Equities Sector Coverage: Wall Street Falls Lower in Late Trading

Sector Recap  |

The 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
MMM 3M Company 163.50 2.99 1.86 1,473,568 Trade
EV Eaton Vance Corporation 44.55 0.49 1.11 260,968 Trade
A Agilent Technologies Inc. 75.99 0.81 1.08 272,610 Trade
TSN Tyson Foods Inc. 84.04 -0.02 -0.02 689,956 Trade
ASML ASML Holding N.V. 268.91 7.27 2.78 679,719 Trade
CRL Charles River Laboratories International Inc. 133.94 0.04 0.03 76,768 Trade
PG Procter & Gamble Company (The) 117.16 -2.89 -2.41 4,276,298 Trade
GE General Electric Company 8.87 0.15 1.72 16,499,920 Trade
CVX Chevron Corporation 117.42 1.24 1.07 1,322,323 Trade
SO Southern Company (The) 60.81 -0.11 -0.18 1,029,226 Trade
PCG Pacific Gas & Electric Co. 7.68 0.01 0.13 3,473,971 Trade
CPHD CEPHEID n/a n/a n/a 0 Trade
JNJ Johnson & Johnson 133.40 2.68 2.05 5,018,891 Trade
AA Alcoa Corporation 19.60 0.43 2.24 4,837,549 Trade
WWW Wolverine World Wide Inc. 28.36 0.11 0.39 119,878 Trade
INTC Intel Corporation 52.90 1.26 2.44 6,909,690 Trade
D Dominion Energy Inc. 81.33 0.09 0.11 770,594 Trade
TRV The Travelers Companies Inc. 143.70 0.59 0.41 352,616 Trade
ICLR ICON plc 141.32 0.68 0.48 158,920 Trade
WAT Waters Corporation 215.49 1.62 0.76 110,235 Trade
GHC Graham Holdings Company 644.00 2.38 0.37 7,712 Trade
PSMT PriceSmart Inc. 66.00 -0.27 -0.40 125,962 Trade
BCS Barclays PLC 8.31 0.42 5.32 7,757,049 Trade
LVS Las Vegas Sands Corp. 57.48 0.47 0.82 1,028,347 Trade
EIX Edison International 70.43 0.37 0.53 1,202,550 Trade
IR Ingersoll-Rand plc (Ireland) 116.12 0.79 0.68 591,138 Trade
AXP American Express Company 117.75 1.36 1.17 873,733 Trade
AMTD TD Ameritrade Holding Corporation 36.44 0.95 2.68 2,657,879 Trade
UTX United Technologies Corporation 136.44 0.52 0.38 1,107,088 Trade
AMNB American National Bankshares Inc. 35.78 0.46 1.30 2,574 Trade
HOLX Hologic Inc. 49.55 1.05 2.15 766,229 Trade
TROW T. Rowe Price Group Inc. 111.67 1.35 1.23 359,650 Trade
AMD Advanced Micro Devices Inc. 30.72 0.19 0.61 26,827,535 Trade
SWN Southwestern Energy Company 2.08 0.10 5.05 10,195,199 Trade
MTD Mettler-Toledo International Inc. 679.31 -1.43 -0.21 104,154 Trade
BRKR Bruker Corporation 43.97 0.45 1.03 83,845 Trade
CSCO Cisco Systems Inc. 46.37 0.32 0.70 8,510,179 Trade
VZ Verizon Communications Inc. 60.06 0.46 0.77 3,549,580 Trade
BAC Bank of America Corporation 29.87 0.73 2.51 28,435,136 Trade
COF Capital One Financial Corporation 90.58 1.97 2.22 705,220 Trade
GOOG Alphabet Inc. 1,240.75 23.61 1.94 761,693 Trade
ILMN Illumina Inc. 309.96 -0.35 -0.11 249,710 Trade
MCD McDonald's Corporation 207.16 -1.22 -0.59 1,344,641 Trade
PSO Pearson Plc 8.72 0.12 1.40 188,476 Trade
TMO Thermo Fisher Scientific Inc 285.97 1.72 0.61 458,708 Trade
MGM MGM Resorts International 28.07 0.10 0.34 3,505,202 Trade
THLD MTEM Threshold Pharmaceuticals Inc. n/a n/a n/a 0
DHR Danaher Corporation 139.11 0.31 0.22 476,690 Trade
ATR AptarGroup Inc. 115.83 -0.02 -0.02 58,802 Trade
WDFC WD-40 Company 180.85 -0.17 -0.09 108,368 Trade
TYC Tyco International plc (Ireland) n/a n/a n/a 0
PFE Pfizer Inc. 36.65 0.35 0.95 5,396,826 Trade
BPI ZVO BiotechPharmaceutical Index n/a n/a n/a 0
HPQ HP Inc. 16.78 0.24 1.45 4,601,005 Trade
MRK Merck & Company Inc. (new) 84.91 0.22 0.26 1,885,923 Trade
DFS Discover Financial Services 79.47 1.72 2.21 513,076 Trade
IBKR Interactive Brokers Group Inc. 47.48 0.44 0.94 238,598 Trade
LIFE aTyr Pharma Inc. 3.23 0.20 6.60 13,555 Trade
FE FirstEnergy Corp. 47.59 0.18 0.38 957,095 Trade
LPX Louisiana-Pacific Corporation 25.00 -0.02 -0.06 1,077,631 Trade
KO Coca-Cola Company (The) 53.38 0.08 0.14 2,831,036 Trade
SNE Sony Corporation 58.48 0.64 1.11 542,675 Trade
T AT&T Inc. 37.90 0.43 1.15 8,041,703 Trade
CAT Caterpillar Inc. 130.69 2.31 1.80 1,485,521 Trade
DUK Duke Energy Corporation (Holding Company) 95.08 -0.05 -0.05 643,338 Trade
PKI PerkinElmer Inc. 82.48 0.62 0.76 358,335 Trade
HELE Helen of Troy Limited 154.78 1.03 0.67 63,418 Trade
MSFT Microsoft Corporation 141.39 1.84 1.32 8,905,951 Trade
WMT Walmart Inc. 119.22 0.05 0.04 1,468,829 Trade
IBM International Business Machines Corporation 143.02 0.98 0.69 1,256,242 Trade
JPM JP Morgan Chase & Co. 120.97 4.52 3.88 12,772,250 Trade
DIS The Walt Disney Company 130.28 0.58 0.44 2,212,247 Trade
HD Home Depot Inc. (The) 236.04 1.86 0.79 937,622 Trade
XOM Exxon Mobil Corporation 69.90 0.72 1.03 2,573,763 Trade
BA The Boeing Company 372.35 -0.83 -0.22 1,408,986 Trade

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IBM

     

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