Equities Sector Coverage: Wall Street Plummets As Investors Get Bearish

Sector Recap  |

Initial Jobless Claims came in at 387,000 still above the 350,000 recessional thresholds. Existing Home Sales fell 1.5% in May to an annual rate of 4.55 million. Leading Indicators rose 0.3% in May. The Philly Fed Index plunged to -16.6 in June, which is a surprise contraction. The Dow Jones Industrial Average traded up to 12,857.39 then down to 12,580.88 breaking back below its 50-day simple moving average at 12,745. The NASDAQ declined from 2930.93 to 2859.08 breaking back below its 50-day simple moving average at 2915.

Asian stocks were mixed on Thursday. The Nikkei 225 ended the day at 8,824 – up 0.82%. The Hang Seng ended the day at 19,265 – down 1.30%. European exchanges closed lower on Thursday. The FTSE 100 ended the day at 5,566 – down 0.99%. The DAX ended the day at 6,343 – down 0.77%. The CAC 40 ended the day at 3,114 – down 0.39%. The yield on the 10-Year US Treasury rose from 1.623% to 1.666% then declined to 1.594 on weaker than expected economic data.

Gold declined from $1608.2 the Troy ounce to $1564.8 versus the 50-day and 200-day simple moving averages at $1612.7 and $1673.6. Crude oil declined from $81.20 per barrel to $78.05 versus the October 4, 2011 low at $74.95. The euro versus the dollar traded down 1.2707 to 1.2535.

Energy

Core Labs (CLB) - HSBC Securities initiates the stock with a Neutral rating with a target price at $140. National Oilwell Varco (NOV) has been initiated with an Overweight rating at HSBC Securities with a price target at $97. Solazyme (SZYM) has been initiated with a Buy rating at ThinkEquity. Seadrill Limited (SDRL) - HSBC Securities upgrades the oil and gas exploration firm to Overweight from Equal Weight. Dow components – Chevron (CVX) down 1.60%, Exxon Mobil (XOM) down 2.25%.
Energy Select Sector SPDR (XLE) was trading at $63.20 at 3:30 PM on Thursday, down 3.82% on the day – down 8.58% year-to-date.

Materials

CEMEX S.A. (CX) has been upgraded to Neutral from Underweight at HSBC, who also upgrades France’s LaFarge (LFRGY) to Overweight from Equal Weight. Dow components – Alcoa (AA) down 2.80%, DuPont (DD) down 1.39%.
The Materials Select Sector SPDR (XLB) was trading at $34.11 at 3:30 PM on Thursday, down 3.01% on the day – up 1.82% year-to-date.

Industrials

The pilots union at American Airlines (AAMRQ.PK) has rejected the company's final contract proposal, which will toss this dispute to a bankruptcy judge in New York. AO Smith (AOS) has been initiated with a Market Perform at BMO Capital. Southwest Airlines (LUV) has been initiated with an In-line rating at Imperial Capital with a price target at $10. The company’s costs have been growing faster with revenue growing more slowly than the legacy carriers. Dow components – Boeing Co (BA) down 1.12%, Caterpillar (CAT) down 1.46%, General Electric (GE) down 1.59%, 3M Company (MMM) flat, United Technologies (UTX) down 0.30%.
The Industrial Select Sector SPDR (XLI) was trading at $34.70 at 3:30 PM on Thursday, down 1.76% on the day – up 2.81% year-to-date.

Consumer Discretionary

Bed Bath & Beyond's (BBBY) reported that their FQ1 EPS rose 24% to 89 cents beating expectations, while revenue climbed 5% to $2.22 billion, which was in line. Shares plunged 10.6% in after hours trading on Wednesday as FQ2 guidance was below consensus. The decline came after the stock hit an all-time high on Tuesday. Carmax (KMX) reported that FQ1 net profit slips to $120.75 million from $125.5 million. Carmax intends to open ten new superstores in FY 2013, up from five in FY 2012. Sonic (SONC) beat FQ3 EPS estimates despite a slight dip in total revenue. Same-store sales increased 2.8%. V.F. Corp (VFC) has been added to Citigroup’s list of Top Picks Live. Under Armour (UA) - The athletic apparel outfit has been downgraded to Neutral from Buy at UBS. Dow Components – Disney (DIS) down 0.10%, Home Depot down 1.82%, McDonalds (MCD) down 0.23%.
The Consumer Discretionary Select Sector SPDR (XLY) was trading at $43.22 at 3:30 PM on Thursday, down 1.95% on the day – up 10.76% year-to-date.

Consumer Staples

Bed Bath & Beyond's (BBBY) reported that their FQ1 EPS rose 24% to 89 cents beating expectations, while revenue climbed 5% to $2.22 billion, which was in line. Shares plunged 10.6% in after hours trading on Wednesday as FQ2 guidance was below consensus. The decline came after the stock hit an all-time high on Tuesday. ConAgra's (CAG) in their FQ4 results reported that their Consumer Foods segment revenue was up 6.1% year over year to $2.15 billion. Consumer Foods revenue rose 6.8% to $1.264 billion. Expects EPS growth of 6% to 8% in FY13. Whole Foods (WFM) hit an all time highs and is initiated with a Buy rating at SunTrust. The TJX Companies (TJX) - The discount retailer recently traded at an all time high, has been upgraded to Outperform from Market Perform at Wells Fargo. Dow components – Kraft (KFT) up 0.36%, Coca Cola (KO) down 0.07%, Procter & Gamble (PG) down 0.53%, Wal-Mart (WMT) down 0.42%.
The Consumer Staples Select Sector SPDR (XLP) was trading at $33.89 at 3:30 PM on Thursday, down 0.94% on the day – up 4.32% year-to-date.

Health Care

Johnson & Johnson (JNJ) will soon be settling a Department of Justice probe into the off-label marketing of its antipsychotic medication Risperdal. J&J will likely need to pay a penalty at $1.5 to $2.0 billion or slightly higher. Laboratory Corp (LH) - Canaccord Genuity initiated the stock with a buy rating. Jazz Pharmaceuticals (JAZZ) has been reinstated with an Overweight rating at Barclays. Onyx Pharmaceuticals (ONXX) has been initiated with a Buy rating at Deutsche Bank. Quest Diagnostics (DGX) has been initiated with a Hold rating at Canaccord Genuity. MedAssets (MDAS) has been upgraded to Buy from Neutral at UBS. NuVasive (NUVA) has been upgraded to Outperform from Market Perform at Wells Fargo. Dow Components – Johnson & Johnson (JNJ) down 0.60%, Merck (MRK) up 1.34%, Pfizer (PFE) up 0.82%.
The Health Care Select Sector SPDR (XLV) was trading at $37.11 at 3:30 PM on Thursday, down 1.17% on the day – up 6.98% year-to-date.

Financial

Chimera Investment (CIM) has been downgraded to Underperform from Neutral at Bank of America-Merrill Lynch. DCT Industrial Trust (DCT) has been downgraded to Underperform from Market Perform with Wells Fargo. Dow Components – American Express (AXP) down 0.32%, Bank of America (BAC) down 1.90%, JP Morgan Chase (JPM) down 0.85%, Travelers (TRV) down 0.89%.
The Financial Select Sector SPDR (XLF) was trading at $14.27 at 3:30 PM on Thursday, down 1.79% on the day – up 10.92% year-to-date.

Information Technology

Microsoft (MSFT) has received widespread industry backing and good reviews for Windows Phone 8 after introducing it yesterday. AT&T (T), Verizon (VZ), and T-Mobile (DTEFG.PK) have promised to support the new OS. Red Hat (RHT) lowered guidance on their FQ1 earnings call to $1.32-$1.34 billion, slightly below prior guidance of $1.34-$1.36 billion. Micron Technology (MU) missed FQ3 EPS of -$0.32 by twelve with a beat on the revenue line. ASML Holding (ASML) - The semiconductor stock has been initiated with an Outperform by Sanford Bernstein with a price target at $75.40. VeriFone (PAY) has been initiated with a Neutral rating at Susquehanna. Dow Components – Cisco Systems (CSCO) down 1.94%, Hewlett-Packard (HPQ) down 1.49%, IBM (IBM) down 1.35%, Intel Corp (INTC) down 1.84%, Microsoft (MSFT) down 1.13%.
The Technology Select Sector SPDR (XLK) was trading at $28.23 at 3:30 PM on Thursday, down 2.15% on the day – up 10.92% year-to-date.

Telecommunication Services

Microsoft (MSFT) has received widespread industry backing and good reviews for Windows Phone 8 after introducing it yesterday. AT&T (T), Verizon (VZ), and T-Mobile (DTEFG.PK) have promised to support the new OS. American Tower (AMT), Crown Castle (CCI) and private equity firms have made second-round bids for T-Mobile USA's (DTEGF.PK) cellular towers. Koninklijke KPN (KKPNY) - The Dutch telecom titan traded sharply lower in Europe this morning after being downgraded to Neutral from Buy at UBS. NII Holdings (NIHD) has been downgraded to Market Perform from Outperform with Wells Fargo. Dow components – AT&T (T) down 0.07%, Verizon (VZ) up 0.70%.
The NASDAQ Telecommunications Index (IXTC) was trading at $182.25 at 3:30 PM on Thursday, down 2.62% on the day – down 7.45% year-to-date.

Utilities

AES Corp. (AES) has been initiated with a Neutral rating at Macquarie. Brookfield Infrastructure (BIP) has been initiated with a Neutral rating at Citigroup. EQT Corp (EQT) has been upgraded to Buy from Hold at Deutsche Bank. Xylem (XLY) has been upgraded to Buy from Neutral at Janney Montgomery Scott. CenterPoint (CNP) has been downgraded to Neutral from Outperform at Credit Suisse. Dominion Resources (D) up 0.18%, Edison International (EIX) up 0.04%, First Energy (FE) up 0.35%, PG&E Corp (PCG) up 0.22%, Southern Company (SO) up 0.41%.
The Utilities Select Sector SPDR (XLU) was trading at $36.34 at 3:30 PM on Thursday, down 0.79% on the day – up 1.00% year-to-date.

STOCKS: CVX, XOM, CLB, NOV, SZYM, SDRL, AA, DD, CX, LFRGY, BA, CAT, GE, MMM, UTX, AAMRQ.PK, AOS, LUV, DIS, HD, MCD, BBBY, KMX, SONC, VFC, US, KFT, KO, PG, WMT, CAG, WFM, TJX, JNJ, MRK, PFE, LH, JAZZ, ONXX, MDAS, NUVA, DGX, AXP, BAC, JPM, TRV, MET, CIM, DCT, CSCO, HPQ, IBM, INTC, MSFT, RHT, MU, ASML, PAY, T, VZ, DTEFG.PK, AMT, CCI, KKPNY, NIHD, D, EIX, FE, PCG, SO, AES, BIP, EQT, XLY, CNP

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 188.94 -3.23 -1.68 2,737,349 Trade
RHT Red Hat Inc. 175.61 0.76 0.43 1,585,767 Trade
ASML ASML Holding N.V. 159.23 0.54 0.34 482,691 Trade
PG Procter & Gamble Company (The) 92.01 0.86 0.94 7,834,918 Trade
GE General Electric Company 8.73 -0.17 -1.91 94,058,188 Trade
CVX Chevron Corporation 112.12 0.40 0.36 4,226,071 Trade
SO Southern Company (The) 46.79 0.63 1.36 5,433,138 Trade
PCG Pacific Gas & Electric Co. 6.91 -1.47 -17.54 173,062,577 Trade
JNJ Johnson & Johnson 129.36 1.08 0.84 5,194,405 Trade
AA Alcoa Corporation 28.90 0.11 0.38 3,770,926 Trade
INTC Intel Corporation 48.60 0.25 0.52 22,480,820 Trade
CNP CenterPoint Energy Inc (Holding Co) 29.29 0.09 0.31 5,085,290 Trade
D Dominion Energy Inc. 68.88 0.91 1.34 5,780,944 Trade
NOV National Oilwell Varco Inc. 29.31 0.06 0.21 3,659,596 Trade
TRV The Travelers Companies Inc. 121.82 1.24 1.03 1,373,389 Trade
MDAS MedAssets Inc n/a n/a n/a 0 Trade
GPS:CA BSM Technologies Inc. 0.70 0.02 2.94 27,000
EIX Edison International 55.05 -3.10 -5.33 5,251,275 Trade
JAZZ Jazz Pharmaceuticals plc 128.00 0.75 0.59 1,122,772 Trade
MET MetLife Inc. 44.06 0.09 0.20 4,189,727 Trade
AXP American Express Company 97.99 -0.45 -0.46 5,795,081 Trade
UTX United Technologies Corporation 111.06 0.21 0.19 2,797,248 Trade
TJX TJX Companies Inc. (The) 47.32 0.54 1.15 6,105,055 Trade
BIP Brookfield Infrastructure Partners LP Limited Partnership Units 38.09 1.17 3.17 364,515 Trade
CSCO Cisco Systems Inc. 44.02 0.81 1.87 17,743,902 Trade
LUV Southwest Airlines Company 49.61 0.85 1.74 4,408,949 Trade
AES The AES Corporation 15.44 0.40 2.66 4,604,436 Trade
VZ Verizon Communications Inc. 58.10 0.07 0.12 10,057,967 Trade
SZYM Solazyme Inc. n/a n/a n/a 0
VFC V.F. Corporation 72.06 0.43 0.60 1,922,802 Trade
CLB Core Laboratories N.V. 68.43 -0.08 -0.12 332,787 Trade
BAC Bank of America Corporation 26.55 0.18 0.68 80,625,492 Trade
MCD McDonald's Corporation 181.02 -0.20 -0.11 3,860,212 Trade
DGX Quest Diagnostics Incorporated 85.03 1.55 1.86 944,278 Trade
BBBY Bed Bath & Beyond Inc. 15.01 -0.33 -2.15 10,155,290 Trade
LH Laboratory Corporation of America Holdings 132.64 1.49 1.14 680,011 Trade
PFE Pfizer Inc. 42.73 0.36 0.85 24,540,172 Trade
HPQ HP Inc. 21.01 0.22 1.06 8,839,353 Trade
MRK Merck & Company Inc. (new) 74.50 1.13 1.54 12,502,012 Trade
EQT EQT Corporation 20.95 0.16 0.77 3,755,210 Trade
AOS A.O. Smith Corporation 46.01 -0.39 -0.84 1,065,493 Trade
AMT American Tower Corporation (REIT) 163.05 1.65 1.02 1,597,062 Trade
CIM Chimera Investment Corporation 18.42 0.04 0.22 1,012,775 Trade
FE FirstEnergy Corp. 38.12 0.12 0.32 5,188,628 Trade
MU Micron Technology Inc. 33.99 -0.68 -1.96 30,633,574 Trade
KO Coca-Cola Company (The) 47.57 0.42 0.89 11,342,944 Trade
KMX CarMax Inc 64.39 -0.47 -0.72 1,230,517 Trade
T AT&T Inc. 30.60 -0.02 -0.07 26,735,374 Trade
CAT Caterpillar Inc. 130.69 -1.11 -0.84 3,224,080 Trade
CAG ConAgra Brands Inc. 21.12 0.27 1.30 5,798,611 Trade
NUVA NuVasive Inc. 46.40 1.37 3.04 717,451 Trade
CCI Crown Castle International Corp. (REIT) 107.40 0.98 0.92 1,271,754 Trade
CX Cemex S.A.B. de C.V. Sponsored ADR 5.20 -0.03 -0.57 7,328,434 Trade
MSFT Microsoft Corporation 105.01 2.96 2.90 31,587,616 Trade
NIHD NII Holdings Inc. 5.26 0.18 3.54 775,132 Trade
WMT Walmart Inc. 96.25 1.30 1.37 7,058,230 Trade
IBM International Business Machines Corporation 121.73 1.34 1.11 3,507,719 Trade
JPM JP Morgan Chase & Co. 101.68 0.74 0.73 26,504,852 Trade
DIS The Walt Disney Company 111.76 -0.66 -0.59 9,800,910 Trade
HD Home Depot Inc. (The) 176.47 -2.34 -1.31 5,016,065 Trade
XOM Exxon Mobil Corporation 71.67 0.04 0.06 10,298,309 Trade
BA The Boeing Company 352.24 1.88 0.54 2,940,908 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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