Equities Sector Coverage: Wall Street Extends Losing Streak

Sector Recap |

The Dow Jones Industrial Average traded down to 12,748.48 in morning trading then rebounded above 12,900 in the afternoon then faded into the final half hour of trading. The NASDAQ traded down to 2900.18 then rebounded to 2948.77 then faded into the final half hour of trading.

Asian stocks were lower on Wednesday. The Nikkei 225 ended their session at 9,045 – down 1.49% on the day. The Hang Seng ended their session at 20,331 – down 0.75% on the day. European exchanges opened mixed, fell into the red then closed mixed. The FTSE 100 ended their session at 5,525 – down 0.53% on the day. The DAX ended their session at 6,465 – up 0.31% on the day. The CAC 40 ended their session at 3,119 – down 0.20% on the day.

The yield on the 10-Year US Treasury traded down from 1.845 to 1.793 well below its 50-day and 200-day simple moving averages at 2.068 and 2.045. Gold declined from $1607.0 the Troy ounce to $1578.5 well below the “Death Cross” 50-day and 200-day simple moving averages at $1659.2 and $1698.8. Crude oil traded down from $97.39 per barrel to $95.17 below its 200-day simple moving average at $96.30. The euro versus the dollar traded down from 1.3007 to 1.2915 below its 50-day simple moving average at 1.3174.

Energy

National Oilwell Varco (NOV) bought Schlumberger's (SLB) Wilson oilfield equipment distribution business for $800 million. W&T Offshore (WTI) missed Q1 EPS estimates by seven cents with a miss on the revenue line. VAALCO Energy (EGY) missed Q1 EPS estimates by six cents with in-line revenue. Energy Transfer Partners (ETP) missed on the revenue line on their quarterly earnings release. EOG Resources (EOG) beat Q1 EPS estimates by three cents with a beat on the revenue line. The company raised its production growth target to 7% from 5.5%. Dow components – Chevron (CVX) – down 0.7%, Exxon Mobil (XOM) down 0.4%.
Energy Select Sector SPDR (XLE) was trading at $67.51 at 3:30 PM on Wednesday, down 0.55% on the day – down 2.34% year-to-date.

Materials

Kinross Gold (KGC) missed Q1 EPS estimates by two cents with a miss on the revenue line. Jaguar Mining (JAG) plunged 35.1% on Tuesday after reporting they were unable to find a buyer. Agrium (AGU) beat Q1 EPS estimates by 31 cents with a beat on the revenue line. Kronos Worldwide (KRO) reported Q1 EPS of $1.18. Dow Chemical (DOW) has been upgraded by Morgan Stanley to Overweight from Equal Weight. Thompson Creek Metals (TC) has been upgraded to Buy from Hold at TD Securities. Dow components – Alcoa (AA) down 0.2%, DuPont (DD) down 0.6%.
The Materials Select Sector SPDR (XLB) was trading at $35.24 at 3:30 PM on Tuesday, down 0.84% on the day – up 5.19% year-to-date.

Industrials

Westport Innovations (WPRT) missed Q1 EPS estimates by a dime with a miss on the revenue line. Toyota's (TM) reported that FQ4 operating profit jumped by more than five-fold to $3 billion and Toyota projects this metric to triple this fiscal year as vehicle production recovers from post-disaster lows. Nelson Peltz's Trian Fund is expected to report more than a 7% stake in industrial conglomerate Ingersoll-Rand (IR). Stratasys (SSYS) missed Q1 EPS estimates by a penny with a beat on the revenue line. Dow components – Boeing Co (BA) down 1.1%, Caterpillar (CAT) down 0.6%, General Electric (GE) down 1.9%, 3M Company (MMM) down 0.2%, United Technologies (UTX) down 1.6%.
The Industrial Select Sector SPDR (XLI) was trading at $35.73 at 3:30 PM on Wednesday, down 1.05% on the day – up 5.87% year-to-date.

Consumer Discretionary

Green Mountain (GMCR) announced that its founder and chairman Robert Stiller and fellow director William Davis were forced to resign from the board today because of margin calls which forced them to divest of millions of shares of their stock. Blue Nile (NILE) missed Q1 EPS estimates by a Nickel but shares traded up 3.6% on better than expected revenues. Disney (DIS) reported Park and Resorts revenue up 10% year over year offsetting 12% decline in Studio Entertainment sales with John Carter contributing to results. Cable Networks revenue was boosted by a strong performance from ESPN. Maidenform Brands (MFB) beat Q1 EPS estimates by a penny with a beat on the revenue line. Dow Components – Disney (DIS) up 2.0%, Home Depot down 1.0%, McDonalds (MCD) down 1.3%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $44.18 at 3:30 PM on Wednesday, down 0.38% on the day – up 13.22% year-to-date.

Consumer Staples

Chiquita (CQB) beat earnings on the revenue line. Tim Hortons (THI) missed Q1 EPS estimates by three cents with a beat on the revenue line. BioScrip (BIOS) reported that Q1 EPS of a loss of a nickel, but the company beat on the revenue line. AOL (AOL) beat Q1 EPS estimates by 23 cents with a beat on the revenue line. Hershey (HSY) the chocolate company shows improving growth prospects according to Argus and upgrades HSY to Buy from Hold with a $78 price target. Scotts Miracle-Gro (SMG) have been upgraded to Market Perform from Underperform by BMO Capital. Dow components – Kraft (KFT) down 0.5%, Coca Cola (KO) down 0.3%, Procter & Gamble (PG) up 0.5%, Wal-Mart (WMT) up 0.15%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.92 at 3:30 PM on Wednesday, down 0.38% on the day – up 4.40% year-to-date.

Health Care

Dynavax Technologies (DVAX) reported that CEO Dino Dina will step aside to bring in an executive with more commercial drug company experience, and announced a secondary offering of an undisclosed number of shares. Keryx Biopharmaceutical (KERX) missed Q1 estimates due to higher R&D expenses, because of its KRX-0401 and Zerenex Phase 3 clinical programs. Medicis Pharmaceutical (MRX) beat Q1 EPS estimates by eighteen cents with a beat on the revenue line. GlaxoSmithKline (GSK) is taking its $13-a-share offer for Human Genome Sciences (HGSI) directly to the stockholders after the US company rejected the GSK offer. Savient Pharmaceuticals (SVNT) reported in-line Q1 EPS with a miss on the revenue line. ARIAD Pharmaceuticals (ARIA) missed Q1 EPS estimates by twelve cents with a miss on the revenue line. Teva (TEVA) beat Q1 EPS estimates by three cents, but missed on the revenue line. It appears that weakness in Europe resulted in weaker generics drug sales in that region. Dow Components – Johnson & Johnson (JNJ) down 0.9%, Merck (MRK) down 1.1%, Pfizer (PFE) down 1.4%.
The Health Care Select Sector SPDR (XLV) was trading at $36.88 at 3:30 PM on Wednesday, down 0.43% on the day – up 6.31% year-to-date.

Financials

Annaly Capital (NLY) announces a public offering of $750M Convertible Senior Notes in addition to an offering of Series C Cumulative Redeemable Preferred Stock. XL Group (XL) beat Q1 EPS estimates by twelve cents with a beat on the revenue line. ING (ING) reported a decline in net profits of 51% year over year. Dow Components – American Express (AXP) down 0.2%, Bank of America (BAC) down 0.4%, JP Morgan Chase (JPM) down 1.7%, Travelers (TRV) down 0.6%.

The Financial Select Sector SPDR (XLF) was trading at $14.94 at 3:30 PM on Wednesday, down 0.93% on the day – up 14.92% year-to-date.

Information Technology

Digital River (DRIV) traded higher in after hours Tuesday after Soros Fund said its raised its passive stake in the company to 7.98%. Himax Technologies (HIMX) beat Q1 EPS estimates by a penny but missed on the revenue line. Rubicon Technology (RBCN) reported in-line Q1 EPS and in-line revenue. Cisco (CSCO) will report its FQ3 earnings after the close today, with analysts expecting that EPS rose to 47 cents from 42 cents with revenue up 6.5% to $11.57 billion. Dow Components – Cisco Systems (CSCO) down 0.3%, Hewlett-Packard (HPQ) flat, IBM (IBM) up 0.3%, Intel Corp (INTC) down 1.0%, Microsoft (MSFT) up 0.3%.
The Technology Select Sector SPDR (XLK) was trading at $28.86 at 3:30 PM on Wednesday, down 0.07% on the day – up 13.40% year-to-date.

Telecommunication Services

TranSwitch (TXCC) missed Q1 EPS estimates by eight cents with a miss on the revenue line. Ubiquiti Networks (UBNT) has been initiated with an Outperform rating by Wedbush. While positive on the company’s long term growth potential but the firm is worried about growing legal expenses and signs customers are experiencing delays in procuring products. Frontier Communications (FTR) plunged 9.7% on Tuesday to a mult-decade low on the decay of the company's wireline voice base take their toll. Sierra Wireless (SWIR) has been upgraded to Outperform from Market Perform at Raymond James. Deutsche Telekom is said to be in talks with Metro PCS (PCS) on T-Mobile deal and shares of PCS were up 24.7%. Dow components – AT&T (T) up 0.3%, Verizon (VZ) down 0.5%.
The NASDAQ Telecommunications Index (IXTC) was trading at $198.32 at 3:30 PM on Wednesday, down 0.23% on the day – up 0.71% year-to-date.

Utilities

AboveNet (ABVT) beat Q1 EPS estimates by a penny with a beat on the revenue line. Dominion Resources (D) down 0.3%, Edison International (EIX) up 1.2%, First Energy (FE) up 0.2%, PG&E Corp (PCG) down 0.5%, Southern Company (SO) down 0.6%.
The Utilities Select Sector SPDR (XLU) was trading at $35.61 at 3:30 PM on Wednesday, up 0.14% on the day – down 1.03% year-to-date.

STOCKS: CVX, XOM, NOV, SLB, WTI, EGY, ETP, EOG, AA, DD, KGC, JAG, AGU, KRO, DOW, TC, BA, CAT, GE, MMM, UTX, WPRT, TM, IR, SSYS, DIS, HD, MCD, GMCR, NILE, MFB, KFT, KO, PG, WMT, CQB, THI, BIOS, AOL, HSY, SMG, JNJ, MRK, PFE, DVAX, KERX, MRX, GSK, HGSI, SVNT, ARIA, TEVA, AXP, BAC, JPM, TRV, NLY, XL, ING, CSCO, HPQ, IBM, INTC, MSFT, DRIV, HIMX, RBCN, T, VZ, TXCC, UBNT, FTR, SWIR, PCS, D, EIX, FE, PCG, ABVT

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. 9.68 -0.08 -0.82 10,111,624
AGU Agrium Inc. 90.34 -1.32 -1.44 915,942
ARIA ARIAD Pharmaceuticals Inc. 13.96 0.44 3.25 6,325,652
AXP American Express Company 63.42 -0.43 -0.67 6,946,585
BA Boeing Company (The) 130.57 -1.21 -0.92 2,219,885
BAC Bank of America Corporation 15.09 -0.43 -2.77 94,973,006
BIOS BioScrip Inc. 2.84 0.00 0.00 292,409
CAT Caterpillar Inc. 82.37 -0.07 -0.08 3,340,788
CSCO Cisco Systems Inc. 31.07 -0.27 -0.86 20,361,549
CVX Chevron Corporation 98.78 -0.44 -0.44 5,781,775
D Dominion Resources Inc. 76.60 -0.41 -0.53 2,521,747
DD E.I. du Pont de Nemours and Co. 66.52 -0.25 -0.37 2,440,441
DIS Walt Disney Company (The) 91.96 -1.31 -1.40 10,449,325
DVAX Dynavax Technologies Corporation 11.06 -0.35 -3.07 1,488,064
EGY Vaalco Energy Inc 0.89 -0.01 -0.67 35,768
EIX Edison International 75.55 -0.07 -0.09 1,565,066
EOG EOG Resources Inc. 89.26 -0.49 -0.55 2,131,450
FE FirstEnergy Corporation 34.58 0.09 0.26 3,341,708
FTR Frontier Communications Corporation 4.36 0.03 0.69 11,918,772
GE General Electric Co 29.54 -0.35 -1.17 25,905,794
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
GSK GlaxoSmithKline PLC 42.96 -0.46 -1.06 2,081,988
HD Home Depot Inc. (The) 125.45 -2.34 -1.83 5,338,465
HIMX Himax Technologies Inc. 8.63 -2.10 -19.57 22,072,750
HPQ HP Inc. 15.02 -0.07 -0.46 7,484,534
HSY The Hershey Company 95.33 -0.52 -0.54 859,279
IBM International Business Machines Corp 153.98 -1.00 -0.65 2,533,375
ING ING Group N.V. 12.14 -0.19 -1.54 2,625,614
INTC Intel Corporation 36.65 -0.54 -1.45 25,518,796
IR Ingersoll-Rand plc (Ireland) 65.39 0.74 1.14 2,376,759
JNJ Johnson & Johnson 117.78 -1.03 -0.87 5,998,854
JPM JP Morgan Chase 65.78 -1.47 -2.19 16,408,130
KERX Keryx Biopharmaceuticals Inc. 5.10 -0.15 -2.86 1,025,674
KGC Kinross Gold Corporation 4.26 -0.04 -0.93 12,755,840
KO Coca-Cola Company (The) 42.05 -0.69 -1.61 15,038,383
KRO Kronos Worldwide Inc 8.06 -0.06 -0.74 222,791
MCD McDonald\'s Corporation 116.53 -0.64 -0.55 3,022,356
MMM 3M Company 175.95 -1.44 -0.81 1,820,997
MRK Merck & Company Inc. (new) 62.15 -0.81 -1.29 6,983,821
MSFT Microsoft Corporation 56.90 -0.53 -0.92 21,688,720
MWR Morgan Stanley Cap Tr III Capital Trust Securities n/a n/a n/a 0
NILE Blue Nile Inc. 35.44 -0.57 -1.58 63,465
NLY Annaly Capital Management Inc 10.92 0.13 1.20 9,583,470
NOV National Oilwell Varco Inc. 33.89 0.00 0.00 4,427,241
PCG Pacific Gas & Electric Co. 63.90 -0.30 -0.47 2,099,864
PFE Pfizer Inc. 33.64 -0.62 -1.81 29,525,632
PG Procter & Gamble Company (The) 87.85 0.09 0.10 60,276,563
RBCN Rubicon Technology Inc. 0.61 -0.01 -0.89 9,794
SLB Schlumberger N.V. 75.58 -0.34 -0.45 5,499,276
SMG Scotts Miracle-Gro Company (The) 81.76 0.16 0.20 206,882
SSYS Stratasys Ltd. 22.96 0.93 4.22 1,490,738
SWIR Sierra Wireless Inc. 13.85 -0.30 -2.12 115,121
T AT&T Inc. 41.14 -0.14 -0.34 16,647,271
TC TC n/a n/a n/a 0
TEVA Teva Pharmaceutical Industries Limited American De 50.27 -1.20 -2.33 4,242,769
TM Toyota Motor Corporation 117.10 -0.56 -0.48 317,210
TRV The Travelers Companies Inc. 113.94 -1.37 -1.19 1,617,972
UBNT Ubiquiti Networks Inc. 53.13 -0.07 -0.13 252,728
UTX United Technologies Corporation 102.23 -0.33 -0.32 3,354,625
VZ Verizon Communications Inc. 52.15 -0.41 -0.78 10,559,019
WMT Wal-Mart Stores Inc. 71.62 -0.73 -1.01 5,948,719
WPRT Westport Fuel Systems Inc 1.40 -0.05 -3.13 317,730
WTI W&T Offshore Inc. 1.63 0.03 1.88 373,322
XL XL Group plc 33.88 -0.34 -0.99 1,698,318
XOM Exxon Mobil Corporation 83.06 -0.39 -0.47 10,860,320

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