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
MMM 3M Company 175.88 -0.17 -0.10 1,784,282
EV Eaton Vance Corporation 43.62 0.53 1.23 714,124
A Agilent Technologies Inc. 45.80 0.81 1.80 1,848,936
TSN Tyson Foods Inc. 61.59 2.77 4.71 7,665,158
ASML ASML Holding N.V. 103.11 -0.44 -0.42 472,610
CRL Charles River Laboratories International Inc. 73.52 1.07 1.48 401,888
PG Procter & Gamble Company (The) 83.50 -0.68 -0.81 7,506,843
GE General Electric Co 31.53 -0.07 -0.22 27,898,757
CVX Chevron Corporation 115.17 0.73 0.64 5,507,019
SO Southern Company (The) 47.41 0.26 0.55 5,520,037
PCG Pacific Gas & Electric Co. 59.19 0.39 0.66 1,854,747
CPHD CEPHEID n/a n/a n/a 0
JNJ Johnson & Johnson 110.99 -0.11 -0.10 7,774,760
WMT Wal-Mart Stores Inc. 70.34 -0.26 -0.37 6,844,192
AA Alcoa Inc. 31.31 0.41 1.33 3,064,978
WWW Wolverine World Wide Inc. 25.10 0.68 2.78 1,199,838
INTC Intel Corporation 35.70 0.20 0.56 19,964,785
IBM International Business Machines Corp 165.36 0.57 0.35 3,262,768
D Dominion Resources Inc. 73.50 0.00 0.00 1,868,998
TRV The Travelers Companies Inc. 118.38 0.39 0.33 2,046,154
ICLR ICON plc 76.49 0.46 0.61 424,710
WAT Waters Corporation 138.07 1.40 1.02 462,222
GHC Graham Holdings Company 506.55 13.00 2.63 32,767
PSMT PriceSmart Inc. 92.15 0.75 0.82 180,821
BCS Barclays PLC 11.99 0.09 0.76 7,382,289
LVS Las Vegas Sands Corp. 54.67 -8.01 -12.78 21,586,241
EIX Edison International 69.44 -0.17 -0.24 1,627,576
IR Ingersoll-Rand plc (Ireland) 78.75 0.75 0.96 2,292,928
JPM JP Morgan Chase 85.12 1.05 1.25 20,837,046
AXP American Express Company 74.91 0.62 0.83 3,415,750
AMTD TD Ameritrade Holding Corporation 43.22 0.51 1.19 2,223,334
UTX United Technologies Corporation 108.43 -1.25 -1.14 3,168,535
AMNB American National Bankshares Inc. 33.85 1.10 3.36 23,131
HOLX Hologic Inc. 38.96 -0.04 -0.10 1,973,119
TROW T. Rowe Price Group Inc. 78.61 1.26 1.63 2,268,275
AMD Advanced Micro Devices Inc. 10.34 0.78 8.16 104,497,133
SWN Southwestern Energy Company 12.36 -0.01 -0.08 11,103,959
MTD Mettler-Toledo International Inc. 418.70 -0.59 -0.14 273,039
BRKR Bruker Corporation 21.79 0.06 0.28 898,049
CSCO Cisco Systems Inc. 29.95 0.00 0.00 21,369,807
DIS Walt Disney Company (The) 103.38 2.17 2.14 16,522,864
VZ Verizon Communications Inc. 51.13 -0.25 -0.49 11,495,251
BAC Bank of America Corporation 22.95 0.38 1.68 182,428,063
COF Capital One Financial Corporation 90.61 1.03 1.15 3,180,390
GOOG Alphabet Inc. 776.42 5.23 0.68 1,487,336
ILMN Illumina Inc. 123.48 1.46 1.20 1,100,485
MCD McDonald\'s Corporation 120.45 0.53 0.44 3,255,585
PSO Pearson Plc 9.81 -0.11 -1.11 528,545
TMO Thermo Fisher Scientific Inc 143.07 1.22 0.86 1,819,360
DD E.I. du Pont de Nemours and Co. 74.68 0.86 1.17 2,861,705
MGM MGM Resorts International 28.65 -1.30 -4.34 27,863,301
THLD Threshold Pharmaceuticals Inc. 0.44 -0.02 -3.30 667,202
DHR Danaher Corporation 77.74 0.77 1.00 4,265,525
ATR AptarGroup Inc. 74.20 0.72 0.98 408,301
WDFC WD-40 Company 111.10 0.65 0.59 78,496
TYC Tyco International plc (Ireland) n/a n/a n/a n/a
HD Home Depot Inc. (The) 132.53 0.07 0.05 4,975,017
XOM Exxon Mobil Corporation 88.32 0.25 0.28 9,018,852
PFE Pfizer Inc. 30.94 -0.25 -0.80 35,472,082
BPI Bridgepoint Education Inc. 10.48 -0.02 -0.19 328,484
HPQ HP Inc. 16.16 0.01 0.06 9,581,856
BA Boeing Company (The) 155.39 1.25 0.81 2,928,360
MRK Merck & Company Inc. (new) 60.12 0.06 0.10 8,586,540
DFS Discover Financial Services 72.05 0.43 0.60 3,547,471
QGEN Qiagen N.V. 28.14 0.27 0.97 690,920
IBKR Interactive Brokers Group Inc. 39.19 0.69 1.79 570,793
LIFE aTyr Pharma Inc. 3.55 0.15 4.41 113,434
FE FirstEnergy Corporation 30.53 0.47 1.56 6,335,637
LPX Louisiana-Pacific Corporation 20.86 0.35 1.71 1,315,367
KO Coca-Cola Company (The) 40.98 -0.31 -0.75 13,068,869
SNE Sony Corporation 29.16 0.55 1.92 2,028,024
T AT&T Inc. 40.41 -0.04 -0.10 21,997,422
CAT Caterpillar Inc. 96.27 -1.06 -1.09 3,860,532
DUK Duke Energy Corporation (Holding Company) 74.73 0.06 0.08 3,386,584
PKI PerkinElmer Inc. 53.05 0.31 0.59 584,100
HELE Helen of Troy Limited 81.70 1.20 1.49 257,465
MSFT Microsoft Corporation 61.01 -0.36 -0.59 21,201,290

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