN, VNR, EPD, INT, XCO, AA, DD, ABX, CBT, AUY, IPHS, CHMT, BA, CAT, GE, MMM, UTX, HSC, MTOR, CTB, BZH, RBC, MWA, DIS, HD, MCD, TWX, SBGI, IACI, CMCSA, GTN, TRLG, KFT, KO, PG, WMT, CLX, COT, CVS, ENR, JNJ, MRK, PFE, WCG, VICL, AGP, AXP, BAC, JPM, TRV, BEN, MA, SEIC, OZM, CSCO, HPQ, IBM, INTC, MSFT, CBE, VSH, GRMN, RATE, SIMG, FLEX, BRCM, T, VZ, VG, UBNT, TWTC, D, EIX, FE, PCG, SO, ALE, PEG