Equities Sector Coverage: Wall Street Falls Lower in Late Trading

Sector Recap |

Stocks BalanceThe Dow Jones Industrial Average traded up to 12,830.29 in morning trading then dipped to 12,611.79 into the final half hour of trading, below its 50-day simple moving average at 12,697. The NASDAQ traded up to 2953.47 in the morning then down to 2891.87 in the afternoon staying just above its 50-day at 2888.

Asian stocks were lower on Tuesday. The Nikkei 225 ended the day at 8,858 – down 0.44%. The Hang Seng ended the day at 19,397 – down 0.16%. European exchanges rebounded on Tuesday. The FTSE 100 ended the day at 5,664 – up 0.65%. The DAX ended the day at 6,438 – up 0.79%. The CAC 40 ended the day at 3,175 – up 0.59%. The yield on the 10-Year US Treasury note declined from 1.534% to 1.496% on Tuesday as the “flight to quality” continues.

Gold rebounded from $1582.7 the Troy ounce to $1602.0 then plunged to $1564.4 as the 50-day and 200-day simple moving averages decline to $1596.9 and $1660.9. Crude oil rebounded from $84.62 per barrel to $85.95 then declined to $83.65 trading between its 200-week simple moving average at $80.35 and the 50-day at $88.68. The euro versus the dollar traded up to 1.2333 then declined to 1.2239.

Energy

Patriot Coal (PCX) became one of the first victims of the fracking revolution filing for bankruptcy protection on Monday. The company expects to continue mining operations and customer shipments in an ordinary fashion as it goes through reorganization. Forest Oil (FST) has been downgraded to Sector Perform from Outperform at RBC Capital. Dow components – Chevron (CVX) down 0.20%, Exxon Mobil (XOM) down 0.13%.

Energy Select Sector SPDR (XLE) was trading at $64.82 at 3:30 PM on Tuesday, down 1.77% on the day – down 6.23% year-to-date.

Materials

Alcoa (AA) kicked off Q2 earnings season by reporting that EPS fell to $0.06 from $0.32 a year ago, which was in line with reduced estimates. Revenue fell 9.4% to $5.96 billion which beat expectations. Earnings were hurt by a fall in aluminum prices to near two-year lows, but nonetheless Alcoa maintained its forecast for a global aluminum supply deficit of 7% in 2012. WD-40 (WDFC) expects "at best" flat European sales for the full year, cut advertising and sales promotion expenses by 6% to adjust to uncertainty. Celanese (CE) has been upgraded to Buy from Neutral at UBS. Dow components – Alcoa (AA) down 3.53%, DuPont (DD) up 1.60%.

The Materials Select Sector SPDR (XLB) was trading at $34.29 at 3:30 PM on Tuesday, down 1.83% on the day – up 2.36% year-to-date.

Industrials

Shaw Group (SHAW) reported a narrower than expected loss with a modest beat on the revenue line and sets a $500 million share buyback program. AptarGroup (ATR) has been downgraded to Hold from Buy at Keybanc following its negative earnings pre-announcement yesterday. Ingersoll-Rand (IR) has been downgraded to Underweight from Neutral at Atlantic Equities. Louisiana-Pacific (LPX) has been downgraded to Sector Perform from Outperform at RBC Capital. Tyco (TYC) has been downgraded to Neutral from Overweight at Atlantic Equities. Dow components – Boeing Co (BA) up 0.51%, Caterpillar (CAT) up 0.10%, General Electric (GE) down 0.71%, 3M Company (MMM) up 0.52%, United Technologies (UTX) up 1.16%.

The Industrial Select Sector SPDR (XLI) was trading at $34.46 at 3:30 PM on Tuesday, down 2.07% on the day – up 2.10% year-to-date.

Consumer Discretionary

Wolverine World Wide (WWW) missed Q2 EPS of $0.41 by two cents with a miss on the revenue line. Cantor Fitzgerald begins Buy rated coverage on Las Vegas Sands (LVS), MGM Resorts (MGM), and Wynn Resorts (WYNN) with price targets at $57, $14, and $134 respectively citing growing prosperity in China and ongoing opportunities in Macau. TiVo Inc (TIVO) has been initiated with an Overweight rating at Barclays. Bridgepoint Education (BPI) has been downgraded to Market Perform from Outperform at William Blair. Pearson Plc (PSO) has been downgraded to Hold from Buy at Deutsche Bank. Sony (SNE) has been downgraded to Neutral from Buy at Citigroup. Viacom (VIAB) has been downgraded to Neutral from Buy at UBS. Dow Components – Disney (DIS) down 0.41%, Home Depot up 0.60%, McDonalds (MCD) up 0.68%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.19 at 3:30 PM on Tuesday, down 0.78% on the day – up 10.69% year-to-date.

Consumer Staples

Helen of Troy (HELE) missed Q1 EPS estimates of $0.74 by fourteen cents with in-line revenue. PriceSmart's (PSMT) reported that comparable warehouse sales rose 10.9% year over year and that membership income grew 19.2%. Limited Brands (LTD) has been downgraded to Hold from Buy at Argus based on slowing growth prospects. Tyson Foods (TSN) has been downgraded to Neutral from Overweight at JP Morgan. Dow components – Kraft (KFT) up 1.41%, Coca Cola (KO) up 0.49%, Procter & Gamble (PG) up 0.42%, Wal-Mart (WMT) up 0.92%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $34.94 at 3:30 PM on Tuesday, up 0.06% on the day – up 7.54% year-to-date.

Health Care

ISI Group initiates Overweight ratings on Agilent (A), PerkinElmer (PKI), ICON plc (ICLR), Thermo Fisher (TMO), and Hologic (HOLX). ISI initiates Underweight ratings on Cepheid (CPHD), Charles River Labs (CRL), Mettler-Toledo (MTD), QIAGEN (QGEN) and Life Technologies (LIFE). ISI initiates Market Weight ratings on Illumina (ILMN), Waters (WAT), Danaher (DHR), Covance (CVD), and Bruker (BRKR). Threshold Pharmaceuticals (THLD) has been initiated with an Outperform rating at William Blair. MAKO Surgical (MAKO) has been downgraded to Neutral from Buy at Goldman Sachs. Dow Components – Johnson & Johnson (JNJ) up 0.28%, Merck (MRK) down 1.01%, Pfizer (PFE) down 0.22%.

The Health Care Select Sector SPDR (XLV) was trading at $37.59 at 3:30 PM on Tuesday, down 0.63% on the day – up 8.36% year-to-date.

Financial

Former Barclays (BCS) CEO Bob Diamond will voluntarily forgo any deferred bonuses, said to be worth a maximum of $31 million. American Express (AXP) and Discover (DFS) have been initiated with Buy ratings at Nomura with a Neutral rating on Capital One (COF). TD Ameritrade (AMTD) has been upgraded to Hold from Sell at BGB Securities. T. Rowe Price (TROW) has been upgraded to Buy from Neutral by Bank of America-Merrill Lynch. American National Bankshares (AMNB) has been downgraded to Hold from Buy at BB&T Capital. Eaton Vance (EV) has been downgraded to Underperform from Neutral at Bank of America-Merrill Lynch. Interactive Brokers (IBKR) has been downgraded to Hold from Buy at Stifel Nicolaus. Dow Components – American Express (AXP) up 0.83%, Bank of America (BAC) up 0.13%, JP Morgan Chase (JPM) up 0.41%, Travelers (TRV) up 0.51%.

The Financial Select Sector SPDR (XLF) was trading at $14.31 at 3:30 PM on Tuesday, down 0.97% on the day – up 10.08% year-to-date.

Information Technology

Intel (INTC) is investing $4.1 billion in chip-equipment maker ASML (ASML) and agreed to buy a 10% stake for $2.1 billion and pledged to eventually acquire another 5% stake. Intel will provide another $1 billion to support ASML's R&D programs for cutting-edge technologies. AMD (AMD) shares were hit by 9.25% premarket after the company warned that it expects Q2 revenue to fall 11%, well below a guidance range of plus or minus 3%. AMD blamed weaker-than-expected sales in China and Europe, and the impact of poor consumer spending. Dow Components – Cisco Systems (CSCO) down 0.36%, Hewlett-Packard (HPQ) down 0.57%, IBM (IBM) down 0.96%, Intel Corp (INTC) down 1.70%, Microsoft (MSFT) down 0.84%.

The Technology Select Sector SPDR (XLK) was trading at $28.26 at 3:30 PM on Tuesday, down 1.29% on the day – up 11.04% year-to-date.

Telecommunication Services

Google (GOOG) is nearing a settlement with the FTC, and will reportedly pay $22.5 million over charges it bypassed the privacy settings of millions of Apple users. This is not much of a financial hit, but would be the largest penalty ever levied on a single company by the FTC and could further undermine users' trust in Google. Samsung (SSNLF.PK) won a court battle against Apple (AAPL) as a UK Judge ruled the design of the Galaxy tablets doesn't infringe on the iPad's design, and that consumers were unlikely to confuse the two as the Galaxy tablets. Dow Components – AT&T Inc up 0.28%, Verizon (VZ) up 0.27%.
The NASDAQ Telecommunications Index (IXTC) was trading at $178.72 at 3:30 PM on Tuesday, down 1.34% on the day – down 9.25% year-to-date.

Utilities

Duke Energy (DUK) CEO Jim Rogers is due to appear before a hearing of the North Carolina Utilities Commission about the ouster of Bill Johnson just hours after the Duke's acquisition of Progress Energy was completed. The commission has said it might not have authorized the deal had it known about the changed management structure. Rescinding the deal is seen as unlikely. Southwestern Energy (SWN): has been upgraded to Buy from Hold at Stifel Nicolaus with a price target at $38 citing an attractive valuation relative to other dry gas names. GDF Suez (GDFZY) - The French utility company has been downgraded to Neutral from Outperform at Credit Suisse, sending shares lower in European trading. Dominion Resources (D) up 0.04%, Edison International (EIX) up 0.44%, First Energy (FE) flat, PG&E Corp (PCG) up 0.07%, Southern Company (SO) up 0.09%.
The Utilities Select Sector SPDR (XLU) was trading at $36.75 at 3:30 PM on Tuesday, up 0.11% on the day – up 2.14% year-to-date.

STOCKS: CVX, XOM, PCX, FST, AA, DD, WDFC, CE, BA, CAT, GE, MMM, UTX, SHAW, ATR, IR, LPX, TYC, DIS, HD, MCD, WWW, LVS, MGM, WYNN, TIVO, BPI, PSO, SNE, KFT, KO, PG, WMT, HELE, PSMT, LTD, TSN, JNJ, MRK, PFE, A, PKI, ICLR, TMO, HOLX, CPHD, CRL, MTD, QGEN, LIFE, ILMN, WAT, DHR, CVD, BRKR, THLD, MAKO, AXP, BAC, JPM, TRV, BCS, DFS, COF, AMTD, TROW, AMNB, EV, IBKR, CSCO, HPQ, IBM, INTC, MSFT, ASML, AMD, T, VZ, GOOG, SSNLF.PK, D, EIX, FE, PCG, SO, DUK, SWN, GDFZY

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
A Agilent Technologies Inc. 46.41 -0.16 -0.34 9,083
AA Alcoa Inc. 9.62 -0.06 -0.62 407,705
AMD Advanced Micro Devices Inc. 6.33 0.01 0.08 1,050,446
AMNB American National Bankshares Inc. 27.51 0.00 0.00 0
AMTD TD Ameritrade Holding Corporation 32.04 -0.51 -1.57 73,742
ASML ASML Holding N.V. 108.11 -0.66 -0.61 34,983
ATR AptarGroup Inc. 77.86 -0.20 -0.26 15,171
AXP American Express Company 63.88 0.46 0.73 181,525
BA Boeing Company (The) 130.14 -0.43 -0.33 63,825
BAC Bank of America Corporation 14.95 -0.14 -0.93 6,925,304
BCS Barclays PLC 8.57 -0.11 -1.27 484,292
BPI Bridgepoint Education Inc. 6.58 0.05 0.77 1,103
BRKR Bruker Corporation 22.38 0.08 0.36 13,079
CAT Caterpillar Inc. 81.92 -0.45 -0.55 219,274
COF Capital One Financial Corporation 70.32 -0.49 -0.69 68,777
CPHD CEPHEID 52.60 -0.03 -0.06 66,024
CRL Charles River Laboratories International Inc. 82.54 0.04 0.05 1,533
CSCO Cisco Systems Inc. 31.08 0.01 0.03 888,543
CVX Chevron Corporation 98.20 -0.58 -0.59 223,816
D Dominion Resources Inc. 77.16 0.56 0.73 36,971
DD E.I. du Pont de Nemours and Co. 66.43 -0.09 -0.14 29,506
DFS Discover Financial Services 56.64 -0.10 -0.17 53,743
DHR Danaher Corporation 76.61 0.01 0.01 54,256
DIS Walt Disney Company (The) 91.94 -0.02 -0.02 218,178
DUK Duke Energy Corporation (Holding Company) 82.70 0.55 0.67 49,216
EIX Edison International 76.03 0.48 0.64 39,880
EV Eaton Vance Corporation 38.62 -0.40 -1.03 16,416
FE FirstEnergy Corporation 34.69 0.11 0.32 95,244
GE General Electric Co 29.61 0.07 0.25 899,121
GHC Graham Holdings Company 486.13 -1.96 -0.40 443
GOOG Alphabet Inc. 778.40 4.19 0.54 80,772
HD Home Depot Inc. (The) 125.74 0.29 0.23 122,496
HELE Helen of Troy Limited 86.48 -0.70 -0.80 4,158
HOLX Hologic Inc. 37.94 -0.04 -0.09 16,037
HPQ HP Inc. 15.01 -0.01 -0.07 162,716
IBKR Interactive Brokers Group Inc. 35.06 -0.30 -0.85 6,723
IBM International Business Machines Corp 154.93 0.95 0.62 148,217
ICLR ICON plc 75.60 -0.39 -0.52 2,626
ILMN Illumina Inc. 178.08 -0.39 -0.22 19,141
INTC Intel Corporation 36.75 0.10 0.27 864,954
IR Ingersoll-Rand plc (Ireland) 65.03 -0.36 -0.55 20,878
JNJ Johnson & Johnson 117.98 0.20 0.17 186,708
JPM JP Morgan Chase 65.34 -0.44 -0.67 899,366
KO Coca-Cola Company (The) 42.14 0.09 0.21 441,352
LIFE aTyr Pharma Inc. 3.27 0.00 0.00 1
LPX Louisiana-Pacific Corporation 18.74 -0.01 -0.05 8,999
LVS Las Vegas Sands Corp. 56.55 0.09 0.16 94,043
MCD McDonald\'s Corporation 116.72 0.19 0.16 93,719
MGM MGM Resorts International 25.33 -0.03 -0.12 59,482
MMM 3M Company 176.02 0.07 0.04 38,069
MRK Merck & Company Inc. (new) 61.92 -0.23 -0.37 246,472
MSFT Microsoft Corporation 56.99 0.09 0.16 795,390
MTD Mettler-Toledo International Inc. 410.63 0.85 0.21 2,797
PCG Pacific Gas & Electric Co. 64.23 0.33 0.52 63,028
PFE Pfizer Inc. 33.49 -0.15 -0.43 731,881
PG Procter & Gamble Company (The) 87.92 0.07 0.08 327,805
PKI PerkinElmer Inc. 55.16 -0.07 -0.13 3,701
PSMT PriceSmart Inc. 82.01 0.92 1.13 268
PSO Pearson Plc 9.59 0.13 1.32 114,031
QGEN Qiagen N.V. 26.19 -0.33 -1.24 90,879
SNE Sony Corporation 33.33 -0.13 -0.39 37,154
SO Southern Company (The) 53.68 0.37 0.69 152,804
SWN Southwestern Energy Company 13.23 -0.48 -3.50 553,455
T AT&T Inc. 41.21 0.07 0.17 675,233
THLD Threshold Pharmaceuticals Inc. 1.20 0.02 1.27 41,540
TMO Thermo Fisher Scientific Inc 156.43 0.27 0.17 27,156
TROW T. Rowe Price Group Inc. 64.96 -0.24 -0.37 60,423
TRV The Travelers Companies Inc. 113.90 -0.05 -0.04 27,681
TSN Tyson Foods Inc. 75.88 0.00 0.00 64,413
TYC Tyco International plc (Ireland) n/a n/a n/a 0
UTX United Technologies Corporation 102.17 -0.06 -0.06 84,425
VZ Verizon Communications Inc. 52.12 -0.03 -0.07 329,460
WAT Waters Corporation 156.98 0.20 0.13 4,669
WDFC WD-40 Company 115.52 -0.53 -0.46 4,969
WMT Wal-Mart Stores Inc. 71.73 0.11 0.15 188,126
WWW Wolverine World Wide Inc. 22.63 -0.12 -0.53 6,062
XOM Exxon Mobil Corporation 82.79 -0.27 -0.33 336,595

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